Saturday, September 29, 2012

Why Does A Stamp Appreciate In Value?

Stamps editor Gary Eggleston writes on the BellaOnline website, "A stamp will appreciate in value when the demand for it exceeds the supply. The stamp collecting community realizes this fact and makes adjustments accordingly. This process happens for some stamps that are traded regularly. Of the approximately 750,000 different postage stamps issued since 1840, most of these stamps have a value close to where they started. In other words, their value has not gone up significantly."

He goes on to say, "Within each country, key items drive the overall value of that country’s stamps. In other words, the key items set the tone for that country’s stamps from a particular period or era. For example, if a stamp dealer examines at a collection that your are offering him, that dealer will evaluate your material pretty much on the basis of the grade and condition of those items that he is looking for."

According to Eggleston, "Upon examination he may add a little more for the remainder of the material. Of course, this is not a process etched in stone, as some dealers will look for different items than other dealers are looking for. The items the stamp dealer is looking for are those that he knows he will be able to sell for a profit quickly. This approach to evaluating a stamp collection offered for sale is a major reason why a dealer is able to come up with an offer so quickly. He is not evaluating each and every stamp in the collection, but only the stamps he is interesting in getting his hands on."

To read the entire article, click here.

For more information on investing in stamps, click here.
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posted by Don Schilling at 12:01 AM