Why it’s Time to Sell Your Postage Stamp Investment

| July 24, 2013 | 0 Comments

Stamp

What was once called a safe investment by our government has now become an inevitable loss for millions of investors. Unless you invested in the top 1% of the world’s rarest stamps, you probably stand to take a big loss on your investment. Moreover, as bad as the stamp market has become, it appears to only be getting worse.

Supply and Demand:

Back in 1938 when F.D.R advised people to invest in stamps, Bob Boynton was just one of millions of Americans that followed that advice and began stockpiling postage stamps. Over the next 7 years, Bob invested close to $15,000 in postage sheets and blocks and kept them tucked away safely until his passing in 2004.  His wife was aware of this huge investment, but unaware of the current stamp market. When all the offers for the collection came in, she was discouraged to learn that the value had depreciated well below the $15,000 her husband had invested in the stamps.

Bob was just one collector out of millions who took FDR’s advice and contributed to helping the post office print a surplus of stamps. In fact, they printed enough to make them so common that the only way to get out of what they invested was to use them as postage.

These days you are lucky if you get 50% of the face value of a stamp itself. With other forms of communication like email and texting, most people have no need for these common stamps. Furthermore, anything that the post office has printed in the past 70 years continues to flood the market and the value continues to decline each year.

Another source for the decline is the online auction world in which a collector can now find stamps that have a catalogue value of $1000.00 selling for less than $100. Aside from the Chinese stamp boom, over the past 13 years, stamps sold in online auctions have seen drops in some material as much as 50 to 75 percent.

Some say it is possible that the market value for stamps will bounce back after this 35-year decline. However, a few factors make this hope seem grim. Eighty percent of active collectors are over 60 or have passed away; unfortunately, the stamp hobby has failed to attract interest from recent generations.  Sadly, it is clear that within the next 20 years, the hobby will be almost extinct and stamps could become worthless.

Stamp

Selling your stamp collection as soon as possible is the only practical decision left to make in postage stamp investing. After 35 years, investors are now aware of this tragedy and have had no choice but to accept it and sell their collections at a loss.

Nicholas Vespucci found his first stamp collection 13 years ago at a Salvation Army in San Diego and was hooked from day one. He now buys stamp collections from around the world, and is the face behind Nicksstamps.com, which is known as America’s Fairest Stamp Company.

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Category: Wealth Building

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