Risks Perplex Stamp Portfolio Managers
Unlike many other investments in tangible goods, stamp collecting as an investment is typically without regulation. The Financial Services Authority in the U.K. has no regulatory oversight on the sale of stamps for investment, although some other countries may have certain regulatory requirements.
The returns on stamp investments are not guaranteed and the initial purchase, when compared to other investment products is higher and the cost to sell, especially if sold through a quality auction house, will also be higher than other products. Additionally, you will pay an expert to insure the stamps are of the quality and have the value you are paying for. In general, the future of the philatelic market remains uncertain.
However, there are some advantages of investing in stamps. Since stamps are easily ported, and can be easily moved across national borders, and with the population in the western world growing older, many are returning to the hobbies they enjoyed when they were younger; only now they can afford to buy rare stamps and make new collections.
Stamps are not considered an asset financially and will perform better when inflation gets higher and as a tangible asset, unlike businesses in which you invest, will not close their doors and go out of business.
Buying stamps is also a private matter, unless purchased at a public auction and are not required to be registered as an asset as stocks and bonds are required to be. However, due to the nature of the philatelic business it is suggested you visit professionals in the field of investing and seek expert advice on stamps as an investment.
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