It is possible that this year-end review may be one of the last to be written in the old-fashioned way, "by hand," meaning by a single individual! The time may not be too far off when my son Markus will be composing this review. However, it will no longer be done in laborious late-night or Sunday hours, just before the deadline at the printing press, but rather modernly, with the assistance of AI, or Artificial Intelligence. Over decades, I have repeatedly pondered whether anyone would actually read these introductory catalog thoughts or if people would skip them and go directly to the brand offerings. I have pushed aside the answer. I can imagine that a successor, who instinctively wants to realize his own ideas, could see the use of a robot, i.e., AI, as a relief for this article under constant time pressure. Moreover, annual reports on the so-called "classic" old Swiss brands, our actual business field spanning from pre-philatelic times (when there were no stamps) to Swiss stamp issues until around 1870, could very well be processed with AI. This is because many parameters for market predictions in this sector have scarcely changed for many years.
I could easily adopt my conclusions from previous years and present them anew because they have proven mostly correct and, in my opinion, still apply to the next year. In the soon-to-be-past year, it seems particularly noteworthy to me that, with the entry into the ninth decade of life, I have become aware that certain health-related priorities must be considered when making entries in one's own calendar. This has led to a significant reduction in sending view shipments for local collectors. For collectors who focus on cancellations from not the entire Switzerland, but only one canton, district, or even just one city. I consider such a collecting area highly recommended because it leads to very individual collections.
Similarly, many view shipments were missing for birthday collectors or those for reconstructions of Rayon type plates. It could be assumed that this has also resulted in a decrease in the number of lots sold this year. Although the year will only end in about six weeks, to my surprise, I have seen that we already exceed the lot sales of the entire previous year! However, the turnover in Swiss francs is lower. There are several reasons for this, which have nothing to do with economic circumstances. It must be mentioned that for several years now, we have been receiving more and more offered collections. My son makes an effort to purchase them whenever possible. For a collector who has been supplied for many years or even decades, it is an absolutely frustrating experience when, due to age, he wants to sell his life's work and finds no interest from potential buyers. Like me, he wants to spare the customer this disappointment. Therefore, he buys an object whenever possible, even if we only use the first two albums (with the classic issues) out of 10 or even 30 albums of such a collection. The result is that our safes are often completely full, and Markus has to pass on these volumes with the perforated Swiss stamps to dealers without withdrawals.
If we process the albums from our delivery area once or twice a year, it may be that a large part of the new lots can be sent immediately due to existing want lists. Some will certainly be needed for the next offer (catalog or list) and reserved for that. In this way, atypical sales figures arise in certain months. However, if there is no time for processing, there are also fewer sales, but this has nothing to do with the market situation.
Outlook for the Future of Classic Swiss Philately.
If you only look at the daily news reports for such a prediction, you will surely not come to a positive prognosis. Let's be honest, the purely political circumstances are uncertain to bleak. At least for many countries. But does this also apply to us in Europe or specifically to Switzerland? Here, I see it differently, to say the least, still quite positively! Let me list a few points:
- We have been spared from major political upheavals because our Western countries are built on democratic principles. While we are burdened by large aid efforts for invaded countries and by refugee flows from the South, and in individual cases also overwhelmed, with much effort, goodwill, and great willingness to help, this has so far been somewhat successful. At least hardly anyone would want to trade places with those people asking for our help. Isn't it a special providence that has spared us their fate so far and hopefully will continue to do so in the future? For this, we should be grateful.
- After the pandemic years with structural adjustments, are more and more industries that want to hire workers but cannot find any – or not enough. This is also evident from the unemployment statistics. In Europe, Germany is by far at the top with currently "only" 3% unemployment among the major industrialized nations. In the rest of Europe, this is roughly double that value. However, in Switzerland, the unemployment rate has risen from 1.9% to 2% in the last month! In the past, 3% unemployment was defined as full employment because not everyone wants to work at all. I am not talking here only about homeless people – even a university education can be extended over several faculties and countless semesters (especially when offered for free).
- Our customers mainly come from Switzerland, Europe, America, and the Western-oriented states in Asia. These countries offer good to very good earning opportunities. People in these regions usually do not need the entire income for their livelihood but can invest some of it in some form. Since stock markets worldwide have behaved quite volatile, many people shy away from new investments in the stock markets. However, excess funds are available and often accumulate. Alternative investments have benefited from this for several years and likely will in the future as well. These can be purchases of paintings, jewelry, or even classic Swiss stamps.
- Currency plays a significant role in investments. In countries with high inflation, one typically experiences currency losses against stable currencies. The Swiss Franc has proven itself as one of the strongest currencies globally and is likely to remain so in the future. It is often overlooked what losses can occur. I do not intend to compare it with currencies of third-world countries but with those of the leading and economically most important currencies worldwide. For example, in the year 2023 alone, the EURO has lost approximately 4% against the Swiss Franc, and the US Dollar, still the world's most important currency, a whopping 9%! By investing in classic Swiss stamps, you are simultaneously investing in one of the strongest currencies globally, and if you are a foreign buyer, you automatically participate in this currency gain!
Recommendations:
It is important to mention that whenever I speak of investments in classic Swiss stamps, I am not referring to issues from the 20th century. The latter do not fall within our delivery area, and therefore, I will refrain from commenting on them.
- Buy only what you like and can afford. You must take pleasure in it. This should be the most important reason for purchase: finding joy in each piece you can acquire or that you already find in your collection through frequent viewing.
- Buy where you feel well-advised and competent. Buy where you would like to make a purchase again.
- Buy stamps and not just certificates! There have always been good and other examiners. The more knowledge you have, the fewer disappointments you will experience here. Nevertheless, keep in mind that all people make mistakes (I myself still make them almost daily)! It is not crucial whether someone makes a mistake but whether they admit to it in such a case. This has more to do with humility and character than mere knowledge.
- Whether you buy from a brick-and-mortar store, a mail-order dealer, or an auction, it may always be that you can get a piece cheaper from an "after-hours dealer" who only engages in the business as a hobby than from a professional dealer who must earn his expenses (rent, insurance, taxes, value-added tax, booth rentals at home and abroad, livelihood, etc.). So, be a bit lenient with the professional dealer. Because sooner or later, when it comes to selling your own collection, you will often want to or even have to return to him.
- When you buy a stamp, the potential profit in a future sale should not be the main focus. Of course, such a profit can arise, especially with very good knowledge or good advice from the supplier. But mere profit-seeking has much to do with pure speculation. And this often leads sooner or later to losses because selling stamps is not always straightforward. It is by no means better or easier with paintings or jewelry—in fact, quite the opposite! Therefore, once again: buy what you like and what brings you joy (only to you, not to a jury or a person where personal preferences or interests are involved)!
- If a hobby brings you joy, it can easily cost money. If you enjoy skiing, you hardly think about somehow "monetizing" the used-up day pass in the evening. So why, somewhat exaggeratedly asked, should the hobby of stamp collecting also have to yield returns? As I said, under certain conditions, it can certainly yield returns. But must it also in the case of frequent 08/15 collections from the stamps of the daily incoming but unfortunately increasingly sparingly franked mail, without any purchases of high-value items?
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Of course, you can still give a student a pre-printed album, as has been done for decades. He will probably collect stamps eagerly and beg for them from relatives. So far, so good. But this does not lead to a personal collection. More to one that "everyone" has, who owns and tries to fill such an album. Personal collections have the advantage of being unique. All are different. And unlike a pre- printed album, where you can immediately see what you already have and what gaps still exist, a personal collection is never complete. You look at what you have. Examples of such personal collections:
- Regional collections: If a collection of all Swiss stamps is too much (pre-printed album), you can limit yourself to cancellations (loose stamps and letters) of only one canton, one district, a single city, or a valley. This has the advantage that you also look at (in the circle of friends or at an exhibition) what you have and do not complain about what may still be missing.
- Birthday collections: In the past, one frequently gifted one's own, or godchildren, or grandchildren with a gold coin for a birthday (or Christmas). My advice: reconsider the idea of a birthday collection! This involves gathering stamps or letters with the birthdate of the recipient. But only the day and the month, from as many different years as possible. What are the advantages of this? Often, the goal is that the recipient will one day inherit the collection of the giver. It is not uncommon for a young person to regret that, in their opinion, their father spent far too much time with his hobby of stamp collecting on Sundays or other days off, rather than engaging with the interests of the youth. Therefore, the enthusiasm for the paternal hobby is not particularly pronounced. In other words, he tries to immediately liquidate this heirloom, i.e., the inherited stamp collection, immediately after the giver's passing, to realize his own goals with the proceeds. However, if he inherits a stamp collection with the date of his own birthday, this is a purely personal collection for him, to which he has a completely different, personal relationship. And he will likely keep it in honor and not sell it. If he finds himself in the"storm and stress" period, he probably will not immediately change his interests and become an enthusiastic stamp collector. But once he has established himself professionally and personally, the time will come when he looks for a hobby. The memory of the first stamp collection he owned can come to mind. And because he had been engaged in it for years, entering this hobby will be much easier for him than for someone who had never developed a connection to it.
Dank (Thanks):
Thank God that I am a very privileged person! Not only have I – albeit indirectly – finally found one of the most beautiful professions, but I have also found in our son Markus a successor who makes the gradual withdrawal from the self-established business easy for me. There are examples where the business transition to the next generation led to a decline. I can hardly imagine that for us. Markus will probably do some things differently than I do. He must. One cannot and should not want to tackle the future with the methods of the past. If someone has no original ideas, he is not an entrepreneur and can hardly lead a business successfully into the future. He has been working full-time in our business for about thirty years now, and it is only thanks to his dedication that my – or rather our – business is where it is today. For this, he deserves my first thanks, which I also want to extend to his wife Claudia, who does a tremendous amount of work throughout the year and often accompanies us to major fairs abroad. Over 55 years ago, my wife took the great risk of giving up our learned profession together with me and becoming the wife of an aspiring stamp dealer, and we are still together and of the opinion that we did the right thing back then. Being able to count on your help was a great support, and I am very grateful for that. And when I think of all the dear relatives (from the youngest grandchildren to the oldest brother-in-law) who help us with the annual catalog distribution, a heartfelt thanks must also be expressed there. Only... a good family environment alone does not keep a company alive for a long time! If there were not the large number of customers and colleagues who demonstrate their affection and loyalty with their recurring purchases or offerings, no laurel wreath could be won! Let me express my heartfelt thanks above all to you, my esteemed customers, with the best wishes for a peaceful and healthy new year. Stay healthy and take pleasure in every single piece that brings you joy and that you can afford!
Schmerikon, mid-November 2023 Gottfried Honegger