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The following article was published in our article directory on December 18, 2021.
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Article Category: Advice
Author Name: Richard Malpass
Stamp collecting is a long-established hobby but very rarely are stamps seen as an investment whose value could grow in the future. However, that view is changing and investing in rare stamps is now one of the most popular alternatives for the adventurous and curious investor.
Stamps have been shown to provide significant capital growth over the long term, based on the SG100 Stamp Index, which uses retail and auction prices of the world�s 100 most frequently traded stamps. Based on the SG100, as well as the GB30, which tracks prices of 30 rare British stamps, over the past fifty years rare stamps have enjoyed an average annual compound return of 10 percent.
Here are some of the reasons why rare stamps are a good investment:
There is growing demand for rare stamps, which helps push up their value.
Much of this growth comes from developing countries such as China and Brazil, where there are an increasing number of wealthy individuals. According to an estimate by stamp dealer Stanley Gibbons, of the sixty million stamp collectors worldwide, some 20 million of them come from China. This is due both to rare stamps� increasing value as well as the desire to invest in unconventional and tangible assets.
There are only a very limited number of rare stamps.
The extremely limited quantities of investment-quality stamps are what account for their great value. Most rare stamps will never reach the marketplace, as their owners intend to keep them in their private collections. This is why particularly rare stamps can sell for millions of dollars when they are auctioned off.
But apart from these high-end examples, there are a wide variety of rare stamps that you can buy for lower prices, but which will still give you a good return when you eventually sell them. One example of this is the British Penny Black, which has historical value as the world�s first adhesive postage stamp. Although it is not as scarce as other rare stamps, it is still highly sought-after by collectors.
Its value is determined by a number of factors including its condition (�Mint� quality stamps will obviously fetch higher prices than those in just reasonable condition) and scarcity (blocks of Penny Blacks are much rarer than single stamps). This means that Penny Blacks are available at a variety of price points, allowing you to be able to buy them based on your budget.
They are a good long-term investment.
In order to get the maximum returns from stamps, you typically have to hold onto them for at least five to ten years. One good thing about stamps as an investment asset is that, like gold, while they may not see substantial price increases, their value will not decrease over time. This also makes them a good hedge against inflation since stamps will hold their value.
However, investing in rare stamps requires a lot of specialized knowledge to ensure that you are getting ones that are genuinely of investment-quality. This is why you should always work with experts such as reputable dealers who will help you pick the stamps in which you should invest.
Keywords: rare stamps, invest in rare stamps, penny black stamp, invest in penny black stamp, buy penny black stamp, investing in rare stamps, rare stamp collection, how to buy rare stamps, Philatelic investment,
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