Investments can be more than simply financial implements for increasing personal wealth. Unless constantly looking at figures and charts sends you into raptures of enjoyment, then it would be really nice if there was more than just a financial payoff. Wouldn't it be lovely if there was added enjoyment simply from being able to look at a thing of rarity and beauty?
Postage stamps, and also postal history might just be the investment that ticks those extra boxes.
As an introduction and a few numbers for the crunchers amongst you, may I turn your head towards Richard Lehmann, an investment blogger and philatelist who has studied historical catalogue price data of stamps over the last 25 years. I'd suggest this article to whet your appetites.
Like all investments, it's best to do your research and gain some knowledge before you start which is why I'm going to give you a little background and base knowledge into philately before you get into the numbers, ROIs and charts before you decide whether this is an alternative investment you want to make, so let's begin by looking at the different qualities of Penny Black available to buy.
As with any investment of this type, quality is of tantamount importance. It follows that rarity is important too, but some stamps have value not because they are scarce, but more because of their history. The Penny Black springs to mind. The Penny Black was the worlds first adhesive postage stamp and was introduced in the UK in 1840 but there are literally millions that still survive.
In total, there were around 60 Million stamps printed from 12 original dies, each one being hand engraved with the familiar and intricate pattern. Even back then, the stamps were designed not to be copied!
The letters in the bottom left and right-hand corners are very important to collectors and investors.
The 12 original dies (only 11 were actually used) were laid out as 20 rows of 12 stamps, starting at AA in the top left corner down to TL in the bottom right corner and again, this was done as a safeguard against forgery and although theoretically, there should be equal amounts of each set of initials, there are slight differences depending upon which hand-engraved plate was used and again, dependent on the plate, the value may be higher or lower. Many collectors aim to collect a stamp from each plate but again, some plates were used more than others!
The other huge effect on value is condition. Stamps can be bought mint (M); All the gum or adhesive intact and no franking mark. Mounted mint (M/M)' No frank, never used but the gum may be missing or it has previously been mounted in an album using stamp hinges and Used/Fine Used/Very Fine Used (U FU VFU); The stamp has actually been through the post and has a postmark and may or may not have been detached from the envelope.
Within these main categories, in the case of a Penny black especially, the quality of printing is important as well as how the stamp was cut from the sheet. The Penny Black had no perforations and was cut out of the sheet with scissors. Look at the margins surrounding the print, are there four, clean, evenly spaced margins? Is the print still fresh? Is the postmark clear and not obliterating the whole stamp?
Compare the two pictures. The top picture is a beautiful, 4 clean margin, mint copy. The second picture is a poor, 2 margins used copy. (The red stamp postage stamp is called the maltese cross and for a very rare stamp, it might have had a black maltese cross).
If we look at a page from the current Stanly Gibbons (the world authority on philately who produce catalogues and set prices) we can see the differing prices based upon the quality, plate and position and as a further guide, a copy as poor as the stamp in the second picture could probably be picked at a dealer for as little as £25! There are some huge price differences.
AS a final example of the potential price of a Penny Black, this one sold earlier this year in the UK. It is unused, and from the bottom right-hand corner of the sheet and even has a part of the sheet inscription still attached. It went for £250,000 ($293,000). Serious money!!
Lots of things for you to research and read further if you have the interest!
The thing about stamps as an investment though is they are beautiful, miniature works of art. As you delve deeper and look at the multitude of designs that have been printed over the years and issued in every corner of the world, you find yourself in an engrossing hobby that combines art, history and geography and of course, and most importantly to you guys, the chance to make a profit!
Now that's my kind of investment!
Photos are of unknown origin and are used under fair usage policy as a tool of education and discussion
Additional research from www.stanleygibbons.com and www.spink.com
Further suggested reading also at www.pennyblackstamp.co.uk and www.wikipedia.org/wiki/Penny_Black
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