Investing in rare stamp business…. What’s so special?

What is this investment in rare stamp all about?

Rare stamps is plainly another commodity like Gold, Silver, Copper or you can even compare it with Bonds and Stocks. Just like you buy and sell all these commodities and shares, you can also buy and sell stamps.

Which stamps are considered as “Rare stamps”?

In the investment world, its all about supply and demand. Any stamp which has less supply and more demand will be considered as a “Rare stamp”. For example, if you go to a post office and buy a stamp, all you have to give is 50p. You will get a stamp. This is because the 50p stamp is available all over UK. But if you want a 1p stamp which was used in 1940, now this is a bit difficult to get. This stamp might be a bit expensive even though the face value is just 1p. Reason, the supply is less. But just because the supply is less, doesn’t mean the demand will be more. For example, there might be other stamps which might look more attractive, more aged, less damaged etc.  There might be some stamps which might have been released later like in 1950′s or 60′s but in a very special occasion with a limited quantity. All these factors leads a stamp to get the grade of a “Rare stamp”.

Why is this investment in rare stamp “A good investment”?

Rare stamp is a kind of commodity which doesn’t show close relation with other stuff like shares, bonds or currencies etc. The reason behind this scenario is currently the rare stamp business is yet to completely commercialized. This investment is still running on a person’s interest and craze for collecting stamps. In a few decades from now, this field would become completely commercialized and at that point, you can fetch a good profit if you are investing now.

Even if I invest rare stamps, Who will buy it?

Recent study showed that the stamp collecting is increasing as a form of hobby in China, India and Russia. So no need to worry about the buyers. People always like spend their in an interesting and different manner. I have personally come across three stamp collectors.  Like there are people to buy and sell shares, there are people who have the craze to collect the stamps and keep it as an antiquity or as an investment diversification.

Is this business popular?

Rare stamp investment is not as popular as shares or bonds or currencies. But with the stock markets and currency trading losing its shine, facing lots of ups and downs, the rare stamp is getting attention in the form of long term investment or an alternate investment where your money is not getting sucked out by market fluctuation.

What are the risks in this Rare stamp investment?

The most prominent risk at present in this business is very less number of buyers, but the number is growing. So any one investing in this business should not be expecting anything to happen anytime soon. But it is widely believed that it fetches double the investment within a time period of 5 to 7 years. This business at its present form is more like a long term investment with very less volatility. You need to understand that this business runs with antiquity of a commodity. So more the years, more is the value unlike shares and currencies where you have both short and long term options.