General Commentary: Trends Toward Specialization in Developing Stamp Markets

As a country emerges from Third- or Fourth World status and begins to develop a middle class, its domestic demand for goods and services becomes more variegated and complex. Whereas previously, the vast majority of its population was mainly concerned with survival and alleviating the miseries of poverty, it now has far more time and money to invest in recreational activities. Hobbies, such as collecting stamps, take root as effective means of enhancing the quality of life and alleviating the boredom and stress that are byproducts of the society's increased affluence, competitiveness, complexity, confusion, dynamism, and social mobility.

As a stamp market develops within an emerging market country, it undergoes several transformative phases which reflect the evolution of demand within the country's philatelic community. Obviously, each country represents a separate case, with its own unique set of circumstances which affect its stamp market. Nevertheless, some useful generalizations may be made regarding emerging stamp markets, and these may be helpful when projecting demand trends for particular categories of stamps.



During the "prologue" state of an underdeveloped country's stamp market- its "zeroth" phase- before the country begins the transition to a middle-income economy, most of the demand for its stamps comes from three groups of collectors: members of the country's wealthy elite, foreign specialists, and worldwide topical collectors. The first two groups are similar, in that both tend to be small and both may collect the country as a whole, but also focus on rarities, varieties, and obscure items. The third group, topical collectors, will only purchase those issues which fall under their chosen topical areas. Demand among the first two groups for better stamps of the country tends to be either static or gradually increasing, although it may be bolstered if investors who view the country's stamps as undervalued join the fold. Topical demand growth will, as always depend upon the popularity of the topic.

The initial phase in the development of a country's stamp market is marked by the a general focus on regular issues and commemoratives as well as the growth in interest in topicals related to the country's culture and prominent national figures. Beyond airmail stamps and semi-postals, there is not much emphasis on back-of-book items at this stage. Often, either no specialized catalogues for the country's stamps exist, or if they do, they are decades old and out-of-print. The appetites of "arriviste" collectors in newly developing nations are often as indiscriminate as they are voracious. India's stamp market provides an example of a rapidly growing collecting community where almost none existed before, and in which many of the new collectors are adults who did not have the means or opportunity to collect as children. As a consequence, it has seen an explosion of demand for flashy items which were once considered wallpaper, such as minor errors on Indian stamps and modern Indian First Day Covers. Adult neophyte collectors are far more common in the developing world than in affluent countries in which most adult collectors began as children, and this phenomenon can strongly influence demand.

The second stage is characterized by the beginnings of specialized collecting, as collectors' interests expand to include varieties and back-of-book items, such as special delivery stamps, postage dues, officials, parcel post stamps, etc.. Often when a country's stamp market reaches this stage, dealers or specialists publish specialized catalogues and albums for the country's stamps, where either none existed before or those that did exist were long out-of-print. The expansion of interest in formerly neglected back-of-book items is sometimes accompanied by dramatic increases in the values of these items.

Extending specialization further, the third stage (which may be viewed as incorporating all of the later stages) is characterized by enhanced interest in postal history, ephemera, and "back-of-back-of-book" items, including quasi-cinderellas, such as locals, carriers, savings stamps, revenues, etc.. Once again, obscure items which had almost no value in the initial stages come into the limelight of collector interest.

The important lesson to draw from this is that when one wishes to profit from the development of a stamp market, it is often a good idea to think ahead by buying neglected oddball items which no one cares about yet, if their value might be enhanced due to trends toward increased specialization. Just as stamps of many formerly poor emerging market countries were once been considered wallpaper, the peripheral items of these countries that are considered junk now may be worth considering.

Phila-Trivia: Postage Before 1840

While it is common knowledge that in 1840, Rowland Hill created the first postage stamp, Great Britain's "Penny Black," and that William Mulready created the first postal stationery, most stamp collectors are unaware that earlier attempts were made which resulted in some notable forerunners.

The earliest item similar to a postage stamp was created and used by a Frenchman, M. De Velayer, in 1653, during the reign of Louis XIV. He set up mail boxes and delivered any letters placed in them if they used envelopes that only he sold. Letters were wrapped with a slip of paper bearing the inscription (in translation) "post-paid______day of_________1653." An enemy of De Velayer's put live mice into the letter boxes and ruined his business. Unfortunately, none of De Velayer's "postage strips" are known to remain.

De Velayer's mail box
In 1818, Sardinia issued stationery which may have been used postally, and which bore imprinted images of a nude horseback rider blowing a trumpet. There were three values - 15, 25, and 50 centesimi - and the letter paper was sold at post-offices and by tobacco vendors. Use of the stationery was discontinued in 1836, due to a change in postal regulations. There is some debate regarding whether the amounts charged for the stationery actually paid for postage, as some argue that the Sardinia sheets were sold to raise taxes.

Sardinian stationery of 1818
In the early 1800s, some Swedish letter writers attached feathers to their covers with red wax seals, in order to imply that the letter should "fly to its destination." Obviously, these feathers bore only a slight resemblance to stamps in form and function, but they are interesting, nonetheless. A few Swedish "feather covers" still exist, and occasionally are sold at stamp auctions.

A Swedish "Feather Letter"

                                                        A 40 lepta Black stamp was issued in Greece in 1831. Covers exist bearing the stamp; however, there is some dispute over whether it was an actual postage stamp, or a charity label issued to raise funds for Greek refugees from Crete. A March 13, 1831, government decree requested that every citizen contribute 40 lepta or more for the welfare of recently arrived emigres from Turkish-controlled Crete to the liberated mainland, and ordered that billets be issued to donors. It is possible that these "stamps served to reward or document donations.

1831 Greek Postage Stamp or Charity Label (block of 4)

It is clear that Rowland Hill built on early innovations of the previous two centuries. These had failed mostly because initially, postal services served only a wealthy, literate elite. The issuance of postage stamps and the organization of a large and complex postal system coincided with the beginning of the Industrial Revolution, which rendered the establishment of an efficient and inexpensive mail service for the general public both necessary and progressive.

Welcome to StampSelector

Welcome to StampSelector, your comprehensive online philatelic investment and stamp market resource.

This blog, which will eventually evolve into a website, will offer stamp investment tips, general comments on the stamp market, practical advice for stamp collectors, dealers, and investors, and other useful information and links.

Its intended audience includes those who are devoted to their hobby and who are also interested in the pecuniary aspects of stamp collecting. Everyone who has ever desired to make a profit by buying, selling, or investing in stamps - collectors who use their profits to upgrade their collections, "colinspecs" (collector-investor-speculators), vest-pocket dealers, investors, full-time stamp dealers, auctioneers- any and all are encouraged to enjoy, learn, and profit from the use of this site, and to comment on it as well. In addition, I wish to welcome tangible assets investors from outside the hobby, who may not be familiar with stamp collecting or philatelic investing. I recommend reading the Wikipedia articles on Stamp Collecting and Philatelic Investment as introductions, or reading Michael Baadke's book Stamp Collecting Basics, published by Amos Press, Inc..

The stamp pictured above, an 1898 50c Trans-Mississippi (Scott #291), based upon a drawing of a Western mining prospector by Frederick Remington, shall be the site's symbol. What image could better capture the sense of fun and adventure that a treasure hunt such as philately (or any collectibles hobby, for that matter) represents to so many collectors? Who among us is not energized by the possibility of finding a hidden gem in a dealer's dollar box, or in an overlooked lot at an auction, or in the form of a scarce and undervalued stamp which is certain to skyrocket in value due to increasing collector interest?

As this site evolves, you may begin to think of it as a tool which you may use to better profit from stamp collecting, similar to the tools that the prospector uses to find gold. With any luck, it will also become a community of "stampselectors," like a rowdy, spirited gold-rush town with plenty of good advice and free drinks for all, but without the gunfights. The best is yet to come.

Note: The Scott Numbering System, which is used in this blog, is the property of the Scott Publishing Company, and Scott Numbers are used with their permission.