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Whats the deal with item collectors?

They would pay so much money for something just to show it off to a few close friends. Seriously 800 thousand for a damn stamp. Its a waste of money.

Judging from the somewhat hostile tone of your question, you clearly don't understand the collector mentality. I will try to explain:
Collectors get their thrills from the hunt, and when they are successful in the hunt, they experience the joy of completing a set or owning something that nobody else does. An example would be the 1913 Liberty nickel. Only five exist. If you want a complete set, that is the one that you may need a lifetime to acquire.

If you understand that, no further explanation is needed. If you don't understand, no further explanation is possible.

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