The Investment Returns From Stamps - Part 2 - Article In Forbes Mag

I think this might interest some folks and probably cause some swirl.


https://www.forbes.com/sites/richar...tely-part-2/

Past performance doesn't guarantee future returns.
That's even assuming his numbers are/were correct, which is questionable, given that they are catalog-based.

One immediate observation here, solely regarding the US market, is that grading was introduced in the middle of his time period. That completely changed the rules of his model.

If you are only looking at catalog realizations, and not understanding that the entire market model changed, you are missing a big point. That alone, mostly invalidates future predictions, in my opinion. It would be dependent on another major market innovation such as grading to boost the economy of these again.

Yes, I threw up a bit in my mouth when I used "innovation" and "grading" in the same sentence.

Indeed. "Denigration" is the word.

Guide to fast money stamps 2019 Q1 edition:
(I should put a classified in the back of stamp magazine asking for $5) on how to make fast money in stamps) -sigh-

1. Buy ungraded gems at cat for $35 ( Recommend a Scott 397)
2. Grade them for nominal price
3. Dump on Siegel auction for $400.

Proof: https://stampauctionnetwork.com/y/y119754.cfm

I was hoping he would include U.S. Plate Blocks ,U.S. FDC's ,everything U.N.,Vatican City , Great Britain MNH sets and other great investments .

The best stamp investment was buying hundreds of bulk lots back in the 1980's and 1990's ,all these end of a auction lots were being given away at less than 1/2 cent per stamps ,why the auction houses would even fill your SUV for you just to get rid of the stuff.

Then ebay came along. Everything got sold for 6 cents to 10 cent each if mounted on stock cards. You couldn't scan and list the stuff fast enough.....everything went out the door so fast you just gave up writing anything up ....scan and put a price on it .Then the return was 12X to 20X purchase price not bad for cleaning out closets of stamps .

The point of the discussion is not about short term flipping of bulk material but rather the investment potential of select stamps and groupings over time.

Try reading that again ,buying in the 1980's and selling 25 years later {selling when ebay was HOT }.....how is that short term investment ,when did that become flipping ????

JUST FOR THE RECORD -----Those bulk lots at stamp auctions started going thru the roof when NYSTAMPS and ebay SELLERS started to show up and buy everything .....even today the ebay buyers are a big factor in stamp auctions bulk lots .

Buying bulk at wholesale and selling retail or what passes for it on the Bay is not the investing being discussed. That is like saying that an appliance store is investing when they purchase ovens from the wholesaler and sell them. They are engaging in retail sales. One could stretch the definition to say that is investing but that is not the spirit of the Forbes article.