'Why stamps that say '1st' stay valid in perpetuity (so hoard 'em)' blog discussion

This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.




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  • thelawnetthelawnet Forumite
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    I think it's reasonable to compare the 'yield' from stamps with cash.

    Firstly, the costs:

    Currently:
    1st: 39p (franking)/46p (stamp)
    2nd: 28p (franking)/36p (stamp)

    Future:
    1st: 44p (franking +13%)/60p (stamp +30%)
    2nd: 31p (franking +11%)/50p (stamp +39%)

    As you can see the franking cost rises much less than stamps, but franking remains cheaper than the CURRENT stamp prices.

    So there's no incentive for businesses to buy stamps at current rates.

    That's not, however, to say that prices won't rise in the future by above inflation, and the 44p franking rate will presumably be 50p next year.

    Anyway, to consider yield we have to consider the present and future value of money - but also the future cost of stamps. We know that stamps will rise in price in the future, and probably in line with inflation. So in fact, after the price rise, a given £1 today, uprated for inflation/savings yield, should buy the same amount of postal services as it does now.

    So essentially there's no reason not to buy thousands of them, because they will rise in value in the future.

    As an ebay venture, it makes sense. Buy SECOND-class stamps today for best yield, £36 for 100, future price £50, £5.40-£6.90 for fees, and you can make 20%+ profit.

    Also you can use them in the future as '50p stamps', as part-payment for other services.

    In particular, while ALL postal services are increasing in cost, the 39% increase in the value of an undenominated second class stamp is the highest rise. So basically by buying second class stamps today for 36p and using them in the future for part-payment of more expensive postage services at 50p value each, you get an instant discount of up to 28% (1/1.39) on ALL postal services, which means they end up costing less than they do now, despite the price rise in the service, because the stamps are revalued. So for instance just stick 10 second class + 30p on a 2kg parcel from 30 April (would be 12 + 9p today).

    The full range of undenominated stamps:

    1st 46p to 60p + 30%
    2nd 36p to 50p +39%
    1st large 75p to 90p +20%
    2nd large 58p to 69p +19%
    postcard 76p to 87p +14%
    europe £1 to £1.28 +28%
    worldwide £1.65 to £1.90 +15%

    Another thing to note is that the compensation payable by Royal Mail in the event of loss is going up to £60 (100 first class stamps). Quite handy for people posting items of some value (note the high cost of extra compensation on parcels).
  • propertymanpropertyman Forumite
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    Yes I have bought a stock too on home delivery from a supermarket.

    Though back in the day when they were orange and changed colour to a darker orange, it transpired that after while the older 1st were treated as 2nd class.

    Any one know the situation with stamps bought on line with royal mail - are they at the franking price or a new price?
    Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
    Actively hunting down the person who invented the imaginary tenure, "share freehold"; if you can show me one I will produce my daughter's unicorn
  • pqrdefpqrdef Forumite
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    I don't think I'll bother hoarding stamps. When I'm posting my Christmas cards in 5 years' time, I might not want to look like a cheapskate who's not paying his fair share.
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
  • BarneysmomBarneysmom Forumite
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    You won't look like a cheapskate, nobody looks at the colour of a stamp when they open a card and thinks 'What a tightwad using old stamps'. :)

    It's just a good way of saving money, the same way you would when you buy anything else...

    I ordered 2 books of second class stamps with my Tesco delivery, they were out of stock so bless Tesco they subbed with first class ones - made my day that did

    :cool::cool:
  • WLM21WLM21 Forumite
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    Barneysmom wrote: »
    I ordered 2 books of second class stamps with my Tesco delivery
    :cool::cool:

    I have never tried home delivery of groceries, as I live near a supermarket.

    Do Tesco charge for deliveries ?

    If I bought a handful of groceries and a bucket full of stamps, maybe bringing the value of goods over a certain amount, would their delivery charge be zero ?

    What about other supermarkets for that matter ?
  • BarneysmomBarneysmom Forumite
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    Asda, Tesco, Sainsbury and Waitrose do deliveries, they do charge and it depends what day you want a delivery what the price is.
    As Tesco are doing a £5 off next week's shopping when you spend £40, I use that toward's next week's delivery.
    Makes life much easier for me.
  • When I last bought stamps they cost me 26p for first class. I do not bother with second as after a few years the first I bought were cheaper than second. And they still work on first class post.
  • cod3cod3 Forumite
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    From HMRC website...
    Valid postage stamps are unused stamps of the present monarch’s reign on which the value is designated for 1st or 2nd class postage.
    Does this mean if we hoard stamps today, they will no longer be valid if the Queen abdicates or passes on?
  • wanchai_2wanchai_2 Forumite
    3K Posts
    cod3 wrote: »
    From HMRC website...


    Does this mean if we hoard stamps today, they will no longer be valid if the Queen abdicates or passes on?

    :eek::eek::eek::eek:

    We need to know - and if that's true, maybe a message on MSE for those who are currently stockpiling stamps!!
    7 Feb 2012: 10st7lbs :( 14 Feb: 10st4.5lbs :D 21 Feb: 10st4lbs * 1 March: 10st2.5lbs :j13 March: 10st3lbs (post-holiday) :o 30 March: 10st1.5lbs :D 4 April: 10st0.75lbs * 6 April: 9st13.5 lbs :) 27 April 9st12.5lbs * 16 May 9st12lbs * 11 June 9st11lbs * 15 June 9st9.5lbs * 20 June 9st8.5lbs :D 27 June 9st8lbs * 1 July 9st7lbs * 7 July 9st6.5lbs :D
  • cod3 wrote: »
    From HMRC website...


    Does this mean if we hoard stamps today, they will no longer be valid if the Queen abdicates or passes on?
    Don't think you've anything to be worried about to be honest.

    It'll be like the old Soviet Union, they'll keep the old dear stuffed for a few more years, until they find a suitable replacement.
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