The Ultimate Guide To Investing In Stamps In 2024

by Hunter Robillard

The rising popularity of digital art and cryptocurrencies may be a new trend, but stamps are an older, often forgotten investment option that has been favored by investors for decades.

Investing in stamps may sound like your Grandpa’s hobby, but the right stamps can fetch you thousands of dollars. The 1856 British Guiana 1 cent Magenta (the rarest stamp in the world) fetched $9.5 million at a 2014 Sotheby’s auction.

Let's explore why stamps make a good investment option, how they’re valued, and 5 collectible stamps. We’ll also discover how to invest in stamps in 2024 and whether investing in stamps in 2024 is a good idea.

Now, if you want to explore another smart option, find out how fine wine and Vinovest can help diversify your investment portfolio.

Why Stamps Make A Good Investment?

Postage stamps have been a popular collector's item since the Penny Black’s, the world’s first postage stamp, creation in the 1840s in the United Kingdom. A rare stamp is a great tangible asset that can generate lucrative returns even during times of high inflation.

Here are some reasons why stamps make such excellent investments:

Historical returns: Since stamp prices are dependent on the collectors and the stamp’s condition they remain unaffected under adverse market conditions like the recession.
Liquidity: Even though the number of US stamp dealers has more than halved since 1970, there are still around 50 million serious stamp collectors worldwide willing to buy rare stamps. And, with easy access to the internet, you should be able to sell your stamp collection fairly easily.
Low volatility: Stamp pricesare underpinned byan incredibly passionate fanbase and expert appraisers that create hundreds of price guidebooks and online price guides to assist collectors. This decreases nasty surprises and helps investors assess the value of a stamp before buying and selling.
Limited Supply: There’s a finite supply of investment-quality stamps, which with time, becomes rarer. Older and rarer stamps have higher value, but only a few of these stamps are in good condition.

However, there are millions of stamps globally and not all are collectible.

So, how can you tell if you’ve got an investment-worthy stamp in your collection?

How Are Stamps Valued?

Here are some things to look out for when determining the value of your stamps:

Rarity: The rarer a stamp, the greater is its value. That’s why stamps printed with mistakes or defects often command the highest prices. Old stamps also tend to be a better investment than newer stamps.

In fact, some stamps are “forever stamps.” A forever stamp issued by the United States Postal Service can mail letters regardless of its value or age.

Condition: Condition plays a vital role in a stamp’s value. Frayed edges, faded color, and worn-out gum on the back all devalue a stamp. While mint condition, unused stamps have the most value to an investor and stamp collector.
Authenticity: Obviously, you’ll need to prove your stamp is legitimate to ensure you get the desired value. You can get a certificate verifying the authenticity of your stamp from a dealer or a trusted organization like Stanley Gibbons.
Global Events: News events may temporarily increase stamp prices. For example, after the death of Princess Diana, stamps with her face on them rose in value.
Historical Significance: Stamp collectors care about the stories and history of the stamps. So, an interesting story or historical event can increase its value. For instance, Penny Black stamps aren’t rare, but collectors are interested in paying for them because they were the first gum stamps.

Now, let’s look at some examples of investment grade stamps.

5 Collectible Stamps To Look Out For In 2024

Here are 5 stamps that have sold for millions of dollars:

British Guiana 1c Magenta, 1856
Treskilling Yellow, 1855
The Sicilian Error of Color, 1859
The Inverted Jenny, 1918
Baden 9 Kreuzer Error, 1851

1. British Guiana 1c Magenta, 1856 ($9.48 million)

This expensive stamp is the rarest and most valuable stamp in the world, and there is only 1 in existence today. It features a black sailing ship printed on magenta paper along with British Guiana’s Latin motto, “Damus Petimus Que Vicissim" (We give and expect in return), written in the middle.

2. Treskilling Yellow, 1855 ($2.6 million)

The Treskilling Yellow is a Swedish postage stamp and the only one of its kind known to exist. It’s an error stamp. While the original stamps are blue, an unknown quantity ended up yellow.

3. The Sicilian Error of Color, 1859 ($2.6 million)

This valuable stamp was the 2nd most expensive stamp in the world in 2011 and is another error stamp. It was originally supposed to be orange, but a printing error meant the Italian postal service issued 25 blue copies, and only 2 are known to exist today.

4. The Inverted Jenny, 1918 ($1.35 million)

This United States 24c stamp depicts the Curtiss JN-4 airplane printed upside down. There were originally 100 of these inverted stamps issued by the United States Postal Service, but only 1 is known to exist today.

5. Baden 9 Kreuzer Error, 1851 ($1.31 million)

It is a German stamp that is green instead of pink. Only 4 of these stamps are known to collectors today, and 2 of them are on letters.

How To Invest In Stamps

There are 5 main ways to improve your stamp collection:

Private sales: You can organize to meet a private seller and buy stamps for cash.
Auctions: Head to a stamp auction house to bid in-person at various public auctions held around the world.
The internet: Various internet dealer sites allow you to buy and sell rare stamps.
Stamp dealers: A trusted stamp dealer like Stanley Gibbons offers collectors a range of stamps from Great Britain and around the world.
Specialized stamp investment firms: Some firms have mutual funds that invest in rare stamps.

It’s important to note that stamp investing isn’t regulated by the Financial Conduct Authority, so collectors will not be covered if they lose money on their stamp investment. This is the case with many collectibles like fine art and coins.

Is Investing In Stamps A Good Idea?

The rarest of postal stamps can be a reliable and sometimes lucrative place to store money for the wealthy. But many postage stamps have depreciated in value and are worth a fraction of their listed price in guidebooks like those issued by Stanley Gibbons.

Furthermore, changing generational interests have left stamp collecting behind. Kids these days have probably never seen a postage stamp, let alone started a rare stamp collection. According to the American Philatelic Society, it has less than 28,000 members - that’s half the membership the American Philatelic Society had in 1988.

However, an increasingly aging population across the globe could spark new interest in rare stamp collecting. According to Goldman Sachs, by 2030, an extra 2 billion people will be in the middle-class bracket, and this demographic makes up the majority of investment grade stamp collectors.

There’s also a stamp collecting boom in China, where an estimated 18 million enthusiasts collect or invest in postal stamps. And this figure is likely to increase as the aging population grows.

But, unless you’re wealthy enough to invest in extremely rare stamps, it's likely that the time for stamp investing is over.

Of course, there’s nothing wrong with being an avid stamp collector and pursuing philately as a hobby. But if you’re looking for meaningful returns, look to an incredible alternative investment like fine wine.

Fine Wine: An Incredible Alternative To Stamp Investment

Unlike the stamp market, the fine wine market is unequivocally on the rise, even during the market turmoils caused by the pandemic and soaring inflation rates in 2022.

In 2020, during the first 6 months of the pandemic, sales for this tangible asset grew 19.3% by volume and 24.7% by value. Also, as a fine wine investor, you can expect steady returns of between 6% and 15% over the long term.

Fine wine also outperforms traditional stock indexes like the S&P 500 or the Global Equity Index.

A key reason the wine market generates such positive returns is a stark demand and supply imbalance.

Only 1% of all wines are investment-worthy, making procuring an exceptional vintage difficult. Furthermore, supply for a specific vintage decreases over time as more of it is bought, consumed, or spoiled.

On the demand side, wine sales have increased in recent years and show no signs of slowing down, particularly for extraordinary vintages. Furthermore, fine wines improve with age - further increasing demand.

This low supply coupled with increasing demand means wine collectors are willing to pay hefty prices for their favorite Cabernet Sauvignon, Merlot, Chenin Blanc, or any other fine wine.

For example, take a look at some of these incredible wine auction results:

A bottle of 1945 Domaine de la Romanee-Conti sold for an impressive $558,000 at a 2018 Sotheby's auction.
At a 2000 Napa Valley auction, a bottle of 1992 Screaming Eagle Cabernet Sauvignon sold for a whopping $500,000.

Interested in investing in fine wine?

Vinovest is an expert wine investment company that offers the easiest way to buy, store, and sellSauvignon Blanc, Pinot Noir, Shiraz, or any other rare and authentic wines from around the world.

Vinovest’s advanced AI-based online platform lets you buyand sell investment-grade wines with just a few clicks.

Diversify Your Portfolio With Alt Assets Like Stamps & Fine Wine Today

Although the stamp market can generate positive returns, it's unlikely that you’ll earn more than you paid unless you've got an extremely rare stamp.

However, an incredible alternative investment like fine wine is an excellent portfolio diversifier and has outperformed other investment classes, including stamps.