The Principles of Collecting - Part 4. Build a solid knowledge base

So what advice would you offer someone starting a collection? Regardless of what one chooses to collect, I think there are five basic principles to keep in mind. Pick something you're passionate about, keep it focused, and know how you want to organize and/or display it. Which leads us to the fourth principle.
Build a solid knowledge base about the subject of your collection

If you follow the other three principles, this one should just naturally develop. It's one of the primary reasons to collect something you're really interested in, instead of something you hope to make a quick buck on. Because research is an important part of collecting, and having to study a subject you're especially fond of is, well, too much like work.

So where does this knowledge come from? All over. And all of it can have its own set of rewards.

Talk with fellow collectors - especially when you're starting out, visiting other more experienced collectors can be very helpful. First, there's the sense of camaraderie that comes from "talking shop" with someone who's just as into a subject as you are. You can also see what your collection can potentially grow into, look at display and organizing solutions, and so on. You might see fairly rare pieces up close. And by talking with other collectors you'll generally get some hands-on tips about what to look for, what things are truly worth and so on.

Personal experience - over time, you'll become one of the collectors I just talked about in the paragraph above. Chance are you'll get burned on some purchases, you'll learn the hard way that all that glitters is not gold (or even pyrite). If you learn from your mistakes, you'll eventually develop an instinct that will help you when you encounter something out of the ordinary.

Case in point: at a recent toy train show, someone brought in an unusual piece: a vintage Lionel steam engine with an "Eastern Railroads" decal on its tender. It was decided a one-of-a-kind item, so looking it up online or in a reference book wasn't going to help. First off, what was it, and secondly, was it real?

I happened to be there during the discussion when this item was presented, and the collective wisdom of the folks examining it went as follows:

"Eastern Railroads" a road name used in the "Railroads at Work" diorama at the 1939 World's Fair Railroad Building (sponsored by the Eastern Railroads Presidents' Conference).

Could this be a surviving piece from that legendary display?

No, because the engine was an off-the-shelf O-gauge locomotive. And while it was made in the late 1930's the railroad exhibit used all hand-made smaller scale models.

Could it have been a display piece from some other part of the railroads pavilion?

Possibly, but the trim actually dated the locomotive as coming from a run made after 1939, and therefore not likely to have been at the Fair.

What about the paper decal?

Decidedly of the right age, but hand-applied. And such decals were known to exist.

Most likely explaination: someone with connections to the Fair had obtained the decals and made their own souvenier by converting a locomotive they already owned. There was probably no intent do defraud, and so this is an interesting curiousity, even though not an actual piece of the 1939 American Railroads exhibit.

All of which, of course, greatly impacted the value.

Reference Works - reading up on the subject of your collection can help greatly in several areas. Sometimes the way a reference book is laid out can give you ideas on how to organize your collection. And while it can give you relative values, don't take them to heart -- most price guides are out of date before they roll off the printing presses. Such guides can, however, be useful in helping you understand what's out there in your field, and how available (or scarce) particular objects might be.

Historical reference works are useful, too. Lists with prices are great as shopping guides, but to really understand the nature of the objects in your collection and the reason why some are more valuable than others, you'll need to understand the background of your objects.

If you're familiar with the history of Arm & Hammer, you'll have a better idea of why tins from certain years are more valuable (and more desirable) than others. And if you're collecting any type of object from the past, just understanding the general history of the time will help tremendously, too. The scrap tin drives of the Second World War took a heavy toll on inexpensive prewar toys.

And don't forget original sources. Again, if you're collecting something from the past, company records may be spotty or even non-existent. The best references for 1920's Tootsietoy dollhouse furniture are the catalogs the company sent out to retail buyers. You'll see what was available, when it was available, and in what colors. If you look at successive years, you'll know when items were discontinued, redesigned, recolored, and/or repackaged. All of which helps accurately date objects when you find them in the wild -- the very kind of information used to determine that the World's Fair locomotive couldn't be authentic.

If you're collecting your passion, then all of this research -- both written and oral -- will just add to your appreciation of your hobby.

- Ralph

#collecting

Collecting -- and collecting information

This eBay photo was very helpful. I have the car, but not the
box. There are no company markings on the vehicle, but the
carton indicates it's a Cragstan product.

I've written about some of the concepts of collecting before. (Principles of Collecting, Lessons from York). Recently, I've been thinking about them again.

Dad's a member of a toy car collector's club, and they're pretty serious about their meetings. Each month a member hosts the club at their home, and presents a program on some aspect of collecting. For October, Dad decided he would host and the subject would be Japanese tinplate cars of the 1950's and 1960's.

Now he chose that topic because he already had a fair number of examples. Well, actually, they're my examples. Most of my childhood toys remained with my parents and were incorporated into the family collection.

Since the cars are mine, Dad assumed I could talk about them more knowledgeably than he could -- so I've been volunteered as the speaker!

I have to admit this is not my area of expertise, but I don't mind doing the research. The problem is, there simply aren't that many reliable reference sources for Japanese toy cars 1950-1969.

Part of the issue is that of all the toys produced in Japan during that time period, the robots and space toys are the most popular, so most of the research available focuses just on those type of toys. Another problem is that Japanese companies produces some top-quality car models fashioned out of beautifully-lithographed tinplate. These are the toy cars that command the highest prices, and the attention of collectors. And also the bulk of the research material.

There isn't much information about the mid- to lower-priced toy vehicles, and virtually nothing about the "penny toys" -- the type of Japanese cars I'm using for the Straco Express layout.

Sp how am I going to assemble enough information about our collection to do a decent talk? Well, I'll have to do some forensics. I have a pretty comprehensive list of Japanese toy companies of the era and their logos. I have the cars themselves that I can examine for clues as to manufacturing origins and dates.

And I have eBay. Now I'm not relying on the descriptions of the toys offered for sale -- people make their best guesses as to what they have. Sometimes they're right, often they're not. But some of the vehicles are pictured with their original boxes -- and that's where the most reliable information can be found.

It's a challenge, that's for sure. But it's also fun. I have no intention of becoming a serious collector of Japanese tin toys -- but I like learning them just the same. If I can find the information, that is.

Collecting -- and collecting information

The Principles of Collecting - Introduction

In his retirement, Dad's become a fairly popular speaker for fraternal organizations and the like. Many of his presentations center around some aspect of history, usually involving either local history, or the background of pre-war toy manufacturers.

Currently, he's developing a talk he'll present with a fellow toy car collector. It will be a presentation on the basics of collecting designed for retirees just contemplating taking up a hobby to occupy their leisure time.

As Dad and I traveled to the Train Collectors Association Eastern Division toy train meet in York, PA, his project prompted us to think about and discuss what the underlying concepts of collecting might be. And while at the meet, we had a chance to see some of those concepts in action.

So here's the question: if you knew someone who wanted to start a collection, what advice would you give? What principles universally apply whether you're interested in Beanie Babies or Hemingway First Editions?

It gave us a lot to think about. And (I think) we came up with some interesting ideas, which I'll discuss in detail in a series of posts. Look over this list, though, think about your own hobby, and let me know if I've overlooked something.

The principles of intelligent collecting:

1) Collect something you're passionate about

2) Have a focus to your collection

3) Have a plan for organizing and storing your collection

4) Build a solid knowledge base about the subject of your collection

5) Understand the market dynamics of your collecting subject

- Ralph

#collecting

The Principles of Collecting - Part 1, Collect your passion

If you were talking to someone thinking about starting a collection as a hobby, what advice would you give them? That's the question my father and I attempted to answer, and in the process came up with five universal principles.

First Principle: Collect something you're passionate about

There's really only one good reason to start a collection -- it gives you pleasure. Something about the objects you're seeking out provide a joy that just isn't met otherwise.

So what does that mean? Well, it's no accident that many collectors are interested in objects from their past. Take the area of toy trains, for example. The average collector seems to be a 60-year old male. The hottest items? Toy trains manufactured in the early 1960's, when that average collector was 10-13 years old.

For the average collector, trains from that period have special meaning. They may conjure up pleasant associations from years past (and since most toy trains of the period were commonly used as Christmas decorations, that feeling of nostalgia can be especially strong). They may be the toys that the collector wanted but never had as a child, and so to get that special train provides a feeling of accomplishment.

Whatever the reason, for the toy train collector, there's more to their hobby than just accumulating objects of plastic and metal.

That should be true of whatever you decide to collect. A book collector I know tells me that, while he's primarily interested in the author and the story, there's something about the smell of old paper that conjures up fond memories for him.

A coin collector friend likes to contemplate the history of the Roman coins he owned. Where had they been? How many hands did they pass through? How did they end up where he found them?

And remember collections don't have to be about old things, or even valuable things. If a particular group of objects strikes your fancy, then that's fine. I knew someone who collected novelty salt-and-pepper shakers and seldom paid more than a few dollars for any set. While the items weren't (and still aren't) worth much, it doesn't matter. She had fun collecting them, and that was really the point.

Remember: it's your collection. Perhaps you like post-modernist fine art. Or maybe your taste runs more towards bobble-heads. Doesn't matter. Your collection only has to speak to you.

Corollary: Collect for fun, not profit.
Even a casual Internet search will turn up lots of posts talking about the value of "collectibles." But there's a reason why the stories about old, presumably valueless items found to be worth thousands keeps turning up. Because it's still such a rare occurrence that it's newsworthy.

Make sure you read those stories carefully. What you'll discover is that these highly valued items are exceptional in some fashion. Sure, that first appearance of Superman in Action Comics #1 is said to be worth $310,000. But don't expect to collect comics and then sell them off to fund a comfortable retirement!

Let's look at that value again. The estimated top value of Action #1 is $350,000. That means the price it can get when the comic's in impeccable condition. Damaged covers, missing pages, etc. significantly lower the value. However Action Comics #2 is valued at around $20,000 (first appearance of Superman is historically important - the second, not so much). And there's a further fall off with issue number 3, 4, and so on.

When Action Comics #1 came out in 1939, the concept of collecting comic books wasn't really formed -- many were folded up and jammed into back pockets, passed around among friends, read and reread to tatters. At the time comic books were regarded as cheap juvenile ephemera, and often discarded. Quite a few ended up recycled in World War II paper drives.

Out of a print run of about 200,000, less than 100 copies of Action #1 are known to exist. So it's very unlikely you'll find a copy in your attic. And of those copies, only a handful can command top dollar. Further, that $350,000 is an auction estimate. If all the major collectors are at the same auction and if they get into a bidding war, the comic might fetch that amount.

But Action #1 is an unusual comic. It's both rare and historically important. Millions of comics have been published, and many of them aren't especially desirable -- even in mint condition. Most of the comics you're likely to run across won't be worth a fraction of Action #1. A clean copy of Career Girl Romances #1 from 1965? Perhaps three or four dollars -- if you can find a buyer.

So while the idea of finding a stack of old comics in the attic and selling each one for hundreds of thousands of dollars might seem like an attractive business model, that's not likely to happen.

Collecting things for the primary purpose of selling them at a profit isn't a hobby -- it's a business. And as any antique dealer can tell you, it's a labor-intensive business at that. Tracking down items to buy, maintaining the books, making sure you have enough operating capital, monitoring the market, selling at shows and auctions -- it's work. So unless your hobby is running a commercial operation, it's best to stick to collecting for enjoyment.

One other thing -- most collectible markets are even more volatile than the stock market. If buying and selling is your thing, you'll probably do better as a day trader.

Next: Narrowing the focus.

- Ralph

#collecting

The Principles of Collecting - Part 5, Understand the market dynamics

If someone's just starting out in the field of collecting, there are a few things to keep in mind. Personally, I think you can boil them down to five basic principles. And these should work whether you're collecting subway tokens or vintage clothing. In the other parts of this series I talked about ways to determine what to collect and how to shape your collection.

But collecting requires acquisition. And for most collectors, that means purchasing items. And that leads us to the final principle.

Understand the market dynamics of your collecting subject

In the first post I talked about the importance of collecting your passion, rather than to make a quick buck. But that's not to say that knowing the value of what collect isn't important.

Even if you don't intend to sell anything, and let your heirs decide what's to become of your collection, it's good to understand value -- and how it's determined.

Basically, the value of any collectible is a function of condition, desirability, and availability.

Not all old objects are valuable. If they were very common (and easily found) then prices will remain low. If they're something that's not very desirable (say, hospital bedpans), then even if they're sort of scarce, they won't be worth much.

Remember, though, that the value of a collectible object isn't determined by the general public, but by other collectors. And so it's important to know what features make a particular item desirable.

Know the standards

For the average person, it doesn't matter if a book has a dust cover or not. It matters greatly to the book collector, and its presence (or absence) and condition impacts value. And if you're looking to add that volume to your collection, having that knowledge can be the difference between finding a bargain and getting fleeced.

Some objects decrease in value when reproductions arrive on the market, because it affects availability. Some don't. And sometimes the reproductions themselves become desirable.

And remember when we're talking about condition, it's not necessarily new-in-the-box. Some antiques are more valuable if they show wear. And for very old objects, some types of damage is acceptable (while other kinds are considered deal-breakers). Same with repairs and replacement parts. For some objects, these kinds of alterations don't affect value, but for others, repairs or partial replacement parts can make them practically worthless.

Nothing lasts forever (especially collector demand)

Fashions change, too. Rare objects in great condition still arent' worth much if they're no longer desirable. Think Beanie Babies, or pogs. Red-hot for a while, now just yard sale fodder. That's not to say that the value on these items might not increase should they become desirable again.

For many collectors, the thrill is in the hunt. Understanding the market dynamics just helps get you through the jungle safely while you're hunting.

- Ralph

#collecting

The Principles of Collecting - Part 3, Have a plan for organizing/storing your collection

So what advice would you give to someone thinking of starting a collection as a hobby? I think there are five basic principles to keep in mind, whether its Victorian birdhouses or Christmas Seals, or anything in between. In part one we talked about how to choose your collecting subject, and in part two we suggested how to keep the collection manageable.

But there's another important point to consider before you go too far down the collecting path, which may actually determine the subject and focus of your collection.

Have a plan for the organization and storage/display of your collection

Let's break that principle down into its component parts.

Storage - It's usually not the first thing a collector thinks of, but it's often the first problem one runs into. Say your interest is nautical memorabilia -- and you live in a tiny New York City apartment. Deciding to collect ship's wheels wouldn't be very practical. But steamship dinner menus, small box compasses, a sextant or two, etc. could be things that one could collect and enjoy in such a small space.

And storage isn't just a question for bulkier items, like oil paintings or Chippendale furniture. Even small objects can reach critical mass.

I know someone who has a massive book collection. Now she doesn't follow our second principle -- have a focus. She continually brings home boxes of books from auctions and estate sales that are only marginally related to her primary subject, and after years of doing this she has yet to separate the wheat from the chaff of her collection.

Her library has outgrown the house, as well as the small detached building built for her use. A portion of the barn on the property has also been converted to book storage, and that's currently overflowing as well.

Here's the thing -- many of those books which she "rescued" from the dumpster by bringing them home are deteriorating a rapid rate. The volumes in the barn are exposed to extreme temperature, excessive moisture, and various critters who find old paper quite tasty.

Had she kept the confines of her library building, her collection of books might be one of a limited number of volumes, but one that could be continually refined and upgraded. As it is, most of her collection is simply disintegrating because storage wasn't considered.

Collect your passion, but consider the space you have available to indulge it.

Organization - So let's assume you have the space you need for your collection to grow into. How will you organize it? Thinking about this may also help the direction your collection will take. Decided to collect stamps? Cool. Chances are the albums you purchase will help you organize your treasures better than a shoe box.

Collect LPs? Then organize them by label, year, genre, artist, or some other theme that makes sense to you. Dolls can be arranged by size, or perhaps by age. Vintage stock certificates by company, or engraver, or year.

The point of organizing is two-fold. First, it's a good way to maintain an idea of what's in your collection. Because there will come a time (sooner or later), when you can't remember everything you have, and you'll start unintentionally duplicating objects.

Secondly, it's a good way to evaluate your collection. If you're looking to collect a particular run or sequence of objects (like all the baseball cards of the 1954 American League), then you can readily find the gaps and know what you should look for.

It's also an opportunity to take a hard look at what you have and ask what objects need to remain. Organizing isn't a one-time activity. Regular organizing helps you reevaluate your collection and help you keep it pruned. After all, tastes change, and sometimes those oh-so-desirable objects have become "what-was-I-thinking?" embarrassments. Let your collection change and grow with your interests.

Display - And finally, there's the question of display. Perhaps you don't want to show off your collection. That's your choice, of course. Maybe for security reasons you'd rather not have everyone know just what stamps or coins you've collected.

But since a good collection reflects the collector's passion, it's safe to assume that you'd want to display some of it. Maybe your collection is such that only a few pieces can be shown. You may have thousands of antique post cards, for example, but only choose (or have the space) to frame and hang ten of the most interesting.

Maybe you'll want to have a bookcase for your collection, or (depending on the size) a dedicated room. While your collection may start small, it's a good idea to think of these kinds of things early.

I know someone who has their collection scattered about their home. Things were just placed anywhere temporarily -- and never moved. Just about every flat surface is filled with something from their collection, which makes it hard to see exactly what the collection's about (and kind of looks like the first stage of hoarding to me).

So go ahead and collect those soda pop bottle caps. But while you still just have five or six, think about what you're going to do if you accumulate several hundred of them. Having piles of bottle caps on a card table is not an attractive long-term solution.

- Ralph

#collecting

The Principles of Collecting - Part 2, Have a focus to your collection

What advice would you give someone thinking of starting a collection as a hobby? That's the question my father and I attempted to answer, and came up with what I think are five universal principles. Collect something you're passionate about seems a good place to start, but then what?

Have a focus to your collection
Here's the reality: for virtually field, it's impossible to collect it all. Romance novels, coins, dolls, stamps, Civil War memorabilia -- there's just too much.

Someone I know "collects" pigs. Well, it's something she's passionate about, but there's no focus to her collection. Anything that's generally pig-shaped is fine with her, from the cheapest plastic knick-knack to expensive crystal sculptures. It's not so much a collection as a pile objects indiscriminately thrown together.

Museums have a plan for obtaining objects, and so should the collector. Museums are after things that fit into their overall mission, that helps tell their story. A museum that's focussed on 19th century life may have a few contemporary newspapers to help illustrate daily life. A newspaper museum would have thousands -- but none of the 19th century clothing, furniture, etc. that the other museum would have. Both museums could have the same objects, but use them in different contexts.

Same with personal collections. Having a focus makes the collection manageable, and at the same time gives it a purpose.

Let's go back to that pig collection. Currently, it suggests someone who's a borderline hoarder. But suppose it had a little focus. In addition to her affinity for pigs, she likes crystal. Combining those two passions, she could collect only cut or blown glass pigs. It would actually make each object mean more to her, and also tell a story of her interests. If she liked a particular studio, or school of design, she could further narrow her collection, while increasing its interest not only to her, but to others as well.

The more focussed a collection, the easier it is for non-collectors to understand. I'm not saying you should collect for the approbation of others -- collect your passion. But you can communication that passion, and perhaps pass on an appreciation of your interest to others if there's a purpose to your collection.

A collection of 19th century cast-iron piggy banks is tells a story -- several, actually. This is the level of technology for these type of objects in the 1890's; this was the shared cultural perception of pigs; this is an example of 19th century life; look at the variety of form and quality in these pieces all made around the same time.

And having a focused collection makes it easier to decide what belongs, and what doesn't. That doesn't mean you have to be draconian -- it's your collection, you make the rules, and you decide when to break or bend them. So that collection of cast-iron banks may have a lone plastic piggy bank from the 1950's, the bank the collector owned as a child, or perhaps was given by a dear friend.

And it's best to decide on the focus of your collection as early into the process as possible. It's always easier to not bring something into the home, then to try to get it out again -- and more economical, too.

- Ralph

#collecting

Three collecting principles and a cautionary tale

I've written quite a lot about collecting over the years. A good many of those posts attempt to define what collecting is (as a concept), and what makes a good collection.

I think three criteria determine the value of any collectable item:
1)  Desirabilty -- how attractive the object is, and to how many people
2)  Scarcity - how many of the objects exist, in relation to demand
3)  Condition - how complete , undamaged, or operational the object is

Notice I didn't say old. Something can be quite new, but if it's in short supply and there's a huge demand, it can be more valuable than something very old but quite plentiful that few people care about.

If any one of the parameters change, then so does the perceived value. You can see that dynamic in action reading The Rise and Fall of 7 Fad Collectibles at Kovels.com. It's an excellent article that outlines the boom and bust of Beanie Babies, Hummel figures, Cabbage Patch Dolls, and more.

If you read the article carefully, you'll see the same themes played out again and again. When the object took off in popularity, demand far outstripped supply, sending prices up. When the manufacturers caught on and started producing the items in quantity, the market was flooded, enthusiasm waned, and values plunged.

Because in the end, a collectible item is only worth what others are willing to pay for it. So it doesn't matter if you purchased that limited edition plate for $200 when it was new. If no one's interested, it has the same value as a ten-cent plate in a yard sale. Except that you can't eat off of a limited edition collectable plate, so to many people, it's of even less value then that 10-cent Blue Willow plate.

There's a corollary to the article that I don't think the writers emphasized enough, though. Never ever buy anything labeled a collector's item. If "collectible" is printed on the packaging, the one thing you can be sure if is that the object inside isn't.