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Saturday, July 30, 2011

Stamp Investment Tip: Netherlands Antilles 1944 Red Cross Airmail Semi-postals (CB13-20)


In 1944, the Netherlands Antilles issued an airmail semi-postal set portraying Princess Juliana (Scott #CB13-20). The excess, non-postal funds from the sale of the set went to fund the Red Cross. 40,000 sets were issued, and Scott '11 prices the unused set at $14.30.

The International Red Cross and Red Crescent Movement is an international humanitarian movement with approximately 97 million volunteers, members and staff worldwide which was founded to protect human life and health, to ensure respect for all human beings, and to prevent and alleviate human suffering, without any discrimination based on nationality, race, sex, religious beliefs, class or political opinions. From a philatelic investment perspective, the support of almost 100 million of people for this movement creates a significant collector base for better Red Cross/Red Crescent topicals. This topical appeal, as well as the growth in interest in stamps of the Netherlands Colonies should bolster the value of this currently inexpensive set.


I continue to favor stamps of the European colonies and possessions over the stamps of their mother countries. The quantities issued for the colonies tend to be modest, and worldwide interest in them often grows at a faster rate. For the most part, stamp of the Netherlands Antilles appeals to Netherlands Colonies collectors, but as Curacao is a popular tourist destination, it's likely that in the future, interest in its stamps will grow in the Americas as well.

With about 16.6 million people, the Netherlands is the 16th largest economy in the world. It is an affluent industrial and trading nation, with a well-educated population, and an active stamp collecting community. Its annual GDP growth has averaged about 2.5% over the last 5 years, reflecting a slowing due to the global financial crisis.



Thursday, July 28, 2011

Stamp Investment Tip: U.N.- Kosovo 2004 National Costumes (Scott #22-25)

In 2004, the United Nations Interim Administration in Kosovo (UNIAK) issued a set of four stamps picturing Kosovar National Costumes (Scott #22-25). Only 30,000 of these Art-related topical sets were issued, and Scott '12 prices the unused set at $100.-.

I continue to like the better U.N. and U.N.-related stamps long-term. The market for these stamps should grow over the very long haul as institutions of world government develop in order to take on serious (and possibly existential) problems which can only be coped with globally. Despite the present inadequacy, corruption, and ineffectiveness of the U.N., I view its reform and gradual strengthening as a gradual but irresistible trend.

In my opinion, the best philatelic investment bets on increasing interest in the U.N. are not to be found among the regular issues of its main offices in New York, Geneva, and Vienna, but rather among peripheral items, such as the Swiss International Organizations stamps, stamps issued by UNTEA and UNIAK, and some of the scarcer U.N.-related topicals issued by various countries. The printing quantities of stamps issued by the main U.N. offices are simply too high, and I expect that much of them will be available for less than face value for some time to come.



Sunday, July 24, 2011

Stamp Investment Tip: Japan National Parks Souvenir Sheets

Japan began issuing sets and souvenir sheets honoring its National Parks in the late 1930s. Some of these attractive souvenir sheets, especially the earliest, were issued in quite modest quantities, and should continue to increase in value in the future. The five scarcest are:

- 1939 Aso National Park s/s (Scott #293a; Scott '11 CV= $85.00/$140.- for NH ; 76,000 issued)

-1940 Daisetzuan Nat'l Pk. s/s (Sc. #306a; Sc.'11 CV= $190.-/$350.- for NH ; 42,000 issued)

-1940 Kirishima Nat'l Pk. s/s (Sc. #311a; Sc. '11 CV =$150.-/$350.- for NH ; 50,000 issued)

-1940 Daitan and Niitaka-Arisan Nat'l Pks. s/s (Sc. #318a; Sc.'11 CV=$ 80.-/$175.- for NH; 76,000 issued)

-1941 Tsugitaka-Taroko Nat'l Pk. s/s (Sc. #323a; Sc.'11 CV=$80.-/$175.- for NH ; 76,000 issued)

These souvenir sheets were issued with folders, and those with accompanying folders command a premium. Most were issued on very thin, fragile paper, and gum bends and minor creases are common defects of which to be aware.

I've no doubt that Japan's economy will eventually rebound after having been hit by the recent horrific earthquake, tsunami, and nuclear disaster which caused so much devastation. Japan is the third largest economy in the world (after the U.S. and China), and has a large and active stamp collecting community. I believe that the National Parks souvenir sheets will continue to grow in popularity, especially as increasing interest in environmental preservation worldwide supplements Japanese demand, which is based on a cultural reverence for natural beauty.

Those interested in becoming part of an international community of stamp collectors, dealers, and investors are welcome to join the "Stampselectors" group and organization page at Facebook. The group and page host lively discussions concerning stamp investment and practical aspects of collecting, and provide a useful venue for those who wish to buy, sell, or trade stamps.




Saturday, July 16, 2011

Stamp Investment Tip: Argentina 1910 Centenary of the Republic (Scott #160-75)

In 1910, Argentina celebrated its centenary as a republic by issuing a set of 16 stamps (Scott #160-75). Only 12,500 sets were issued, and Scott '11 prices it unused at $338.05.

It is likely that the vast majority of these sets were used as postage and discarded. It wouldn't surprise me if fewer than a couple thousand remain, in any condition.

I continue to favor all better stamps of Latin America as bets on the growth of the region's middle class. As collectors often focus on Latin America as a whole, demand for the stamps of the individual countries is supplemented by the the more general regional focus.

With a population of about 40 million, Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Historically, Argentina's economic performance has been uneven, as periods of high economic growth have alternated with severe downturns. Over the last 5 years, annual GDP growth has averaged a whopping 8.5%. However, over the last 20 years Argentina has weathered several major debt crises and recessions.


I have begun a new blog, "The Stamp Specialist", which will feature my buy prices for stamps which I am interested in purchasing. I've just posted a buy list for Argentina, including the set recommended in this article. Viewing dealers' buy lists every now and then is an excellent way to keep current on the vagaries of the stamp market.







Thursday, July 14, 2011

Stamp Investment Tip: Papua 1906-07 Overprints

In 1905, the British transferred the administration of British New Guinea to Australia, which changed the name of the territory to "Papua." In 1906 and '07, the Australians overprinted the original British New Guinea 1901 Lakatoi stamps with the territory's new name. Two different overprints were used, creating two sets - the 1906 set with the large overprint (Scott #11-18), and the 1907 set with the small overprint (Scott #19-26). Both are scarce, and in my opinion, grossly undervalued, as only 2,730 of #11-18 and 5,135 of #19-26 were issued, and Scott '11 prices them unused at $604.50 and $242.00, respectively.

Papua New Guinea is richly endowed with natural resources, but exploitation has been hampered by the rugged terrain and the high cost of developing infrastructure. Agriculture provides a subsistence livelihood for most of the population of about 7 million. Annual GDP growth has increased dramatically over the last 5 years, from 1% in 2005 to about 7% in 2009. Still, the majority of the population is extremely poor, and I do not foresee the development of a significant collecting population within the country for some time.


Most of the collectors of Papua New Guinea are British Commonwealth collectors or Australians, because the country was administered by Australia until 1975, and maintains close ties with that nation. I recommend purchase of the better stamps of Papua, New Guinea, and Papua New Guinea based on the probable growth in interest among Australian collectors, and collectors of British Commonwealth.


Those interested in becoming part of an international community of stamp collectors, dealers, and investors are welcome to join the "Stampselectors" group and organization page at Facebook. The group and page host lively discussions concerning stamp investment and practical aspects of collecting, and provide a useful venue for those who wish to buy, sell, or trade stamps.





Sunday, July 10, 2011

General Commentary: Are "Forever" Stamps a Good Investment


In 2007, the U.S. Postal Service sold its first "Forever" stamps, which pictured the Liberty Bell, for 41 cents each. These were marked "USA FIRST-CLASS FOREVER", indicating that the stamps would always be sufficient to pre-pay the first class rate, regardless of how much the rate increased in the future. Recently, the U.S.P.S. decided that, beginning in 2011, all first-class stamps will be Forever stamps. Both frequent mailers and collectors have sometimes pondered the question of whether Forever stamps are a good investment.


My response is that, in general, they are probably not. Over the last 80 years, postal rates have increased at a compounded annual rate of approximately 3 1/2% per year. This is about the same as the average annual inflation rate for the U.S. over the last 100 years (3.43%), implying that the buying power of the cost of a stamp has remained pretty much the same.



Furthermore, as any U.S. collector with some experience with the stamp market knows, it is often possible to purchase large quantities of "discount postage", either from dealers or through stamp auctions, at 85% to 90% of face value. Dealers pay about 30% less when buying it wholesale. Undoubtedly, this will also be the case with Forever stamps.



However, there may be some instances in which the inflation-linked rates of Forever stamps could give some added protection to the philatelic investor. Every once in a while, the Postal Service issues a souvenir sheet or booklet in lower-than-normal quantities. Those speculating on such items will benefit from the fact that even if collector demand does not increase for what they've purchased, their purchase's value will be linked to future rate increases. The same applies to those who purchase plate number strips and other positional items, and it also holds true if other countries hop on the bandwagon, and issue such stamps in low printing quantities.




Thursday, July 7, 2011

Stamp Investment Tip: Algeria 1930 French Occupation Centenary Semi-postals (Scott #B14-26)

In 1930, the French issued a set of thirteen semi-postals celebrating the centenary of their occupation of Algeria (Scott #B14-26). 44,900 were issued, and Scott '12 prices the unused set at $ 135.75.

The set is an attractive one, picturing scenic views and historic buildings and monuments of Algeria. It appeals to collectors of French Colonies, and should also do well as Algeria's economy grows and a stamp market develops there. The set's subject, which honors the French occupation, may have dampened interest for it among Algerians due to a "resentment of the victimized" effect, but this factor usually becomes less important over time.

Note that an inverted center error of the 5fr + 5fr high value exists (Scott #B26a; Scott '12 CV= $ 750.-). Only 50 of the error were issued. , and I strongly recommend purchase of it, as it is rarer than the U.S. Inverted Jenny, for less than a thousandth of the cost. For stamp investors with deep pockets, there is much to be said for focusing on grossly undervalued rarities, rather than accumulating quantities of less expensive items.

A nation of over 35 million people, Algeria ranks 14th in petroleum reserves, containing 11.8 billion barrels of proven oil reserves with estimates suggesting that the actual amount is even more, and 8th in natural gas reserves, with 160 trillion cubic feet. Agriculture is also an important sector. Algeria is known for the fertility of its soil, and exports cereal grains, vegetables, fruits, esparto grass, and cork. Nevertheless, the country suffers from major disparities in income and high unemployment, which the government is striving to ameliorate. Annual GDP growth has averaged about 4.5% over the last 5 years.





Sunday, July 3, 2011

Stamp Investment Tip: Guatemala 1939 Air Officials (Scott #CO1-6)

In 1939, Guatemala overprinted 8,083 of its Central American Presidents sets of 1938, issuing its first Airmail Official set (Scott #CO1-6). Scott '11 prices the unused set at $ 6.60.

Aside from the fact that I favor all undervalued issues of Latin America, the Presidents set has obvious appeal throughout Central America. The inexpensiveness of this set is astounding, considering its minuscule printing quantity. Even given Guatemala's current economic conditions, it would still be cheap at five times its current catalog value. It is possible that it's been overlooked because it's an air official set, languishing, for now, in Back-of-Book obscurity.


With a population of about 14 million, Guatemala is a poor but developing country. Since the end of the Civil War in 1996, the country has witnessed a successful transition from authoritarian dictatorship to democracy, although major inequities in income still need to be addressed. In recent years the export sector has grown dynamically. Some of Guatemala's main products include fruits, vegetables, flowers, handicrafts, and textiles. The 1996 peace accords that ended the decades-long Civil War removed a major obstacle to foreign investment, and tourism has become an increasing source of revenue. Annual GDP growth has averaged just under 5% over the last 5 years.


I have begun a new blog, "The Stamp Specialist", which will feature my buy prices for stamps which I am interested in purchasing. I've just posted a buy list for Guatemala, including the set and souvenir sheet recommended in this article. Viewing dealers' buy lists every now and then is an excellent way to keep current on the vagaries of the stamp market.

Those interested in becoming part of an international community of stamp collectors, dealers, and investors are welcome to join the "Stampselectors" group and organization pages at Facebook. These host lively discussions concerning stamp investment and practical aspects of collecting, and are excellent venues for those who wish to buy, sell, or trade stamps.