Saturday, January 21, 2006

Investing in stamps

Bored with the stock market?

A British Web site suggests that investors can mix business with pleasure by investing in their favorite past time such as stamps...or even, racehorses, fine wine, art, and classic cars.

In the article, Passion for Profit, Michael Clarke writes, "Probably regarded as the least exciting of the alternative asset classes, stamps are one of the safest classes to invest in. Saloman Brothers Investment Bank claimed that rare stamp investment was the fourth-best performing asset between 1907 and 1990, ahead of bonds and foreign exchange and averaging 10% a year."

He goes on to say, "Prices for rare stamps have never been higher, with the rarest now commanding fees in excess of £3m. Collector numbers are growing rapidly, but the supply of rare stamps is falling, meaning it is becoming a sought-after asset. "

Clarke cautions investors to be careful and recommends buying into a investment fund.

"Most investors don't know a Penny Blacks from a Tre Skilling Banco,"Clarke says, "so a good route into philately could be to invest in a fund. Similar to an investment fund, Stanley Gibbons offers investors the opportunity to put money into a pool of rare high quality philatelic items open to the world market rather than buying individual stamps yourself."
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posted by Don Schilling at 12:01 AM