What is Philatelic Investment ?

Philatelic Investment, the investment of funds in collectible Postage Stamps for the purpose of realising a profit, is a relatively recent phenomenon. Rare stamps are among the most portable of tangible assets, and are easy to store. They offer an attractive alternative to art, antiques and other collectible investments.

Tangible assets are something that you can touch and see, like a painting, antiques and of course stamps.

Not all stamps are worth significant money. In fact most are not really worth anything at all. However, there are the rarer or more desirable stamps that are worth money now and you could reasonably expect to increase in value in the future.

WHY INVEST IN STAMPS?

Throughout the last few years, the stock markets in particular have not given people a safe and reliable return on their investments. A common expression for this has been "Stocks and Shares or Shocks and Scares". As a result, people having been looking for alternative ways in which to invest their hard-earned money.

SOME FACTS

Supply and Demand

Like all commodities (an article you can trade), the value of a stamp is determined by supply and demand.

Factors affecting supply:

• The quantity printed.
• The number destroyed.
• The quantity of stamps not available to the market place.
• The quality of stamps as most collectors will not buy damaged stamps.
• The demand is underpinned by the amount of collectors that would be interested in buying an item.

Around 30 million collectors and dealers trade stamps internationally in all currencies. Stamps by nature are in limited supply and as the population grows and more people collect, demand starts to outstrip supply. This is more so for the rarer stamps. Currently, stamps are the third most popular category on eBay. The stamps industry is reported to be worth around £6 billion per year. Stamps, therefore, offer a low risk, medium to long term investment.

Proven Investment

Here are some key points as to why stamps offer you an exciting alternative investment opportunity. All sources are independent.

Stamps showed to be the 4th best investment of the 20th century with an average annual return of 10%.

Source: The Bankers, Salomon Brothers

On the 21st April 2004 in The Times newspaper an article by Clare Stewart entitled 'Stocks, Shares and Stamps?' quoted...."The idea of making a serious investment in stamps has returned".

Source: The Times Newspaper

The major stamp indexes, the SG100 and SG30 Rarities Index have outstripped bank interest rates over the years. SG100 showed over a 5 year period (1997-September 2005) an increase of 65.3% compared with investing with a Bank giving just a 38.8% increase. SG30 from 1997 has increased by an average of 11.6% every year. According to Gibbons the 10 most popular stamps are up 71.2% over the last three years.

Source: Stanley Gibbons

Worried about the value of your shares? Concerned at reports of renewed economic downturn? Solace may lie as near as the back of your broom cupboard. For, thanks to recent stock market mayhem, stamp collections are rising in value.

Source: Mike Verdin, BBC Online

Spread your BETS!

It is generally not a good idea to invest only in one area. If that were to fail you would lose everything. Stamps offer a fantastic alternative investment opportunity as one of your areas of investment.

Stocks and Shares can be risky - stamps offer a diverse way to give a strong, safe investment over the medium to long term. The Stamp indexes have over the last few years have completely out performed the FTSE100.

REMEMBER - QUALITY, RARITY AND DEMAND ARE KEY IN INVESTMENT STAMPS