Recently I read that one seller listed his book to sell on amazon.com for 23 million dollar!! This was for sale by private seller (same like ebay). Read more about this by clicking following link from PC Magazine.
I am seeing similiar pattern in Mahatma Gandhi stamp from India price selling on ebay, not because of any algorithm but by human brain.
Here they are looking for some NEW International buyer(as all Indian collector will know price about this) who is not aware of real price or current value of that Mahatma Gandhi stamp from India and seller thinks that some one will buy it by mistake.!! & then regert their whole life when it is selling for much lower value.!
In 1995 India & South Africa jointly issued Mahatma Gandhi Souvenir Sheet of Indian Rupees 8 which is equivalent to 20-30 cents. (Yes 0.20 US cents). This Souvenir sheet design shows simplicity of Mahatma Gandhi with all his belongings and his famous Dandi March picture. I also think India post issued very large quantity of this Souvenir Sheet so this is not rare.
Currently this stamp is sold between 4-7 dollars which is also on very high price(it's more than 500% ROI in 16 years) and if this rate is continue then it will surpass value of 1948 Gandhi stamps even though there are more Gandhi collectors and dealers in India than it was in 1948.
I think because of low face value( 8 Indian Rupees or 20-30 cents) of this Souvenir Sheet, it was accumulated by certain group of people and because of them we are even paying 4-7 dollars. I don't think this will happen in 2011 Mahatma Gandhi Indipex Khadi Souvenir stamp sheet from India because of high face value of Rupees 250 (5-6$) so it will be hard for dealer to keep high priced item.
But I was more suprised when I saw same sheet selling price is $26. !!! All credit to goes to seller "rajsukhani" for making this possible for stamp of India.
Yes it is $26 + $5.50 = $31.50!!
Also if you see this listing description of the stamp is also incorrect. It is 1992 instead of 1995.
If this souvenir sheet is used with some special postcard or unique used cover to embassy or redcross or united nations etc. than price of $26 or more is justified but this is just stamp sheet which is only 16 years old.!!I would rather pay $20 for Mauritius Register cover (if it is GENUINE) with 6 stamps on it than buying this souvenir sheet as there is lot of work to make that used cover.
But in this case it is just large quantity printed souvenir sheet and seller wants to get profit without doing any work to make cover or postcard etc.
Another example of 1995 SS when it was UNSOLD for 22.22$.
I am not sure whether stamp sellers/dealer thinks that stamp collectors are stupid.!! They just pray that someone will fall in their trap.
But this is seller choice how much they want to sell their item for so no offsense without any alograthim like Amazon book price. It's good that seller is giving option of Buy It Now only instead of auction and then starts increasing price with his/her other ebay id.(Shill Bidding).
But Gandhi Collectors, Do you think this souvenir sheet is worth $26?
It's 8500% return on investment. (0.30 cents invested in 1995 & today's current value $26)
In future we all might see something similar to that amazon book price and this sheet might be on sale for 26 million dollar.!! (if no listing fees is on ebay).
BTW: Because of Low initial value (Rupees 8) some one can afford to buy a very huge quantity and can sell them at high price. I think Indian Goverment Post notice this and issued 2011 Indipex Mahatma Gandhi Souvenir sheet at very high value (Rupees 250) so it will be easily available to collectors and reduce profit margin for some dealers and reseller. Because of this high initial facevalue it will not appreciate same way like 1995 SS.
Update 12/27/11 :
2 sheets were sold for $3.75.!! (but still huge return compare to original price of 20-30 cents (0.30 dollar) with face value of Rupees 10 in 1995.
Want to know more about FAKE and FORGERY stamps then checkout other blog post click one of the following link and you will be surprised.!!!
1) Philatelic FAKE and FORGERIES.
2) FAKE AERO PHILATELY Covers.
3) Stamp collection CHEATING.
4) Stamp Collection Value
5) Stamp Collecting Facts
6) China stamp collection value.
7) First AirMail Post
8) World First Flight Cover
9) Greatest Stamp Collection Scandal
10) Biggest stamp collection SCAM
11) SCANDAL in stamp collection
12) How to increase stamp collection value
Now does it make sense to collect stamps after looking above blog posts?
Gandhi Stamps Club.