Stamp Community Family of Web Sites
Thousands of stamps, consistently graded, competitively priced and hundreds of in-depth blog posts to read
Stamp Community Forum
 
Username:
Password:
Save Password
Forgot your Password?

Welcome Guest! Need help? Got a question? Inherit some stamps?
Our stamp forum is completely free! Register Now!

Forever Stamp Arbitrage

 
To participate in the forum you must log in or register.
Author Previous TopicReplies: 4 / Views: 5,895Next Topic  
Valued Member
United States
254 Posts
Posted 09/26/2013   08:47 am  Show Profile Bookmark this topic Add peterc4 to your friends list Get a Link to this Message
Interesting article about using the "Forever" stamp concept as an investment scheme.

http://qz.com/128329/a-step-by-step...tage-stamps/

Send note to Staff

Valued Member
United States
168 Posts
Posted 09/26/2013   09:46 am  Show Profile Bookmark this reply Add jeffyl00b to your friends list  Get a Link to this Reply
I don't know if this "falling off the back of the truck" business plan is a good idea at all...

...But, if this were in the business section of the paper, they would tell you that stocking up at the lower price is money saved at a higher yield than savings and some investments. Actually they did say that a few weeks ago.
So let's assume we're on the low side, 5 bills/letters/complaints a month. $27.6 a year. It'll be $29.40 afterwards.
Why not prepay for 50 or so dollars and stuff them in a drawer? I notice a lot of people seem to do this, as when I could see incoming envelopes seasonally for employment, I noticed a good ton worth of older postage.
And you know we'll see those newspaper articles soon about the magic 50 cent threshold being crossed.
Send note to Staff  Go to Top of Page
Bedrock Of The Community
United States
12128 Posts
Posted 09/26/2013   4:01 pm  Show Profile Bookmark this reply Add wt1 to your friends list  Get a Link to this Reply
There's a lot of variables in the idea of profiting from a postage rate increase. In the case of the $0.46 to $0.49 stamp price increase, it comes out to about a 6.5% increase. If postage stamps actually sold for full face value, that would create a nice return on one's investment. For the average consumer who buys a few books or rolls of stamp before the price increase, a few dollars can be made, but that's about it.

The ideas presented in the initially posted article just don't make financial sense for a variety of reasons, including (but not limited to) the following:

1. Postage stamps are typically sold on the secondary market at a fraction of full face value, so any attempt at profiting from a postage rate increase is likely to become a poor investment no matter how you figure it.

2. The numbers to make any so-called profit just doesn't work. They mention the $1.75 S&H charge the USPS charges but doesn't consider the S&H charge to get the product to the end consumer that would potentially buy the stamps.

3. The writers of article probably have no idea from a stamp collecting point of view that there are many, many sources for discount postage well below the present postage rate.

4. It would be next to impossible to find a buyer for the tens or hundreds of thousands (or even a million) stamps used in their scenarios. First, if you were a business that had that much need for postage, quantity discount rates would apply (i.e. presort, etc.).

5. The very reason why businesses do not use stamps today is that postage meters do the job much quicker in weighing, sealing and applying postage to an envelope, not to mention the security in accounting for the postage, as a human would have to take the time to manually seal the envelope and manually peel off a stamp and apply it to an envelope and account for their inventory in the process. While the time issue may be insignificant for the few envelopes a consumer typically uses, in a business environment time is money and the cost of putting an employee onto that task just doesn't make financial sense when there is a mechanism (i.e. postage meter) to do it at lighting speed.

The above list could go on and on... In the end, it's simply not worth the time and energy involved, not to mention the risk in up-front costs to do it.
Send note to Staff  Go to Top of Page
Valued Member
United States
254 Posts
Posted 09/26/2013   5:16 pm  Show Profile Bookmark this reply Add peterc4 to your friends list  Get a Link to this Reply
Ponzi of Ponzi Scheme fame - his original money making idea was based on arbitrage of international reply coupons. To me, Ponzi's idea sounds a lot more complicated than this Forever stamp arbitrage concept.

The article seems tounge-in-cheek. But honestly, if some nutbar tries this scheme it could only benefit the PO. Once they sell the stamps, they dont take them back. PO gets cash...buyer gets a zillion stickers to do with as they please...end of transaction. Good luck selling your stamps guys!

If the whole scheme makes 1.3% and the schemers actually manage to distribute the stamps. It would be a huge win for the PO. Can the PO distribute postage stamps for less than 1.3% of face value? I wonder.
Send note to Staff  Go to Top of Page
Valued Member
Canada
412 Posts
Posted 10/07/2013   5:59 pm  Show Profile Bookmark this reply Add NBSTAMPER to your friends list  Get a Link to this Reply
As far as I am concerned, this is the kind of crap that will damage the hobby yet again. And it's an encouragement for the USPS and other postal services to take advantage of the decline of their business. We saw this or something similar in the 70's. We need to encourage the postal services (IMHO) to issue lower quantities of stamps to encourage scarcity, not the reverse.
Send note to Staff  Go to Top of Page
  Previous TopicReplies: 4 / Views: 5,895Next Topic  
 
To participate in the forum you must log in or register.


Go to Top of Page
Disclaimer: While a tremendous amount of effort goes into ensuring the accuracy of the information contained in this site, Stamp Community assumes no liability for errors. Copyright 2005 - 2021 Stamp Community Family - All rights reserved worldwide. Use of any images or content on this website without prior written permission of Stamp Community or the original lender is strictly prohibited.
Privacy Policy / Terms of Use    Advertise Here
Stamp Community Forum © 2007 - 2021 Stamp Community Forums
It took 0.16 seconds to lick this stamp. Powered By: Snitz Forums 2000 Version 3.4.05