What Is Going On With The Top 1% Of The Philatelic Market .

I do not understand where inflation comes into play with mostly classic stamps. It is not a loaf of bread people will buy even if you put the price up by 30%.

Only few people can buy high-end stamps. A seller will have limited power to, randomly, pass on personnel and storage costs.

There are quite a few wealthy people, especially, from Asia who buy anything at the top end of any collector market because they have no clue what to do with their money and / or just want to show their ability to own what they want. They need not, necessarily, be collectors. Many are businesspeople and are smart enough to understand that buying rare high-quality material is a better bet against a loss when they sell it then a hoard of QEII 'Machins' or German 'Women of Achievement' definitives. There, demand is high relative to supply. And these stamps are not necessarily offered more frequently as more traditional collectors are carried to their graves.

It is amazing the money floating around. I knew Mike Kittredge, rest his soul, who owned Yankee Candle until he sold it for 600 hundred million and even though he lived an extravagant lifestyle ended up worth one billion. There are a bunch of under-the-radar wealthy folks that are untouched by inflation and other "ups and downs". There is a gent who made 3D glasses for the movies in the early 2000's and sold the company for 500 million. So many other similar stories. If any of them decide to collect stamps they will buy whatever they please. Mike K fancied cars and had a facility at his house in Leverett MA that housed over 100 of them. If he collected stamps, he would likely have given Gross a run for his money.

It is nothing to do with inflation - it has to do with wealthy collectors, mostly in there 60s and 70s who know they only have a few years left to to buy things they waited their entire lives to own. So, when something great comes along, they will push prices to own. Most understand that when the estate sells, they will loose money. These are not stupid people.

They know they can't start a great collection at their age, so the buy the great items only and leave the common stuff on the table. quality and rarity in any postal history area of US philately has never been stronger. These are collectors, not investors, and the money is not an issue.

I should add, that, like the high end art market, the very best material never makes it to auction. I recently sold a set of St Louis Bears on cover that has been with 4 different of my clients, counting the newest buyer, since they appear last at auction.

"These are not stupid people " Yea they don't like seeing the 30% difference between the buying price the high bidder pays and the dollar amount the seller is paid . At 30% they prefer to find their own buyer .

If you read Stanley M. Bierman's book The World's Greatest Stamp Collectors ,in the book he discusses how these top collectors purchased from each other or two of them were bidding against each other for a complete collection .

Floortrader - not exactly - the 20c Bear cover that sold for $52,500 in a Mayer auction (in 2004 I think it was), was valued now in the group at $150,000. Each of my clients got back as much as or more than what they paid. The wealthiest clients uses flunkeys like me to buy and sell. They can afford advisors, curators and consultants that pay my rent thankfully.

Great Respect to the contributors to this thread, as they have more knowledge and experience in this market than I. Having said that Christies's sold the Salvator Mundi (attributed to L. Davinci) at open auction for a record price for a single item, I think, 450 million.The truly unique items go for open auction. I believe that was w/o tip.
To further conflate thoughts, Bill Gross sold his collections and donated the proceeds to charity.From memory what,.... 7 and 10 million for the 2 major collections? Now Bill Gross (The Bond King, think Pimco) didn't need the money, nor the proceeds and acted accordingly. For about 10 years in every major auction there was Bill Gross and there was every one else in second place.Attributed WSJ or Washington Post.

The only Leonardo Davinci in the Western Hemisphere is at the NGA in Washington DC a gift of Andrew Mellon to the American people,( why I love museums).Joe Stalin(Papa Joe) was trying to raise money and Andrew Mellon was the current ambassador, was offered 10 pictures from the Hermitage (think Catherine the Great) for 1 million each, this was one of his choices. The Raphael Alba Madonna was another. Free to view at the NGA.Collectors for whom money was not the object or obstruction.When I go through the NGA in Washington I am always amazed at the number of donations whether Rembrandt, Renoir, Matisse, Monet.... free for me to view. Don't get me started on the Miller collection at the Postal Museum. Regardless of some of the comments on this forum, I am glad they are where they are,
cheers, mark

My favorite story of charity is that of Andrew Carnegie who came to this Country by himself at the age of ten and became the wealthiest man in the World before he passed. He divested himself of virtually all of his wealth before he died and his greatest accomplishment was building over 2500 libraries around the World with 1759 of them in the United States, many in small rural towns where new worlds were opened for many young minds.

PS: I await the comments from those that think poorly of Andrew as they do about mostly everything from the Founding Fathers to early cartoons.

No snark from me on A Carnegie.
I will refer you to the Mark Twain autobiography, I believe it is Volume 3, who wrote contemporaneously of Andrew, and was printed 100 years subsequent to his ( M Twain, Sam Clemens) death.
Then you can rage in private.
regards m

I shouldn't like to disappoint you, so please assume distaste on my part for a man who treated his workers like dirt then burnished his posthumous reputation with charitable giving

Andrew Carnegie's treatment of his steel workers was harsh by today's standards but in it was not unusual for the time period. In the early 1900s, all steelworkers were expected to work 12-hour shifts, 6 days a week. Steel worker wages were low, the hours long, and the working conditions dangerous.

Of note is that Carnegie Steel workers were paid more than all other steel company workers. They also received free medical care, a benefit that was not offered by any other steel company. Carnegie Steel workers were also given company libraries and had access to free educational services in order to improve their employment opportunities.

But for anyone who currently has a portrait of Cesar Chavez above their desk, Carnegie's was a villain. The Homestead Strike of 1892 was a major labor dispute between the Amalgamated Association of Iron and Steel Workers (AA) and the Carnegie Steel Company.

The strike began on July 1, 1892, when the AA refused to accept a reduction in the number of working hours and the resulting reduction in pay. The company responded to the strike by locking out the workers and hiring Pinkerton detectives to protect the plant.

On July 6, a battle broke out between the strikers and the Pinkertons. The strikers were armed with guns, while the Pinkertons were armed with rifles and shotguns. The violence lasted for hours. The governor of Pennsylvania responded by sending in the National Guard to protect the plant the next day. The strike continued for several more weeks, but the strikers eventually gave up. The company refused to recognize the AA, and the union was weakened as a result. The Homestead Strike was a major setback for the labor movement in the United States. It showed that the companies were willing to use violence to break strikes, and that the government was willing to support the companies.

The Homestead Strike was a significant event in American history. It showed the growing power of labor unions, and the willingness of companies to use violence to break strikes. The strike also led to a decline in the membership of the AA, and a change in the way that labor disputes were handled.

Here are some of the causes of the strike:
- The Amalgamated Association of Iron and Steel Workers (AA) had negotiated a three-year contract with Carnegie Steel in 1889. The contract expired in June 1892, by striking on July 1st the union was trying to force the company to accept their demands.
- Carnegie Steel wanted to reduce the number of working hours from 12 to 9 per day. The AA opposed this change, as it would have resulted in a pay cut for the workers (although they had previously pushed for fewer hours, they wanted fewer hours at increased pay).
- Carnegie Steel wanted to increase the number of non-union workers at the Homestead plant. The AA opposed this change, as it would have weakened the union.

Here are some of the consequences of the strike:
- The strike led to the deaths of 14 people, including 9 strikers, 7 Pinkertons, and 1 townsperson.
- The strike weakened the Amalgamated Association of Iron and Steel Workers (AA). The union was unable to regain its strength after the strike.
- The strike led to a change in the way that labor disputes were handled. Companies began to use more aggressive tactics to break strikes, and the government began to support the companies more often.
Don

Richard F. sounds like you followed the path that the WEIL BROTHERS of New Orleans established years ago . The were buying and working as agents for the top of the market who were looking for top quality material for exhibits and show pieces .

Sorry I forgot to list you on the chat board the other day with the other "Old war horses " Who know who has what ,,were they bought it and who has the ability to pay for top material , and whats needed to make a Gold Medal exhibit .

I've been very grateful for Richard's readiness to share his accumulated knowledge with others who move in less financially stratospheric circles, both here and on his website.