Investing in stamps sounds like a hobby for people who are taking their pensions and try to spend some time during the day. However, this is not the case. Investing in stamps can be a worthy alternative way of investing for any individual who searches for innovative ways to improve his wealth.
Cash offers returns below the rate of inflation due to the current low interest rates, thus a negative return in real terms. The general consensus is that interest rates are unlikely to rise in the near future, while inflation may well rise, making cash even worse.

Asset stamps within an investment portfolio can provide significant diversification. This is because they are not associated with other asset classes. This means they tend to be unaffected by the factors that determine the value of other assets, such as equities or property, as the graph above shows. In addition, investment stamps are a relatively safe asset. Therefore, investors are using them to preserve the capital they have accumulated over the years. This is particularly valuable in times like this when such low returns are provided by’ classic’ capital preservation resources–gilts and money.

Investment stamps represent a small percentage of the collectible stamps available. They do make a good investment if you are looking for healthy returns and stability for part of your portfolio. There are two types of stamps: collectible stamps and stamps of investment grade. Collectible stamps: collected by customers interested in philatelics. For the joy of it, they collect stamps, not for investment. Investment grade stamps: stamps that have the potential to increase in value. Just like any trade, think about investing in stamps. Invest smartly. In a badly run company, you would never try to buy shares. Do not invest in bad stamps in the same way.
Collectors spend most of their money on stamps priced below $5 for 80%. Investors are focused on stamps that are valued at $100 or higher, representing more than 80% of the money spent on stamps. This market segment will remain strong as its main constraint is that higher priced material is more difficult to obtain and can be purchased at auction by investors, bypassing dealer mark-ups.

You need to be mindful that, like many other collectibles, stamps are graded. Such grades provide a helpful guide to quality and price, and stamps sold with a definition of excellent, very good and fine / very fine are worthy of consideration as investments, whereas only fine and bad stamps are best avoided as they are not investment grade. You should do thorough research before you invest. Stamps like the Penny Black are popular but not as uncommon as you might imagine, as almost 70 million of them have been printed and some can be bought for as little as £ 10. Stamps are common as an alternative investment, and if historical trends are anything to go by, if you invest wisely, you should be able to enjoy steady but not spectacular growth.

If you search for new alternative investment, perhaps you should do some online research and see if you can benefit from investing in stamps. Of course, there are always specialists ready to be asked any question regarding stamps with their help proving valuable if someone is entering this world for the first time.