I recently climbed in the WayBack Machine after I ran across a hobby newspaper printed 40 years ago. The paper focused on collectible stamps. It was telling to look back on some of the astronomical prices collectors and dealers were paying for stamps at the time.
Admittedly, 1982 was a heyday era for philatelic prices. The collecting/investing boom had come on the heels of skyrocketing interest rates and inflation. Investors were clamoring for tangible items that could skyrocket in value. Stamps and coins led the pack....
Since then, both areas have been affected by a more technologically focused society. Glued to smartphones, kids rarely abide such hobbies. Happily, collectors still abound. For stamps alone, the Wall Street Journal estimates there to still be over 60 million collectors. It’s safe to say there are even more collectors of coins given their precious metals content.
I was amused by a reader’s letter in that old hobby newspaper. He was lamenting how much attention collectors were paying to the back side of the stamp – the gummed side. The reader contended people were foolish to be so concerned if the gum on the back of a stamp was “disturbed” or if it had been “hinged” with a small glassine strip to mount it in an album. The reader stated he’d be tempted to wash the gum off all his stamps rather than have it be such a focus.
We have to hope that letter writer never went through with his temptation. As important as the gum condition was on collectible stamps 40 years ago, it is even moreso today. Descriptors for stamps in auction catalogs of “NH” for never hinged and “OG” for original gum are of prime focus.
In the early to mid-1900s, collectors almost always “hinged” their stamps to mount them in albums. Consequently, never hinged stamps are far rarer and more valuable – sometimes 400 to 500 percent more valuable. It follows that, because gum has become such a huge focus, an entire industry exists around falsely regumming classic, collectible stamps.
Admittedly, some of the most prominent collectors still haven’t understood what does and doesn’t make something collectible or more valuable. One of the most glaring examples would be King Farouk of Egypt. From the 1930s to the ‘50s, Farouk spent literally a King’s ransom on rare stamps, coins and other collectibles. He owned some of the rarest coins of all. He also ruined some of the rarest coins.
As is human nature, Farouk loved shiny objects. Sadly, to achieve that gleaming finish on his coins Farouk would polish them, sometimes heavily. He would even go so far as to put some of his coins in a rock tumbler to be exceptionally glossy.
As serious numismatic collectors or investors know, the original luster and patina on a coin is a massive part of its value. Cleaned coins are worth only a fraction compared to those that haven’t been touched. By trying to enhance the finish on his coins, Farouk decimated their value and ruined his investment. It’s best to never modify an original item in an effort to enhance its value.
Another example might be a vintage 1934 Ford Model 40 Deluxe automobile. Such a car in excellent condition would now cost around $60,000. But, let’s say the owner fired 112 bullets into it.
The intent would be to make it just like the car in which Bonnie and Clyde Barrow were shot to death. Admittedly, back in that era, many hucksters shot up some similar old cars trying to pass them off as that famous vehicle. But only one exists. That original “Death Car” sits on display in Whiskey Pete’s Casino in Primm, Nevada. It was sold to the casino in 1988 for $250,000.
Today, that storied car is estimated to be worth well north of $1 million. Conversely, a similar 1934 Ford riddled with bullet holes might only bring a hundred dollars or so.
The collectible exceptions might be old coins brought up from a shipwreck. For those, there are “conservation” services that professionally remove residue and sediment from coins. Similarly, you wouldn’t clean a dirty old oil painting with Windex. Restoration professionals specialize in that level of expertise.
In a nutshell, insofar as collectibles, it’s never wise or profitable to try to change history.
For more collecting advice, visit www.PRexford.com