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