Monday, March 12, 2007

Stocks vs. 'Forever' stamps as an investment

Tom Barlow of AOL's Blogging Stocks wondered how investing in "Forever" stamps would stack up against the stock market. So he figured it out.

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.
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posted by Don Schilling at 12:01 AM