Stamp Collecting In Reverse

Or stated differently: liquidating one's collection. First, some background, followed by my evolving vision for disposal. Comments about disposal are welcome.

I just turned 62, enjoy decent health, am not "rich," but have no financial worries. Retirement looms in two years. Most importantly, my only child (daughter now 24 years old) has pointedly asked me NOT to pass my collection onto her. Fair enough.

Compared to the more intensive users of this forum, my collection is modest, representing just over $22,000 invested from 2019 through 2024. Most acquisitions were from eBay, some from Hipstamp, a few from brick-and-mortar stores, and some from lots purchased at stamp shows. I maintain two U.S. collections in parallel: (1) mint singles stored in three Scott albums, and (2) used singles stored in three Minkus All American binders. Individual stamp conditions vary - I have certs for about 20. The balance may be considered in "very fine" condition, but there are outliers in both directions. Mint specimens are affixed in clear Showguard mounts. Used stamps are mounted with Cohn Fold-O-Hinges. Add to this the usual accumulation of duplicates. Most of these are stock-booked in some semblance of order. Then there's a gallon tin for holding the stuff that's not worth organizing. Aside from the U.S. collections is an accumulation of a couple thousand aviation-themed stamps stored in stock books. For the most part, these are limited to stamps that clearly identify the type of aircraft depicted. All the above, in sum, occupies about five feet of shelf space in my office. I also have a spreadsheet for organizing data about almost all the stamps on hand: catalog number, date of purchase, description, condition, purchase price.

My primary motivation for collecting was to complete series. For a while, it was an awarding adventure to harvest specimens from purchased collections. The law of diminishing returns set in some time ago... I still make occasional purchases, but my remaining needs are those stamps that are most subject to fakes, forgeries, etc. Having been burned a couple of times (once involving a fake used Scott 461), my enthusiasm for the hobby has waned a bit. By no means an "expert," I will leverage my experience as I prepare to liquidate.

On to disposal: I am in no rush, nor do I expect to "make money" on my investment. But I would like to minimize the loss.

OPTION 1: Set up an eBay account. Understood that the highest returns come from selling in pieces, but I lack the patience for the drama that apparently comes with maintaining an eBay platform.

OPTION 2: Use the APS's circulation books to dispose of specimens with market values ranging from $2 to $50 each. Anything valued above that would be listed individually on Hipstamp. I understand that commissions have to be factored into whatever value I realize. Low- and no-value accumulations will be donated or used for creating mosaic art work. Option 2 is my leading choice.

OPTION 3: Present the collection either as a whole or in select segments to stamp dealers. Understood that it's a business with buy/sell margins to be realized. Understood also that one should "shop" for offers. I would expect to travel, probably to New York State where so many are concentrated. Understood also that offer values can vary directly to the time available to the dealer to inspect the collection. All that being said, I think I'd do REALLY well if I got back 25 cents on each dollar I paid.

About presenting to dealers: presentation matters. I can leave everything mounted in albums. Or I could pull everything and align them in catalog order in stock books. I could also make indexed webpages with hi-def scans depicting the face and (when applicable) an image of the reverse placed in watermark fluid. I can imagine a range of reactions to these thoughts. But that's why I'm here. Let 'er rip.

Thanks.

For Option 3, sub in auction and scratch dealer.

- if he can tolerate potentially one year or more from consignment to receiving payment. Dealers have the clear advantage of usually paying cash on the barrelhead.

Just curious, but what is the range of percentage an auction house receives from a seller? Are there other costs/fees above that percentage a seller may incur from the auction house? Curious because I'll probably be going that way in a few years, realizing that the percentage may increase over time.

In the UK, it's usually around 20% including tax. Avoidable if you sell direct to the house.

Seller gets up to 60% of final everything included cost of an item, less costs to get the material to the auction firm. This is based upon 15-20% sellers fee and another 15-20% buyers fee, plus buyers costs for shipping and any required taxes and customs fees. As a buyer, if $120 is my estimate of an items maximum value to me and I am the winner, I will only have bid $100 to allow for a 20% buyer premium ($100 + 20% = $120 to me), less in my case 8.25% for sales tax (which drives my top estimate of value down to only $120) and for some auction firms the minimum of $15 or $20 minimum shipping charges (also driving down the value towards $120). In total my bid may only $100. Take the sellers percentage of 20% and my $100 dollar bid get the seller $80 net, less any other expenses the seller incurs. Thus in this example, a $135 ($100 x 20% x 1.0825 and lets say I can prorate the $15 shipping on three items item nets the seller $80 or between 59-60%. But in reality the seller will get nothing unless they have met the auction firm's minimum consignment threshold of $1000-$5000 and the firm is willing to list lots with a hammer value of only $100.

Of course, I have not addressed the issue of the percent of catalog value that $120 item represents.with at times is 5%-50% until you get into the mid-6 or 7 figure price range.

Edited for English and better math clarity.

Auction houses get 10% from the seller and then get 20% from the buyer . Sounds like a lot but most auction firms want to buy outright . They also have limits ,they take consignments if it realises over a certain price otherwise they make a buy offer . Firms like XXX set a lower standard for me ,because of me and others buy and sell a lot over the years . Firms also have "Feeder " sellers who consign material all the time ,again at a reduce rate .

Such a business relationship does not exist for most collectors who are doing a final disposal of a lifetime collection.

OPTION 4 - continue collecting. You've got another 20 years; what are you going to do when you're retired?

Box it all up and send to auction house. Done

That's just about the worst nightmare for any auction house. What are they supposed to do if the material is not "good enough" ? What are they going to do if the sender insists there is "the good stuff" missing if he gets it back?

Another possible option is to talk to a dealer you did a lot of business with and see whether you can consign the collection to them. They would break it down and sell it off and usually take 20% off the top. Some would do it and some would not, but it might be worth an inquiry.

From personal experience of doing it all different ways the most efficient way to dispose of a large lot is through auction. As Chris mentioned it is not a short process, taking up to a year from transferring it to the House to final payment. It still usually beats consignment when it comes to time, and it beats selling to a dealer for money. I sold a US collection through a dealer as single stamps (20% commission) and it took two years to finish. I have sold outright to get it over with and the offer was pennies on the dollar. By far my best experience has been at auction. That being said I did get the runaround from one of the largest auction houses when it came to payment because they allowed deadbeat buyers to "buy" but not pay in a timely manner. It is all IMHO a hassle, but the auction is the least hassle.

PS: Be prepared for the worst case which is that the bidders are asleep that day and your material sells at the opening or there are no bids, and it is listed again in the next auction.

The % a seller pays varies. Not only can it be different from auction house to house, but it also depends on exactly what you are selling with less desirable* offerings paying more and more desirable paying less. Also depends on whether you are a regular seller or a one time seller.

*Desirability depends on more than just cat value and condition.

Commission rates can be negotiated but unless you have something that auction houses would compete for (few and far between) expect the standard agreement, with 20% being most common.

I missed that word in your OP, BFRomeos, or I would have commented sooner. Stamp collectioning is not an investment with the exception of only a handful of philatelic items, none of which you own based upon your spending total during the 6 years period described. Stamp dealers, even full time dealers don't invest in stamps, they buy inventory and sell the inventory purchased, except of course for the handful of philatelic items mentioned above. They have no need to purchase material they already have in stock, no matter the value of the individual item.

So your disposable is hampered by determining what you own that dealers need and want. The remained of your holding will be moved at a very low percentage of value as a bulk lots or lots. Those realizations are not pretty and hammer home the fact philately is not an investment activity.

Edited for highlighting.