http://etfdailynews.com/2012/08/22/...-timber-farmland-stamps-antique-guns-slv-gld/ This is part of the except you will want to look for...... "Stamps Stamps aren’t quite as shiny as gold and they certainly can’t compare to guns in terms of utility. Nonetheless, this palm-sized investment is a worthy consideration for those looking to tap into the vast universe of profitable collectibles. Although stamps appear to be perhaps the most fragile product on this list, they are not much different from other hard assets; stamps derive their worth from a shared psychological belief that they are in fact valuable. Simply put, stamps are a non-productive, collectible asset, much like gold bars and silver coins. In fact, recent studies show that returns on collective stamps could rival precious metals over a long enough timeline.Research shows that over the period 1900-2008, stamps have generated a nominal annualized return of 7%. This is a rather remarkable feat that few collectibles can attest to. Historical evidence also suggest that stamps feature a return pattern that bears a close resemblance to the yellow metal; stamps are a worthy hedge against rising prices, and much like gold, they can also serve as a partial hedge against unexpected inflation."
The only trouble is, that to save stamps as an investment purely, means simply buying the best stamp for gain over and over again. eg the 5c brown BF. What a boring pastime that would be?
No doubt that stamps can be good investments especially those that are rare and with high values. Value depends on several factors...
Yes but would you be prepared to own 'only' valuble stamps? [This would mean getting rid of about 95% of what you now have in your collection].
There's no doubt that some stamps are going to appreciate over time, especially rarities, but I am not looking at collecting as investment. I have made good buys over the years as well as not so good buys and expect I will have a nice nest egg should I chose to sell. Stamp collecting is something I prefer not to put into the category of investment because of the potential angst about it. I'll worry about stocks, real estate, coins or bullion instead and enjoy what is for me a hobby. Selling wholesale and selling retail make a great difference in what any stamp will net over time, not everyone is willing to go through the effort to maximize gains on a hobby. I certainly am not. Everyone approaches the hobby in different ways: what to collect, how to collect, why to collect and when to collect. I appreciate the differences and applaud each and every reason. I have read many opinions from APS members and came to my conclusions independently and I hope each and every collector does what he/she does for their own particular thoughtful reasons. Especially dramatic has been some of the letters to the editor in the APS about the disappointments experienced when selling a collection.
There have been various comments made about stamp investments on this site. The crux is if you do not spend US$10 000 or more on a stamp it is simply a hobby. Never think of getting your paid money back. Most of us will not get old enough to reap our input financially. Had you inherited your pristine great grandfather's/mother's Gold Exhibit/collection and kept it in the same pristine condition then you may have some investment material. To keep such a collection tip-top is like owning a million Dollar yacht which also cost money. So instead of paying for Bank security etc spend money fighting the fish moths, rodents, thiefs or just keeping the collection climate safe will cost you. Just enjoy the hobby in all aspects. Erich
Stamps are actually a good investment. But one has to be sure to invest in the right stamps, the ones which are valuable. The stamps market is a very wide open market and only the people who like collecting stamps invest/buy it. One can easily be fooled if he doesn't has much knowledge. So if one is investing into stamps and doesn't has much knowledge, its the best way to store your wealth safe which will increase as time passes by but you do a proper research online or read some books and buy the stamps which are the most valuable and advised by everyone.
>>Stamps are actually a good investment. But one has to be sure to invest in the right stamps, the ones which are valuable.
Only the well informed, knowledgeable and deep pocketed investor can try a stamp investment. Unless sticking to Penny Blacks. No knowledge is really required, probably why it remains so popular, easy to acquire and always gaining value.
Just looking into a Gibbons Commonwealth may show the variety of printings and types of cancellations on Penny Blacks. Getting the QV catalogue in front, most will just look in awe at the complexity of stamps recorded
Just looking into a Gibbons Commonwealth may show the variety of printings and types of cancellations on Penny Blacks. Absolutely and not a bad one among them.
My collection is one I have built up myself and I dont worry about the value of it LOL for me it is something that I enjoy doing, as with coins I love the history behind many of the stamps and I love many of the designes
I think it is wonderful if and when someone carries on with a collection, few younger collectors have that opportunity. Many large cultivated collections are bought and taken over by new owners. New information and new findings make collector show pieces - the hobby lives for us to enjoy.
If one is astute and buys wisely, one can, if not make a profit, at least recoup a large portion of what they have put into their collection over the long term. Another thing to keep in mind is that one person's definition of "deep pockets" is not the same as another's. I look at stamps that sell for tens or hundreds of thousands of dollars and blanch, yet I'm sure there are many that would consider the 4-5 figures I spend cumulatively per year as "deep pockets." It's all a matter of perspective and comparative income and expenses. In my case, I have no family to support, so even on a civil service income I can put a fair amount towards my stamp collection. I look at it this way: over the last decade+, the stock market has been a complete crapshoot, no longer predictable, and you run the risk of losing as much as you do gaining, even if diversified. Most savings accounts return less than 0.5%. Even CDs are under 5%. On the other hand, my collection has been growing steadily in value. Granted, it's all "on paper", but still, eventually higher catalog value *will* translate into a higher sale price. Luckily, I've been collecting in an area that has posted incredible gains over the last decade... for example, between the 2012 Scott catalog and 2013 catalog, my revenue collection increased 18% in value in a single year. Granted, this year was an exception, and who knows how long the "revenue boom" will continue, but I plan to keep riding it... the only downside is that the holes I still need to fill are increasing in value at rates such that I cannot hope to catch most of them. I'm just glad I have what I do... If I can enjoy my hobby throughout my life and come close to breaking even or even turn a slight profit when all is said and done, it's effectively been a complete win. One downside to having a valuable collection though, is concern over how to store it and insure it. I'm at a point where my annual safety deposit box and collection insurance costs are not insubstantial. But better that than risking loss of it all. At the end of the day, if you buy classic material, buy the best quality you can afford, and don't fall for fads like "professional grading" that result in you paying orders of magnitude of what you would pay for the same ungraded stamp, you'll do fine... you may not get rich in the process, but you may just have something to cash out at the end of the line...
It could even mean getting rid 99 percent of what I have. LOL I collect because I want to, and not because of its value in the market.
Valuable stamps as seen today have been around since 1840. Many have collected Top class valuable stamps and since have passed on including their collection which still remains in anothers hand. Had we good health for 200 years and the sense to keep a collection in good health as well most would have a valuable collection - it is not to be!
It always makes me feel slightly nervous to see the words "stamp collection" and "investment" too close together-- the late 70's boom and bust aren't all that far away. There's little doubt, of course, that scarce high quality stamps hold their value pretty well... but I just prefer to collect for fun, rather than for profit. The fact that I occasionally make a few bucks from selling duplicates is a "bonus," rather than a "hope" or even "expectation." ~Peter
