Stamps Can Give Stocks a Licking

In an article that appeared in Canada's Star Phoenix, Financial Post reporter Rick Morrison asked Geoff Anandappa, Stanley Gibbons' investment portfolio manager, "Are stamps a good investment?"

Geoff responded, "Stamp prices don't fluctuate like stocks because 99% of stamps are bought by collectors, not investors, and collectors have a tendency to hold on to their items for 10, 20, 30 years or more."

He then went to say, ""Collectors do not rush to sell their stamp collections when the economy is stalling. As a collector myself, I know that my stamp collection is one of the last things I'd sell. Collectors are driven by passion, whereas investors are driven by fear and greed. All these factors make stamps a very stable investment."

"As large and well established as Stanley Gibbons is, the company is a relative newcomer compared to Dallas, Tex.-based Spink Shreves Galleries (shreves.com) whose logo says it was founded in 1666," according to the report.

Other auction houses mentioned in the piece; Heritage Auctions, also of Dallas (ha.com), R. Maresch & Son Auctions Ltd. (maresch.com) of Toronto, Vance Auctions (vanceauctions.com) of Smithville, Ont., Eastern Auctions of Bathurst, N.B. (easternstamps.com), New York-based Cherrystone Philatelic Auctioneers (cherystoneauctions.com) and Charles G. Firby of Detroit (firbyauctions.com).

The article recommends that unless you know what you're doing, buy only from reputable dealers and established auction houses who know how to identify counterfeit items. Buying high priced items (at a low price) on the Internet is not recommended because of the many forgeries that exist.

Shown above, mint block 1869 Lincoln Pictorial (Scott #122) that was auctioned by Shreves last week. The block is only one of two known examples and was part of The William J. Ainsworth Collection Of Lincoln Stamps. It sold for $130,000.

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