Forever Stamp Question

So, I was in the post office today and grabbed the new Bonsai stamps. I also needed a Gregory Peck Legends of Hollywood sheet, so I grabbed one of those too.

Since the stamps are forever stamps, and the rate has gone up, the USPS charged me $0.45 a stamp instead of $0.44.

So, in theory, shouldn't the value of your collected Forever stamps go up as the postal rate increases? If the postal rate is $2.00 twenty years from now, all your forever stamps should be worth at least $2.00 now, since they are valid postage.

Yep, if the PO is around in 20 years and the rate is $2.00 it will be that value (mint that is).

We've had the same situation here in the UK now for over twenty years with stamps labelled "1st" and "2nd" for first and second class rates (and occasionally similar indicators for other rates).

For example, the Machin stamps with "1st" and "2nd" instead of explicit values issued in 1989 were initially sold at 19p and 14p. The same stamps now have franking values of 46p and 36p respectively. They can be used singly for the intended service or in combination with other stamps for any service.

So, it sounds like this "forever" thing may be good for stamp collectors and the value of their collections. Some of us may be begging for a first class rate increase!

There have been several news articles written about this entire subject. As mentioned above, it is correct that the "value" of Forever stamps increases with each new postal rate increase, however, it works the opposite way, too, for stamp collectors who acquire stamps that could have been purchased for 44 cents and now have to pay 45 cents for them (your Legends of Hollywood sheet, is a perfect example).

There have also been investment strategists suggesting that non-collectors could stock up and horde stacks of Forever stamps at an old rate (just before an announced price increase) and, in theory, make a profit because the value will increase with time. There are a few holes in that theory though:

First, the amount of stamps needed to make any so-called "profit" worth anything would be so high that most people wouldn't want to do it because there are better investment alternatives available.

Second, we collectors know that hordes of mint stamps sell at a discount in high volumes on the secondary market, so that has to fit somewhere into the equation.

Third, no one knows how long the US Post Office may be around to allow us to "collect" on the value of these stamps should they go up in the future.

Finally, be sure to keep your glue stick handy, as there is no documentation to prove or deny whether or not the self adhesive backing on stamps purchased today will still be viable for use 20+ years from now. In other words, self adhesive stamps haven't really been around long enough to know how long they will remain sticky and at some point in the future -- perhaps into the next generation of collectors -- there could be a problem with the stamps losing their adhesion qualities, not to mention the fact that the stamps themselves are now being intentionally produced with biodegradable qualities that could have detrimental effects to collectors over time -- just how long of a time that is remains to be seen.

I would not worry about the USPS being around. Unlike the banks and auto companies that were bailed out, government mail delivery is a constitutionally guaranteed service. In a worst case scenario, I would think there would be a reorganization rather than shutting the whole thing down.

Perhaps the USPS should get its own private health insurance plan and demand the 33 billion in pre-payments back from the US Government. That would fix their situation quickly and teach the US Government a lesson.

Not a bad idea apastuszak.

However, in a situation where the USPS may be "reorganized" by the Federal Government, I wonder if there is anything to prohibit them from demonetizing the Forever stamps at some future point? In other words, if we play out the theory that the "old company" (the USPS as we know it today) has to be reorganized, aren't the debts (or in this case, the Forever stamps) that were part of the "old company" dissolved when the "new company" (the reorganized USPS) is formed?

I suppose the quick answer is that no one knows for sure, but it does raise some interesting scenarios.

Good reading from all, thanks.

Also don't forget the inflation rate. Paying a few cents cheaper for a stamp now is a great convenience and time saver for the average consumer but for investment purposes the Post Offices worldwide are winning with this idea. Otherwise they wouldn't do it.

I don't know if the government can reorganize the USPS. Nixon got rid of the USPOD and made the USPS. The USPS is pretty much autonomous and outside of a lot of government control.

Great thread apastuszak

I buy lots of new stamps as they come out. I have some forever stamps that I paid 50cents for back in the time that are worth 61cents now. With the amount of postage I send I save quite a bit.

Dianne

The value of the stamps will remain close with inflation. A stamp that you buy for 40 cents, later it costs 50 cents. Well it's like your 50 cents now are only worth 40 cents compared to money's value back then.
From that point it's not worth it to tie money up in this, that could be earning more "interest" elsewhere.

However, there is always the collectors value, that applies once the stamps go out of production. I think this especially applies to very cool stamps. I give you an example: Right now you can buy stamps at usps for 50 cents a stamp, regardless of how many you buy and it makes no difference whether you buy generic stamps or really cool ones.
Two very cool stamps right now are:
Bioluminescent Life - because they have a shiny background and look really neat when light reflects in them, overall they are not your typical stamp.

Total Eclipse of the Sun:
These look crazy but if you slightly warm them up with your finger, the black circle will become visible as the moon.

At some point they will stop making these and after that you won't be able to buy them anymore. Yet they are still valid.
I would venture to say that 2 years after they stop selling them, you can sell them for at least twice their actual value.

If you are reading this post at such a time, let's take a look:
I just purchased (2-27-18) Bioluminescent Life, a sheet of 20 stamps for $10 and the solar eclipse ones, a sheet of 16 for $8.
I ordered $206 worth of stamps today, and total shipping only $1.75. This will be my experiment.

Assuming these stamps are no longer being made, let's see how much they go for today, and I imagine price only goes up as supply dwindles.

Good luck. Very few modern stamps increase in value, but rather end up in the dealer discount postage bins at shows. I just bought 18's and 32's to pair-up on my mail for 60% of face, so it costs me 30 cents to mail a letter now.

the problem with this theory is that demand is dwindling at a faster rate than the supply.

I think "FOREVER" is an unfortunate choice of denomination. I prefer the UK's "1st" or Canada's "P". Short & sweet!

The good choices were taken.

Ok, well we'll see. I'll be checking back in 2 years if I'm still alive lol.