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Watch Out For The Investment Tout

by: gsquared7( 32620Feedback score is 25,000 to 49,999) Top 1000 Reviewer
124 out of 125 people found this guide helpful.
Guide viewed: 1140 times Tags: invest | investment


I have been in the stamp business for many years. And, during that time I have often been asked if stamps are a good investment. And, my answer is invariably, "They could be." I will then go on to explain that stamps, as an investment vehicle, can be just as good as any other. In fact, they can often be better as, most of time, better quality and scarcer stamps will generally always increase in value. The one exception I can recall was in the early 80's when certain stamps were being touted and bought for disproportionate amounts against their true value. And, in the end, when the house of cards came crashing down, many investors were left holding the bag, so to speak.

On Ebay, I see lots and lots of lots being offered as having "Investment" potential. Please, don't be fooled by this hype. Most of the time, what is being offered is not investment-type material. By this I mean, material that has little to no chance of appreciating in value in the next 100 years. In fact, chances are if you were buy this stuff you would probably lose money. The only one profiting at all from these investment deals is the seller of the lot. I would say that 99.5% of the lot being touted as investments are collection lots with most of the material being defective or off-center. Trust me on this one - no one is buying this stuff as an investment and no one is banging down your door to buy this stuff. Other material I see offered as investment material are Mint Sheet lots. Unless you can buy this stuff at 25-30% UNDER face value, there is no investment potential here either. And, even here, buying a lot like this is only good for a short-term profit potential. Sitting with it for a long period of time will only cause you to lose money.

So, what would I suggest if you are really looking to invest in stamps? Well, that's easy. Try to buy what other collectors and dealers are looking to buy. That would be better quality or scarce and rare stamps. Stamps that you cannot find at every dealers booth at your local stamp show. Stamps you would drool over looking at the latest catalogue from one of the bigger names in the public Stamp Auction arena. And, I guarantee that you will not find too many sellers here on Ebay offering this type of material (besides myself of course).


As always, buying and collecting stamps is an educational process. If you're looking to put stamps in an investment portfolio, buy the best quality and/or rarest stamps you can afford. They will serve you well.
 

Guide ID: 10000000005612737Guide created: 02/11/08 (updated 11/22/09)

 
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gsquared7
gsquared7( 32620Feedback score is 25,000 to 49,999) About Me
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