WHAT
IS MY COLLECTION WORTH?
The following information is provided primarily
for the individual or family who has inherited a stamp collection and is seeking
to find out what it is worth and the process used to determine the collection's
value. There is also much information here for the actual collector as well, who
is not familiar or does not understand how one determines the value of a
collection for the purpose of selling.
The AMERICAN PHILATELIC FOUNDATION and
its appraisers have spent decades professionally appraising stamp collections.
The Foundation's Executive Director and principal appraiser has been a
professional appraiser and buyer of stamp collections for over 40 years. (He has
completed a definitive book on Philately, {stamp collecting}), which was published in 1998. A Foundation version is available for $20. Besides
appraising for his own company, the Foundations Director has been associated
with many major auction firms as an appraiser and a buyer. During that time he
appraised and purchased thousands of rare stamps and collections. He is no
longer a full time dealer, but volunteers his time to the Foundation. Our
Director is considered one of the top philatelic experts in the world.
We would like to share with you some of the
stories about philately, and inform you of the problems one will encounter when
you inherit a stamp collection and wish to sell it.
Many times a person will come to the Foundation
announcing he or she has just been willed their fathers stamp collection and
then has gone out and purchased a Scott stamp catalog. They then look up the
value of the stamps, and after adding everything up, are ready to either retire
wealthy, or at least have a small fortune after the collection is sold! Our
Director, while representing a West Coast auction firm, was called to Santa Ana,
CA. to appraise an entire room full of stamp albums (380 volumes). The collector
had told the estate's attorney before he passed away that the collection was
worth two or three million dollars. When our expert arrived, there were 14
family members gathered in the "stamp room" to hear how many millions
of dollars they were going to be able to divide. The attorney informed the
Foundation that many members of the family had made monetary commitments, based
on the anticipation of the sale of the stamps. Some had bought new cars; one had
made a deposit on a new home! After examining the collection with everyone
present, our Director told the family that he had some good news and some bad
news. The bad news was that the collection, consisting of common stamps soaked
off of common mails and correspondence during a 50-year period, had no monetary
value at all. The good news was there would be no appraisal charge!
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HOW
DO WE DETERMINE WHAT IS A GOOD COLLECTION?
If every person who purchased a Scott Stamp
Catalog (the accepted standard catalog in the hobby), took the time to read the
fine print in the front of the book, part of this question would be answered. Condition,
appearance, and scarcity are the keys to value.
Let us start with what the advanced collector
considers a good stamp. Stamps that catalog at least $250.00 each are considered
good stamps. Stamps that catalog $1,000.00 or more are considered scarce. Stamps
that catalog $5,000.00 or more are considered rare.
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THE
AVERAGE, BETTER STAMP COLLECTION
The Foundations usual appraisal would be
categorized as the average better collection. We try to only accept the
average better collection to appraise, as the Foundation limits its time to this
caliber of collection or better. However we do accept the hobby collection
hoping to find a few better stamps, enabling the owner to receive maximum value
when sold. Let me describe to you what is in the average stamp collection we
call a "hobby collection" as opposed to the better average stamp
collection.
The hobby collection is a collection formed of
countries of the world, where the collector has tried to fill in spaces, or sets
of stamps with a combination of both mint and canceled varieties. In most cases
the "high value" of a given set is lacking. As an example: A set of
stamps would be issued by a country starting with a one cent stamp and
containing other values up to five dollars. The average hobby collection would
have only the first half of the set and not the higher values. Additionally, the
hobby collection would contain a combination of mint and canceled stamps which
would be making up a given set or part of a set of stamps.
By reviewing your collection you should be able
to see what I am explaining here.
What sets the advanced collection apart from the
hobby collection is that the sets are mostly complete to the high denomination
in the better collections. The next factor of importance is if the complete sets
are mixed used and unused, or each set is mostly mint or all mint. Collections
that contain all mint sets generally are better collections as un-cancelled
stamps are more popular and more valuable than canceled stamps. What can make
this collection valuable or very valuable is the quantity and values of these
mint sets.
The more extensive the collection and the larger
the quantity of mint complete sets will result in a better cash value of your
collection. Obviously a ten or twenty volume collection bulging with mint sets
will be much more valuable than one or two albums with sparse material. Even
though your collection might not contain "rare individual stamps," it
still could be very valuable based on a large quantity of un-cancelled mint
complete sets.
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APPRAISED
FOR A MODEST DONATION
If you have the following only: The Modern Postage Stamp Album, The Citation
Albums, The Ambassador Albums, The Harris Albums for World Wide Stamps, Scott
International or Minkus Supreme Global that are sparse. Sparse means about
twenty five percent filled or less. First day covers, Modern US Postage Stamps
after 1930. Any album that is printed for stamp collectors
containing spaces for stamps of the world that measures about 8x12 but only an
inch thick. The exception would be albums printed in the 19th century. By
visiting our section Not Appraisable we describe to you how to recognize
valuable stamps.
Now that we understand the above, let us
consider condition. Condition is everything in relation to the actual
value of stamps. Some condition factors are the centering of the stamp relative
to the margins on each side (the paper border). Is the stamp sound? Does it have
a tiny tear or a repair? Has the stamp been altered from its original condition
or has the gum been reapplied?
The most valuable stamps were printed in
the 19th Century and few have come down through this century in perfect
condition. Many 19th Century gums were acidic, and have damaged the stamps over
the years. And, what most non-collectors do not know is that most 19th Century
valuable stamps were forged extensively. Classic Japan as an example has 1000
forgeries for every genuine stamp.
Good valuable collections have certification
papers on all valuable stamps. Many collectors don't bother to do this, but rare
stamps cannot be sold today without proper certification. The Foundation staff
can identify better early stamps and assist the owner in getting these stamps
expertised. No single individual can normally be responsible for expertising
including the Foundation's Director.
Another major factor affecting condition is poor
storage. Even knowledgeable collectors can sometimes make the mistake of
poorly storing their collections. Collections left too long in boxes and in
closets, especially in California or states that have a humid climate,
will eventually develop mildew. If the album pages are not aired out
periodically, the unused stamps will eventually stick down to the album pages
- greatly reducing their value. Most collectors' air out their collections but
the novice of course does not know this. Sometimes you can just test this out by
simply smelling the albums. If they have that strange unpleasant smell of mildew
it is time to have a professional examine the collection as soon as possible.
As you can see, there are many factors that
affect the value of a collection. Only a professional appraisal can determine
the correct value of a stamp collection.
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PROPER
IDENTIFICATION
Let's return to the person who ran out to get a
set of catalogs. It has been our experience that the novice who attempts to
identify the value of a collection without professional help will never be able
to do so. Most people will look up a stamp in the catalog by the photograph and
immediately identify the stamp as the first number under the photo. This will be
the wrong thing to do 99% of the time. As an example let us take the 1851 United
States one-cent issue showing the portrait of Benjamin Franklin. This stamp
comes in seven different printings, all looking alike to the average
collector. The most valuable printing is the first - that stamp being worth
about $100,000.00 in perfect unused condition. The cheapest printing is worth
about $35.00 used. If you are not a stamp expert, and you look up the 1851 one
cent in the catalog, you will probably think you have just hit the winning
ticket in the lottery. Rare stamps such as the one above only come in very
limited quantities and all known copies are accounted for. There are hardly ever
any new discoveries, but the novice continues to call the Foundation every day
saying he or she has found this or that rarity. A certificate almost always
accompanies rarities. Collectors in most cases who have bought rare stamps
have already had them certified. The lesson here is: don't try and do an
appraisal yourself, leave it to a professional.
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WHAT
IS WRONG WITH THE STANDARD CATALOG?
Many collectors keep notes and inventories on
their collections, in some cases indicating the catalog value of better stamps
or in some cases the whole collection. Let us say the collection catalogs
$50,000.00. Armed with this information, the heir is ready to go out and find
someone who will pay the $50,000.00. It will never happen….here is why.
The average dealer, figuring the collection does
catalog $50,000.00, might offer $5,000.00 - if the collection has strong
popular stamps cataloging from $250.00 and more. Conversely, should the
collection be a "count collection," a dealer will offer much
less. Your first thought to this kind of offer will be that the dealer is a
crook. That is probably not the case. The Scott Publishing Company who print the
catalogs are not in the business of informing collectors what stamps are really
worth! If that were the case, then a stamps "value" would seldom
change in the catalog (because they don't change very often in the market
place), and the company that prints the catalog would only be able to sell their
books once in the collectors life! The Scott Publishing Company, until recently,
has moved the value up artificially every year so those collectors will buy a
new set of yearly catalogs at a cost exceeding $100.00! Therefore, when you
bring your $50,000.00 collection to a dealer and he only offers you 5 or 10
percent of the catalog value for it, the dealer is not being unethical, but only
offering you what might be a fair wholesale price. A dealer will spend years
disposing of a collection and will often have to buy at very low levels in order
to turn a normal profit.
A "count collection" is a collection
filled with defective but attractive stamps that have a high catalog value, but
due to condition problems and the presence of forged stamps, has a very low
value relative to the standard catalog. A current advertisement shows a Dutch
dealer offering a British Commonwealth collection containing $75,000.00
in catalog value for $1,375.00! That figures to less than 2% of the
catalog value. A copy of this ad is available upon request. On the other hand,
if you have a collection, which was formed with stamps in perfect condition, and
they are in the higher value category, it is possible to achieve full retail
value. Although the Foundation does not buy stamps, our experts are able to
assist the public in the evaluation and sales of stamp collections.
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REASONS
TO ALWAYS HAVE A PROFESSIONAL APPRAISAL
THE
DEALER APPRAISAL
Many dealers must mark up their purchases from
three to ten times. That is correct, up to ten times mark-up over cost. A
dealer who buys a collection today has a very high overhead to run his business.
It is common to mark a collection up as much as ten times to net the dealer a
good return. That same dealer will take the chance of losing a good purchase so
long as the collections he buys are very cheap. The other factor to consider in
selling to a dealer is that many dealers are not knowledgeable enough to figure
early classic stamps, as these stamps are often forged or repaired. Another
factor to consider is the (unethical) practice whereas many dealers work
together when a collection is being offered for sale. The idea of getting two or
three offers from local dealers sounds right but unbeknownst to the uneducated
seller, after receiving an initial offer and turning that down, this is what
normally happens. Dealer one, after applying modest to harsh pressure on your
selling to him, will alert all the local dealers of your collection. He informs
them of his offer and the other dealers will call on you offering the same
amount or very close to that amount. The end result is that whoever buys it will
share the profit with the other dealers. This practice of fixing a low offer
price is very common. Most dealers ask for an appraisal fee, waived if they
buy the collection. The worst problem with the dealer appraisal is the
appraisal itself. Dealers appraise collections, not at fair market value but at
what they want to pay for the collection!
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THE
FOUNDATION APPRAISAL
At the Foundation we are not dealers and the
Foundation does not purchase stamp collections. Our commitment to the public is
to do appraisals at the retail level. The Director, Michael DuBasso, has 40
years of retail stamp sales experience, including working for several major
auction firms, including Harmers of London. He and the Foundation's consultants
recognize rare stamps and have the expertise to differentiate genuine stamps
from common forgeries most of the time. A good stamp collection takes several
days or longer to appraise. Unlike the quick dealer appraisal, the Foundation
takes the time to carefully examine the more valuable stamps to determine their
retail value. We have an extensive and specialized library for our research
work. Generally the Foundation can not do a serious appraisal outside of our
offices.
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WHAT
DOES AN APPRAISAL GIVE YOU?
The Foundation Appraisal allows you to have full
knowledge of what your collection is worth, both on the retail level as well as
the cash value, in case you must liquidate the collection. With this
information, the dealers cannot take you advantage of. You may use this
appraisal for insurance purposes.
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SELLING
THE COLLECTION
The Foundation can help you sell a collection at
the retail level. We have many collector-buyers interested in acquisition at the
retail level as well as internet sales. A donation from the buyer is usually
given to help the Foundation defray its costs. Our consignors bare no costs
whatsoever.
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APPRAISAL
INFORMATION AND ADDITIONAL SERVICES
The Foundation offers the public free appraisals
for better stamp collections. Our goal is to protect the public from unsavory
dealer practices. Our appraisal service is aimed principally to those persons
who have inherited a valuable collection and who do not have the expertise to
evaluate it properly themselves. The Foundation relies on a staff and philatelic
expert consultants knowledgeable in the most specialized areas of philately.
The appraisal is done in the following manner:
If it is a simple stamp collection of mostly 20th Century material, containing
no special cancellations, and it is not bulky, the work can be accomplished in a
short time. The appraisal figure provided would be within 10 % of current market
prices. If the collection is multi-volume, containing early 19th Century
material, it is suggested to have a thorough examination, which can take several
days. This is recommended as we use florescent light, and other tools, to better
evaluate the condition on the rare stamps. Also, typing of varieties takes much
time on early valuable stamps, as we must consult plating books to correctly
identify many early issues. Specialized reference works must be consulted for
difficult areas of philately.
The Foundation will appraise your collection at
two levels: First, the hard cash value of the collection, meaning, what a fair
dealer will pay in cash for your collection today (not 60 days from now). The
second figure we give you is the value at current retail. This price is based on
current catalog value. (Yes, there are always collector-investors who buy entire
collections at current fair market retail for certain countries). A figure we do
not provide for you is the price on an individual stamp at current retail. The
reason is that in order for the holder of an individual item to achieve that
price he or she would have to not only open a retail store, but also have a fine
reputation in the trade. The Foundation thinks it is very important for you to
have this information so that you may have a better understanding on what your
collection might be worth.
The American Philatelic Foundation offers
a very good service to owners who do not want the responsibility of selling
their stamps. The Foundation knows a large group of collectors who fall into the
retail investor category. These collectors have given the Foundation a list of
their wants.
A) The foundation can vouch for these collector-
buyers and their funds.
B) The Foundation can assist the public to sell
a collection for the above described retail price.
This program has resulted in hundreds of sales
over the years with no surprises. (Not as in the case of an auction where you do
not know what you are getting on the front end, and will have to deal with parts
of the collection "not sold" or "returned" after the
auction. Or, not as dealers who make huge mark-ups must do). The Foundation can
provide you with the name or names of both dealers and auction houses should you
wish to pursue this course.
The Foundation is a non-profit organization. We
offer a public service, and in the case of appraisals, this is done to protect
the public against any unscrupulous dealer who would not pay a fair price for
your philatelic holding.
All collections left with the Foundation are
insured to $500,000.00.
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SENDING
YOUR COLLECTION FOR APPRAISAL
Before sending your collection please email
me a description. Shipping your collection to our appraisal center
is not difficult. We recommend sending it by either UPS or registered-insured
mail. If the collection is large, use 12x14x14 book boxes. These boxes can be
obtained at your post office or box store, (measurements will vary slightly).
Send the collection to:
The American Philatelic Foundation
1337 Cordell Place
Los Angeles Ca. 90069
If you have questions about anything call Mr.
Dubasso directly at:
(310) - 275 3256
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HOW
A COLLECTION IS APPRAISED - THE HOBBY COLLECTION
