Stocks vs. 'Forever' stamps as an investment
Tom writes, "First, I went to the Inflation Calculator to see how the postage stamp has tracked against the value of our money. I did some digging, and found that the first stamp, issued on March 3, 1863, sold for 03 cents. It reached a dime in 1974, 20 cents in 1981, and 30 cents (actually, 32 cents) in 1995. Happily, I found that the original 03 cent stamp should cost 58 cents today, so we're getting a bargain. Even 1985's 22 cent stamp should cost 41 cents today."
"Next, I looked at how the value of a Forever stamp would have fared if I had been able to buy one in 1997. At that time, the stamp would have cost 32 cents. If I held it until the 41cent rate takes effect, I could realize a measly 28% profit (before taxes) over the ten-year span."
His conclusion? "Stamps may be a better place for my money than penny stocks or the lottery, but they can't lick the good old stock market."
To read his entire post, click here.