Stamp Demand

Being a newbie I have wondered if stamps have had demand cycles. Collectibles in general go through this from time to time but does stamp collecting have this happen. thanks for any input or opinions.

welcome 06Honda..
Stamps do go through demand cycles.. at least for me.. whenever I get some extra money, I demand stamps.. :)

Appartently there was a big stamp bubble in the late 1970's and early 1980's where people were purchasing stamps as an INVESTMENT. The horror! This caused the demand to increase and therefore auction prices to increase. Eventually, the stamp market bubble burst and prices came down or leveled off in most cases. This is all second hand to me, because I was too young to notice.

Exactly!

I think the economy is a big factor too.

The appeal of stamps as collectibles has always been there and always will be (don't quote me) because collectors need to collect and sometimes accumulate.

The appeal of stamps to non-collectors as investments comes and goes it seems although high value stuff always seems to increase in value.

Great wealth of information, thanks.

Demand can vary by country and region, as well. Would you believe that during the mid 1960's, the UN, Vatican, and Israel were hot, followed by all of Western Europe? And that speculators were out buying up certain MNH material from these regions, often from unsuspecting shop owners who had it priced too cheaply for that market?

The late 70s and early 80s was right at the time when the Hunt brothers were buying up all the silver. Silver [and gold] prices reached record highs.
Just wondering if some people with money to invest bought high end stamps as an alternative investment.

There was certainly a speculative boom in Australia in the early 1980s, particularly in the stamps issued after Australia switched to decimal currency in 1966. Prices reached absurd levels for quite common stamps - stamps that are now freely available at a quarter or less of what they reached during the madness.

China has always been a relatively popular area for collectors, but the prices of Chinese stamps are currently heading for the skies. I expect there'll be a correction at some point in the not-too-distant future.

A wealth of knowledge, much appreciated.

I heard and interview with a gentleman that deals with other antiques, not stamps, that the market for collectables is being flooded right now. Everyone wanting to sell to raise cash. What does this mean for the casual collector for fun? Probably nothing. But for the investor it may mean that his collection is loosing value. That is unless you collect those gold stamps.

People probably need the cash flow..i have seen stamps that were rarely available come on to the market..it can be a buyers market !

It's worth bearing in mind that, for any given 'country', there are actually several different stamp markets.

At the bottom end, there are the low-priced everyday stamps - the minimum or very low catalogue value items. They usually aren't discounted much, no matter what the economic climate.

There are also the top end, rare and expensive, items that appeal to the hard-core collector. These rarely ever get discounted, because collectors will sacrifice to get them. They know the chance to buy them isn't going to come up again soon. (There was a good example in the area I collect, the Indian States, recently. A copy of the Cochin 1943 1 Anna 3 Pies surcharge on 1 Anna stamp, used with a stain on one side, sold in London recently for about $7800 against a 2011 catalogue value of ... $7800.)

Then there are the expensive items that aren't hard to find - if you have the money. In the US, a perfect example would be the Zepps. If you want a set, and you can afford it, you won't have to search far to find one. These are the sort of items that appeal to the 'investors'. They're easy to price and to acquire, and then to track their value. They're also the first investments the 'investors' will dump when the going gets tough.

And finally, you have the mum & dad mug investors - the saddest case. They bought sheets of mint stamps from the Post Office because some misguided friend told them it was a surefire way to make money. These sheets come out from under the bed as soon as the owner starts to feel the chill winds blowing.

So it all very much depends on which part of the stamp market you're considering. Yes, 'investment' stamps will probably take a bad knock. But the really good stuff will continue to be really good. As the old saying goes, the cream rises ...

Thank you Tony.