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Cornering The Stamp Market

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Posted 10/22/2020   2:16 pm  Show Profile Bookmark this topic Add jogil to your friends list Get a Link to this Message
Has any member ever heard or know of any collector or dealer with deep pockets trying to corner the market of any stamp, stamps, stamp variety or stamp varieties?
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Posted 10/22/2020   2:21 pm  Show Profile Check 51studebaker's eBay Listings Bookmark this reply Add 51studebaker to your friends list  Get a Link to this Reply
I have heard stories of modern error dealers trying to corner markets. (Which I assumed to be about dealers who work in collusion with printer employees who were slipping printing waste out the back door.)
Don
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Posted 10/22/2020   2:32 pm  Show Profile Bookmark this reply Add txstamp to your friends list  Get a Link to this Reply
Somewhere, once upon a time, I read that in the early 20th century, there was a stamp dealer who tried to corner the market on US #1's. I don't recall what count he got up to - in terms of how many he owned, but the impression I got was it didn't make a difference because there were just too many of them out there to allow for that.

Now, with regard to smaller, more specialized areas, it happens all the time with specialists. I've known quite a few people specializing in various areas, who try to buy everything they can find of a particular variety, usage, or whatever it is. Afterwards, sometimes they publish their research, and sometimes sell. I've seen it work out well for some, whose publication increased the value of their holdings and sometimes even "created" a market for collecting whatever it is. Other times, no-one cares. It just depends on what it is.
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Posted 10/22/2020   2:38 pm  Show Profile Bookmark this reply Add Petert4522 to your friends list  Get a Link to this Reply
+++++Now, with regard to smaller, more specialized areas, it happens all the time with specialists+++++

I am one of these specialists, but I chose a cheap 1980's coil of which millions have been printed. I doubt if I ever will corner any market this way!

Peter
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Posted 10/22/2020   2:41 pm  Show Profile Bookmark this reply Add GeoffHa to your friends list  Get a Link to this Reply
Creating a market, rather than cornering one, is an interesting one. I recall stories about a group of collectors of vile British '70s "progressive" rock puffing their records with inflated "values" in articles in Record Collector magazine, thus generating money for themselves.
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Posted 10/22/2020   3:07 pm  Show Profile Bookmark this reply Add floortrader to your friends list  Get a Link to this Reply
There have been a few dozen times in my life ,or maybe a few hundred times that cornering the market has been attempt . It is usually done by groups of dealers who attempt this . We seen it often with small British territories or the Channel Islands .We are seeing it right now with Abu Dhabi with stamps that never made it to the country but dealers in Great Britain are the only holders of supplies and none are sold unless at half to full catalog.

We had a guy who was buying up all the Colombia special delivery stamp on the eBay chat room and wanted to know who had what ,I think he had about 42 of them and wanted to buy more .
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Posted 10/22/2020   3:45 pm  Show Profile Bookmark this reply Add stallzer to your friends list  Get a Link to this Reply
Someone tried to corner the market with slabbing of graded modern stamps that didn't work out. But I'll bet there was a short period where they sold well.
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Posted 10/22/2020   3:52 pm  Show Profile Bookmark this reply Add angore to your friends list  Get a Link to this Reply
Whether slabbing is a big factor or not I do not see it as that much expense to operate so still lots of potential profit from those that desire them.

The good news is you do it at home! Do you think there is a market for slabbing kits?

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Al
Edited by angore - 10/22/2020 3:53 pm
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Posted 10/22/2020   5:03 pm  Show Profile Bookmark this reply Add StatesmanStamper to your friends list  Get a Link to this Reply
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Posted 10/22/2020   5:20 pm  Show Profile Bookmark this reply Add jkelley01938 to your friends list  Get a Link to this Reply
I remember when the Hunt brothers tried to corner the silver market. Prices soared from $8- to over $50-. It didn't end well for them.

Jack Kelley
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Posted 10/22/2020   7:24 pm  Show Profile Bookmark this reply Add floortrader to your friends list  Get a Link to this Reply
JACK ---I was there ,I was a small part in handling that silver . The Hunts purchased Silver thru the Kansas City office of Maduff and Sons . MADUFF was clearing their Chicago Board of Trade trades thru Peavey Co. I was the Office Manger at Peavey and the go to guy for Mike Maduff their owner and president .

Mike would deliver to me 100 bearer negoatible Silver receipts each worth 5,000 oz. of Silver at the Bank Vaults . Many of these were for New York banks or Iron Mountain Depository . I would take those receipts to the trading floor and talk to buyers who needed them to cover their positions .
I hooked up with a big buyer ,he was Nath Fisher at J.Aron Co. of New York City we started trading a few thousand bearer cert's ,that is millions of oz's of Silver . Our fee was $25.00 per cert .

Nath was so successful in doing these transactions ,Goldman Sachs made him a V.P. and bought J.Aron .

As for me ,Peavey made me a corporate officer ,the youngster officer of the firm .Today 40 years later my pension check is from a Peavey account from a bank in Omaha because Peavey was purchased by Conagra .
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Edited by floortrader - 10/22/2020 7:46 pm
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Posted 10/22/2020   7:34 pm  Show Profile Check 51studebaker's eBay Listings Bookmark this reply Add 51studebaker to your friends list  Get a Link to this Reply
The Hunt brother move caused me to sell my entire coin/proof collection (if I recall correctly going prices were 15x face for even crappy used silver coins) in 1980 and complete a total transition to stamp collecting. I have never regretted dumping my coin collection at those prices. Thank you Hunt Brothers.
Don
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Posted 10/22/2020   7:40 pm  Show Profile Bookmark this reply Add floortrader to your friends list  Get a Link to this Reply
It was a exciting time in my life and trust me a lot of scams and thiefs were running around to profit from it .



Please understand when this Silver stuff was going on ,the Hunts were worth $400 million dollars . The market for classic stamps worldwide is $200 million to influence it ,not own it but to have some control over it .

Now when the Hunts were doing this they were one of the small group who had that kind of money to control it . Now get this this ------today there are over 20,000 groups that have the same 400 million to start this stuff about market control and there are over 1,000 groups that can buy up Coins ,Stamps ,semi-precious stones and other collectibles to control those markets ,it real isn't that big of a market .

Look what is happening to firearm ammo before the this election .
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Edited by floortrader - 10/22/2020 8:00 pm
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Posted 10/22/2020   8:05 pm  Show Profile Check 51studebaker's eBay Listings Bookmark this reply Add 51studebaker to your friends list  Get a Link to this Reply
In 1980 inflation skyrocketed, this always has an impact on 'alternative investments' including collectibles.
Don
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Posted 10/22/2020   8:06 pm  Show Profile Bookmark this reply Add StateRevs to your friends list  Get a Link to this Reply

Quote:
Has any member ever heard or know of any collector or dealer with deep pockets trying to corner the market of any stamp, stamps, stamp variety or stamp varieties?


In the mid 90s I moved to Albuquerque and there were three full time brick and mortar stamp shops (remember those days?!?!?!?!?!?!).

One of the stores was in a strip mall run by the son of the owner and in their US BOB stock was pages, and pages, and pages of E7, the green Mercury Helmet Special Delivery Stamp. Quite probably more in that one book than all the rest I have seen in my life.

Mint, used, singles, blocks. Some great centering and others not so much, but 100s of them on stock pages.

I asked the other stores about them and they just laughed. Apparently the dad had attempted to buy up every copy he could find and was trying to corner the market on that one stamp.

The strip mall was torn down and became a Walgreen's. The stamp store never reopened in a new place and I have no idea what happened to all of those E7s.

1847s I get. E7s? Not so much!
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Edited by StateRevs - 10/22/2020 9:39 pm
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Posted 10/22/2020   9:24 pm  Show Profile Bookmark this reply Add redwoodrandy to your friends list  Get a Link to this Reply
I did corner the market on the Colombia Special delivery. I am/was the market. There was/is no market.
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