I am sure we all have taken a second look at the shiny metal flakes of "fool's gold" we found in the sand at the beach or the dirt of a forest or in the banks of a cliff. Could this be a real gold flake? Well, it doesn't hurt to look, but there are other enticing items that we consider which may also turn out to be fool's gold. I am talking about the collectibles that are offered for sale everywhere; on TV, in the mail or in your e-mail inbox.
Now as a hobby collectibles are great fun, whether it be stamps, antiques, plates, paintings, coins or anything else you can imagine; but, be sure you collect them for the enjoyment they give you. If you are enticed to purchase for the possible investment reward later on - - - beware. I have been a collector for many years and in diverse fields. I was a professional stamp dealer for several years. I have been an appraiser. So, let me tell you a few things gathered from my own experience and knowledge.
You may see adds in magazines offering stamp approvals for your consideration and possible purchase. This is a fun way to begin or add to a collection. There are literally thousands of postage stamp dealers in this country. Approvals are a method of selling which allows you to look at the merchandise, choose what you want and then return the unwanted merchandise to the seller. All it costs is the price of the stamps kept and the return postage for the rest. But, if you are buying for investment it is advisable to work with a reputable dealer or (based on your knowledge) attend an auction where you may find desirable items. Value is based on rarity, condition, and demand for the stamp you are considering. The stamp market is connected to the economic situation of the country. Stamp values when on the rise do so slowly. The same applies to coins. Current issues of stamps are almost certainly never going to rise in value enough to make investment worthwhile. A particular stamp issue is printed in the hundreds of thousands and will never be rare. An example is the 3 and 4 cent varieties issued in the 1940s which cannot now be sold, unused and in mint condition, for their face value. A stamp dealer, if at all interested, would only pay half the face value. Collectors who buy full sheets of each stamp issue will never receive more than face value when sold. A lady once visited my store to offer her collection of U.S. mint sheets for sale. She had invested hundreds of dollars over the years. I had to tell her the sad news. I was not interested and the only way I could suggest for her to recover some of her money was to contact large direct mail merchandisers such as Montgomery Ward or Sears who might buy the stamps for use as postage - - - at perhaps 5 per cent discount from face value.
Some companies offer plates for sale. These are usually items created by or for a popular artist. They are very beautiful. There is even a trading market for them. But, again, there is no intrinsic value and would rise in price only if another collector shared the same attraction for the subject or artist involved. A risky investment.
Antiques are a different sort. They not only have the value of utility but also have a demand by others because of the nostalgia of the past. My wife and I collected antiques but only with the provision that they would be something we could actually use in the home and were in good condition. Thus we could enjoy the beauty, the sense of owning a part of history and still have the use of a practical item. Our kitchen was a haven for such antiques: coffee grinders, utensils, iron ladles, pottery and, on the wall, even an early wooden cased crank telephone which I had a technician convert into a dial phone that was hidden behind the front cover. When folks asked if it worked I said "Sure, just lift up the receiver, crank the handle and then tell the operator what number you want!" Can you believe some actually tried to do this? Antiques can be a good investment if you use them and take good care of them. An antique sofa or chair can be purchased for the price of a current one. But, the antique will grow in value and the current one will take a hundred years to become an antique.
Precious metals: gold, silver, copper can be good investments. It will depend on the economy and the value of its use at the time of sale. But, do not send your gold jewelry by mail off to some buyer that you cannot reach in person. You must know who you are dealing with. Reputable dealers are everywhere and there are probably several in your own community. Be careful and knowledgeable when making a purchase for investment. That goes for all such collectibles.
Those of you who have seen the TV production "Antique Roadshow" may be impressed by the estimates given by experts on the value of certain items. But, remember that the estimates are just that and owners are told that it is a guess at what it might bring at auction. They are not offering to buy it. And the chance of you finding an old Picasso painting in a yard sale is close to non existent. Your chances of finding something of real value will increase if you become knowledgeable in the field of your interest. It's fun to collect and it's O.K. to invest. Be careful and remember - - - - if it sounds too good to be true - - - - then it probably is.
Just sayin'
Now as a hobby collectibles are great fun, whether it be stamps, antiques, plates, paintings, coins or anything else you can imagine; but, be sure you collect them for the enjoyment they give you. If you are enticed to purchase for the possible investment reward later on - - - beware. I have been a collector for many years and in diverse fields. I was a professional stamp dealer for several years. I have been an appraiser. So, let me tell you a few things gathered from my own experience and knowledge.
You may see adds in magazines offering stamp approvals for your consideration and possible purchase. This is a fun way to begin or add to a collection. There are literally thousands of postage stamp dealers in this country. Approvals are a method of selling which allows you to look at the merchandise, choose what you want and then return the unwanted merchandise to the seller. All it costs is the price of the stamps kept and the return postage for the rest. But, if you are buying for investment it is advisable to work with a reputable dealer or (based on your knowledge) attend an auction where you may find desirable items. Value is based on rarity, condition, and demand for the stamp you are considering. The stamp market is connected to the economic situation of the country. Stamp values when on the rise do so slowly. The same applies to coins. Current issues of stamps are almost certainly never going to rise in value enough to make investment worthwhile. A particular stamp issue is printed in the hundreds of thousands and will never be rare. An example is the 3 and 4 cent varieties issued in the 1940s which cannot now be sold, unused and in mint condition, for their face value. A stamp dealer, if at all interested, would only pay half the face value. Collectors who buy full sheets of each stamp issue will never receive more than face value when sold. A lady once visited my store to offer her collection of U.S. mint sheets for sale. She had invested hundreds of dollars over the years. I had to tell her the sad news. I was not interested and the only way I could suggest for her to recover some of her money was to contact large direct mail merchandisers such as Montgomery Ward or Sears who might buy the stamps for use as postage - - - at perhaps 5 per cent discount from face value.
Some companies offer plates for sale. These are usually items created by or for a popular artist. They are very beautiful. There is even a trading market for them. But, again, there is no intrinsic value and would rise in price only if another collector shared the same attraction for the subject or artist involved. A risky investment.
Antiques are a different sort. They not only have the value of utility but also have a demand by others because of the nostalgia of the past. My wife and I collected antiques but only with the provision that they would be something we could actually use in the home and were in good condition. Thus we could enjoy the beauty, the sense of owning a part of history and still have the use of a practical item. Our kitchen was a haven for such antiques: coffee grinders, utensils, iron ladles, pottery and, on the wall, even an early wooden cased crank telephone which I had a technician convert into a dial phone that was hidden behind the front cover. When folks asked if it worked I said "Sure, just lift up the receiver, crank the handle and then tell the operator what number you want!" Can you believe some actually tried to do this? Antiques can be a good investment if you use them and take good care of them. An antique sofa or chair can be purchased for the price of a current one. But, the antique will grow in value and the current one will take a hundred years to become an antique.
Precious metals: gold, silver, copper can be good investments. It will depend on the economy and the value of its use at the time of sale. But, do not send your gold jewelry by mail off to some buyer that you cannot reach in person. You must know who you are dealing with. Reputable dealers are everywhere and there are probably several in your own community. Be careful and knowledgeable when making a purchase for investment. That goes for all such collectibles.
Those of you who have seen the TV production "Antique Roadshow" may be impressed by the estimates given by experts on the value of certain items. But, remember that the estimates are just that and owners are told that it is a guess at what it might bring at auction. They are not offering to buy it. And the chance of you finding an old Picasso painting in a yard sale is close to non existent. Your chances of finding something of real value will increase if you become knowledgeable in the field of your interest. It's fun to collect and it's O.K. to invest. Be careful and remember - - - - if it sounds too good to be true - - - - then it probably is.
Just sayin'
