A Philatelic Slam Dunk

There are very few philatelic investments that are a sure thing and that have very small dealer markups going in and out. But buying “forever” discount postage is a winner. Right now you can buy discount “forever” first class postage rate stamps at about 86% of postage value. With the Post Office planning to raise the cost of sending a letter next year to 50c, this investment should show a 10% gain in one year. Since most dealers work on margins of about 10% on discount postage,the entire dealer markup cost will be gained back in one year, an occurrence almost unheard of in philately. Long term predictions of postal rates vary but its not unreasonable to assume that rates should go up in the 5%(or more) range for the next several years. And all the while you can be using the stamps on your mail. When I think of how much money people have invested and lost in United States postage over the last forty years the idea that there may be a way for people to finally make some money doing this is appealing. But remember, the concept only works if you go to the secondary market where discount “forever” postage is selling at about 15% off the current postage rate. If you buy your forever stamps at the Post Office for this scheme you pay full postage value and will have given away the 15% plus the dealer markup on the discount postage which means that the plan really won’t work. Nobody gets very rich at 5-10% a year but in this environment it is not a bad return.

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