Invest in Stamp Collection

 

Stamp collection is a major hobby, not only among children, but also among adults. Children collect stamps for fun or as a hobby; they do not know that their little hobby is actually a big treasure that can prove to be a huge investment at later stage of their life. Even many adults also do not know that the huge collection of stamps can provide them better returns than their investment in stock market or mutual funds.

The investments made in postage stamps with intent of making profits are known as philatelic investments. Stamps that are older or rare are worth more money, but while collecting stamps you need to be cautious before spending lot of cash for a stamp. You first need to do some research before start investing in stamps. Make sure to check the condition of the stamp properly before giving away money, as a stamp in poor condition will give you a much lower price in return. You should only buy such stamps if you know about that stamp and finds it very rare.

For a novice investor, it can be very difficult to detect counterfeit stamps or stamps that have been repaired; so always be careful and do your research before purchasing used stamps to save your money. Stamp collection normally starts as a hobby which is relatively inexpensive, but interesting. Your stamp collection can later prove to be the best investment with great returns. Most people may not be aware that the most expensive stamp was sold in millions of dollars. In the recent years, rare stamps gave around 15% average returns.

To make stamp collection an investment, you are not limited to your region or country as there are a wide variety of postage stamps available all over the world. So, you can create a great collection of may be American postal stamps, animals, sports or as per your interest. You must protect your stamps and store them in a manner that protects their condition. So, if you want to diversify your investment portfolio, Stamp collecting could be one of the ways to invest for generating returns in the long term and you should stay invested at least for 10 years.

Investment in Stamps must be done only to diversify your investment portfolio and should not replace the traditional form of investments. According to the experts, you should try to create a set of stamps; for e.g. a collection of similar stamps in different denominations or a particular denomination set of different years. Your overall investment portfolio should not have more than 5-10% investment in stamps. A newbie investor must take the help of a reputed dealer to choose the quality stamps for investment.

Other Hobbies that can also make Money

• Old/Rare Coins Collection
• Invest in Wine

Standard Investment Options

Investment Options - Options to invest money

Hobbies - A Type of Investment

Make Money from Hobbies - Money Making Hobbies

 

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