Top Ten... Reasons to invest in rare stamps


2015-06-26 11:44:03


Top Ten... Reasons to invest in rare stamps

They are the most valuable commodity on earth by weight. Find out what makes rare stamps such a popular investment...

48 million collectors worldwide ensure demand,underpin prices, ensure liquidity Global sales of rare stamps are estimated to be $10bn per annum (Source: Universal Postal Union) Salomon Brothers wealth report shows a 10% annual return over 1907-1990 period Rare stamps are tangible assets, highly portable and globally traded in all currencies There is increased demand from emerging markets: Brazil, Russia, India and China (18m collectors)have increased global disposable income and are looking for safe haven investments, especially in tangible assets Very detailed information exists on individual stamps, including print quantities, and numbers of copies still known to exist in the market. But remember, quality is still the key to long term increases in value A supply shortage and increasing demand for rare classic issues is naturally leading to a consistent increase in prices at the high-end. Increasingly collections are donated to Museums and Institutions which further diminishes the supply of high-end material. Remember, rare stamps are also a perishable commodity and collections can be lost to natural disaster. The internet has created a much more transparent market, with easy research, open pricing, and a clearer picture of rarity. This has helped to reduce the spread on buying/selling prices and given increased confidence to both collectors and long-term investors. Did you know stamps are the third most popular category on internet giant eBay? The 'baby boomer' generation is starting to retire, and is adding to the demand for collectibles in general, both as a hobby and as an investment. When you add in the huge expected increase in the World's population in the next few years you have a demographic time-bomb which can only benefit collectors and investors in the long term The current low inflation and low interest environment is also the perfect time to invest for maximum growth potential, especially if the expected hike in inflation* is just around the corner

*rare stamp prices have traditionally excelled during periods of high inflation.

Ed: Figures released yesterday show UK inflation has increased for the first time in eight months

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