Investing In Your Stamps

I don't disagree with the sentiments already expressed but am more cautious with the conclusions about " investment." I guess it depends on what you define an investment grade stamp. Naturally, those stamps like the inverted Jenny, "August" issues of 1861, the invert picotrials, never hinged or graded classics of 90 or better and the like are always going to have a following. But what about stamps like unused pictorials with certs that grade 75-85, or an unused OG #67 with clean cert that may however only grade 60. The Scott # 120-122 OG with clean cert even at a grade of fine/70 is still going to cost you more than $1000 and the #67 is going to cost probably more than $2500. Are they investments to you? These days, there is always going to be money around to buy the very top of the market, but I am not sure that given the financial condition of the world that there is going to be enough collectors to absorb even rare, sound, certified examples of the next rung down. As time goes on the discount from perfection continues to climb as the price for average continues to fall

JMO.
Another point to remember in determining the "value" of one's collection, now and in the future, is the number of collectors around that are willing to buy your collection when you want to sell it. The average age of today's U.S. collector, I'm guessing, is in the mid to upper 50s. Typically, this group has more expendable income to spend on stamps, thus keeping the price where it is. In 25 years, the average age, I suspect, will be closer to just over 60 and this group will be more interested in keeping their money for their retirement. This will in effect cause the price of stamps to drop. How much of an impact, up or down, who knows? But, as the number of collectors drop the more stamps are available for sale. As the number of stamps for sale increase the price will drop. Supply & demand will hold true for this hobby as it does for any saleable product.
Art

I only collect for fun but I have been buying a few classics that I hope will hold Their value at least partially. I mean I don't expect to get rich in fact, probably just the opposite! -lol. I collect with my Daughter in the hopes of maybe having a little family "treasure" to pass on when I do and I obviously don't want it to be completely worthless as I wouldn't want my hard work to be just tossed out but rather be looked at as something to hold on too. Hard to say what I mean really. ~Jay

Jay, I don't know which would be worse, throwing out the stamps or licking the zep and putting in on an envelope with a bunch of self adhesives! I wrote up an in-case-of-of accident letter to my daughter that if something happened where the important papers were etc. But I also told her if you don't want the stamps here is a name of a dealer I trust that you should contact.

I'm new to stamp collecting after a 20 year hiatus from when I was 8. I view it as a love/small investment in a hobby. I have mostly filler pieces now but a few $2-20 range. I think after 40 years of holding and forming a somewhat complete collection and acquiring some higher worth pieces that it should be worth at least what I paid over the years. I'm not betting the farm as this is still a hobby, but the nicer pieces should hold value a little better.

Any thoughts on the value of a complete collection of filler pieces i.e. ($.20CV $.02 typical cost) U.S. Stamps being worth a little more than the individual costs?

WestChi,

to the forum, there are a lot of members here with a wealth of knowlodge. You will nearly always get an answer to a question and always an opinion. Here's mine. If you had space fillers 20 years ago, they are probabally still just space fillers and consequently won't have much value. Of course, if it's a C13-C15 space filler then they would have value. The zeps are always worth something, it truely depends on condition, true today just like 20 or even 50 years ago, condition is nearly everything. Hope you stay around and join in on other discussions and you can always share an "opinion".

Art

Welcome, Westchi.

When you say "filler" items do you mean "low catalogue value" items? "Filler" (or "spacefiller") has the connotation of damaged stamps that are holding a place until a better example comes along (or doesn't). A collection made up primarily of filler material is doomed.

There is not a lot of tricky U.S. low-CV stuff, but when you go worldwide, there is plenty of twenty-cent stuff that is devilishly difficult to find.

A U.S. collection of inexpensive stuff won't be worth a lot (probably ever), but can fall back on its inherent face value. It would hard to find a buyer for a used post-1930 collection. (Though some people theorize that a nice, used collection of modern U.S. will be a rare thing down the road...hard to say.)

First of all I count myself as the collector and I do love to sift my hands through any material.But after three years of collecting I was on average spending about 3000-6000USD annually on my collections(both stamps and coins)and I'm not a millionaires son who at any minute can afford sc#273a First Peking printing $2 w/inverted center and I can't just allow myself to throw this kind of money.So I do keep in mind the investment idea which narrows everything to quality.And once in awhile when great material happens to pop up in the market I sell my 5-30USd worth sets and go for the big stuff.Well I guess trying to strike the balance.Because remember a scarce stamp never become a common one :)

I think for most of us getting what we paid is a bit of a stretch..i am thinking about inflation....stamps I paid for in the dollar of 20 years ago..would really have to appreciate...but getting my money back is not a concern...i have investments and I hope to get my money back..still waiting since the year 2000..but the amount I spend on my stamps I have friends who spend more on scratch off lotto tickets at the convience store...i like to think I have more fun than they do !!

Nothing to do with stamps but I buy a $5 scratch ticket almost every day and I keep accounting of what I spend and what I win. I recoup about 60 to 65 percent of my expense with what I win. Could be call a bad habit but I like it. You just call it a voluntary tax. In Quebec lottery is own by the Governement.