Many people think that dealing with stamps is a dusty hobby. However, the passion for collecting stamps can also generate returns. We show you what you need to consider.
The "British Guiana 1 cent magenta" was sold at auction at Sotheby's in June 2014 for just under ten million US dollars. It thus holds the price record for the most expensive stamp in the world. Used copies of the famous "Blue Mauritius" have traded for between one and seven million euros in recent years. These sums make the average investor dizzy. But just because something is expensive doesn't automatically make it a good investment. So it's worth taking a look behind the scenes to understand under what conditions an investment in postage stamps can make sense.
How errors give rise to expensive stamps
It is an unexplained printing error which helped the Blue Mauritius to its value and the resulting fame. In 1847, the 2 pence stamp was produced with the overprint "Post Office". Actually, however, it was to be called "Post paid", as was then implemented in the later printing series. Thus, the first misprint became a rarity, of which only four unused examples exist today.
Another expensive collector's item is "Der Schwarze Einser". It is the first stamp of the state of Bavaria and at the same time the first stamp ever issued in today's Germany. This fact alone makes collectors' hearts beat faster. However, a block of twelve stamps, in which a single stamp was upside down, became particularly valuable. The owner was able to achieve a price of 320,000 euros with it when it was sold in 2009.
Another faux pas that produced a coveted stamp was the production of the Audrey Hepburn welfare stamp. In 2001, the stamp should have gone on sale along with other special stamps bearing images of Charly Chaplin and Marilyn Monroe, among others. However, the image showed the actress holding a cigarette holder. Hepburn's heirs refused to approve the issuance of the stamps, arguing that unhealthy behavior should not be encouraged. The test sheets issued were recalled, but some copies still made it onto the market. Individual stamps are traded today for up to 135,000 euros.
More suitable for collectors than investors
There is also no organized market for trading postal stamps. The increases in value are often theoretical, but are difficult to realize if no one else is currently interested in the stamp or collection. The time of the planned sale is often decisive for the achievable price, therefore a medium to long-term investment horizon should be planned. It is therefore advisable to view stamps at most as an admixture to an investment portfolio. However, those who have a passion for collecting in addition to the pure investment idea can profit twice over.
Conclusion:
Concentration on individual items or sought-after collecting areas is essential for a profitable investment strategy with stamps.
Expertise in assessing quality, authenticity and storage should be available.
Million-dollar sales do not automatically mean above-average returns.
Investments in stamps make sense at most as an addition to the investment portfolio in metatrader.