Investing In 19th Century US Stamps

As sfgoda said, "Be careful with Mystic". In most cases the stamps you can find in their catalog can be found 10 other places for MUCH less! Remember, it costs a lot of money to print those catalogs and advertise as they do! They have to make a profit somehow.

Stamps really have no stable intrinsic value and therefore, do not make for a well-structured investment portfolio. When you think about it, most collectibles would not be good investment vehicles because of market fluctuations where there is intrinsic value such as precious metals or stones.

There was mention of whether stamps will be around in another generation or two...good point..i was talking to the fellow who runs the covermania show and he said he was "down" 3 dealers from the show before...they are older and some in ill health..lets hope that new dealers step in..otherwise its back to the 1850's !!

dont worry I can show up at the next one if you sponsor me.

okay,so stamps are not a good investment.
can anyone give me an idea of how much below scott catalog value dealers pay for 19th century used u.s. stamps?

It depends greatly on the issue, but for a 19th century collection that is mostly used, FVF, with scattered flaws, dealer buy price is typically 5-10%. For mint collections, 10-15%. For VF mint collections, mostly sound, 15-20%. It depends a lot on how badly the dealer needs the material. Remember, that is dealer BUY price. Unless you are flipping a stamp, you will not make a decent rate of return by selling back to a dealer.

A good solid collection should never be sold directly to a dealer. Better to consign it for sale or auction to a dealer with a good sales base. But the fact is, the GREAT MAJORITY of us will never have an overall collection that good.

I kinda avoided this thread. I think everybody here knows I strongly advise against investing in stamps. To get a long term rate of return that beats the stock market, there are only a few hundred stamps worth considering, and only a few of those are US stamps. I wouldn't even consider a stamp that wasn't in at least VF condition with no flaws, unless it is simply not available in that condition. Be prepared to spend minimum $1000 per item and minimum 20K-100K the first year, hold it for at least 5-10 years. Why that long -- it will take that long to recoup the buying/selling overhead, adjust for inflation, and beat the couch potato fund. Otherwise, you are better off investing elsewhere. Also, as with any investment, do your research FIRST -- study the sales histories of those stamps. Never invest in anything that you haven't already done a lot of homework.

I know which stamps to invest in. And I don't invest in them. That should tell you something...

But do consider "collecting" stamps. The greatest return is the "fun" you get out of it.

k

acorn......


You seem to be trying to place a blanket value on items that are always judged individually based on condition.

If you fill your collection with penny stamps it will never transform into a magnificent collection. If you fill your collection with quality material, individual items may or may not increase in value but at least you will have re-sellable material.


Judging how much is too much for any particular item is something every collector struggles with. We all would like to think that we are building collections that might someday increase in value enough so that we at least get back most of what we spent. Most do not simply because most collections are filled with nearly the same material. Dealers cannot purchase collections at the same rate that they sell at, carbon copy collections are fun but not easily re-selable.

Collect what you like, buy the best quailty you can afford. With a little luck you might choose something that will surprise you in twentyfive years.

I should note one factor that most people do not consider, as we tend to be fixated on catalog values.

Knowing who WANTS the stamp can make a big difference in the sales price, compared to simply seeing who is willing to buy the stamp.

thank you all for your very informative reponses. I have learned alot from them. there is certainly alot of food for thought.

Thanks for having an open mind and willingness to know.

Our comments weren't intended to criticize, just to let you know the facts.

I think many of us went through a similar phase... now we know better.

Feel free to ask any questions.

k

One moer example. I received an auction catalog the other day. Their are loads of VERY high quality items in it! However if you look at the estimates VS. catalog value you will find that most are estimated to sell at 10-40% of catatalog. Stamps that normally would sell at cat. or even above are estimated well below. Just like with the Stock Market now is a time to buy NOT to sell. But, remember the Stock Market will outpace the stamp market by a large margin! My investments in the Stock Market from 7-10 yeasrs ago are worth far more than the stamps I bought. Collect for fun not for profit. And yes, I spent about the same amount on my stamps as I put into the market. The market paid much more. But, my stamps were a hell of alot more relaxing!!

Revstampman glad the stock market was good to you..i am still trying to get back to where I was at the millinium !!

I never bought any stocks. The money gets spent on stamps first. Stamps are a good investment in the sense that it doesn't bother me if the catalog value of the stamp goes down. I already got my return of fun!

k

Stamps are Fun...dealing with estate lawyers and accountants is not..do your heirs a favor...DIE BROKE !!

Khj, If I don't put some money away, I won't have any money to spend on my stamps when I retire.
Phil, But that is my last shot at fulfilling my destiny of being a problem to my children.