Rinker on Collectibles

RINKER ON COLLECTIBLES — Column #1718

Maximizing the Return When Selling a Collection of Antiques or Collectibles - Part I

My “Sell, Keep, or Toss? How to Downsize a Home, Settle an Estate, and Appraise Personal Property,” published by Random House in 2007, contained two chapters relating specifically to selling collections—Chapter 6 entitled “Disposing of a Collection” and Chapter 10 “Additional Options for the Sale of Antiques, Collectibles, and Fine Arts.” Three critical developments have taken place since the publication of the book: (1) the exponential growth of the digital age: (2) the Great Recession of 2008 and 2009 and its subsequent impact on antiques’ and collectibles’ secondary market values; and, (3) the Millennials and the following generations whose approach to antiques and collectibles does not match that of their parents and grandparents.

On July 25, 2019, I presented a lecture entitled “Maximizing the Return When Selling a Collection of Antiques or Collectibles” at the annual convention banquet of the Aladdin Knights of the Mystic Light during its meeting in Coralsville, Iowa. While I incorporated some points from “Sell, Keep, or Toss?” I added many new ones.

This is the first of a series of columns dealing with the difficult and gut-wrenching realities faced by collectors when selling an antiques or collectibles collection (more often than not collections). I am older and wiser (at least I hope I am) than when I wrote “Sell, Keep, or Toss?” I also am much more attuned to the current realities and hardened by the changes in approach they necessitate.

[Author’s Aside #1: I am not going to disguise the fact that this “Rinker on Collectibles” series is personal. At 78, my ability to resist selling my antiques and collectibles collections is weakening. I do not need the money. I never considered my collections as a source of retirement income. What I need is relief from the overwhelming and continuing question of what is going to happen to all my stuff. I know that if I die, it will no longer be my problem. Until then, as much as I wish it was not, it is.]

Any person reaching the decision to dispose of a collection(s) has to face a number of harsh, painful realities. It is impossible to avoid them. The tragedy is that ignoring them is equally impossible.

When in doubt, state the obvious. Collectors die. This is not as evident as might be to collectors, especially young ones. Collectors believe they will live forever. I am one. While not afraid of death, I have a simple approach to it. I never think of it. Such an approach leads to the inevitable conclusion that as along as I am alive, there is no need to worry about what is going to happen to my collections. There is no hurry. There still is plenty of time to deal with their dispersal. My views are in the majority, even among collectors in their 70s and 80s.

Selling anything from a single object to an entire collection is an anathema. Many collectors’ definition of love is not about how they feel toward individuals but toward objects in their collections. Collectors view objects as animate not inanimate. Objects have souls just like human beings. Disposing of objects creates a sense of loss equivalent to that of losing a friend, relative, or spouse/partner. The loss is even greater on occasion. When an object or collection is lost (sold), a grieving process takes place that lasts for months and occasionally for the balance of the collector’s lifetime.

One of the harshest realities is the fact that children, grandchildren and a spouse/partner do not have any interest in maintaining and preserving a collection(s). Their primary consideration is to sell the collection(s) and get the money. They may keep a few pieces as remembrances but the desire for these vanishes over time as well.

Once collectors reach their late sixties, they are assailed with requests, especially from children, to do something about selling their collection(s) while they are alive. Few collectors listen to this sound advice. The more individuals press the issue, the more resistant collectors become. Collectors relent only when they become mentally tired of fighting the continuing bombardment of “get rid of it now” conversations or face an untreatable illness.

Most collectors are unaware of what their collecting and collection(s) mean to spouses/partners and children. They incorrectly assume these individuals share their enthusiasm and passion for their collecting and the resulting collection(s). They are wrong. I have talked with enough spouse/partners and children following the death of a collector to know how deep seated the resentment was.

Over the years, I have created many “Rinker’s Rules.” My latest is “Rinker’s fellow collectors’ rate of death” rule. The rule has two parts: (1) when the death of a collecting friend occurs once a year, start thinking about selling and (2) when the death of a collecting friend occurs three or more times in a year, take action. I have reached the second stage. Worse yet, many of those collecting friends who have died are younger than me.

The chances of a historic site, historical society, or museum wanting a collection(s) is somewhere between zero and none. Donation is no longer a viable option for 99 percent of collections. Historic sites, historical societies, and museums are object rich. The likelihood is high that the institution already has more examples of the objects in their collection(s) than it wants. Many collections have no relevancy to today’s visitors. They want to view objects to which they relate.

Collectors are consumed by the desire to see their collection(s) remain intact and on permanent display. No historic site, historical society, or museum is going to agree to this, even if the collection is accompanied by a large monetary endowment to maintain it. Institutions now have strict collection acquisition protocols. If they cannot use it and are prevented from selling what they do not want to buy something they do, institutions will not accept the donation.

The new Federal income tax deductible and charitable gift guidelines are no longer favorable for the small donor. The new standard deduction is such that it makes no sense for most individuals to itemize. A donation of a collection whose fair market value is $25,000.00 does not mean a $25,000.00 tax deduction. The deduction amount is only that amount multiplied by the tax bracket of the collector. If that bracket is 26 percent, the deduction is $6,500.00, far below the standard deduction threshold.

Donating something is equivalent to giving it away for free. There is nothing wrong with this. The key is that collectors understand what they are doing when they donate.

When I became the host of HGTV’s “Collector Inspector,” I was told there were four stages in the life of a television star: (1) who is Harry Rinker; (2) get me Harry Rinker; (3) get me a younger Harry Rinker; and (4) who is Harry Rinker. I experienced all four.

There are five stages of life for the objects in every collecting category: (1) they lose their utilitarian usefulness: (2) they are fun to collect and affordable; (3) they are expensive to collect; (4) memories of them fade; and (5) no one cares about them anymore. “Who cares” is a question no collector ever wants to consider. Collectors assume that since they care, there always will be someone who cares. Bang the Gong.

[Author’s Aside #2: If you do not understand the above reference, do an internet search for “The Gong Show.” Watch the YouTube videos. Laugh!]

Collecting is memory driven. Two key questions are: (1) what is the value of an object when no one knows what it is? and (2) what is the value of an object when it no longer has any use? The answer to these questions is none and when they apply, the opportunity to sell has passed.

Part II of this series will focus on (1) the question of what and when is the best time to sell and (2) finally making the decision to sell. My vision is a four-part series. I will do my best to fulfill this promise to myself and my readers.

Harry L. Rinker welcomes questions from readers about collectibles, those mass-produced items from the twentieth and twenty-first centuries. Selected letters will be answered in this column. Harry cannot provide personal answers. Photos and other material submitted cannot be returned. Send your questions to: Rinker on Collectibles, 5955 Mill Point Court SE, Kentwood, MI 49512. You also can e-mail your questions to harrylrinker@aol.com. Only e-mails containing a full name and mailing address will be considered.

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