Investing in rare stamps
Investing in rare stamps at first glance may seem devoid of logic and very risky. The criteria for evaluating stamps are largely subjective. A few years ago, Stanley Gibbols decided to restore order and made up a kind of stock market index that tracks price fluctuations for one of the 100 most popular stamps in the world. According to Mike Hall, the company's financial director, the list does not include the world's most expensive stamps, prices of which can reach several thousand pounds, whose owners are known by name, and movements from collection to collection are extremely rare.
This top 100 of the most sought-after postage stamps buyers includes the world's first mark, the British “black penny”, the blue three-penny with Queen Victoria, the Falkland Islands series in 1933, the Hong Kong stamp of 1891, released for the anniversary of the reign of Victoria and the American cent centenary of 1847 . Not a single Russian stamp in the index yet. Over the past five years, the value of the top ten of the list has grown by 71%, while the index itself rose in 2003 by 15%. The stamp market did not affect the collapse of quotations on the stock exchanges of the world 2000-2001, the Asian crisis of 1997-1998, the collapse of the real estate market of the early 1990s.
Online stamp auctions.
What are the causes of "flooding" and the constant rise in the cost of stamps? Economists have a whole theory about this. In their opinion, credit money, today, is record-breaking cheap and flooding the world in abundance. In ancient times, this would cause a rise in prices for consumer goods and services, which would eat up the excess money. However, developing countries (China, India, Southeast Asia) made it possible to produce almost everything relatively cheaply, and the development of information technology does not allow prices to rise for services. As a result, everything that the hardworking Chinese cannot produce is becoming more expensive: houses, paintings, antiques. And, of course, old stamps.
Philately is highly mobile, allowing you to avoid paying too much attention to a way of investing capital, with a constant increase in absolute value. For the last quarter of a century, prices for stamps have been steadily increasing, and, the supply on the market for old stamps does not increase. There are 30 million collectors in the world who provide liquidity to the market and the annual turnover of stamps in the world for 10 billion dollars.
Investing in little scraps of paper with cloves has undeniable advantages: in terms of weight, they are the most valuable commodity in the world; prices are steadily increasing. The fact that you can invest money not only in antiques, philatelists around the world have long known. The most far-sighted of them, buy Russian and Soviet stamps: judging by the results of the auctions, they have the largest market potential. From the point of view of the economist, beer jams, postcards and match labels are in principle no worse than stamps. But it is in principle. The main advantages of philately are based on the number of collectors in the world, the content of the material, the depth of research and cataloging, the strength of tradition. Moreover, in the conditions of modern Russia, investing $ 20 in a five-ruble mark with Nicholas II, 1913, makes more sense than acquiring shares of the YUKOS Oil Company. Well, and still the British Museum collects stamps, not cans from under the cola :)
Stamps Auction Network.
The benefits of investing in stamps.
Postage stamps are an excellent and legitimate opportunity to transport capital. Rare postage stamps are a means of ensuring the necessary mobility of capital. The history of philately knows a great number of examples when stamps were used exclusively for these purposes. In addition to their portability, rare stamps are not so well recognized by the majority of customs and immigration officials. And even in plain sight - their value is invisible to the non-expert. However, it is easy to buy stamps, and it is almost impossible to quickly sell at least the same price. Therefore, the main thing should always be the principle of interest and pleasure. If you spend money on it, you need to be aware that this is still a hobby.
Features of investing in stamps
A stamp in itself has no value - it’s just a very small colored piece of paper. A stamp has value only because someone else wants to have it and is ready to pay money for it. Therefore, stamp prices depend on changes in the economy, fashion, people's attitudes, etc.
Investment experts advise you not to forget about the secondary investment in the stamp: "Do not invest in them tens of thousands of pounds until you have no home, life insurance and a retirement plan." However, when the primary needs are satisfied, the reasonableness of investing in the stamp is obvious.
Be careful when buying narrow-oriented philatelic materials, for example, rare envelopes that cost more than 5,000 pounds sterling.
The market for such envelopes is quite narrow and it will be difficult for you to find a buyer who will pay a higher amount. At the same time, at any given time, thousands of collectors around the world are ready to purchase full series of quicklime stamps of the British colonies of the time of Victoria, Edward VII, George V.