Stamp Investment Tip: 2005 Azerbaijan Orchids Souvenir Sheet (Scott #792a)

In 2005, Azerbaijan issued a set and souvenir sheet picturing Orchids (Scott #789-92 and 792a). 20,000 sets and 10,000 souvenir sheets were issued, and Scott '11 prices them each unused at $6.75. Both make interesting and low-risk speculations based on their appeal as Flower topicals, and as bets on the economic growth of Azerbaijan and the development of a stamp market there. This recommendation is consistent with my belief that one of the best ways to play the new and newly resurrected countries of Europe and Asia is to focus on popular topicals with low printings.

Azerbaijan is an oil-rich nation of about 9 million people, which also has significant reserves of natural gas and various minerals. Agriculture and tourism are also important to the Azerbaijani economy. The country shares all the problems of the former Soviet republics in making the transition from a command to a market economy, but its energy resources brighten its long-term prospects. It has begun making progress on economic reform, and old economic ties and structures are slowly being replaced. Annual GDP growth has averaged a stellar 21% over the last 5 years, largely based on the frenetic development of the country's oil wealth - an estimated 7 billion barrels of reserves.

Stamp Investment Tip: Paraguay 1963 Orchid Souvenir Sheet (Scott #C315)

In 1963, Paraguay issued a souvenir sheet picturing the Cattleya cigas Orchid (Scott #C315). Only 2,750 sheets were issued, and Scott prices it unused at $ 62.50. Flower topicals are extremely popular among collectors, so acquiring this rare orchid may turn out to be a smart way to invest in Paraguay.

The main drawback to investing in certain Paraguayan souvenir sheets from the '60s and later is the question of legitimacy: quite a few were issued solely to milk collectors and never saw any postal use. Scott does not list the most egregious issues, but it does list many which fall into a gray area. This sheet does seem to have been used postally, and the combination of low issuance quantity, low catalog value, and topical appeal make it a low-risk speculation.

With about 6 1/2 million people, Paraguay is an emerging market nation with the potential to become a major agricultural exporter. Its subtropical climate allows for 5 harvests every 24 months, and it has vast tracts of virgin arable land. In addition, manufacturing has shown strong growth in the production of edible oils, garments, organic sugar, meat processing, and steel. Annual GDP growth has averaged 4.5% over the past 5 years, and was steadily increasing until it experienced a recent slight decline due to the global financial crisis.

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 Paraguay, including the 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.