Release: MONDAY JULY 17, 2020
Many boys see the purpose of a mother as two-fold. First, of course, to raise children. Second, to give away the boy's precious baseball card collection. Seriously, I can’t recall a boy who hasn’t contended his mother gave away his cherished cards.
Case in point, that coveted Mickey Mantle rookie card you’re all but sure was in your collection (today valued at $3.5 million). Thanks to mom, we’ll never know.
It’s equally true for the stock market. How many times have people kicked themselves for not being an early buyer of stocks like NetFlix, Apple, Amazon or Tesla? Or, what about not getting out in time? Just consider Enron, DeLorean or Worldcom.
Collectibles have the potential to be just as capricious. Their prices are supported 100 percent by demand from the public. Most often, people purchase collectibles because they enjoy the lore, appeal or history behind them. Alternately, some hope to find quick riches....
In the early 1980s, when interest rates were skyrocketing and investors were looking for any financial alternatives, prices for collectible coins and rare stamps soared. Investors who knew nothing about them were purchasing them virtually sight unseen. Common date silver dollars in uncirculated condition were selling for $100-plus each. Today, those coins trade for as little as $30.
In the philatelic world, the famed three Graf Zeppelin stamps issued in 1930 became the darlings of investors. Very Fine unused examples of those sold for between $8,000 and $10,000. Old school collectors were stunned. Some were livid that these “newbie” buyers were ruining their hobby. Others saw the opportunity to cash in their stamps for a hefty profit.
A few years later, cooler heads prevailed. A set of those three “Zep” stamps in Extremely Fine condition now trades for between $1,500 and $2,000. For a while, those big losses tainted the reputation of collectibles. The irony is that the run-up and subsequent collapse of prices had nothing to do with the inherent value and everything to do with blind investor fervor.
Most challenging is trying to fathom what may or may not become a valuable collectible in the future. Just last week, an unopened copy of the video game “Super Mario Brothers” went on the auction block. Released in 1985, it was a video game staple. So, how many pristine examples exist? Evidently not many. That video game was hammered down in auction for $114,000.
Last month, a “facing slip” under which three letters had once been held together was sold at auction for almost $7,000. No letters were included. Just the brown paper sleeve imprinted with the words, “BROOKLYN, NY From SEA POST 3 LETTERS.” Oh, also on the slip were the handstamps “TITANIC” and “O. S. WOODY.”
“O.S. WOODY” was Oscar Scott Woody, the postmaster on the Titanic. He went down with the ship, but his body was recovered. Found in his pocket were the keys and chain to the Titanic mailroom which were returned to his widow. A while back, his family decided to sell the keys if anyone was interested. Someone was. Those keys sold for $200,000.
It goes to show, you never know what may or may not be of value in the future. It’s a good reason to think twice before letting something go for too little. Ronald Wayne is a case in point.
When Apple Computer was created, Ronald was the third founder along with Steve Jobs and Steve Wozniak. He was on a contract owning 10 percent of the company. For whatever reason, he opted to sell his ownership back to the two Steves a mere 10 days later for just $800. Today, those shares would have a value of roughly $100 billion.
Here’s the kicker, in 2011, Ron sold the original signed Apple stock contract for $1.6 million. What’s more, it’s reported Ron now lives in Nevada where he buys and sells rare stamps and coins. You can’t make this stuff up.
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