Obama Inaugural Covers - Don't get Taken!

Yes, we have the first black president and there's nothing wrong with profitting.

However, goughing people ten or more dollars over what you bought something for before an actual realistic resale vs speculative market is established is wrong!

Speculation drove up oil and now look where the prices are!

eBay won't police what's going on nor does it put any guides talking about speculation in the collectibles market. In all fairness, how could it!

I note USPS postal products which by the way are still available thru the US Postal Stamp store on line at $14.95 vs. close to $30 here on eBay. Yes, both have the presentation folder and Washington, DC Inaugural or special cancel. By the way the USPS folder isn't sold out either! I would give the link, but am complying with eBay's policies.

Any other pricing differences?

I also have shopped around on the net and see a difference of $1.50 to $3 as to the eBay prices charged by sellers being higher than cachet makers like Artcraft. A $1.50 over cost is reasonable and some of these cachet makers are hard to find on the net.  Secondly, some sellers are ethically selling things below what they bought them for or trying to make a few bucks (i.e. $3 to $4) over cost.

Example of what Speculation does to the Collectibles Market

What will happen in my opinion is after the excitement wears down - the market for Obama covers will crash overall.

John Paul II is a good example of this scenario. Obama prices on collectibles likely won't decline this year, but rather stay pretty much the same as to eBay prices. Lot's of these Obama covers were likely produced in large quantities for stamp collectors and tfor the public. Some people and cachet makers are using the limited edition factor as a sales point. However, depending on the success of Obama most of these covers will only be worth the cachet makers website price or likley, will decline. Look at other inaugural covers from Eisenhower to JFK and note most are a $1 to $3 while some of the covers like Clinton probably were originally priced to sell at $3 to $5 a pop. Now, every so often there's a seller bulking these in a lot opening for a few bucks!  

then over time people will try to sell these covers back and say i paid $5 a pop for these. Dealer will say I'll give 75 cents to abuck?  Why?  Simply, because there's too many out in the marketplace and no demand is there.

What probably will go up?

Hand painted with very good artwork, autographed items, and better cachets from small producers who don't artifically just say limited edition will probably increase in value.

What about the City Cancel and Combo Cachet Issue?

Yes, it's true more Washington, DC cancels are out there, but basically anybody and his uncle could of had an Obama cover canceled from different cities on January 20th. Does this make these covers more valuable - answer is no since the post office never designated these cities.  The value however will be in the cachet.  Also, watch the so called thematic stamp or combo cover.  Overall these don't go up either.

Can you tell me anything that did go up in value?

FDR Inaugural covers hold their values since for one not many were made after the first inauguration and secondly he still continues to be popular. Kennedy fluctuates here on eBay.

What also can happen is a lot of secondary event covers entering the marketplace playing off the Obama theme.  This happened with Kennedy. Yes, it's already happening with Obama as to Michelle and whoose to say we won't see Obama closes Guantanamo Covers. Then, likley these Obama collectibles will also decrease in value.

In closing, while it's great we have our first black president speculation is a dangerous to ones wallet and hurts hobbies overall.