Stamps can be a Good Alternative Investment
Stamp collecting as a hobby has turned into an alternative investment and, until the 1970s when the philatelic bubble burst, was a good item to have in a portfolio. It took several years for rare stamps to recover their value and since then, investors have become wiser about the future value of their collections.
There are a few things the prospective investor will need to be acquainted with before turning to stamps. These are: classification, condition and grading, authentication, handling and storage, and the stamp market in general.
Classification of stamps is typically determined by the market. From rare to desired, each plays a role in determining a stamp’s value. Condition is one of the prime determinations of value, and having the stamp authenticated as being what it is alleged to be helps prove the value of the stamp as an alternative investment.
Due to the age of many stamps, care in handling and proper storage helps retain the value. This is one of the biggest determinations of value is the market for the stamp.
As with all collectable items, a stamp’s value is essentially determined by what a collector is willing to pay to own it. However, stamps as investments are held by only a few, helping them maintain their value and increasing the odds of that value rising.
Stamp investing is not for the casual investor and before buying stamps in hopes of realising a return, the advice and guidance of a philatelic expert should be utilised. If stamps are strictly for investment purposes the investor is better served by investing with a group that understands the industry, or by buying into a stamp investment opportunity. Invest in stamps as a alternative investment at comparethefinancialmarkets.com download our free how to invest in stamps guide.
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