Investing in Stamps

Alternative Investments

Alternative investment's are one of those subjects which many people may find intimidating. Investments provided by the bank or other financial authority may be sufficient for most peoples needs. For those who like to take more of an interest in their investments then stamps may provide an interesting alternative.

People have been investing in stamps since their use began. The price of each stamp is cataloged each year by Stanley Gibbon's and these catalogs printed off yearly. This provides a benchmark from which a collector can estimate the price. Over the last 20 years stamps have continued to rise in price and the rough estimate is that a stamps price will triple over the course of 10 years.

The key point in purchasing stamps is understanding what defines quality in a stamp. In simplistic terms, a fine stamp is one that looks like it has been taken straight from the post office. It should be flawless for all intents and purposes. This is clearly impractical for 125 year old stamps, but it indicates where the highest value is and what a potential investor should be looking for.

There are many pitfalls in collecting stamps for investment but talking to an expert can help you understand the dangers. Indeed, in any venture with which you are unfamiliar you should seek an experienced authority on the subject.

One such authority is Gordon Carrol, owner of Buchanan Street Stamps. His is the only stamp shop still in operation in Glasgow, out of another four which have all shut down. He provides an honest service and unlike some, will give a true evaluation of how the stamp market is progressing. For example in the last 2 years the stamp prices have slowed somewhat due to problems with the recession. Gordon would be the first person to admit to that, with no false claims of huge profits made overnight.

A typical portfolio which Gordon can help you put together would involve an initial investment of £5000, which would purchase 2-3 stamps which have shown to have traded well over the long term. By 'traded well' I am referring to stamps which collector's have been purchasing for their collections, but are rare enough not to be easily found in fine condition. Like many collectibles, it is possible to purchase expensive stamps very cheaply, but their condition will be mediocre at best, and certainly not likely to increase in value by more than 1% over a year.

Hopefully this article has given a brief insight into investing in stamps and should it be something you wish to investigate further, Gordon can be contacted directly at 0141 333 9724. Normal business hours are 10am-5pm Monday to Saturday.

David Debalm is a writer on various subjects. His specialties include Alternative Investments, Gemstones, World of Warcraft and Poker/Gambling. All articles are guaranteed original and accurate, and can be provided as required by any client.

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