How to Invest in Stamps
Stamps aren’t quite as shiny as gold and they certainly can’t compare to guns in terms of utility. Nonetheless, this palm-sized investment is a worthy consideration for those looking to tap into the vast universe of profitable collectibles. Although stamps may appear as fragile, they are not much different from other hard assets; stamps derive their worth from a shared psychological belief that they are in fact valuable. Simply put, stamps are a non-productive, collectible asset, much like gold bars and silver coins.
In fact, recent studies show that returns on collective stamps could rival precious metals over a long enough timeline. Research shows that over the period 1900-2008, stamps have generated a nominal annualized return of 7%. This is a rather remarkable feat that few collectibles can attest to. Historical evidence also suggest that stamps feature a return pattern that bears a close resemblance to the yellow metal; stamps are a worthy hedge against rising prices, and much like gold, they can also serve as a partial hedge against unexpected inflation.