Friday, February 27, 2009

Dilemma Decision

Yesterday, I talked about my dilemma. Today, or actually late last night, I made a decision. I choose option C. Of course, yesterday I only talked about 2 options. The third option appeared last night. One of the stamp dealers in Israel listed a large lot of Town Emblem plate blocks (76 different printing dates). I checked the pictures, and found that I need at least 40 of the 76 plate blocks in the lot. And the total Bale catalog value for those 40 is north of $1700. So, rather than spend $150+ on a single landscape plateblock that catalogs around $400, or spend the same amount on a bunch of maxi-cards that aren't even listed in the catalog, I chose to spend a bit more than I wanted on the 76 plate blocks. Value wise, I am paying less than 20% catalog for the items I need, and I will still have 30+ plateblocks that I can re-sell and try and lower my cost basis for the ones I needed. I also listed another dozen or so items on e-bay (currently, I have roughly 25 auctions running). Hopefully, I will make enough to allow me to buy some of the other items I want. Then, I will be back with the dilemma I had yesterday. Unless, some of the lots sell, or are taken off sale by then. 3 of the maxi-card lots I was looking at already sold, so it is a possibility. We will see...


Sam said...

I would be interested in any of your duplicate town emblem blocks that I don't have. Send me a list or let me know when you list them. Just out of curiosity, who listed the collection you purchased? Thanks.

Adam said...

It was E-bay lot #390033988226, offered by Rubin-m (Rubin Midan). It was offered as a buy it now lot, with a best offer option, I offered about 20% less then the asking price, and bought it for about 10% off. If you send me your e-mail address, I can send you a list of duplicates once I receive the lot from israel.

yariv said...

hi adam,

all is nice and well but one question, why use bale pricing if a $ 1700.00 lot is sold for arround $ 300.00 which is less the 20% catalog ?
at the end of the day dealers on e-bay, like rubin have turned the value of these items into junk and that is a great cause of concern to dealers and collectors who look at these prices and ask themselves why are we in it?
i have decided to lower my inventory and not buy new items such as plate blocks because i know that i will have to sit on rge inventory for a long time and then have to sell it at a loss.
your collection is going down in value every year because of e-bay dealers who just want to make a fast buck.
goog luck with your collection, i just hope that when you insure it you remember to decrease the value every year, its sad but true.

Adam said...

True, on E-bay you don't get close to catalog value. I am not really concerned, because I am adding to my collection items that I need. The problem is really demand. If there are no collectors buying material, it must come down in price, or the sellers will be unable to sell. E-bay may not be a true reflection of demand, since not all buyers look there, but it is closer than a local stamp show for instance. I have gone to a couple of shows and seen the same people selling the same items at the same price for years, they refuse to lower the price because the catalog says it is worth that amount. Is the catalog right? I know in 2000 Bale was sold to a new company, and prices went up. Now, I refuse to use anything past the 1998 version to gauge the price of an item. Stamp pricing is all about supply and demand. The catalog tells us about relative supply between various items, but really has no bearing on demand. If demand is going down, and supply is constant, than pricing must go down, or the market will dry up. I think we are going through a cycle where demand is falling, and dealers who don't adjust prices accordingly will be stuck carrying a large inventory.

yariv said...

hi adam

i have to differ with you on this subject, as a dealer, lotsofstamps on e-bay,and a store in haifa, i see the demand going down, and i hear the comments of many collectors who are also customers who stste very clearly that they have stopped buying and now want to sell their collection due to the constant fall of value of israel stamps. the main reason is e-bay that has dictated prices that are a joke.