INVESTMENT IN PHILATELY – A NEW ASSET CLASS

INVESTMENT IN PHILATELY – A NEW ASSET CLASS

Investor Profile

Interest in stamp investment has increased significantly in recent years. Auction realizations illustrate just how good an investment in stamps or postal history can be, with increasing demand underpinning an active market.

Philatelic investment can be undertaken as an attractive alternative within a balanced portfolio of more traditional investment vehicles with the pleasure of ownership as an additional benefit.
Investment grade stamps are a highly portable, valuable commodity underpinned by a global collector base.

Investor Profile

Stamp investors can be broadly divided into three categories.

Pure Investors

Pure Investors are simply that: just interested in investments and making money from them. The underlying motivation is purely to see a return on one’s investment. The Pure Investor is unlikely to be interested in the overall aesthetics of the items he is purchasing and will have no need to ‘enjoy them’ through having them available to look at and display. The security of a bank vault may be far more appealing.
Pure Investors may not necessarily engage in direct ownership but invest in the shares of the few listed companies that comprise the philatelic investment market. Their objective is to make money from the increase in demand for investment grade stamps whether owned directly themselves or indirectly via a third party.

Pure Investors are likely to lack market knowledge and will therefore be reliant on others to guide their investment choices.

Investor/Collectors

Somewhere between the Pure Investor and the Stamp Collector comes the Investor/Collector. Here, the objective is to make money but to have fun in doing it, even if it is at the expense of their investment objective.

The art of collecting becomes important, there is a genuine interest is what is acquired and stamps may well be purchased that do not have investment potential but enhance the enjoyment of the activity. Investor/Collectors help underpin the market demand in investment grade stamps and may well find that their collection turns out to be a very inactive investment as their attraction to their portfolio becomes greater than the desire to part with its contents.

Stamp Collectors

Stamp Collectors underpin the market and are the backbone of philately.

Most will have started collecting without a second’s thought as to investment potential. Paramount is the pleasure and enjoyment from the hobby; any incidental gain in value is a happy by-product of the collecting process. Whether the Stamp Collector’s interests lie in collecting a single country, era or theme, they are likely to want to acquire examples that match that objective, irrespective of value and cost. The more expensive items will certainly be harder to acquire and may or may not have investment potential. But that is the not the point: the joy is in the collecting.

Pure Investors are likely to be frowned upon as simply pushing up the price of stamps which may well become unattainable to the Stamp Collector. However, whilst not necessarily having the funds of the Pure Investor, the Stamp Collector invariably has the advantage of knowledge gained through years of study and will be far more able to spot bargains when they occur.

Rudraksh Cap-tech Limited

INVESTMENT IN PHILATELY –A NEW ASSET CLASS

INVESTMENT IN PHILATELY –A NEW ASSET CLASS

Stamps as Investment tools

Check these facts: Stamps are regularly sold for $1 million in auctions. The most expensive stamp in the world is worth $2.97 million. Stamps as an investment are usually immune to market jitters.

No wonder financial advisers suggest adding stamps to an investor’s portfolio. Investments in rare stamps can fetch annual returns of over 45%. On an average, rare stamps have given returns of about 10-15% a year in recent years.

A caveat: Rare stamps are not a substitute for traditional forms of investments.

Quality checks: The value of stamps depends on factors such as demand trends, origin and condition. As a thumb rule, unused stamps are more sought after than used ones. Also, check the back in case of unused stamps. The original gum should be fully intact for it to fetch decent returns. In case of used stamps, there should be no damage to the paper, colour or perforations. “The postmark should be clear. But if a stamp is very rare, it could be an investment-grade even in a less-than-perfect condition,”

Used stamps should be left attached to their original envelopes. “Do not soak or pull them off. And remember unused stamps should be left as you find them. If they are in blocks or strips, do not separate them.

Humidity can play havoc with your collection. It is a wise idea to store stamps properly.

Investment and returns fall in the following categories

(a)  High Risk –High Return

(b)  High Risk- Low Returns

(c)  Low Risk- Low /Medium Returns

(d)  Low Risk –Medium Returns

(e)  Low Risk –High Returns

 

The Investment in Philately can also be classified into these return classes. Each sub category of Philately can actually qualify to be a part of any one of the return categories. However A Golden Rule that should be followed is – Each investor must not blindly invest –he/she must carry out basic research before investing.

Rudraksh Cap-tech Limited

INVESTMENT IN PHILATELY –A NEW ASSET CLASS

INVESTMENT IN PHILATELY –A NEW ASSET CLASS

Philately – in common language –hobby of stamp collecting is almost as old as the system of Currency. The First stamp as such was issued in Great Britain in 1840 but Postal History or exchange of mail has existed even before that.

The Stamp from 1840 till now has undergone a tremendous change and from a mere Monarch’s portrait now it is issued in various types ,forms ,colors shape , material and themes. It is a fascinating hobby which attracts people from all walks of life from Young to Old ,From children to Kings, Men & Women ,Girls & Boys, Rich and Poor. It has transformed from Being a Kings Hobby to great investment class.

The 1cent British Guiana 1856 stamp was recently auctioned for  huge amount. Though only one of its kind now known to exist but just imagine the growth of its value from a One cent paper to the present value.

Even in Indian Context The Gandhi stamp of Rs 10 issued in 1948 is worth at least 300GBP approx.(Source SG Catalouge).

Investment in Philately could now be considered as Investment in an asset Class like Mutual Funds, Shares, Property, Gold , Silver etc. However as in any other investment there are certain rules of the game which must be followed before making any investment in Philately.

Stamps as Investment tools

 

Check these facts: Stamps are regularly sold for $1 million in auctions. The most expensive stamp in the world is worth $2.97 million. Stamps as an investment are usually immune to market jitters.

No wonder financial advisers suggest adding stamps to an investor’s portfolio. Investments in rare stamps can fetch annual returns of over 45%. On an average, rare stamps have given returns of about 10-15% a year in recent years.

 

A caveat: Rare stamps are not a substitute for traditional forms of investments.
Rudraksh Cap-tech Limited

Readers Desk – Philately exhibition & photo exhibition on Actor Sri Shivaram Contribution to Kannada Cinema

Dear philately friends,

On behalf of Suchitra Film Society & Karnataka chalanachitra Academy

we request you to kindly extend our invitation to all the philatelists and friends  to attend the function on occasion of Actor Sri Shivaram contribution to Kannada Cinema   their will be an photo exhibition on Actor Sri Shivaram and  small philately exhibition on Indian Cinema  on 26th & 27th organished by Suchitra film society Banashankari 2nd stage Bangalore,

for more details contact Suchitra film society Phone Number  080 26711785

Contributed By:- Mr Jagannath Mani

Readers Desk – Philatelists of India Directory

Orissa Philatelic Association Orissa

We are going to compile one directory of philatelists of India. To collect update information we need the following format may be published  so that we can get detail information.
We hope your necessary action in this regard
regards
Pradip Mohanty
Hon.Secretary
Orissa Philatelic Association
Keonjhar Colony
Kanikachhak,Cuttack-753008
09861032965

PHILATELISTS DATA

 

Name;

Address;

Mob No;

Email;

Date of Birth;

PCI Membership No.;

Any other society’s member ship number with name;

Collecting Interest;

Signature with date;

Readers Desk – Experience With Philatelic Bureau Coimbatore

As we extend our happy new year greeting  to you all, the readers and their family members we would like to share our pleasant experience with one of our Bureau.
Our remittance was acknowledged over phone and not only that they take meticulous care to execute our order as per our instruction – irrespective of the fact about the prevailing market  demand.  Some of the Bureaus even curtailed the quantity even when the balance was available depending upon the market demand.  Eventually it is difficult to distribute to the members.  But in this Bureau all our instructions are carried out meticulously in toto every time. They earmark the required quantity to the account holders before selling anything across the counter. This is as per the guidelines issued by the department of Posts. But this guideline is followed more in breach than in observance  we write this to your esteemed newsletter hoping that other Bureaus will also emulate the example set by the Coimbatore Philatelic Bureau and fulfill the requirement of account holders.  This will help more and more people/groups to open the account with the Bureau and develop philately to a great extent.
Through your esteemed weekly we suggest that  you may take a survey and grade the Bureau according to the service rendered by them.  This will be a great help to the philatelic fraternity.
With thanks and regards,
R.Purushothaman
Rourkela-3

Readers Desk

First of all I wish you all a very happy new year!
Recently  India Post in collaboration with The Times Groups has published a book of stamps entitle INDIA A Philatelic Journey.
It looks really grand and the quality of printing and pictures are superb. Any body will be highly impressed by the book.
The selling price is Rs.5,500
It is reported to be a limited edition of 800 copies only!
Now, the question is whether it is really worth the price.
The cost is mainly because it contains original stamps not just images.
When you open the book in the second page you will find four stamps of Indian Miniatures. Look carefully they are not stamps just images! Normally if images are reproduced a characteristic cross mark is given against the denomination of the stamp to distinguish it from the original stamps.  It is a rule of the department of Posts.  But the same is violated by the department in its own publication. Or is it just to hoodwink the unsuspecting buyers?
In philately, sets are not supposed to be separated unless it is for some specific reason. Here some of the stamps mentioned are part of the sets.  E.g Locomotives, UPU etc. Since the book is banking upon the stamps presented in original they should have selected and presented the set in totality.
In some cases the mention is for the set whereas the stamps presented are not complete. E.g First War of Independence,Jasmine, Quit India, Brahmos, India-89 World Philatelic Exhibition etc
In case of Cities out of three sets purchased from three different Bureaus ( packed and not opened) in one set only we find Cuttack and in another the space is left blank and in yet another set a 60p stamp from India 89 is repeated!
To cap it all many of the stamps are in damaged condition! Who will replace them? All the stamps are affixed on the pages.  Normally it should not be affixed but kept within a transparent loose packed and the packed should be fixed on the pages.
Now I think the tile of the book should be INDIA A Philatelic Blunder
 
R.Purushothaman

Rourkela-3

11th M. P. State Level Philatelic Exhibition MAPPEX 2013 held at Bhopal

11th M. P. State Level Philatelic Exhibition MAPPEX 2013 held at Bhopal

11th M. P. State Level Philatelic Exhibition MAPPEX 2013 held at Bhopal from 19th to 21st Dec. 2013. It was organized at Ravishankar Shukla Community Hall, BIttan Market, Bhopal in a well organized manner.  Exhibition was inaugurated by Mr. Nandan Dube, Director General Police, M. P. on 19th Dec. 2013.

Philatelic Workshop, Letter writing Competition, Philatelic Quiz, Painting Competition etc. were also organized during MAPPEX – 2013. Prize distribution function was organized at 4 PM on 21st Dec. 2013. Mr. Sukhraj Singh, D. G. P. (Lokayukta), M.P. was the Chief Guest and Mr. A. P. Shrivastava, Chief Post Master General, M. P. circle presided the  function.

Approximately 300 frames were exhibited in this exhibition. Jury members were Mr. A.P. Shrivastava (CPMG, Bhopal) Chairman, Dr. S. P. Gupta (Meerut), Mr. Dhanajay Desai (Ahmedabad) and Mr. Umesh Kakkeri (Mumbai – Apprentice Jury).

6 Large Vermeil, 5 Vermeil, 11 Large Silver, 9 Silver, 12 Silver Bronze and 8 Bronze Medals were awarded. Winners of Large Vermeil are –

Mr. Sudhir Jain – Thematic (Jainism)

Mr. O. P. Kedia – Postal Stationary (Gwalior State Stationary)

Mr. Dhirendra Singh Chauhan – Thematic (Mahatma Gandhi)

Mr. Arun Bindal – Postal Stationary (FDC of Post Independence Definitive)

Mr. Akash Kedia – Gwalior State Cancellations

Mr. Madan Midda – Literature (Year Book of Philately)

Contributed By :-Mr Sudhir Jain