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Philately: Passion or Investment?

April 27, 2021

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Introduction

Philately is a passion that is often passed down over generations. Some people collect postage stamps while others prefer tax stamps. In order to expand their collection, some collectors are ready to shell out a real fortune. The rarer a stamp is, the more valuable it is. Investing in the collection of rare stamps can become a fairly profitable investment. However, it is not necessary to engage in this type of financial investment without sufficient knowledge in the field.

Indeed, not all stamps have an inestimable value. It is always necessary to refer to the market needs. And it is necessary to be quite vigilant because some ill-intentioned people do not hesitate to put fakes on sale. These counterfeiters adjust their technique over time, which can easily mislead an honest buyer or investor. Therefore, you must always ask for a certificate of authenticity.

For your rare stamp collection to be valuable, you must always get help from an expert in the field. It will easily detect counterfeit stamps. In this article, we offer you a short overview of the rare stamps market and some tips on how to buy stamps properly.


So, stamp collection can become a particularly profitable investment if you know how to do it. So, what stamps can be valuable:

1. Stamps put into circulation for a short period.

2. Rare stamps with errors.

3. Stamps issued in small quantities. 


Before acquiring a rare stamp, one should not hesitate to pass it into the hands of an expert. This will help you distinguish genuine stamps from fakes.

Bear in mind that several factors can attest to the authenticity of a stamp. This may be the presence of a tear, a fine spot, a hole, or a fold.
The value of a stamp can also be determined by the quality of the paper, the colors used, drawings, printing processes, overprints, repairs, watermarks, and alterations.


Where to buy rare stamps

 

Whether you’re an amateur or a great collector, there are several places where one can acquire a rare stamp. Most often, unique and rare pieces are available at auctions. 

One should never rush to buy, even if one thinks it is a golden opportunity. It’s necessary to always require the authenticity certificate. It is advisable to go to specialized sites that have excellent notoriety. It is also possible to go to the auction sites. In the field, there are expert platforms for the sale of antiques.

Some stamps can be sold at exorbitant prices online. Some sites offer rare stamps at very attractive prices. Always seek the advice of an expert to avoid unpleasant surprises.

For people who like to travel, it is possible to acquire rare stamps during stays abroad. With a little luck, you can meet collectors who want to resell their collections. Auctions are the best places to acquire collectibles. There are rare and authentic pieces. But nowadays with the availability of the Internet and technologies, most people prefer online auctions.

Investing in collectible stamps can be quite profitable for its holder. In order to guarantee a good yield to its owner, it is necessary to regularly appreciate them. This process benefits the owner, as the yield can range from 3 to 5% gross over the long term.


Traps on buying rare stamps

Modern  Forgeries

Counterfeit. Whatever area you want to invest in, whether it's a watch or a collector's stamp, you should always pay attention to the counterfeiting problem.
Indeed, the value of these collector's items can reach astronomical sums. That is why some people are ready for the worst of malfeasance to get to their ends. Over time, forged parts are more and more realistic. Because of this, if a collector is not attentive to certain details, he can become a potential victim.

In order to avoid falling into the traps, one should not hesitate to request the service of experts in the field. Thanks to their expertise, it will not be difficult to distinguish the original stamp from the false one.
So, If you want to invest in collectible stamps, do not forget to claim the certificate of authenticity. Only this document can serve as proof to demonstrate the authenticity of your property.

Condition. Even if a stamp is quite rare, blurred big cancelation of it can affect its value. Indeed, the presence of major defects can put its value back into the account. This is often the case when the ink reaches the supports, when some perforation teeth are too short, or when they are not present at all. Unfortunately, some counterfeiters do not hesitate to create some defects on the stamp to make it look truer.

The random value of stamps. The value of the stamps depends on the trend and the feeling of the collectors. These factors promote domain instability. During this century, collectors have maintained that rare stamps with manufacturing errors are worth a fortune. As a result, it may be that in 20 years the trend will change to give way to other inclinations.

Moreover, stamps have no intrinsic value. They depend on the price offered by the collectors. Their cost often correlates with their history and cultural value.


Conclusion

For some collectors, Philately is like a real passion. They do not hesitate to travel to the four corners of the world to fill their collection and to put rare pieces found at the end of the world. They are often very persevering people. They do not hesitate to invest a certain fortune to achieve the goals they have set for themselves. Most collectors are looking for rare pieces rich in cultures and stories. According to some specialists, stamps issued around the nineteenth century would be quite valuable.

If you want to start collecting stamps, this investment can become quite profitable for you. Nevertheless, one should not hesitate to familiarize oneself in the field to avoid possible scams. It will be necessary to be patient and know how to surround yourself with the experts. The stamp should be seen more as a passion and a way to diversify its heritage at the margins. Indeed, investing in rare stamps can become a fairly profitable market. As a result, counterfeiters issue rare fake stamps to fool potential investors. But if you manage to acquire a rare piece, it is possible to resell it for thousands or even millions of dollars.

It is then important to always claim the certificate of authenticity. This supporting document can help you not only when reselling, but also for tax returns.  In terms of taxation, the applicable regime is the same as that regulating the field of art. If the resale is estimated at less than 5000 euros like the works of art, you will benefit from a tax exemption. 

Although the collection of stamps with manufacturing errors is very popular, this does not prevent some collectors from investing in thematic collections consisting of animals, paintings, historical figures, and even landscapes.

In order to obtain complete collections, it is possible to purchase pre-printed albums. They are quite expensive, but they are convenient. To facilitate manipulations of all kinds, it is advisable to bring a magnifying glass. This tool allows you to observe and identify. A stamp clamp is also a very useful tool, as it limits the risk of property damage. Plastic pouches help to store stamps before filing.