Saturday, August 22, 2020

Philately as investment - Yugoslavia:

Actually, here is not talk about specific items from Yugoslavia area, it is more about one 

(I think wrong), meaning or "way" of collectors and Philatelist worldwide think about Philately.

All or almost all of Philatelist will say that they collect stamps for pure JOY!

No one think about Philately as investment, just few will trade material, and most of Philatelist actually have material "from here - to there", mixed quality, topical, not full set.

They really collect just to have postage stamps in albums, and as they believe that no profit is possible from this hobby, they keep it that way.

A lot of relaxing time spend with postage stamp, it is fact, a lot of money spend, space, handling.... all is fine till time come to think about selling collection or giving it to the next generation.

Than,  disappointment come!

No one of next generation interested in continuing,  no one of children/grand children wish to keep collection, no one have patience and mean of preserving this "pile" of albums in some secure place. So, the inheritors will just go to first stamp shop, offer it for sale, and go home very disappointed.

Many will just throw this "life work" somewhere in basement, and forget about, naturally, all will go to be damaged after few years, and in the end, material will finish in garbage bin.

Sad as can be!

So, what is problem? No, no problem at all with me, it is "the way world is made" and I accept it in this way.

But, let see some nice example, that made me really surprised!

It is not this "magenta" which was sold recently for few million of US$, or Penny Black, or inverted airplane, or other more "famous" items sold by big auction companies.

We can give a lot of examples, where one stamp is purchased by face value, and within time, this stamp reach some very high returns when sold on internet or public auction, we can mention few stamps that are deposited in banks as "cover" for taken credit or as investment.

Fine to talk, but to give some REAL happening where You can actually prove that Philately/stamp can made a good profit, are very slim. 

Over this 35 years that I deal, trade, collect stamps, I saw few people that purchased plot of land, even apartment from selling collection of stamps. All of this stories are just under "believe or not" title.

Except one!

...that I recently read, and I read it not as connected to Philately, but as one of interview with one great person, published in "The New York Times International Edition", Friday, August 14, 2020, under title "Corner Office", by David Gelles, and interview was with Michael Dell, head of Dell Technologies!

You can ask, what connection at all! High tech, IT, but not Philately, isn't?

So, if You read it, and come to the part when author ask Mr Dell about "How did You become interested in technology?", so, in his answer, Mr Dell say, between all, also: "...I had saved up some money from early entrepreneurial things - trading baseball cards and STAMPS...."!

So, that it is - Philately as "seed", as IGNITION for one investment, yes - INVESTMENT that give starting point for big business!

Good point, why - WHY to collect and be active in stamp trading and building one collection that have value, and probably, will bring to the next generation some kind of "starting push" in other investment, or just as one kind of educational tool for our future generation (education is worth a lot, isn't?).


As I receive last edition of  renowned Michel catalog for Yugoslavia and all related territory, reading and examining last change in prices, comparing it with prices from 2015 year edition, I come across one "classic" item, that have evaded me for many-many years! Even today, after 35+ years in collecting, I have chance to see this item, probably three or four time. Last one sample, that I wanted to obtain, was from person that ask very-very high price for it.

Put aside, that this period of Yugoslavia, most of material are expensive, and almost all will need certificate from known examiner (which, in this modern time are rare), still, asking price, compared with 2015 edition of Michel was - HIGH!

Than come new edition of catalog, to my desk, and when I read, that same stamp are now very-very expensive, I just say - PHILATELY is INVESTMENT now!


This is items that made me think to talk about PHILATELY as investment:


Michel catalog number: 62:

 Yugoslavia, 1918 year, overprint "SHS"



Surprise? 

Not so, because in 2015 catalog edition, it was valued at 2000.00 euro, mint, nh condition even higher, certificate must, and exam mark on back on stamp preferable.

Keep an eye on this country and period, it is very hard to complete but very worth to have!




4 comments:

Charles said...

It's a investment when you talk about big rarities ...not when talking about the collections that are the most current . I know that every Euro i spent , is lost money . I bought my first stamps in 1951 , in organised philately since 1966 , and participated in international exhibitions . Try to sell a collection ...

Balkanstamp said...

Charles, thanks for sharing Your thoughts, but...... PHILATELY is something that combine joy, education, and yes, INVESTMENT! If You try to sell collection You made, than it is not economically justified for new or modern period. MOST collection, and You know it well, have one big market value, even have NO value (in the range of famous paintings) that collection of Mother Queen have! So, COLLECTION is something You build for many years, pass to next generation, and again to next generation ..... that is the point of investment. One sample, shown in my post have an high face value at the time when it go to public, today, it have no face value at all! War, again war, hyperinflation, inflation, broken country, and Your money invested in face value go to zero...... but, if it is in collection included, than comer this magic market value..... 15 Filler of that time is valued today of few thousand euros cash.... INVESTMENT? YES!

Anonymous said...

For me postage and revenue stamps are collected for the stories they tell. Usually for a small price one can engage with historical events. The price one pays for that engagement has increased of late and sellers seldom lower their prices when their stamps fail to sell. Perhaps greed is a symptom of the times we live in.

Balkanstamp said...

Anonymous - You know, most, but MOST people spend few $ per months, just to buy "a lot of stamps"! They enjoy having "a lot" stamps, sorting it, and learn little bit about. Good way to educate and upgrade own soul, and, probably to left it for next generation.
Problem come, when "next generation" don't have interest in it and decide to sell!
So, as You say, small price will give joy, but no return in the end.
I'm some kind of "mentor" to many collectors around globe, and all the time I suggest: "Even with small spending, You can have specialized collection, which will one day, give nice return" - all depend, how many "small spending" are used when purchasing material for own collection.
Build something that future generation will remember You!