How to invest in stamps and make good money

11 March 2020
Reading Time: 8 mins

Have you ever considered to invest in stamps? It sure sounds a bit odd.

Collecting stamps is one thing, of course. Maybe your dad was a fan and kept trying to get you interested. But why invest in them?

You might be wondering how valuable a stamp could be.

The answer is: very valuable. A British Guiana One-Cent Magenta stamp set a world record selling for $9.48 million.

If you’re looking to invest in something different, stamps are often considered a reliable investment. Here’s a step by step guide on how to invest in them.

Why invest in stamps?

Stamp collection

Stamps might not sound like a great investment. In fact, many people at first confuse investing in stamps with stamp collection.

However, those who collect stamps are interested in philately, which is the study of stamps and postal history.

Collectors aren’t particularly interested in the monetary value of stamps. They enjoy collecting.

For investors, only a tiny percentage of stamps are valuable.

But, even so, why can investing in stamps pay dividends?

They’re largely unrelated to other investments

A lot of investments are related to the state of economy. So, if the economy is struggling, shares and property, for example, might lose their value. Stamps are largely unaffected by the economy. Instead, they depend on the demand from buyers. This means stamps can retain their value even when other investments struggle.

Investment grade stamps have consistently grown in value

Prices have risen steadily over the past 10 years, growing by 133.5% in the past decade. That’s a compound annual growth rate of 8.8%, according to Stanley Gibbons investment GB250 Index, which tracks the performance of the top 250 investment-grade British stamps. What’s more, during the financial crash of 2008-2010, the value of stamps actually increased by 17.7%.

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