Choosing the right stamp dealer is important when you decide to make the big leap from being a stamp collector to being a stamp investor.
There are many kinds of philatelic dealers, each one has an expertise on several types of philately.
Stamp dealers did not choose their career overnight. Most of them are devoted stamp collectors who spend time to study philately. They are always up-to-date with the stamp values.
Why find the right stamp dealer?
Stamp dealers play a major role in every philatelic investment. They can either be a company or a person whose business is selling and buying stamps and other philatelic items.
Every philatelic investor should have a professional relationship with a stamp dealer since the latter knows which rare postage stamps make good additions to an investment portfolio. A good stamp dealer helps you close an honest deal and will not trick you into buying fake postage stamps.
A competent postage dealer also knows how to make each sale convenient to his or her customers. That is why most of them pre-sort their stock of postage stamps according to topics or by country, and sells them by packets of 50 stamps or more.
Where to look for good stamp dealers?
It is not too hard to find the right postage stamp dealer. However, you are still at the risk of meeting a dishonest stamp dealer. Philatelic dealers are more accessible, too, because of the internet.
The best way to find a good philatelic dealer is by asking around from your friends in the stamp community. Older philatelists can give you recommendations for good stamp dealers they have trusted for years.
You can find a list of stamp dealer’s names at the back of some stamp catalogues or on your telephone directory. Most philatelic dealers do business transactions by appointments only.
If internet shopping is more convenient for you, you can purchase stamps online from dealers running philatelic auctions sites and stamp collecting stores.
How do stamp dealers work?
Philatelic dealers sell postage stamps, covers, and other items with a mark up rate which they call a premium.
Regularly, stamp dealers issue catalogues featuring their stamps for sale. Stamp collectors can buy these stamps directly, or bid on them during stamp auction online or on the bourse.
Aside from buying postage stamps, you can also sell any philatelic item to a stamp dealer.
In terms of selling a stamp collection, postage stamp dealers base their price on the most valuable stamp on the set rather than individually pricing the specimens.
Tips in how to choose stamp dealers
• Check a philatelic dealer’s background
Aside from referrals, you should do a little research on the stamp dealer’s previous transactions. This is easy if you are doing an online transaction since you can review a dealer’s selling history.
• Choose a reputable stamp dealer who specializes in your philatelic interest
Find a dealer whose area of expertise is the same with the philatelic item you are collecting. If you are into rare stamps, you can get the best bargains from a rare stamp dealer. Likewise, topical stamp dealers hold an interesting stock of thematic postage stamps.