Are Postage Stamps A Good Investment Vehicle
As inflation hits and the world becomes increasingly unstable, are rare stamps as good as gold and silver in terms of an investment? The quick answer is yes, but you need to know what you are doing, or know someone who knows what they’re doing. I’ll explain.
Rare Stamp Values
To take advantage of the rare stamp market, you need to know what a rare stamp is right? To really know this takes years, and I mean years of study and understanding of the intricacies and history that make a stamp 1. rare and 2. valuable. Not a lot of people have the time or motivation to dive that far in and in so doing, in my opinion, are missing out on tremendous investment opportunities. A British Guiana One-Cent Magenta postage stamp from 1856, the only one of its kind to still exist, sold for a record $9.5 million. To take advantage oft his you need to know what the hell a British Gulana is right?
Stamp Dealers
This is where those who know what they’re doing can come in handy to help you take advantage of such opportunities. The problem here is finding someone reputable, afterall if they know the value surely they would take advantage themselves right? Yes they do of course, this is how they make a living. I’m making a living around $100K a year selling very small time stamps so imagine what I could do if I applied myself to the more rare stamps. So what’s stopping me? Two things. Cash flow and motivation. I don’t have or have access to that type of money. I also don’t want to collect stamps as such but rather have them pass through my hands and sent to the rightful owner to add to the their collection.
I, like other dealers, are also passionate about preserving history and getting a rare stamp to a good owner, much like choosing a fit dog owner, is the goal.
How Do I Find A Good Stamp Dealer
This is where stamp clubs come in. If you’re serious about entering the stamp investment business, start with the stamp club. There you will find a group of collectors and enthusiasts who do not mince words, will tell you how it is and who to trust and listen carefully to what it is you want to achieve in your stamp collecting journey, whether for fun or profit. A lot of stamp clubs have stamp dealers within them as well. Going to an event put on by a club is a great start to get an introduction and to talk candidly about what it is you want to achieve in terms of stamp investment. Hidden amongst all of the collectors are some very wealthy, low profile dealers who can put you in the right direction, but they will usually feel you out first before opening the vault to their treasures. This is how it is and how it should be. You need to display your intentions and gain trust and show that you are worthy of holding such treasures of history.
Can I Flip Stamps and Make a Living
A resounding yes from me because that is what I do. I am at the very low end of things and prefer to have lovely specimens go to a collector to add to their collection. I am also on my own mission to plate the KGV of Australia but that is outside of my own trading. Some pieces are definitely harder to part with than others and I do hold on to some examples for a couple of reasons. It will increase in value if I hold onto it for a few years so I squirrel a few things away into a ‘collection’ but that doesn’t mean I’m a collector as such. I am more of a holder of treasure waiting for time to pass and for it to increase in value.
Do you need to know anything about stamps to do this? Yes and no. You can start anywhere and begin to learn how to make money out of any stamp. It may not have any ‘value’ in terms of how much it will cost you to buy it, but it can still have ‘worth’ to collectors around the world who enjoy the hobby just for the hobby itself.
Start at the Beginning
Always start with the Penny Black the very first stamp and as you begin to research it and understand it, you will also begin to see the potential for investment and profit. It’s hiding in plain sight with sellers offering specimens everyday that they don’t really understand what they have and offer it well below market. If you know the market you know you can buy it there, and sell it there. These is how dealers make a very profitable living in the mid to high range of stamp prices. If you learn a little about a stamp you are interested in, it will also protect yourself from unscrupulous dealer, who are definitely out and about in this market, so protect yourself or have someone you absolutely trust guide you through the great investment opportunities that stamps and philately offer to anyone who is interested.
