stamp collecting

The fact that there are far more stamp and coin dealers than stamp and coin brokers, that few wealthy people hold portfolios of these collectibles, and that few hobbyists ever live long enough to get rich from their knowledge, tells us something. It tells us that this sort of investment, one of the most accessible for the average person, one of the most potentially lucrative and one of the safest, pales in comparison to most other investments in return and is too complex for most people to attempt. But there seems to be widespread curiosity about this fascinating topic, and as one who profited from a hobby collection and learned much about the field, I feel qualified to give you a good introduction to collecting as an investment. There are two ways to go about investing in collectible portfolios The first is to be a hobbyist yourself. You should be ready to spend a lot of hours to learn to enjoy the hobby, get involved in clubs, study catalogs, attend exhibitions and auctions, and be as smart as possible about your field of interest. The second way is to make friends with an experienced collector, which you'll have to do anyway, who can advise you on special items with promise or long-term security.

Stamp collecting is a much more varied field than most amateurs realize, and for investment purposes, it is always, always best to specialize from the start. There is no sense cluttering your mind and your closet with facts and figures for low-value foreign issues. They don't pay off and take too much time and space The best bet is to specialize not only in your country of residence, but a specific aspect of that country's history of issue. You have a lot of choice there.

Even specific decades, types of stamps (commemoratives, definitives, revenues, air mails, types of perforations, stamped envelopes, first day covers, plate blocks, etc.) provide wide fields. Among the best performers are classic series of definitives, commemorative issues before 1930, varieties and errors in printing and lately revenue stamps, the types used for liquor, tobacco and other commodities and excise customs documents, are getting rosy forecasts from experienced collectors because they comprise the lowest-priced of the extremely rare issues.

They are low-priced at the present time only because they are not widely sought by collectors but since there are only so many rare stamps to go around, anything scarce in a popular field, whether in antiques or records or stamps will eventually show a book value comparable to its scarcity. Demand on these issues is definitely going to increase. V

Varieties of certain issues are the second-best bet for investment. The reason is the work involved in discovering many of them. It is often possible to find a rare variety of a common one cent stamp in collector's and dealer's penny-a-stamp boxes worth twenty to two hundred dollars, and the more you know about varieties of common stamps, the more frequent these finds will be. They don't tend to grow in value at rapid rates, but they provide the best overall chance at windfall profits.

Classic stamps of values over $100, especially in superior condition, provide the best overall return on investment and tend to outrun inflation as a rule. The more popular the stamp, the better it will appreciate, and popularity can be determined by comparing the catalog price to an actual selling price.

When auction prices regularly go over catalog price, the catalog prices rise accordingly and if the cycle continues, the issue will show excellent gains. As a rule, items such as plate blocks, first day covers, commemoratives of recent issue (50 years or less) and souvenir items are not good investments. The visual beauty of these items tends to artificially inflate catalog prices which in turn inflates the selling price. They don't tend to show reasonable advances in value over the long term.

Large lots of cheaper issues can look attractive, especially at auction where their prices will seem especially attractive, but when you look around and understand that dealers and serious hobbyists bid fairly low for these lots, and dealers figure their profit margins into the buying price, you'll realize that they are best left to hobbyists more interested in having fun than making money.

For the same reason, it is wise to steer clear of purchasing entire collections from former hobbyists. You'll be paying for the cheaper issues that you won't easily liquidate in addition to the better issues, and that's a headache and an unnecessary expense. It is, however, wise to seek out hobby collectors who are retiring and selling their collections for income. Frequently they have already consulted dealers about values and prices and will frequently offer the private individual a deal comparable to what a dealer would pay for that little bit of extra profit.

A few investment syndicates dealing in rare stamps and coins have surfaced from time to time and provide the naive investor with ready-made portfolio These can work out in your favor in the long run, but the cost of marketing and acquiring the items must be figured into the syndicate's selling prices, making the overall investment higher in proportion to real value than you could probably make on your own.

Many more syndicates offer "collector's items" custom-made by the factory, including special coin mountings, metal stamp sets in gold, silver and platinum and fancy exhibition pieces that require substantial investment for completion of the series. Some of these have turned put to be top performers, but many haven't kept pace with inflation. It makes no sense to put money into these manufactured collector's items unless you have a strong sense of trends and collector's demands.

When in doubt, steer clear. A good rule of thumb is that the collector, not the manufacturer, sets the true value, and predicting future values for these items are too extremely risky. Once you've got a good sense of market values and determining factors, you might want to consider speculating in new issues from time to time. Certain items come out of the post office every few years and shoot up in value phenomenally over the first year or two. This usually happens because of the oddities in printing method, limited runs, varieties or errors too insignificant to result in recalling the issue, or major errors that result in massive recall of particular issues, making those in circulation of substantial value almost immediately.

If you can spot these as they come onto the market and invest substantially in large numbers of the desired item, you can literally make a killing over a two or five year period. Investment of this sort does require some skill, however, because most recent issues actually drop in value since their face value at time of purchase is higher than their face value after five years of inflation, and resale at higher than face of a common item will be virtually impossible on items less than 30 years old.

When investing in either stamps or coins, a safety deposit box is almost always a must. Stamps especially are subject to all sorts of damage from environmental changes and a stable atmosphere especially such as that in a bank vault will provide the highest degree of protection.

Stamp Collecting as Hobby and for Profit?
Author: Joseph Then

Stamp collecting is a hobby enjoyed by millions of people worldwide. However, what you may not know is that it is not just collecting of stamps, it's more than that

It's seems to be a fact that stamp collecting is a very fulfilling experience for all people around the world. The excitement of acquiring a valuable postage stamp, coupled with the thrill of witnessing its rarity soar throughout the years, is truly an exhilarating feeling. Even with the advancement of emails and digital age, it's should not be a surprise that the hobby of stamp collecting still lives on among the people.
But stamp collecting can be more than just a hobby.
Stamp collecting can actually be a profitable venture, a hobby that can be transformed into a business, and for many entrepreneurs, a dream come true.
Welcome to the business of stamp collecting, where there are many ways to earn substantial income while enjoying the joys of one of the most wonderful and fulfilling pastimes in the world.
The Game Of Speculation
The number one way by which a stamp collector can earn some income from his hobby is, of course, by buying and selling postage stamps.
Just like any investment model, the stamp collector is supposed to sell stamps when they're hot, and but them when they're not. It's just a business of knowing which postage stamp that have the highest chance of appreciation. When there is an appreciation of the value of the stamps, that is where the collector can sell them for a profit.
Speculative stamp collecting is an investment model that requires a small financial investment - currently circulated stamps cost less than $0.50 each - yet yields significant earnings as a normally-priced stamp today can cost as much as $40 in a matter of 2 or 3 years.
Philatelic Investing
Philatelic investing is similar to simple stamp inventing in so far as they both involve the buying and selling of postage stamps. However, whereas the latter is about speculating on currently circulated postage stamps, the former is all about the purchase and eventual disposition of postage stamps that already command significant prices.
Philatelic investing usually involve stamp collecting that are themed. Philatelic investors usually concentrate on specific types of postage stamps, as the variety of published stamps may be too overwhelming for any businessman in this field.
Philatelic investing will need more research. Unlike simple stamp speculation where investments can be bought for mere cents, the subjects of philatelic investing cost hundreds of dollars, and sometimes, thousands of dollar even. Hence, a critical study of market forces, postal history and other relevant information is necessary in order to make sound investments that have the greatest chances of garnering fantastic profit.

Philatelic Brokering
Some people who are deeply involved with this hobby think that speculative postage stamp collecting is not as high-yielding as they'd like to fancy. The problem with philatelic investing is that it does require an amount of investment, which can be pretty tough.
The next best way to capitalize on the prevailing passion for postage stamps is through philatelic brokering.
Philatelic brokering involves offering one's services to find the postage stamps that particular collectors are looking for. It involves the usage of one's knowledge about postage stamps and about postal history as well as the industry to provide for the needs of other collectors... for a fee of course.
A collector may be looking for a 19th century half-penny British stamp of Queen Victoria, for example. If you know where to find one for, say, $850, you can offer your services to the collector. Ask for $1,000 for the said stamp, which will immediately net a profit of $150 for a single transaction.

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Find out more about stamp collecing today! It's a fun hobby and it can have the possibility of bring in money! Check out my website for more information ==> http://www.stampcollectinghobby.net

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How to Start and Profit From Stamp Collecting as a HobbyAuthor: moses zaccheaus

If you are thinking about starting stamp collecting/philately as a hobby, you may be wondering if the hobby is not expensive. You may even ask whether you can enjoy it with limited financial resources. What if you have no money at all for the hobby?. It is not expensive but rather very educative and rewarding to make stamp collecting/philately your hobby.What you start as a hobby may eventualy turn up to be a veritable source of income for you.

One of the biggest questions any stamp collector faces is where to find inexpensive stamps. If you intend to collect the postage stamps of Nigeria and the World and wish to collect both USED and MINT/UNUSED, the opportunities are really great. Not all collections consist mainly of unused stamps that you buy in the Post Office.

Used stamps are worth collecting, They have value and may cost you nothing. Many stamp collectors collect only used stamps. Others collect both Used and Unused ones. Others collect postage stamps from One Country or one part of the World. Some collect stamps by Topics like Sports, Olympics, Flora and Fauna etc. There are many different types of collecting interests available to the genuine collectors.

All postally used stamps started out being received on someone's letters/parcels, at no cost to the person receiving them. The first place to look for stamps, then, is your own letters/parcels. Don't be discouraged when you notice that some of your letters may have on them postage meters or the imprint "Bulk Rate Postage Paid" on their envelopes or parcels in order to enjoy a better postal rate or keep away from affixing postage stamps.

Also, when some people affix real stamps, they often use the

same common ones. You may try ask people who write to you to use topical/thematic/commemorative stamps on their mails. These are normally the stamps issued to honour famous people, places, or events. These special stamps are printed in lesser quantities than the common stamps(definitive) and usually are of much more interest to collectors.

Many people will remember to ask for commemorative/topical/thematic stamps at the post office

when mailing letters to you or your family members if you let them know you are a stamp collector. Also, if you write for offers that require postage or a self addressed, stamped envelope, you can put topical/thematic/commemoratives on your return envelope, knowing that they will come back to you later.

Neighbors, friends, and relatives are another good Sources of stamps. The majority of people just throw away stamps when they receive them on will be nore than too happy to save them for someone who appreciates them. You may even know someone who gets letters from other countries who can give these stamps o you too.

Always be on the lookout for potentially good stamp contacts, and don't be afraid to ask them to go through their mails for you before they throw away all the envelopes. Office mail may be even better. You may know someone who works in an office that gets a lot of mail. Out of 100 or more letters a day, there may be a lot of good stamps that are being thrown away.

Many businesses get a lot of foreign mail and regularly throw

away stamps that have interest and/or value to a collector.

You may even have penpals worldwide with whom you can exchange stamps. Also ask your parents/relations/friends if they have any old letters, which may have stamps on the envelopes. With these sources for stamps.you have started a very rewarding and lucrative hobby.

... to be continued

Moses Zaccheaus

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Supplies You'll Need for Stamp CollectingAuthor: Marvin Cervantes

Stamp collecting is a hobby which is loved worldwide. In the United States alone, there is an estimated 20 million stamp collectors. It is a long tradition that has continued and will continue to exist.

Why is stamp collecting so popular? It is a hobby that doesn't need many expensive tools or equipments. However, there are some basic tools that a collector must have to be able to further enjoy collecting and preserve the stamp in good condition. These tools are usually inexpensive and can be purchased easily. Here are some of the supplies for stamp collecting:

Albums

These albums are very significant in the whole stamp collecting hobby because it secures the stamps and allow the collector to be able to organize the stamp collection and at the same time display them in an attention-grabbing way.

One must be able to know what kind of albums to use for his stamp collection. A good stamp album would have thick pages which can hold a lot of handling and stress. It must also have ample space for the stamps so as not to get them too crowded. The binding of the album must be sturdy and strong to hold the pages more effectively. Last, but not the least, the pages must be acid-free.

Mounts and Hinges

The small rectangular pieces of gum-coated paper or glassine are called stamp hinges. They are used to attach the stamps to the pages of the stamp album. They work like ordinary door or cabinet hinges. These hinges do not cost very much. In fact, one can purchase a thousand of them while spending only a few dollars.

Another tool can be used to attach the stamp into the stamp album pages, this is the stamp mount. Unlike stamp hinges, stamp mounts do not damage the gum of the stamp. Mounts have sleeves where the stamps are inserted, therefore eliminating the need to attach the stamp to a gum-coated hinge. These mounts costs more than the stamp hinges and are usually used to hold the more expensive kinds of stamps.

Tongs

These are comparable to ordinary tweezers. These tongs are usually made from plastic or stainless steel. They are used for handling the stamp to prevent damaging it. Using tongs for expensive stamps is a must because a simple touch can destroy or decrease the value of a stamp.

Magnifying glass

In collecting stamps, one of the greatest thrills is examining the items. A magnifying glass is needed in order to effectively assess the stamp at hand. This will allow a collector to spot certain tears, damages or errors on stamps.

Envelopes

Thin translucent envelopes made of glassine come in different sized and are used for storing and sorting the stamps before they are placed in the stamp album. These can also be useful in mailing the stamps to other people.

Watermark Detector

This will allow a collector to see the embossed pattern that was printed on the stamp which indicates the time when the stamp was made. Although not all stamps are embossed with watermarks, having a watermark detector sure is handy.

Catalogs

These are good references for one to be able to assess the value of his stamps. Usually, these catalogs give some useful information or interesting facts about certain stamps which they feature.

The world of stamp collecting is an exciting and wonderful one. Stamps tell the story of the world and its history. Having the proper stamp collecting supplies can make the whole experience of stamp collecting more intense and fun.

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The Process of Stamp Collecting Author: Marvin Cervantes

Stamp collecting is a very old hobby and is considered to be one of the most popular hobbies in the world. Though there is not that much money that can be made from this hobby unlike collecting coins, some people just do it for the fun of it.

This hobby involves delicate work. A little smudge, dirt or oil on any part of the stamp loses it value. This will make it hard to trade it with other people should the person want to trade it in exchange for something else.

The first thing that a person needs when working with these little objects is the proper tools. Stamps should be handled using a tong. This is similar to tweezers but has a flat edge. This will make it easy for the collector to transfer it from the envelope to the album.

A magnifying glass is also needed to check on the quality of a stamp before buying it or trading it with a fellow collector. Stamps of good quality should have all the perforations intact which is the way of making sure it has never been used.

The album is a special binder that is used to store stamps. This can be bought at the local bookstore or at some specialty shops. Since the contents inside are very delicate, this should be stored in temperature and away from direct sunlight.

The best time to practice using these instruments is with letters that the person has received from people. The stamps are usually located on the upper right hand side and to get it out; the area around it must be cut out and placed in water.

After some time, the envelope and stamp will separate. Using the tongs, the person should pick up the stamp, dry it in the air to make sure all the water has been taken out the inserting it in the album. This practice should be done every time there is a need to extract it from a glued surface.

Another place where the person can get stamps without using a pair of tongs is by buying it from the post office. This can be bought per sheet and taken out later should the collector want to trade it with something that another collector has.

There are also people who do business like this that can be found in the newspaper and in the internet who sell stamps in sheets for a price. It just takes some time for the individual to look around and find it.

In order for the collector to have a wider network that can aid in the stamp collection, it will be a good idea to join a club. The benefits of being a member allow the person to trade with other members and stay informed about upcoming exhibits and fairs where further exchanges can be made.

Stamps can also be acquired at auctions. All it takes is for the person to know when it will happen and be ready with some money to bid for it.

The best way to determine if the stamp that is about to be bought is at a good price is by checking a price catalogue. This can be bought at the local specialty store which gives its standard value in the market.

Stamp collecting is both a hobby and a business. Should the person have a lot of a certain kind, to be able to get others to add for the collection, this can be sold just like how other people do it to make some money.

The best place to do it is the internet. The person can advertise it and have sort of an online auction. This can also be exchanged for other stamps.

Stamps these days are circulated more often that it was years ago. Because of this, there is not that much money to be made even if the person has a very good collection.

The internet and other ways of sending messages have made snail mail obsolete. Though this has not erased the use of the postal office or of stamps, it is still used in places where technology has not changed things.

Stamp collecting is fun and looking some through old letters could be the beginning of something big.

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