Have you thought of investing in stamps?
Many people have.
Among the world’s millions of stamp collectors are some of the most famous investors in history.
The recent record-breaking sale of the legendary Z Grill stamp (an 1868 blue 1c Ben Franklin) was the climactic moment of the sale of the collection of Bill Gross, often called The Bond King.
Warren Buffet couldn't be more at home at this small stamp sale.
Warren Buffet collects stamps. There’s even footage of him happily strolling around regional stamp fairs. He's in his element.
But should you?
Here are 10 reasons why you might want to invest in stamps
1 - You will enjoy it
Bill Gross has made good returns from his stamp collection. But he assembled it because of his passion for philately.
Investing in a passion is everyone’s dream.
Get your priorities right and enter the world of stamp trading and you can enjoy a rewarding hobby that might bring you great returns.
2 - Stamps are small and portable
This lovely Great Britain 1912 'Seahorse' Master Die Proof is quite large for a philatelic item and it's just 7 by 10 cm.
The most valuable stamps tend to do well in times of volatility.
One of (a few) reasons for this is that you can quickly pack up your stamp collection and cross borders with them. And, you can usually liquidate them wherever you are in the world.
3 - Stamps are a finite asset
Collectible stamps aren’t going to be reproduced.
There are no printing presses ready to fire up and shoot out a few million more Penny Blacks to drain value from your stock.
4 - Stamps have no monetary base
It looks like inflation is likely to be a permanent fixture of our economies. Climate change - among other factors - makes extracting value more difficult.
Stamps aren’t financial instruments. Their value is based on their rarity. They are unmoored from the monetary system in that sense.
5 - Stamps are a good diversification
No-one is going to suggest you sell all your shares, cash in your pension and head to the stamp auctions.
But, everyone will tell you that a good, safe investment portfolio is one with variety.
No-one else can own this exquisite sheet of New Zealand proofs.
Stamps and other collectibles have proved popular diversification tools in recent years. And that trend has helped drive more demand in the market.
6 - Stamps are ethical and sustainable
If you’re concerned about where your investment cash is going and how that might affect the future of your children and the planet then stamps are safe ground.
Indeed, they may have been printed by some very unpleasant regimes but that’s in their past.
Historic stamps are pre-owned, made long ago, and should have an extremely minimal carbon footprint.
7 - Stamps preserve history
They’re tiny and often look rather drab, but stamps are important pieces of social history.
They tell the story of nations and are packed with political and symbolic meaning.
They carry propaganda, national pride and even show wars shifting borders in real time.
You’re not just an investor, you’re a custodian of history with stamps.
Some are genuinely beautiful objects too. The history of stamp design is a rewarding subject in its own right.
There's a hell of a story behind these 1897 China stamps.
8 - Stamps always have buyers
Stamp collecting is a global phenomenon.
Genuinely.
And, the internet means you can buy and sell around the globe very easily.
China is the boom market for stamp collecting, where it’s a very popular hobby after decades of being poorly regarded.
9 - Stamps are private
You don’t have to register your stamp purchases anywhere.
Bid privately at auction, and you can walk away without anyone any the wiser.
Lots of the world’s most famous stamps are said to be “in private hands”.
Naturally, you have a duty to obey all the tax laws where you live, but you don’t have to make your investments public business with stamps.
10 - You might make money
A 2011 academic paper in the Journal of Financial Economics, The investment performance of collectible stamps, found stamps doing very well as long-term investments.
The paper revealed an “annualized return on stamps of 7.0% in nominal terms, or 2.9% in real terms.”
Using indexes of stamps the authors ranked them as performing in a similar manner to art, and said: “Estimates of average after-cost returns for individual investors show that stamps may rival equities in terms of realized performance.”
You should take a look at the historical returns for this stamp, Britain's most valuable.
Invest in rare stamps today
Anyone who is interested in stamps as an investment should start by getting informed about the subject.
You need to understand how stamps are rated for their rarity and condition. How to keep them safe. How they are authenticated. How to deal in them and get the best returns. And how to spot bargains.
We stock many exciting rare and historic stamps. Only a fraction are listed here at our web store.
To find out more about our stamp collections sign up here and you’ll get all the latest news. And you’ll never miss out on the latest new acquisitions that could make all the difference to the performance of your collection.
