[meteorite-list] Meteorites, stock market, spending habits & recessions

From: Michael Gilmer <michael_w_gilmer_at_meteoritecentral.com>
Date: Tue, 14 Oct 2008 07:46:39 -0700 (PDT)
Message-ID: <24187.41450.qm_at_web58407.mail.re3.yahoo.com>

Hi List!

I'll stay away from the politics because there is plenty of blame to go around for the bureaucrats and plutocrats.

But I can say for myself, I have only owned one credit card in my entire life. It was several years ago and I
ran up a debt on it. I then paid it off and cut it into micromount-sized pieces. I haven't owned another since
then and I never will. I pay for everything with cash or my debit card - I don't finance anything. Has this
hurt my credit rating over the years? Sure. But I can sum up my credit debt with one number - 0. That
is a good feeling. Of course, the "cash only" lifestyle is not for everyone and I will qualify my success with
this - my wife and I are only a few months away from realizing our dream of living full-time in an RV
that runs on solar power and has a very small carbon footprint. (look out strewnfields, here we come!)
If one follows a minimalist and non-materialist lifestyle, it's very easy to stay away from credit and
crushing debt. Yes, it is possible to live comfortably without any credit cards or borrowing money - you
just have to live within your means and don't try to keep up with the Joneses nextdoor who are in debt
up to their eyeballs and when they die, their children will inherit a house with multiple liens against it.

As for meteorites, buying them and selling them in a depression, I have had some interesting responses
off-list to my intial post/question.

Several dealers, large and small, emailed me off-list about their sales. I will not divulge names, but the
response was mixed. The smaller dealers, like myself, have been hit the hardest. The larger and more
diversified dealers are doing pretty well. (Lesson to self - diversify!)

I do the bulk of my business via an email list I have compiled over the years from collecting and restoring
antique telescopes. That list has about 40 names on it. Many of those customers would be considered
very wealthy. One customer recently told me that he lost about $200,000 in one week on the stock
market. Another saw his retirement fund shrivel by almost 50%. These people have stopped buying
meteorites for the moment, although they still plan on collecting and buying in the future when their
personal financial situation improves. This past sunday night, I did manage to make 2 sales - not long after
I belly-ached to the group about my lack of sales. It's almost as if someone was listening and took pity on
me. I made a $100 sale and a $50 sale. My profit on those 2 sales, after shipping, will be $115. That's
a healthy margin, but that margin is not going to make me rich when my overall numbers for 2 weeks is
only $150 in gross sales. The only thing I can do is to sit back, wait, and ride out this slow spell. This
has put a freeze on acquisitions for my personal collection since I finance my personal collection (in large
part) with my meteorite sales to other collectors. I've also had to sell off some of my telescopes and
eyepieces to offset the loss in the meteorite sales. Despite this rough patch, I am not tempted to start
selling on eBay. For me, eBay is a venue for buying only.

This recent sales drop has taught me two things - one, I need a larger customer base. And two, I need
to diversify my offerings.

To address the first point, I am going to start advertising in larger venues. I have a print ad coming out in
a major national publication next month. And I plan on resuming "in person" meteorite sales at outdoor
events like flea-markets, arts and crafts shows, sidewalk fairs, and other targets of opportunity as we
chance across them in our RV travels. To address the second point, I am going to start offering a larger
selection of specimens that is not limited to micromounts (which is the bulk of my inventory). And I am
going to start offering fossils, trinitite, rare minerals, custom-made displays, and meteorite-related artwork
created by my wife.

I have read with great interest some of the market commentary in this discussion from the larger long-time
dealers. And from an observer's perspective, I agree with most of the points Mike, Dean, Alex, and others
have made regarding the types of meteorites and their respective price points. Honestly, I don't see how
some of you are making any money by selling on eBay. Don't get me wrong, I am not against it, since I
have gotten some great deals on eBay recently - including a $2 angrite, several grams of CV3 for under $10,
and an ALH Antarctic for under $10. WOW! But seeing margins like this is not inspiring me to emulate
the sellers. This truly is a "buyer's market" - now I just wish MY buyers would start buying! LOL

Best regards and clear skies,

MikeG


.........................................................
Michael Gilmer (Louisiana, USA)
Member of the Meteoritical Society.
Member of the Bayou Region Stargazers Network.
Websites - http://www.galactic-stone.com and http://www.glassthrower.com
MySpace - http://www.myspace.com/fine_meteorites_4_sale
..........................................................




      
Received on Tue 14 Oct 2008 10:46:39 AM PDT