Inherited Collection? Part II: How Urgently Does the Collection Need to be Sold?

In some cases, an outright sale of a collection is the best course of action

A few days ago, I addressed a very specific request for help regarding an inherited stamp collection. In this case it was a large, contiguous worldwide collection (A-Z) of multiple stamp albums from a very enthusiastic collector of “The World.”

A large worldwide collection of stamps, housed in multiple volumes of one specific series of stamp albums.

Throughout this series I’ll mention frequently that the best disposition of a stamp collection depends upon just what type of collection it is, as well as the situation of those who need to sell it. Both of these factors can — and will — drastically affect the outcome. In this case, unless a similarly enthusiastic collector of worldwide stamps could be found, selling at auction would appear to be the best course of action. With a huge volume of mostly lower-value stamps, the collection is just too much for many individuals to digest.

But that’s certainly not always the case, nor is it the only consideration.

First things first

When I am contacted by the family or estate of a deceased collector, the first thing I need to know is how urgently a collection needs to be sold. If the estate needs to be cleared soon, then the collection needs to be dispersed quickly (and usually for much less than it could ultimately be worth); if time is not an issue, then many more options and variations open themselves, allowing a greater maximization of value. But let’s get back to the point; we’ll explore other options further in a future installment.

The second thing I need to know is what kind of collection is it? In other words, how large and how focused or random is it? The next step is to view the collection in person if possible. If it is a small collection (usually 6 boxes or fewer), I usually ask that the collection is brought to me for a free quick appraisal, otherwise I ask for travel expenses — something that is waived if I ultimately buy the collection.

If time is of the essence, then a direct sale to a collector or dealer is likely the best course of action. If the collection is fairly focused and manageable (such as an exhibit or specific country collection that fits a collector’s interest), then an honest collector may well be able to pay more than a dealer would. Keep in mind that every cash outlay by a dealer means the foregoing of another opportunity — either financially or timewise. With that in mind, let’s proceed.

I’ll use two examples of relatively recent purchases to illustrate contrasting perspectives of this point.

Collection 1

This collection was a small collection, contained in two loosely packed banker boxes (roughly the size of a copier paper box). Because the volume of the collection was fairly small, I was able to go through it quickly. The vast majority of it consisted of unorganized 20th-century foreign stamps and a 1950s U.S. album that was sparsely filled — the type of collection I’d usually advise be donated to a stamp club for its youth program. But it’s still important to look thoroughly.

Upon closer examination, I found two much-older manila folders in one of the boxes; one contained about a dozen pages of pictorial fancy cancels of the late 19th-century, and one that contained a significant number of Sanitary Fair stamps from the Civil War (As a short explanation, Sanitary Fair stamps were sold to benefit the U.S. Sanitary Commission, which traveled around, educating troops about hygiene and also posting letters at no charge to soldiers.) These stamps, my visitor explained, were from his grandfather’s collection. They represented 100% of the value of the collection.

Top: a few sample pages from the fancy cancel sub-collection, which contained both fake and genuine examples. Above: Part of the sub-collection of Sanitary Fair stamps (removed from pages), again, with both fake and very nice genuine examples.

Although there were some fakes in both sub-collections (they had been formed in the teens and 1920s), there was significant value, and I paid accordingly.

Collection 2

This collection (not shown) was extremely well organized, with much sorted by Scott number; mint, used, full panes and canceled were all carefully stored together, and mint foreign stamps were mostly kept together by topic. This collector, who made a large financial investment in his collection, was active primarily from the 1990s to the present. The problem was, the estate needed to be settled quickly and it filled my entire van twice. I paid accordingly. Unfortunately, the family did not receive anywhere near the amount spent by the collector, mainly because the massive collection represented a large number of small purchases over the years, rather than an investment in fewer (and more valuable) stamps.

In my case (as purchaser), while there will certainly be a significant amount of value to be mined from this collection (most of it in face-value material), my time investment in sorting, sifting, pricing and selling will be significant. This is one example of what I call a “sweat equity” collection.

One final note

If you are reading this article because you have inherited a collection and don’t know much about stamps, here are a couple of pieces of advice.

1. Don’t shop it around too much, or tell dealers “so-and-so offered me $xxx.xx. How much will you offer?” Examining a collection is an investment of time on a dealer’s part. This type of approach may indicate to the dealer that spending time with it is a waste of time or, conversely, is not fair to the first dealer, who already spent time examining the collection to make a fair offer.

2. If a dealer looks at the collection and then asks “How much do you want for it?,” this is a clear — and major — red flag to me. A professional dealer should be able examine the collection and be able to make a fair offer, which can be accepted or rejected. Asking a non-knowledgeable seller “how much?” is simply a fishing expedition to take advantage of the situation.