Factors behind the rising prices of collectibles such as Rare Stamps

In a recent article on ThinkAdvisor‘s website, Keith Heddle, global head of investment with Stanley Gibbons, talks about several forces supporting the demand for rare stamps, at least for the foreseeable future.

Keith-Heddle-Stanley-Gibbons” (…) The first—no surprise here—is demand from wealthy Chinese collectors and investors. Speaking simplistically, he says, many of them have accumulated sufficient “bling” assets and are seeking something “a bit more considered and less flashy.”

One reason for this cohort’s interest in stamps was Chairman Mao’s ban on stamp collecting as bourgeois and the resulting pent-up demand. “Since the late-‘70s, early- ‘80s, the Chinese have come back to stamp collecting with a vengeance,” he says.

The price performance of stamps varies at different times among the different national markets, which can create pockets of opportunity for investors willing to shop globally.

In India, Heddle says the market is booming. However, since the country has closed its borders to stamps going in or out, access to investment-grade stamps is very limited.

The European market is flat, he says, as are segments of the U.S. market. The market in Great Britain has slowed to single-digit growth.

When it comes to rising prices, rarity is the driving force, and consequently the market for rare Chinese stamps is very strong.(…)

Read full article

‘London-based coin and stamp dealers Stanley Gibbons, which provides data for the GB250 index, says this index has never had a negative year and had a compound annual growth rate of 11.9% over the last 12 years.

british-guiana-one-cent-black-on-magentaThe GB30 Rarities Index, which tracks prices of 30 of the most rate and highest-valued U.K. stamps, has had a compound annual growth rate of roughly 10% for the past 40 years.

A visitor looks at the British Guiana One-Cent Black on Magenta stamp at Sotheby's in London

A visitor looks at the British Guiana One-Cent Black on Magenta stamp at Sotheby’s in London- June 2014

A stamp described as the world’s rarest—the British Guiana One-Cent Black on Magenta—sold for $9.5 million recently. That price eclipsed the previous record of $2.2 million set in 1996 for a different stamp, though it fell below Sotheby’s pre-auction estimate of $10 million to $20 million.

Whenever a collectible sets a new price record, it’s natural to ask if that asset class has moved into bubble territory. And while that’s possible, experts say, several factors argue against such a conclusion for today’s stamp market.

(…) First, the British Guiana One-Cent Black on Magenta is unique. Its appearance on the market was compared to seeing da Vinci’s “Mona Lisa” be put up for sale. Thus, its latest sale price isn’t fully indicative of the broader stamp market’s performance.

Second, the broad market price indexes for collectible stamps don’t look bubbly.

The Linn’s U.S. Stamp Market Index, based primarily on fine and very fine stamps tracked by Linn’s Stamp News, was down 1% from April 2013 to April 2014. (…)’

Source: thinkadvisor.com

Other related articles

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A Selection of Rare Stamps


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Get out on the field and play!

“Vince Lombardi said that the winner is the one who is willing to get out on the field and play the game.

Whatever your life is asking you to do, get out on the field of your life today and play full out.

You will find that right in this day are some miracles just waiting to happen.”

Mary Morrissey –  Building Your Field of Dreams

 

usa-vince-lombardi-postage-stamps-1997

The stamp will be part of the Postal Service’s Legendary Coaches stamps. Lombardi is one of four coaches to be honored. The others are Paul “Bear” Bryant, George Halas and Pop Warner. Photo/Dale Guldan

usa-full-sheet-vince-lombardi-postage-stamps

Only one left in stock!…Click here to grab it !



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Even the smallest stamp collection will be of interest for someone

Would you like to know what to do with the shoe boxes of postage stamps gathering dust in the attic or basement of your house?

-> Rekindle an interest in stamp collecting,  the most popular and rewarding hobby in the world and share your passion to younger members of the family and friends of your inner circle.

-> Contact the local stamp collecting club or philatelic society and ask for advice on how to dispose of the stamps.

The educational and recreational aspects of topical stamp collecting encourages the gathering, research and study of many subjects featured on worldwide postage stamps. It would be difficult not to find stamps or philatelic documents depicting your most passionnate interests!

As an example for a topical stamp collection, Canada Post recently issued an amazing set of stamps, first day covers and booklets to celebrate the 75th Anniversary of the introduction in 1938 of Superman in the Action Comics #1.

canadian superman postage stamps on FDC

canadian superman postage stamps on FDC

Hope this example of a small stamp collection, be it stamps in a shoebox or current issues, gets you thinking about a subject you would love to collect. :-)

Wishing you a very happy stamping week!

Talk soon,

Janice

PS: Have questions? Email me at janice[@]discovertopicalstampcollecting.com


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