Can postage stamps be used to invest?

cepheus

Postage stamps are due to increase in price next month, in the case of 2nd class stamps by 39%. I think these can be used to represent prevailing price of postage, so if you buy enough now you should be able to 'inflation proof' your future postage requirements. Presumably, if you buy more than what you need surely could you guarantee to be able to sell them for far more in the future? However, are they guaranteed to be worth the prevailing 1st and 2nd class value indefinitely, what are the pitfalls?

MarillionFan_2

(I cant seem to link posts as I posted this elsewhere)

So,

Head down to Tescos. Buy £2000 worth of 2nd class stamps. Use 5% Cash Back card from Capital One. Use Tesco's Clubcard.

Made £100 on card
2000 Clubcard points worth £20, redeem for £80 worth of Pizza Express vouchers. Sell on Ebay for 65% = £52
Make 39% on the stamps = £780

Total £932 before Ebay costs & a little discount. You can up that by taking the 5% discount at Superdrug instead of Tesco £980.

I reckon you're on 20-25% though after costs/discount to price.

innovate

What guarantee do you have you can sell all the stamps on ebay?

How long will it take to sell £2,000 worth of stamps? (assuming hundreds of other people want to sell their stamps, too)?

matty17r

Don't think you get clubcard points on stamps - maybe wrong.

cepheus

innovate wrote: »

What guarantee do you have you can sell all the stamps on ebay?

How long will it take to sell £2,000 worth of stamps? (assuming hundreds of other people want to sell their stamps, too)?

That's another problem, there may be a large market in below cost second hand stamps. Has anyone noticed it already due to the price increases in stamps over the years? This is not the first large increase, but by far the biggest!

MarillionFan_2

innovate wrote: »

What guarantee do you have you can sell all the stamps on ebay?

How long will it take to sell £2,000 worth of stamps? (assuming hundreds of other people want to sell their stamps, too)?

There is no guarantee. This is just another form of speculative investing. It is of course one of those investments that seem counter intuitive but mathematically is a winner. If you go and have a look at completed auctions for bulk stamps right now you can calculate a return.

A number of £320-£350 sales have gone through (around 1000 2nd class stamps) & with this & other auctions you can do the maths(you will always find a buyer at the right price the question is the time). Depends if you can be bothered. Personally I'll put 2k on and look to recoup a return of min 20% by the end of the year.

As an aside, the mathematics for Tesco vouchers being sold on Ebay is also very interesting. Check it out. :cool:

ed123_2

.....I guess they could change the design/colour of stamps in the future to stop this form of speculation.......ed

DragonQ

I guess my decision to buy 100 stamps when they were 41p was justified. Still got 85-odd left.

ses6jwg

do any shops accept stamps as a form of payment

cepheus

ses6jwg wrote: »

do any shops accept stamps as a form of payment

No this is a myth

http://news.gocompare.com/2011/05/are-stamps-legal-tender-0000095/

skelrigg

Being big ebayers, we use a fair amount, last year at the same time we bought £2,000 worth of second class, large and normal, still have about £500 left.
Also some 1st class from Superdrug.

These can be used on parcels in the UK (but not if sending parcels abroad). Also beware of the big change in parcel weight limits as this will push the price of small parels up more.

This year we have 'invested' over £3,000 in 2nd class stamps, and about £200 on 1st class from Superdrug.

The return 39% on 2nd class and 35% on 1st class.

In total we will make about £1,200.:beer: