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I would be sceptical about notion that stay at home sale was a great money spinner for SG. To be able to judge, you need to know cost of items going into this sale and final realisations. And there is a lot of stuff transferred from SG Retail, old stock, which will never sell. Knocked down in price and bid premium won't cover the minimal profit made.....
Who are you Carpe Diem? Do you know much about how to invest in stamps? Whether pricing is transparent? How much the market would have to move in order for an investor just to get his money back?
When I learnt to what extent SG went with their investment con, I was filled with.....
Rage!
Why?
Because I have an item, an ex SG inv item with its original stock card, with the price still marked at which it would have gone into the investor's portfolio. And that's before commission and annual management charges etc etc.
To avoid identification, I will just say that it was priced by SG at over £2000 and realised at auction less than £900.
And..........the market has not exactly been in the doldrums these past few years.
Any moral, Carpe Diem?
I don't understand what point all these comments serves.
Buying in the current circumstances is just trying to time the market, and it amounts to pot luck if you believe the mkt is about to turn. Clear evidence the pandemic is about turn turn necessarily precedes what you wish for.
But you on this thread rarely comment on SG trading practices to see if anything has changed. Do you even notice the massive overhang og old stock on their site for which they will not entertain offer? They seem to say: "You buy an item held for 8 yrs doing nothing at our price, or no deal."
I've tried to offer for several items they have held, dead, for years, and their working culture has just not changed. They don't seem to want cash. Just obsessed with acquiring stuff and slapping on a 100% margin. But actual sales based on such margins?
Auction activity will be interesting because people who have seen their inv portfolio hammered may be averse to betting on stamps just now.
Bargains & SG are mutually contradictory concepts!
How would you experienced market followers actually describe SG's business model? Has it changed? Does it need to change going forward?
How can it compete for quality material with the auctioneers?
Has anybody who contributed thus far actually collected stamps as a hobby? ( or as an investment? Er.....excuse me!)
And why all the focus on the auction side.p? What is going on in their retail GB, Commonwealth & Rare Stamps? Any evidence of improved turnover?
They are using their liquid injection from Phoenix to buy loads of goody stock which they routinely mark up to their cat values where they can get away with it. I've seen 100% mark ups.
Can they get away with it it terns of buyers? I see tbe Phil. Market as quite weak, and though there are philatelists who are prespated to pay more just to buy from SG with their record, I can't see a future with this pricing model.
They also buy intercomoany and mark up. Eg retail buys something from Auctions at £1000, add on the premium and price it at £2,400. Priced to sell? I don't think so.
And what about the ridiculous scenario that is their price list production, which everybody else treats as an industry reference point. Agsin and agsin, SG says their cats are their price list. Well, why is their such a marketing fanfare each year to launch a.....er....new..er......price list??!!
If the industry relies on these cats, why load the cost and responsibility onto just one dealer?
Also, why would collectors not buy at auction when they know dealers use at as their wholesale source? Auctions are retail/wholesale sources.
In any other sphere of commerce & industry, i believe there would have been a Competition & Markets Authority investigation of this company.
In summary, this model will die out as the current generation passes.