Can Stamp Collecting Be A Sound Business Investment?

No longer a popular hobby, collecting stamps has gone out of fashion. Yet in its place a new trend has emerged, investing in rare stamps in order to make a sound financial investment. As the value of other investments plummet, those with a head for business are looking at new ways to make money.

A. Knowing The Market.

As with any business, knowledge is power and the more informed a person is, the better the chance of a good return on any initial investment. To maximize the chance of success, it is essential that some level of research and analysis takes place before any money parts hands.

1. With the world still in the grip of an uncertain financial climate and many traditional investments becoming less viable and more risky, those with some spare cash are understandably seeking out alternative means of investment in the form of stamp collecting. A good place to start is by attending philatelic auctions which are a good introduction to stamp-collecting.

2. Anyone seriously considering this type of investment could do worse than attend weekly philatelic auctions which are an ideal learning ground. Pinpointing the types of stamps available, the prices they sell for and how accessible they are, these auctions can be invaluable when it comes to learning the trade from the bottom up.

3. There are various starting points with many experts recommending potential investors start conservatively by picking up popular stamps, which may not necessarily be the most valuable but which are desirable. By getting to know what is involved, it becomes easier to source more valuable collections and gain confidence.

B. Taking The Plunge.

1. Serious collectors will know the market inside out and this takes time and patience, which can be rewarded tenfold. Experts recommend collecting strategically, by following themes until a decent collection has been built up.

2. A theme could be anything from transport to royalty but by following a specific area of interest it becomes easier to know what is worth collecting and how to build up a sizable collection.

3. Condition is very important, so look out for any damage, discoloration or staining. Opt for popular stamps such as the Penny Black in the beginning, which although not always hugely valuable, remains well known and collectible.

4. Although it is difficult to find a very rare stamp or collection, this is where the big money comes from, although the chances of identifying a rarity only comes from time and experience.

Although stamp collecting can be a slow burner when it comes to making big money, there are examples of stamps selling for millions of pounds, so it is possible to turn something unusual into a sound investment. It takes plenty of time and patience, perhaps more so than with other investments, but is probably also more enjoyable with the potential to be a big money spinner.

Taken from: Guest Post (article, By Jennifer Doherty), Google (images).