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Showing posts with label Stamp Collecting. Show all posts
Showing posts with label Stamp Collecting. Show all posts

Sunday, July 29, 2012

Phila-Trivia: The Early Rift Between Beginning and Advanced Collectors



The following article appeared in "The Eagle Philatelist" (Kansas City, Kansas) for July 1892. It is interesting because it describes a critical early controversy which occurred in the philatelic community: the rift between beginning collectors, who tended to be non-discriminating generalists, and more advanced collectors, whose hobby had evolved toward more specialized collecting. The distinction between the two types of collectors is still relevant today, although the "controversy" no longer exists. The vast majority of stamp collectors in the world fall into the first type ("generalist beginners") while those who have become more advanced tend to specialize.

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"The 'Common' versus the 'French' School of Philately"by Harry F. Kantner

Philatelists who have pursued our hobby for thirty years or more will possibly remember the famous controversy occasioned by the introduction of the French School of Philately. For the benefit of the younger element, I will give a brief account of the controversy and the principles advocated by the debaters on both sides.

The young collector will first be contented with the many types to be found, but as his collection becomes larger, he will find minute varieties, some stamps being exactly of the same type but may differ in the shade, the quality of the paper, the watermark, or may exist with or without perforations. Then again in some countries he may find that on a sheet of fifty or more apparently similar stamps there may be fifty or more varieties because of some minute difference in the types, due to inaccuracy in the engraving. If the collector has an abundance of the “useful,” he will usually purchase such minute varieties, often at a very high price. If he pursues this course he is said to belong to the French School of Philately, because the Parisian Stamp Collectors adopted this method as early as 1862. Their principle was “specialism and completeness, every variety and every specimen.” The collectors who disagreed with the French School were termed the Common School of Philately. Many were the arguments in the debates between the two schools, and at last things came to such a stand that the members of the French School were accused of being afflicted with soft spots on their craniums, and the collectors of the Common School adjudged by their opponents as being of the “small boy” class.
So the contest went on, all the stamp journals of the time taking an active part. At last no interest was taken in the debate, and they all with one assent agreed with Charles Mackay to
“Let the long contention cease.
Geese are swans and swans are geese.”

Many collectors may regard this controversy as being of no importance but I believe it was the cornerstone of philately. And why?
Well, had the Common School triumphed there would have been very few scientific collectors and certainly very poor, if any, philatelic literature of a scientific nature, and collectors would rarely, if ever, have become acquainted with each other had there been no stamp journals.

The collectors of the French School, while they knew there were more varieties issued than they could secure, took to a sort of specializing, the result of which lead to scientific collecting, which has laid the foundation of philatel
y.

In the United States today there are many who do not take into consideration the qualities of the stamps. For instance, how many collectors concern themselves about the sizes of the grille in the embossed stamps of the U.S.? In revenue stamps, how many make a distinction between perforated and unperforated stamps or the quality of the paper? In U.S. envelope stamps, how many collect the various sized entire envelopes according to the Hornerian method? Very few indeed, but the few they are, are collectors according to the French School. They are
scientific collectors - philatelists. The many who do not collect thus are collectors of the Common School. They are non-scientific collectors - stamp collectors.

There is a wide chasm between the two schools which can only be crossed by study. Have you crossed it?
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Thursday, June 9, 2011

General Commentary: Trends Toward Specialization in Developing Stamp Markets

As a country emerges from Third- or Fourth World status and begins to develop a middle class, its domestic demand for goods and services becomes more variegated and complex. Whereas previously, the vast majority of its population was mainly concerned with survival and alleviating the miseries of poverty, it now has far more time and money to invest in recreational activities. Hobbies, such as collecting stamps, take root as effective means of enhancing the quality of life and alleviating the boredom and stress that are byproducts of the society's increased affluence, competitiveness, complexity, confusion, dynamism, and social mobility.

As a stamp market develops within an emerging market country, it undergoes several transformative phases which reflect the evolution of demand within the country's philatelic community. Obviously, each country represents a separate case, with its own unique set of circumstances which affect its stamp market. Nevertheless, some useful generalizations may be made regarding emerging stamp markets, and these may be helpful when projecting demand trends for particular categories of stamps.



During the "prologue" state of an underdeveloped country's stamp market- its "zeroth" phase- before the country begins the transition to a middle-income economy, most of the demand for its stamps comes from three groups of collectors: members of the country's wealthy elite, foreign specialists, and worldwide topical collectors. The first two groups are similar, in that both tend to be small and both may collect the country as a whole, but also focus on rarities, varieties, and obscure items. The third group, topical collectors, will only purchase those issues which fall under their chosen topical areas. Demand among the first two groups for better stamps of the country tends to be either static or gradually increasing, although it may be bolstered if investors who view the country's stamps as undervalued join the fold. Topical demand growth will, as always depend upon the popularity of the topic.


The initial phase in the development of a country's stamp market is marked by the a general focus on regular issues and commemoratives as well as the growth in interest in topicals related to the country's culture and prominent national figures. Beyond airmail stamps and semi-postals, there is not much emphasis on back-of-book items at this stage. Often, either no specialized catalogues for the country's stamps exist, or if they do, they are decades old and out-of-print. The appetites of "arriviste" collectors in newly developing nations are often as indiscriminate as they are voracious. India's stamp market provides an example of a rapidly growing collecting community where almost none existed before, and in which many of the new collectors are adults who did not have the means or opportunity to collect as children. As a consequence, it has seen an explosion of demand for flashy items which were once considered wallpaper, such as minor errors on Indian stamps and modern Indian First Day Covers. Adult neophyte collectors are far more common in the developing world than in affluent countries in which most adult collectors began as children, and this phenomenon can strongly influence demand.



The second stage is characterized by the beginnings of specialized collecting, as collectors' interests expand to include varieties and back-of-book items, such as special delivery stamps, postage dues, officials, parcel post stamps, etc.. Often when a country's stamp market reaches this stage, dealers or specialists publish specialized catalogues and albums for the country's stamps, where either none existed before or those that did exist were long out-of-print. The expansion of interest in formerly neglected back-of-book items is sometimes accompanied by dramatic increases in the values of these items.


Extending specialization further, the third stage (which may be viewed as incorporating all of the later stages) is characterized by enhanced interest in postal history, ephemera, and "back-of-back-of-book" items, including quasi-cinderellas, such as locals, carriers, savings stamps, revenues, etc.. Once again, obscure items which had almost no value in the initial stages come into the limelight of collector interest.

The important lesson to draw from this is that when one wishes to profit from the development of a stamp market, it is often a good idea to think ahead by buying neglected oddball items which no one cares about yet, if their value might be enhanced due to trends toward increased specialization. Just as stamps of many formerly poor emerging market countries were once been considered wallpaper, the peripheral items of these countries that are considered junk now may be worth considering.






Sunday, June 20, 2010

Phila-Trivia: Postage Before 1840


While it is common knowledge that in 1840, Rowland Hill created the first postage stamp, Great Britain's "Penny Black," and that William Mulready created the first postal stationery, most stamp collectors are unaware that earlier attempts were made which resulted in some notable forerunners.

The earliest item similar to a postage stamp was created and used by a Frenchman, M. De Velayer, in 1653, during the reign of Louis XIV. He set up mail boxes and delivered any letters placed in them if they used envelopes that only he sold. Letters were wrapped with a slip of paper bearing the inscription (in translation) "post-paid______day of_________1653." An enemy of De Velayer's put live mice into the letter boxes and ruined his business. Unfortunately, none of De Velayer's "postage strips" are known to remain.
De Velayer's mail box
In 1818, Sardinia issued stationery which may have been used postally, and which bore imprinted images of a nude horseback rider blowing a trumpet. There were three values - 15, 25, and 50 centesimi - and the letter paper was sold at post-offices and by tobacco vendors. Use of the stationery was discontinued in 1836, due to a change in postal regulations. There is some debate regarding whether the amounts charged for the stationery actually paid for postage, as some argue that the Sardinia sheets were sold to raise taxes.
Sardinian stationery of 1818
In the early 1800s, some Swedish letter writers attached feathers to their covers with red wax seals, in order to imply that the letter should "fly to its destination." Obviously, these feathers bore only a slight resemblance to stamps in form and function, but they are interesting, nonetheless. A few Swedish "feather covers" still exist, and occasionally are sold at stamp auctions.


A Swedish "Feather Letter"



                                                        A 40 lepta Black stamp was issued in Greece in 1831. Covers exist bearing the stamp; however, there is some dispute over whether it was an actual postage stamp, or a charity label issued to raise funds for Greek refugees from Crete. A March 13, 1831, government decree requested that every citizen contribute 40 lepta or more for the welfare of recently arrived emigres from Turkish-controlled Crete to the liberated mainland, and ordered that billets be issued to donors. It is possible that these "stamps served to reward or document donations.
1831 Greek Postage Stamp or Charity Label (block of 4)

It is clear that Rowland Hill built on early innovations of the previous two centuries. These had failed mostly because initially, postal services served only a wealthy, literate elite. The issuance of postage stamps and the organization of a large and complex postal system coincided with the beginning of the Industrial Revolution, which rendered the establishment of an efficient and inexpensive mail service for the general public both necessary and progressive.

Thursday, October 1, 2009

General Commentary: The Topic is Topicals!




Topical, or thematic, collecting (the formation of stamp collections based on the themes pictured on the stamps) is probably growing worldwide. Unfortunately, as is true of stamp collecting in general, no hard demographic data exists on the number of topical collectors in the world, or the breakdown of the population of topical collectors by country, topic, or level of "seriousness" as collectors.


The American Topical Association (A.T.A.) conducted a survey in 2008, and determined that the following topics (listed in order of popularity) were the most widely collected by A.T.A. members:

  1. Animals
  2. Famous Men
  3. Sports
  4. Medical/Nursing
  5. Flora
  6. Religion
  7. Birds
  8. Railroads
  9. Americana
  10. Ships
  11. Fairytales/Folktales/Disney/Mythology
  12. Marine Life
  13. Space Exploration
  14. Insects
  15. Geological Features
  16. Music
  17. Fine Arts
  18. Literary Subjects
  19. Military Subjects
  20. Aviation

The survey is useful as far as it goes; certainly, some notion concerning the popularity of a topic should be taken into account when attempting to evaluate the investment potential of a stamp.

The dearth of demographic data regarding this and other areas of the stamp market illustrate one of the differences between investing in stamps and investing in equities. While information concerning the supply of a stamp may sometimes be known or estimated, getting anything clearer than a fuzzy, nebulous view of demand trends is usually impossible. A philatelic investor who knew how many "serious" collectors specialized in particular topics and which topics were growing in popularity, and by what rate, would not have to make "educated guesses." Contrast this with stocks, which are frequently analyzed based upon a veritable feast of numerical and technical information. With stocks, tragedies occur only as a result of mistaken analysis, hysteria, or when the numbers reported by a company turn out to be lies.




Sunday, September 6, 2009

Practical Advice: Education is the Best Investment


While Stamp Collecting is a fascinating and illuminating hobby which may be enjoyed by all, profiting from it financially requires a high level of knowledge and experience. Neither the stamp trade nor philatelic investment are games for dilettantes. Even experienced collectors can make expensive mistakes at times, and beginners who attempt to purchase stamps in order to re-sell them at a profit without sufficient knowledge very frequently get burned. In order to become a successful "stampselector," it is necessary to "pay one's dues" by becoming an advanced collector first, partly in order to understand how stamp collectors think.

I recommend that if you wish to become a stamp trader, dealer, or investor, you should spend years learning about the hobby before gradually and cautiously entering it as a business.

Minimally, you should join a local stamp club or two ( see the American Philatelic Society's list ) and also consider joining the A.P.S., which currently has about 40,000 members. Benefits of joining include a subscription to their monthly magazine THE AMERICAN PHILATELIST, and access to many useful services. The A.P.S. has many members from outside of the U.S. as well, so it is not necessary to be an American citizen in order to benefit from membership. Joining a local club will connect you to the local community of stamp collectors, some of whom will have had many years of experience and be excellent sources of good advice. You should attend local stamp shows every once in a while and begin to patronize local stamp dealers, and endeavor to find at least one that you likes and trusts. You should subscribe to LINN'S STAMP NEWS, a weekly stamp newspaper and the largest in the U.S., or one of the the major philatelic publications in your country, if you are outside of the U.S.. Both THE AMERICAN PHILATELIST and LINN'S are full of informative articles and ads - invaluable sources of information.

Beginning stamp collectors tend to be generalists who often try to "collect everything," forming worldwide collections or entire country collections. As they become more advanced, they tend to narrow their focus, specializing in particular collecting areas or issues. Ultimately, both general and specialized philatelic knowledge comes into play when engaging in the stamp trade, because then the primary motivation is to maximize profit.

Both Philately and the stamp market are analogous to cities with which a traveler must become familiar in order to find his way around. There are both general guides, such as the understanding of condition grading, and many particular bits of knowledge which apply to specific aspects, such as knowing which stamps sell for multiples of catalogue value and which sell for a tiny fraction of it, and knowing how to avoid getting one's pocket picked. Having to spend the necessary time and effort learning about the hobby before engaging in it as a business may sound boring and arduous, but it's preferable to the more "exciting" experience of trying to survive as a "babe in the woods."


Saturday, September 5, 2009

Welcome to StampSelector




Welcome to StampSelector, your comprehensive online philatelic investment and stamp market resource.

This blog, which will eventually evolve into a website, will offer stamp investment tips, general comments on the stamp market, practical advice for stamp collectors, dealers, and investors, and other useful information and links.

Its intended audience includes those who are devoted to their hobby and who are also interested in the pecuniary aspects of stamp collecting. Everyone who has ever desired to make a profit by buying, selling, or investing in stamps - collectors who use their profits to upgrade their collections, "colinspecs" (collector-investor-speculators), vest-pocket dealers, investors, full-time stamp dealers, auctioneers- any and all are encouraged to enjoy, learn, and profit from the use of this site, and to comment on it as well. In addition, I wish to welcome tangible assets investors from outside the hobby, who may not be familiar with stamp collecting or philatelic investing. I recommend reading the Wikipedia articles on Stamp Collecting and Philatelic Investment as introductions, or reading Michael Baadke's book Stamp Collecting Basics, published by Amos Press, Inc..

The stamp pictured above, an 1898 50c Trans-Mississippi (Scott #291), based upon a drawing of a Western mining prospector by Frederick Remington, shall be the site's symbol. What image could better capture the sense of fun and adventure that a treasure hunt such as philately (or any collectibles hobby, for that matter) represents to so many collectors? Who among us is not energized by the possibility of finding a hidden gem in a dealer's dollar box, or in an overlooked lot at an auction, or in the form of a scarce and undervalued stamp which is certain to skyrocket in value due to increasing collector interest?

As this site evolves, you may begin to think of it as a tool which you may use to better profit from stamp collecting, similar to the tools that the prospector uses to find gold. With any luck, it will also become a community of "stampselectors," like a rowdy, spirited gold-rush town with plenty of good advice and free drinks for all, but without the gunfights. The best is yet to come.
Note: The Scott Numbering System, which is used in this blog, is the property of the Scott Publishing Company, and Scott Numbers are used with their permission.