Scott #80 Sold For $340,000 + 18% Yesterday

The whole problem here is NOT that there might be an increase in interest in the block market. It's that these blocks have DEFECTS. They are DAMAGED. However rare they are, damaged stamps bring far less when sold then undamaged examples do. Singles or multiples. It's not like this is a recent development, this has been true for 150 years. These blocks will never be less damaged then they are now. People do not seem to want to acknowledge this. Even if it came down to only one known, because there is always the possibility of another showing up after being kept by one family for 100 years. Like position 49 of C3a. Or something similar.

Thank you for that, ReededEdge. Whoever made these recent purchases MAY just be the beginnings of a new trend. I hope they are 'Patient 1' in the pandemic that will sweep American philately. If these blocks were bought for collections, then more power to them! I hope they keep them well, enjoy their little pieces of history, and make a KILLING when they liquidate! I hope they were bought by true philatelists, doing it for the love of it. If that's their motivation, then I expect they've already been richly rewarded for it (by these purchases), but I hope they ultimately get financially rewarded for it, too.

Your point is well taken, revcollector. I don't think any of these faulty blocks will bring the same amount as a sound C3a, even if they end up being the only remaining block. If I had the money to do so, I would bet $10K on a Scott listed classic American stamp that could very well become unique in the relatively near future. I don't think anyone is expecting to make C3a money off a faulty $10k block. Doubling one's money (current dollars), however, after all other blocks disappear, is not an unreasonable hope.

The Holy Grail, to me, would be to own a block that ultimately gets a * next to its Scott listing and states that there is only one example known, with faults, and that it is worth so-and-so, in italics. In the end, it is only worth what someone pays for it, no matter what Scott says.

I have to add: It would also be sad to achieve my Holy Grail dream.

Varying conditions do impact prices, but when the supply is so low, and there is nothing else available, you have to make do. Say there are more than 50 ppl in the world who want stamp A of which only 50 we're available. only pricing can reconciliate this. This doesn't change oldie vs modern

revCollector is spot-on when it comes to quality of a stamp driving its price. Watching the auctions, Siegel's database, and PSE's database, there's a clear willingness to pay "over the top" for very highly graded, sound stamps. For those that are rare (case in point the 80), the best in terms of appearance, least faults, etc., gets the highest price. Yes, there are "deals" to be had in singles and blocks, in particular if you don't care about the back of the stamp, re-perfing, hinge remnants, closed tears,
etc.

This thread reminds me of a conversation that I had with a coin collector earlier today who had a low-grade 1909-S VDB Lincoln Cent for sale. After perusing our web store, he rather sheepishly called me, preempting the conversation with, "You probably won't want to buy this, but....." I informed him that just because his coin was low-grade, it in no way was valueless. Conversely, I told him that his $500 piece would be much easier for me to sell than the two examples that I had sitting on my web store for $3500 and $5000. Yes, quality is worth more, but it also costs more. The bottom line is that not everybody can afford the $5000 example, but many more can spring for $500. Now who is to say which coin will be worth more exponentially 20 years from now? Yes the higher quality piece will always be worth more, but will it prove to be the better buy? This same argument holds true for the #72 block. Yes, revcollector, you are right about quality always being worth more. But, that's not to infer the graded 98J stamps in the Siegel sale were a better buy than the faulty #72 block. That is something that only time will tell.

Whether it is a better buy or not then some graded stamp is not the point. The statement was made that this block was somehow a "steal" because it only brought 10% of cat. This is the true value level of this kind of item in the condition it is in. People keep bringing up "dealers falling asleep", or a "herd mentality", or something else to explain it when it is already explained by condition. Plus people going on about how "blocks may suddenly get hot". They might, but that has no bearing on what is a normal price NOW. TODAY.

Totally disagree! The only thing determined at the auction was the value of THAT particular block at THAT particular moment to THAT unique audience. Your contention that all "the players" were either in that room or accessing the auction is a gross overstatement. The winning bidder, in my estimation, got a GREAT buy-only time will tell just HOW great it was.

Now you are trying to tell me that there are lots of interested people who simply didn't bother to show up. That sale audience was just about everyone who is anyone at the professional level in US stamps. Plus as many collectors as were interested. You want to think that is a gross overstatement, more power to you. You want to think the buyer got "a GREAT buy", fine. It sounds like you bought it and are trying to drum up business.
I suggest you look at mint previously hinged blocks of #71 on power search. You will discover that all the sound blocks did very well, and all the damaged blocks generally did not do much differently then this one.

It was a steal. It is all gambling ultimately. I think that the point that is being missed by some is that there is little to no downside to the 72 block at that price. As for "the players" I pay such folks little heed if they are prone to groupthink, no matter their occupation.

Nobody is saying condition doesn't explain the price. However future expectations absolutely play into the price. The dealers didn't see upside. Maybe they can't unload it. Maybe they have similar items in inventory. Maybe it's not their expertise area. So they collectively balked. To them the margins for carrying the item weren't good enough.

The whole hobby is based on herd emotions. A bunch of people declare one stamp more interesting than the next. That's it. The buyer who bucks the trend assumes the risk.

It's not a "steal" until a resale happens for anything. Is paying 1.6M for a stamp a good deal if you sell it for 2.6M in 3 years? Of course. But if you paid 250k for a hinged one and it goes to 1M, it's the steal. So, in particular condition impacts price, but doesn't speak to future growth rates.

If you paid 10% of cat, and cat went down next year, then what? Did the rarity you transacted influence cat?

In the end all you need is 1 buyer/seller to reach equilibrium and arrive at a price.

Folks on sidelines don't count, regardless if they are 75 year old mensa level philatelists in 50 year old bodies.

Not having downside is not the same thing as a steal.
"The whole hobby is based on herd emotions. A bunch of people declare one stamp more interesting than the next. That's it".
My collecting interests certainly aren't. And if that was true, then everyone would collect the same things. And the catalog would be about 20% of the size that it is. Frankly, if I was worth one hundred million dollars I wouldn't spend $1700 on that block, it just doesn't interest me. In fact, I have found items in dollar boxes that excited me more, and still do.

I believe that we can all agree that these blocks are not quick flip items. There are only six recorded Power Search sales for MH blocks of four of 72 since 1998. Between 1998 and 2009 none came to light. These are rare birds for a limited group of buyers in any condition. I stand firmly by my assertion that at 10% of cv the 72 block will not be purchased lower and the bottom is where I would want to purchase that block in that condition at this time. Hence my use of the descriptive "steal". I would be interested in knowing if any of the blocks that were in truly amazing condition and that realized in excess of cv in the past still exist or if they were broken up.

BTW revcollector- I did NOT buy it. But kudos to the collector who did. As you should know by now, I am not secretive about my philatelic acquisitions or holdings.

"Between 1998 and 2009 none came to light."

No, between 1998 and 2009 none were sold by Siegel. Some might have been sold by other auction houses.