Question About Catalogue Values

I've seen a lot of stamps and collections for sale where they state the catalogue value but the actual selling price is a lot lower. I understand that the catalogue is just a guide but why such a spread between the prices. Even the high value stamps that I've seen on auction sites may state Scott's value at $2000 but they're only asking $125 or so. What is the reason behind this? Do stamps ever sell for catalogue value? Just throwing it out there.

ikandiggit, this is a great question for ones newer to the hobby. First, do you ever see the condition listed alone with the auction on most of these? The Scott catalog is still just a guide not a set in stone price. Also, the prices in Scott reflect a very fine condition price when most of these auction prices are selling at 20% of Scott reflecting a lower grade stamp of average or good condition. This difference in grades can make a large price difference. Take also into effect gum condition on older classics or amount or type of cancel on some and prices can vary greatly.
In conclusion, much more time must be spent to know just what should be paid on certain stamps or the type and condition. Time, knowledge, research, and what you are already doing as to watching auctions will help train you to get a better feel for what is it really worth.

Of course if you just have to have it some, the sky is the limit.

Thanks for clearing that up for me. I thought it was something like that. I collect coins and they are priced from good to MS68 in a lot of the guides so it's easier to match up what you have in hand. Stamp collecting is a whole new experience for me and I find it just as fascinating if not more. I'm thoroughly enjoying it. Having this forum makes it an extremely rewarding and educating experience. Thanks for your help.

Scott Catalog lists prices for fine/very fine copies at retail prices. So stamp grading is part of the issue. Many factors may be looked at like centering of image or cancel, condition of gum, hinged or never hinged and so on. Ultimately a stamp sells at what someone is willing to pay for one.
Auctions often start low, there is risk to the seller, but what happens most of the time is that more people take part in the bidding process which inturn draws greater interest leading sometimes to a bidding war. Some auctions have reserve bids, a back door for the seller.
An example would be
a seller has a US Collection Scott $1000, and has opening bid at $.01, but choses to set a reserve bid at $500, this means if the max bid is $425, the seller has the right to accept the bid or withdraw the item, seller may pay a penilty for doing that, but it's their choice. Many times I see some item starting very high, worth it or not and won't even get one bid.
Selling over Scott happens a lot, but not most of the time. Mostly it's with older issues, but the is speculative aspect for some new stamps when varieties, error or lower then excepted production with high demand for that item.

Hope that helps a little.

It does, thank you.

Another question...Does a mint, unhinged stamp always sell for more than a used one?

No! Not always. Many older countries or places issued stamps used very few postally, may places during occupation or other local unrest. Better then used for these situations is stamp used on cover entire and nicer piece of history.

Thank you, once again!

another item not mentioned here is that catalog assumes a price of 20 cents for each stamp that when bought in bulk can go as cheap as a penny a piece, or less.

Richard