Stamps For Investment

My DH lost 30% of his stock market investments after the market crash. I was telling him that maybe he should look other avenues of investment such as Stamps (since I got into it very recently).

It seems he didn't disagree (how could he after losing a tryckload of money). Where should we start ? What are good investments (single items/ plate block/ sheets) Which ones are appreciated overtime faster than others.

Any historical (year by year) price data available for Stamp appreciation ? Any consulting on this topic would be highly appreciated.

hello.

i am danny
i would not really look for stamps as an investment.
i think it as more as a hobby but some stamps do increase in value.
it is just my opinion..

Very few stamps are investment grade.

Here is a pretty fair article from ebay guides.
http://reviews.ebay.com/Investing-i...000001435633

Dan

What would be the fair market value for the following "investment grade" artifacts as mentioned in the article :

#404 1915 10c Pan-Pacific Perf. 10 Issue

#523 1918 $2 Error Issue

#630 1926 White Plains Sheet

#C13-C15 1930 Zeppelin Set

Like most investments, I don't encourage people to invest in a commodity unless they have a good working knowledge of the commodity.

After factoring in inflation, commission, insurance... the great majority of stamps are money losers.

Most stamp dealers earn money off volume of sales. Only a few stamp dealers focus on high ticket items. Keep in mind that commission is typically 15-20% at these dealers and auction houses. That commission often goes both buyer AND seller. Therefore, buying then selling, you are already out 30%-40%!! Then you factor in inflation, insurance, adequate rate of return... you get the picture.

Only a handful of stamps really beat these statistics, and those stamps do not often come up for sale.

Finally, beware of numerically graded common stamps. The market is already dropping. Give it another year or two before it completely collapses. The numerically graded classic stamps will always retain good value, but the key is will they continue to go up? Currently, I would say doubtful for the next 2 years. Just my opinion. I don't touch the numerically graded stuff.

I would definitely take this one OFF the list. Can't believe someone is still trying to peddle that as an investment. The prices on that issue collapsed roughly 2 decades ago. I haven't checked recently, but I don't think it has come close to recovering (and that's disregarding inflation).

I agree with k, the #630 1926 White Plains Sheet can not possibly be good as an investment.

About 3 years ago, obtained a MNH one for 25% of Scott at that time. If it really were an investment philatelic item, it would have sold for at least full catalog price.

sonalee, be cautious when entering the stamp market with a desire to buy.

khj has given excellent advice, she won't steer you wrong.

A free thing you can do to see what specific stamps are going for these days, would be to visit ebay. Go to "Stamps", then "United States" (or other country). Then when US stamps comes up on screen type a Scott number in the search box. You'll have to wade through some junk but you will begin to get an idea of what stamps are actually selling for. Be aware that you should not only be concerned with the stamp but it's condition as well. Not all stamps are created equal.

Marty

Thanks for your input.

Bottom line: stamps are for fun and not for $$$$.
Got it !

#630 1926 White Plains Sheet is selling for less than $300 (MNH) in many websites including ebay.

At its peak MANY years ago, they were going for $500+.

Now you know why I said scratch it off the list.

The important point for an investment is not where the price of the commodity was but rather where you think it will go.
I agree with the points made by khj, few stamps are investment grade. I would also add that your risk tolerance and time horizon need to be factored in too.

Personally, I have made a very comfortable living for the past fourteen years by investing but I wouldn't consider stamps as an investment except as something for my kids who will put them on ebay before the lid on my coffin is closed! Their cost is zero so any money they get for my stamps is profit less sales expense.

However, different people have different views on a particular commodity and different goals and objectives. Some people want capital preservation and others want capital appreciation. That's what makes markets work.

Dan

Hello sonalee....

Welcome to the club.....

Kim's advice is excellent.....I'm always impressed by her advice and the quality of information in her posts.

Yet.....I also think that if one were to search carefully as I have, there are incredible buys to be found on ebay and other internet sites.

Case in point......I found this #7 on cover listed buy a seller that had well over 500 stamps listed by Scott number, yet this was listed as...."old cover, blue stamp"......with shipping, $10.00......I about gave myself whiplash hitting the buy it now option.





I'm sure most of you remember that I found a pair of #63c's in a mystery box (not on line) a fantastic once-in-a-lifetime find.......but so far this is my best find on line.

Half the fun is in the hunt.....with an occasional interesting find. 99% of all collectors never found anything decent, until the internet opened up the whole world for collectors to search. I think the odds of finding something of real value has risen dramatically in our favor.

Even so, I think it would be irresponsible to suggest that trying to buy stamps strictly as an investment is a good idea. The great majority are really not worth that much.