Auction Sales Are Under the Hammer

Question: Just a note to ask your opinion about stamp auctions. I entrusted a beautiful, unhinged, full-gum, good-color set of U.S. Graf Zeppelins to a stamp auction. I received the catalogue sheet listing them at $2,500.

I recently received the very crushing news that the auctioneer hammered them down at $1,050. I wonder if there was some collusion between the dealer and the auctioneer to dump them for that price. Warn the owners of nice stamps to sell them through ads or any other way than by auction.--R.E.H.

Answer: I’ve sometimes been disappointed with the prices realized from stamps that I’ve consigned to auction, but on the other hand, some of the lots that I’ve auctioned have brought prices in excess of what I estimated.

Even when the stamp market is low, $1,000 seems a bit cheap for a nice set of Zeppelins. Remember, though, that dealers are offering this set for $1,500 to $2,000 retail, so why would an auction buyer pay retail price at auction when he can get the stamps cheaper by submitting a lower bid?

It is too late now, but one thing you could have done was insist on a reserve--a minimum auction price below which you will not let the stamps be sold. Not all stamp auction companies will allow reserves but some do.

I doubt if cheating took place. The buyer got a good deal and you lost some money. I’ll bet the buyer of your Zeppelins thinks that auctions are great.

Q: Among my late wife’s effects are sheets of 18-franc French stamps with a total value of more than 15,000 francs or about $2,200 at current exchange rates. The local stamp store tells me that they are of no philatelic interest. Is there a way they can be cashed in, even at a considerable discount off their face value?--D.P.

A: Try a different stamp store, preferably one of the largest ones you can find (and therefore the best able to afford the capital to purchase these stamps).

If the stamps have a face value of $2,200 in American currency, I guarantee that someone will buy them from you if you have patience and keep looking. Check the Los Angeles yellow pages under “Stamps for Collectors” for the addresses and phone numbers of nearby stamp shops.

Q: Have the following increased in value since they were issued? Mariner 10, Pioneer, Jupiter, W. C. Fields, Skylab, Apollo, Soyuz, U.S. Bicentennial (13 cents). I recall that someone from the East Coast came to Los Angeles when the W. C. Fields stamp appeared here because he heard it was going to gain significantly in value.--D.L.

A: You have described recent U.S. commemorative stamps, mostly space-related issues. Although dealers might sell these for more than face value to make a profit and pay for their business expenses, these stamps are basically still worth face value. There were 168,995,000 of the W. C. Fields stamps issued, hardly making it a rarity, considering that there might be only about 100,000 serious stamp collectors in the whole United States, and many of those don’t want the Fields issue for their collections.

I haven’t heard about the guy from the East Coast, but I have seen the Fields stamp for sale at face value in dealers’ boxes of miscellaneous mint U.S. scrap (singles or part sheets of recent mint stamps).

Q: I have complete sheets of the first stamps of Israel, including the three high values. The sheets, of course, include the tabs. What would they be worth? I won’t sign my name because I don’t want to be hustled by dealers or my ex-wife.

A: The three high values (Scott Numbers 7-9) retail for about $400 without tabs, $2,000 to $3,000 with tabs. Full sheets might bring an extra premium from a collector who wants them.

Condition is all-important on early Israel stamps, and if your stamps are clean and undamaged they should sell easily. I recommend auction for the best price.

Q: I am interested in stamp collecting from an investment point of view and would like to invest in stamps that are most likely to appreciate steadily over the next 20 years. Do you think stamps are a good investment? Do you have any recommendations?--J.S.T.

A: Stamps are like the stock market. If you’re lucky, you make money. If you buy good stuff and hold it for 20 years you have a good chance of making money, but this isn’t guaranteed.

There is no substitute for knowledge. I recommend that you go to the public library and read all of the stamp-collecting books there. Then visit a stamp dealer’s shop and buy a cheap album and a few stamps and start learning.

I’ve been collecting stamps for more than 30 years. I make money and lose money, but I break even overall. Nobody can foretell the future, but nice stamps costing $20 to $100 each are probably going to be in demand tomorrow as well as today.

The important thing is not to overpay for a stamp to begin with. Some people will sell you a stamp for double its actual value, which means that you may have to wait a long time for price appreciation before you can get your money back. Remember: The real value of something is not what you can buy it for, but what you can sell it for.

Stable countries and regions like the United States, Canada, Western Europe and Japan have done well historically in their stamp values. Pre-World War II issues of these nations have generally been good investments in the last 20 years, but the stamp market has down cycles, and it is hard to predict when they will occur. If you like to sleep soundly, put your money into a bank account.

Stamp Calendar

Oct. 31-Nov. 2--Santa Monica Stamp and Coin Exposition at the Santa Monica Civic Auditorium, Main Street at Pico Boulevard, Santa Monica. Dealers will buy and sell items including stamps, covers and coins. Hours: Friday and Saturday 10 a.m.-8 p.m., Sunday 10 a.m.-5 p.m. Admission $2. Telephone (213) 936-0507.

Nov. 1 and 2--Buena Park Coin and Stamp Expo at the Retail Clerks Auditorium, 8850 Stanton Ave., Buena Park (across from Knott’s Berry Farm). Stamp and coin dealers will buy and sell. Hours: Saturday 10 a.m.-7 p.m., Sunday 10 a.m.-5 p.m. Admission $1.50. Telephone (916) 221-4653.

Nov. 2--First Sunday Stamp and Baseball Card Show at the North Hollywood Masonic Temple, 5122 Tujunga Ave., North Hollywood. Stamp and baseball-card dealers will buy and sell. Hours: 9 a.m.-4 p.m. Free admission and free parking. Telephone (213) 662-9326.

Barry Krause, a member of several national stamp-collecting organizations, cannot answer mail personally but will respond to philatelic questions of general interest in this column. Do not telephone. Write to Your Stamps, You section, The Times, Times Mirror Square, Los Angeles 90053.