AJD Connection.com by Zita M. Demaree

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7 Responses to “Club Discussion: Do you think stamp collecting is an INVESTMENT?”

1. admin says:

   January 18, 2010 at 3:44 pm

   From: heinrich (heinrichpan) Switzerland

   Hello Zita

   For me, the answer to that is yes and no.

   It can be a good investment – for instance if you bought old Chinese stamps in the late 70s and early 80s when almost nobody was interested. In Switzerland you could then buy a rather nice collection of old China (without the real highlights – they were always expensive) for something like 150-200 US$. Now the price would be something like tenfold. Same holds for Indian feudatory states, Malayan States and Japanese occupation issues.

   However, I fear that a profit on recent mint stamps from Switzerland, Austria, Germany and other countries is very unlikely. Year sets of Switzerland I spent US$ 40 on I saw on eBay offered for half that price with very little upward action, that item went for 24 bucks. Same with Germany and Austria. Why is that so? All those who need these stamps have got them. You don’t “collect” them anymore, you just buy them at the post office. SO when these sets come on the market, there is very little demand. But what with the limited supplies of old China and around 10 million active Chinese collectors – there is quite a demand and this is why prices have skyrocketed.

   But then again – why does stamp collecting have to be profitable? It’s a nice and interesting hobby. Sure I count on selling my colelctions one day. But I don’t really care if I make a profit after all. The way to completing is what gives me much more satisfaction!

   All the best from Switzerland

   Heinrich
2. admin says:

   January 18, 2010 at 3:45 pm

   Certainly it is an investment!!

   Not a monetary one of course!! After all, it is a hobby. I do not expect to reap great amounts of money from my collection/accumulation but, I have received and will continue to do so (for a looong time I hope) great amounts of pleasure and relaxation from it.

   Gary Cowdrey
3. admin says:

   January 18, 2010 at 3:47 pm

   From: Mike (ironhelm1)

   Stamps of non-classic stamps are not a good investment if your talking
   about return on investment in terms of money. Stamps are made in such
   a large quantity today (like baseball cards, comic books etc.) that
   any monetary increase is pretty much nil. And in the USA with the
   decreased interest in stamp collecting it will remain so as demand
   lessens. At least unused USA stamps are always worth their face value
   in terms of using for postage. How many other countries can make that
   claim? Can the countries in Europe that switched to the Euro still
   use stamps from pre Euro days to send mail? And what about countries
   that have had major changes in their governments? In terms of
   enjoyment I fell there is a huge return on investment. I consider my
   stamps to be miniature works of art. Especially the Engraved stamps
   prior to the 1960′s.

   Here is another question for you. What makes a great collection? Is
   it the value of the collection or the coverage of the collection. Is
   a stamp collection of 100 stamps but worth millions of dollars a
   greater collection than one with 100,000 stamps but worth $50,000
   dollars? I go with the one with 100,000 stamps.

   Mike Russell
4. admin says:

   January 18, 2010 at 3:48 pm

   From: Richard Jacob (richard536)

   I hope that we all think of it as in investment. But not in the same sense as a
   financial instrument. I remember in my old stamp club in Virginia, we would be
   contacted regularly by people who had acquired stamp collections (from deceased
   relatives, etc.). They were always interested in the monetary value. They
   thought that all stamps from the 19th century HAD to be worth a lot. Also, mint
   sets from the 1970′s. Often they were disappointed by our free value estimates.

   I myself have enjoyed my collection for many years… I don’t have anything
   extremely valuable. But I appreciate the value in learning of history &
   geography that non-philatelists may not experience.

   I hope that I can leave my collection to someone someday that will appreciate it
   for its true value!

   richard536
5. admin says:

   January 18, 2010 at 3:50 pm

   From: Glorian (stamperschoice)

   Hi Zita et al,
   There’s really a simple answer to your question. As a collector, when buying stamps,
   you are paying retail prices to the dealers. When you go to sell the collection to the
   dealers they will pay you at wholesale prices. You would have to have held that
   collection an awfully long time to break even.

   Richard, I accompany my husband, a stamp dealer, to many club sponsored stamp
   shows. At most of them we’ll have one or more people coming up to us, with a box
   or an album, and dollar signs in their eyes. They wish to sell granddad’s collection,
   and are convinced that these old stamps are worth a fortune. Many times these are
   1920′s era Eastern Europe, or similar valueless stamps. Allan tells these people,
   “Your granddad obviously loved this collection. He spent hours over it, and it
   brought him a lot of pleasure. I can think of nothing better than for you to keep it in
   memory of him”.
   Glorian

   Allan Singer
6. admin says:

   January 18, 2010 at 6:12 pm

   From: Peter (pcelias )

   Is it a good INVESTMENT? Well, that depends:

   1) No, if all you’re doing is collecting stamps from inbound mail or buying new issues from the postal service you’ll be sorely disappointed many years from now. Think of all the people that purchased full sheets of 3 cent commemoratives in the 1950′s. They’re barely able to recoup their 3c per stamp. But in 50 years, the purchasing of power of 3c then would be equivalent to probably at least 20 cents now, not to mention lost interest
   ‘
   2) Yes, if you “invest”, meaning spending money on “investment grade” stamps (think Zeppelin or other classic issues), then yes, maybe (remember, all investments can go up or down in price, nothing is guaranteed). Remember, a cheap stamp in the 1950′s is still a cheap stamp now…

   3) Yes, it is a great investment of your personal time. People spends thousands each year to play golf, and what do they have afterwards?

   And that’s my 2 cents worth (at present value).

   Peter
7. admin says:

   January 19, 2010 at 11:48 pm

   From: John Cowan (New Zealand)

   only in your dreams,
   Hello all,I must admit I have been facinated,and held
   spellbound,by this hoary old chesnut,that rears its head in stamp groups
   occasinaly.First up read the followowing article,from
   Philatelicmadnesssyndrom,group on yahoo.
   =======================================================================

   Most Stamp Collections Worth Under $100
   According to theWashington Post, “A stamp expert can usually tell within minutes
   whether that old album filled with postage stamps has any great value. It often
   boils down to whether the collection was a childhood hobby, where someone bought
   packets of assorted stamps, or a lifetime passion reflected in a well-organized,
   well-cared-for assortment that a lot of time and money went into.”

   The article quotes Maryland stamp dealer, David Most, as saying most collections
   he sees are worth under a $100.

   Glenn Nozick a Maryland stamp appraiser and collector is also quoted as saying,
   “… people are often disappointed that first-day covers (envelopes with stamps
   canceled on their date of issue) and sheets of commemoratives, once touted as
   investments, usually don’t increase in value.”

   Shown above, 1979 Child Plate – My Stamp Collection made by Royal Cornwall Ltd
   and designed by artist Charlotte Jackson. Available on the Trojan Horse website
   for $40.

   To read the entire article, click here.

   Ez
   =======================================================================
   next up please read my accounts,and experience of many years in this hobby of
   ours.
   I sat at a stamp dealers table at one stamp fair,and an elderly
   gentelman,approached him,with a complete,collection of New Zealand,FDCs
   may 15-20 years worth,of FDCs,the dealer offered him a mere pittance,the guy
   wen’t away down in the mouth,and dejected,when the dealer,who I overheard,said
   to him,”the covers are of little value to me
   but the first thing I would do,if you sold them to me,would be to cut off the
   stamps,float them off paper,and sell them seperately,or in sets,
   which was ever the best for me,”end qoute.
   The second account was what an old stamp dealer,who I use to see,at his stamp
   and coin fair said to me,after,I asked him if stamps were a good innvestment,he
   replied to me,”John I make a living as a stamp dealer,but none of the stamps in
   my entire stock,would not be worth anything as an innvestment,there is only one
   way to make an innvestment in stamps,get two or three,full time jobs,don’t give
   up your main job either,until after,20-30 years,you have enough money to buy one
   good stamps,error or rarity,after you have bought it deposit in a safe deposit
   box,and sit on it for the next,say 30 years,bring it out and put in in a stamp
   auction,with your reserve price,on it so only genuine collectors,not any
   dealers,would be interested in buying it.
   The third part of my tales of woe,is that I have seen many people of the
   years,come into a stamp collection,as a bequest,an inheritance,from some
   parent,grand parent or relative,and the first thing you san see in their eyes
   and their face is,”how much can I get for this??”
   They take it to a dealer,who offers them a pittance,they go away,not entirely
   happy,but happy in a sort of fashion,to have some money to have a party,booze it
   all away in one night or less,and the empty it down the toilet the next day,so
   much for their relatives stamp collection,who agonised,and sweated over their
   collection,often putting in long hours,wondering what has happened to stamps in
   the mail,ect,ect.
   My stamps/collection are not for sale,but left to my daughter,along with my many
   old/establised exchange parners,and their addresses,and contacts,becuse she is
   interested,in the history,the many life styles of human kind my stamps
   represent.
   I have been reading with interest,about stamp catalogs,in some of the
   messages.For a fact I know,two,Scotts,and Stanley Gibbons are on
   line……………..for a price,you can use them once,try a second time,
   and a panel comes up wanting your credit card details,so with all the free stuff
   on the interenet,stamp catalogs are not,can’t say I blame the publishers,catalog
   companies,the cost of gathering to-gether,compling the correct information,and
   publishing is not too cheap for them.
   My last discourse,is catalog prices mean nothing,bear wittness,to my
   experience,last year,I bought from a dealer,in the,USA,a member of the much
   vaunted ,touted,and trumpeted,ASDA,some stamps,(5)of the second series of Flags
   of Our Nation,along with other stamps of 2008,I needed.
   The stamps duly arrived safely,and on looking at his innvoice,noted,that I had
   been charged,40 cents US,for each,44 cent US face value stamp,still on paper,as
   these were self-adhesives.I did not think much of this,until I was in our main
   city,library,and on looking in a Scotts Stamp Monthly,of about two months
   before,when these stamps were first issued,found illustrations and text on these
   very same stamps,and found them valued by Scott’s at,25 cents US each.
   Who said Jesse James,died from a bullet in the back of the head in Missouri?fom
   the six gun of Bob Ford
   when he is alive and well as a stamp dealer.
   Okay I can blame myself,for not asking,the prices,but I was only going on what,I
   had been charged,per stamp,in previous orders.
   And to sum it all up,”its only a hobby,enjoy,relax,your life,your
   exsistance,does not depend on it.”
   Regards,to all.
   John.

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