Stamp Investment Tip: Lebanon 1924 Olympics Set (Scott #18-21)

In 1924, the Olympic Games were held in Paris. The postal authorities in Lebanon, then a French Mandate Territory, joined in the celebration by overprinting the basic French Olympics set "Grand Liban" and surcharging it in local currency (Scott #18-21). Issuance quantities were not recorded , but they were probably 10,000-20,000. Scott '10 values both the unused and the used set at $ 130.00 .

The set is of interest to collectors of Lebanon, French Colonies, and of course, Sports and Olympics topical collectors. This is one of many scarce sets of Lebanon which should significantly increase in value as the various factions within that country learn how to get along, and Beirut returns to its former preeminence as the "Paris of the Middle East."

Stamp Investment Tip: Manchukuo 1934 15f Rose (Scott #30)

In 1931, Japan invaded Manchuria following the Mukden Incident ,

in which the Japanese military staged an act of sabotage in order to provide a pretext for war. In 1932, the Japanese formed the puppet state of Manchukuo, with Henry Pu-Yi, the former Emperor of China, as its head of state. Pu-Yi's life was the subject of the Oscar-winning film The Last Emperor.

A set of stamps picturing Pu-Yi and the Liaoyang Pagoda, printed on granite paper, was issued in 1934 (Scott #23-31). The key stamp from this set (and from the complete country, for that matter) is the 15 fen Rose (Scott #30), of which 100,000 were issued. Most were probably discarded after being used on overseas mail or parcels. The stamp is frequently sold individually, so not having the accompanying remainder of the set does not detract from its value. Scott values the stamp at $ 450.00 in unused condition and $ 200.00 for used.

Manchukuo stamps are sought after by collectors of both China and Japan. I recommend purchase of Scott #30 in either F-VF or better NH condition or F-VF+ Used.

Stamp Investment Tip: Latvia 1933 Pioneer Air Issue (Scott #CB21-24)

In 1933, issued a set of Airmail Semi-postals picturing early modes of flight (Scott #CB21-4,CB21a-24c). The set was issued in both perforated and imperforate form, in quantities of 7,420 and 6,210 respectively.

Both the perf. and imperforate versions of the set represent good prospects for growth, as the post-Soviet economies of the Baltic States continue to flourish. The set is of interest to both airmail and Zeppelin collectors, as the 30 +130 santimu value pictures the LZ-127 Graf Zeppelin hovering over Riga.

Stamp Investment Tip: Chilean Souvenir Sheets of the 1950s and Early '60s

Chile began issuing souvenir sheets featuring designs in conjunction with the issuance of some of its more popular stamps in the 1950s, and many of the these souvenir sheets are quite scarce. Printed on thick card stock, these souvenir sheets were not intended for postal use, and should technically be classified as souvenir cards or presentation cards. Nevertheless, Scott, the other catalogs, and collectors of Chile treat the items as souvenir sheets. Scott notes these issues after the listings for the related stamps.

The following issues, listed with printing quantities and Scott '10 Catalog Values, are worthy of consideration:

• C168Note -1953 Postage Stamp Centenary (515 issued- Scott notes but does not list a value for this sheet- it retails for $400-$600)

• C172Note - 1954 Railroad Centenary (Unknown quantity issued- $200.00 )

• C191Note- 1956 25th Anniversary of Technical University ( 2,000 issued - $ 110.00)

• C193Note - 1958 O'Higgins (3,000 issued - $ 60.00 )

• C194Note - 1958 National Philatelic Exhibition ( Unknown quantity issued - $ 48.00)

• C195Note - 1958 Savings Bank (Unknown quantity issued - $ 48.00)

• C213Note - 1959 German School Centenary ( Unknown quantity issued - $ 60.00 )

• C218Note - 1960 World Refugee Year (3,000 issued - $ 110.00)

• C220DNote - 1960 1st National Government-150th Anniversary (Unknown quantity issued- $ 30.00)

• C221Note - 1960 Rotary Conference (Unknown quantity issued - $ 60.00 )

• C221 Second Note 1962 Malaria Overprint on Rotary s/s (2,000 Issued- $ 30.00 )

• C247Note - 1962 Soccer (Unknown quantity issued - $ 12.00 )

Chile is considered the most "European" Latin American nation, and the proportion of stamp collectors within the population is moving towards European levels. Given a rapidly developing economy spurred by a government which implements sound economic policies, the future looks bright for this nation of 15 million. I expect to see continued increases in the values of better Chilean stamps and souvenir sheets.

Stamp Investment Tip: India 1948 Mahatma Gandhi Issue (Scott #203-06)

On January 30, 1948, Mohandas K. Gandhi, one of the greatest men who ever lived, was assassinated. On August 15, the first anniversary of India's independence, India issued a set of stamps depicting the Mahatma (Scott #203-06). About 230,000 sets were issued, and the set has a Scott '09 Catalog Value of $ 126.00.

In my opinion, this set is certain to rise in value. It has appeared on many buy lists lately, and may not be available for less than full Scott value. Several decades ago, before India's economic growth accelerated, an NH set could be purchased for as little as 25% of Scott.

A small number of Gandhi sets were overprinted "SERVICE" for Offical use (Scott #O112A-112D) in the following quantities, with Scott Catalog Values also given: O112A - 15,950

($ 45.00), O112B - 1,350 ($ 800.00), O112C - 250 ($ 2,100.00), O112D - 20 ($ 12,000.00). The catalog values given are italicized in Scott, indicating that reliable market information is unavailable, making it difficult to assign accurate values. A set of the Gandhi Officials sold for 38,000 Euros (about triple Scott) at a David Feldman Auction in 2007. Buying the less expensive lower values individually makes sense, but since forged overprints exist, require expertization as a condition for purchase.

Stamp Investment Tip: Israel 1952 Menorah Stamp (Scott #55)

Stamps of Israel are notable in that they are collected with "tabs," attached selvedge with additional information about the stamp. The first stamp albums for Israel contained spaces for the stamps themselves, but not for the stamps with tabs. Consequently, collectors often removed the tabs before mounting the stamps in the albums. The late renowned stamp dealer Jacques Minkus produced the first Israel album with spaces for the stamps with their tabs, but unfortunately, the tabs were usually torn off the early issues. As a result, many tabbed Israeli stamps of the 1948-52 period are very scarce.


In 1952, Israel issued a high value 1000 prutah Menorah Stamp (Scott #55), with emblems of the Twelve Tribes framing a menorah of the Second Temple. Informational tabs were printed on the bottom margin selvedge of each sheet. 350,000 Menorah stamps were issued, but the vast majority were used on packages, and most of the mint stamps with tabs collected were detached from their tabs by collectors trying to fit the stamps into their album spaces. Consequently, Scott '12 values the basic mint stamp at $ 16.00 and the stamp with a tab at $ 250.00 . The stamp is very attractive and relates directly to Jewish history, as well as being a Religion topical. I highly recommend investing in the Menorah stamp with tab.


A caveat applies when purchasing tabbed Israeli stamps: the tab must be complete - often (as with the '52 Menorah stamp) the tabs contained two parts of selvedge. If the marginal part of the tab has been removed, the stamp is considered to have a "part tab," and is worth a slight premium over the cost of a basic stamp. Occasionally, ignorant or dishonest sellers will quote the catalog value for a fully tabbed stamp when offering one with a part tab.


Israel is considered one of the most advanced countries in the world in terms of economic development. As a technology powerhouse which leads the world in the number of scientists and engineers per capita, it also has the second largest number of start-up companies after the U.S.. Israel's main burden is having to spend much of its GNP on defending itself from some of its more bellicose neighbors. Over the last 5 years, annual GDP growth has averaged just under 4%, reflecting a slowing in 2009 due to the global economic crisis. Should peace break out in the Mid-East, trade will grow exponentially, and Israel could serve as a model for economic development in the Mid-East and much of the Third World. In that event, the better stamps of Israel and the Palestine Mandate will increase dramatically.


Israeli stamps are popular in Israel and among Jewish collectors around the world. Those interested in learning more about Israeli stamps should consider purchasing a Bale Catalogue, which classifies and values many items not listed in Scott, including forerunners, errors, varieties, machine-vended stamps, revenues, postal stationery, and booklets.

Stamp Investment Tip: Panama 1958 United Nations Souvenir Sheet (Scott #C202a)

In 1958, Panama issued a set of stamps (Scott #C199-202) and a souvenir sheet (Scott #C202a), commemorating the 10th Anniversary of the United Nations, which had occurred in 1955. Better late than never, I suppose. Both the set and the souvenir sheet are cheap (Scott Value for the Unused set is $ 4.05 ; for the Unused souvenir sheet: $ 5.25 ) and both had very low printings. Only 10,000 of the sets and 3,000 of the souvenir sheets were issued.


UN-related issues are popular among topical collectors, and I am convinced that they will become more popular in the future as the need for better, more powerful institutions of global government to deal with the world's massive problems is recognized. I believe that both the set and the souvenir sheet are excellent candidates for accumulation. It is impossible to know which presents a better prospect; for although the set had a higher printing quantity, it's likely that a far higher proportion of sets than souvenir sheets were used for postage.

Practical Advice: Preserving Your Stamps

Being made of paper, stamps are fragile collectibles, and preserving them in the condition in which you acquired them is essential to preserving the value of your investment.This is easier than it sounds, and does not require a degree in chemistry or physics. It does require an awareness of the main causes of damage to stamps, and a willingness to take steps to avoid them.

The main causes of stamp damage are: negligence in handling and storage,
moisture, acidity, and excessive exposure to light or extreme variations in temperature. Often, damage results from a combination of two or more of these factors.

Negligence is probably the worst of these threats, and it encompasses many different manifestations of ignorance and error. It may be said that most instances of a collector unintentionally damaging stamps are forms of negligence. Some of the following warnings may seem obvious to even most beginning collectors, but I'll go through them anyway:

• Do not write on the backs of stamps.
• Do not mount stamps by licking their gum and sticking them into albums.
• Do not use photograph albums with sticky pages to mount stamps.
• Do not use hinges to mount never hinged stamps.
• Do not break up multiples which may be more valuable as multiples, or soak stamps off of covers when they may be more valuable on cover.
• Do not immerse a stamp in watermark detector if the catalog warns that the ink may bleed if that stamp is immersed in it.

Excessive exposure to moisture can ruin a stamp's gum, or transform it into a meal for mold or insects. The best ways to avoid this threat are not to store stamps in damp environments or rooms in which flooding is a risk, and endeavor to keep stamps out of the rain.

Acidity poses both an internal and external threat. Some stamps are composed of paper which has a high acid content, and will turn yellow and brittle over the years if exposed to excessive moisture or light. In the vast majority of cases, this process can be avoided if the stamp is not over-exposed. Also, in the cases of used stamps and stamps issued without gum, much of the acidity may be removed by soaking the stamp in warm distilled water for several hours.

The external threats of acidity damage involve handling and storage. Always use tongs when handling stamps, because oils secreted from the skin have a high acid content. Stamps should be mounted using acid-free mounts in modern acid-free albums or stockbooks. They should be removed from old albums in which the pages are printed on paper which has a high acid content, so that the acid doesn't migrate to the stamps.

Excessive exposure to light should also be avoided, though fading probably will not occur unless there is extreme exposure to light over a prolonged period of time.

Extreme variation in temperature is another stressor, and should also be avoided. Storing a stamp collection in an attic which freezes in the winter and becomes an oven in the summer is a very bad idea.

All of these suggestions for preserving stamps are simply common sense, and others that are equally valid may occur to you. It's best not to learn the hard way how a stamp may become more rare.

Stamp Investment Tip: Cuba 1898 Alfonso XIII Issue (Scott #156-75)

I view many of the early sets of Spain's former colonies as grossly undervalued, and highly recommend the purchase of an Edifil Catalog of Spain and Dependencies, which notes printing quantities for many of these issues.

One such set was issued by Cuba around the time of the Spanish-American War. The 1898 Alfonso XIII issue, a set of definitives featuring the boy king, had a printing of only 10,000, and has a current Scott Value of $ 89.95 for an unused set. It may be unavailable in Never Hinged condition, so aim for a nice LH set or a sound used one.

Cuba is very interesting from the point of view of philatelic history, initially having issued stamps as a Spanish Colony, then under U.S. Administration, and finally, as a republic, with importation of unused stamps of the Castro period currently prohibited by a U.S. embargo. I think it inevitable that friendly relations between the U.S. and Cuba will eventually be restored, allowing fat American tourists and new wealth to flow into the island. Even without that catalyst, however, the set should rise, as it has a dual market, and is sought by collectors of both Cuba and Spanish Colonies.

Stamp Investment Tip: Norway 1941 Norwegian Legion Semi-Postal (Scott # B42)

In 1941, German-Occupied Norway issued a semi-postal stamp to benefit Norwegian volunteers serving in the Norwegian Legion of the SS. The stamp (Scott #B24), issued in blood-red to emphasize the Nazi view that Scandinavians were racially brother Aryans, featured a Legionnaire heading eastward "to confront Bolshevism," with Norwegian and Finnish flags in the background. It had a denomination of 20 ore + 80 ore, with the 80 ore surtax intended to benefit the Legion. Scott '10 values an NH single at $72.50.

The stamp had a printing of 100,000, and understandably was not a very popular seller at the time. Currently, however, it is sought after by collectors of Norway and Scandinavia, mostly in Europe and the U.S., as well as collectors of World War II German-occupation issues.

With just under 5 million people, Norway is one of the most prosperous nations in the world due in part to huge reserves of oil and natural gas. Like the rest of Europe, its economy has been hit by the global financial crisis, and annual GDP growth has averaged just over 2% over the last 5 years. Norway has a high population of "serious" stamp collectors, on par with other northern European nations. Furthermore, Scandinavia is often collected as a region, and is popular among collectors in Europe and the U.S., which, incidentally, has about 12 million Scandinavian Americans.

General Commentary: How to Hurt the Hobby - Lessons from the U.S. Postal Service

Just for fun, imagine that you're the head of the postal system of a make-believe country with a vibrant, growing stamp collecting community, but for some inexplicable reason, you hate stamp collecting and wish to hurt the hobby. The problem is: you don't know where to begin. Surely there must be an expert to whom you can turn -someone with much greater experience and knowledge of how to persuade collectors to turn away from stamps?

Fortunately, there is! The United States Postal Service has instituted many policies over the last forty years which have hurt stamp collecting in the U.S., and provides many valuable lessons on how to decimate the hobby. Here are a few of the more outstanding examples:

• Abandon your conservative stamp-issuance policy, and issue so many stamps each year that you make collecting your country's stamps less affordable to collectors, and utterly unaffordable to most dealers, who may have once purchased multiple sheets for each issue. The United States issued only 10-20 stamps per year in the '60s, but its current steroid-driven issuance policy has ratcheted the figure up to 150-200 per year!
  

• Make plate block collecting more costly by re-formatting plate blocks so that the collector has to purchase plate blocks of 16 or 20 stamps, rather than the traditional plate block of 4. Alternatively, issue "mini-sheets" of 20 stamps, with each sheet having four different plate blocks, thereby rendering plate block collecting meaningless. Also, create other types of position multiples, such as zip blocks and mail-early blocks, to thoroughly confuse collectors.

• Issue stamps with trite or redundant subject matter. Love stamps, greeting stamps, and stamps featuring cartoon characters fit the bill. If your country's constitution mandates a separation of church and state, then issue stamps which violate this rule, such as stamps honoring religious holidays. Since 1962, the U.S. has issued Christmas stamps, thereby violating the First Amendment, and more recently, it has also issued stamps for Hanukkah and Eid, an Islamic holiday. Regardless of whether or not it would be fair to allow every religion or belief system in the U.S., including Scientology, Satanism, Rastafari, Santeria, Wicca, etc. to have its own stamp, it is certain that many non-believers duly appreciate having their tax dollars support the government sponsorship of religion.
  

• Issue stamps which are visually uninspiring or downright ugly. Many stamp collectors feel that the U.S.P.S. implemented this enlightened policy most consistently in the 1970s, but every once in a while, it spits something out which hearkens back to it. Fortunately for those who hate stamp collecting, we'll probably never go back to issuing well-designed, beautifully engraved stamps with important subjects, as we did during the classic period that ended about seventy years ago. The stamp pictured at left, the 1984 20c Family Unity stamp (Scott #2104) brilliantly combines trite subject matter, ugliness, and emotional blackmail. Children's art is supposed to be cute (or people are supposed to pretend that they think it is), but often the infantile scribbles that are chosen for postage stamps are truly awful. The 1977 13c Christmas-Mailbox stamp (Scott #1730, pictured at right) integrates two anti-philatelic strategies: it violates the Constitution's Establishment Clause, and it's hideous enough to increase the viewer's risk of seasonal affective disorder.
  

• Issue stamps with a type of gum which makes it impossible to soak used stamps off of envelopes without damaging the stamps. This will help kill interest in collecting your country's modern used stamps.
  

• Produce and sell overpriced collector products, such as year sets, framed sheets, commemorative panels, and other presentation items, in order to bilk beginning collectors and alienate them from the hobby when they later figure out that they've been had.
  

• Finally, inadequately educate postal clerks. For instance, if an inordinate number of them don't know the postal regulations and believe that philatelic shipments can't be sent via insured mail, or that "old" mint U.S. stamps aren't valid for postage, it will cause considerable inconvenience and irritation among their stamp collecting customers. Encourage your postal clerks to use a ball-point pen or magic-marker when canceling envelopes with attractive stamps or multiples on them , thereby rendering them worthless to collectors.

As you can see, the U.S. Postal Service has done a fine job of creating a "challenging" environment for American stamp collectors . Learn from the master.

Stamp Investment Tip: U.S. 1942 5c Chinese Resistance Issue (Scott #906)

In 1937, Japan invaded China and began the Second Sino-Japanese War, which eventually became subsumed within World War II. The Japanese had earlier invaded Manchuria in 1931, converting it into the puppet state of Manchukuo. During the course of the war, the Japanese slaughtered between 10 and 20 million Chinese, most of whom were civilians.

In 1942, the U.S. issued a 5c stamp in support of Chinese resistance to Japanese aggression, picturing Abraham Lincoln and Sun Yat-sen, the founder of the Chinese Republic. The stamp (Scott #906) had a printing of 21,272,000, somewhat modest for a U.S. issue. In my opinion, the best means of focusing on it is to accumulate F-VF+ NH plate blocks and First Day Covers.

Since one plate block was produced per sheet of 50 stamps, there was an initial quantity of about 425,000 of them, of which we may reasonably assume that 95%-98% were used as postage or otherwise broken up, degraded, or destroyed, leaving a remaining collectable quantity of 8,000-20,000. The 2009 Brookman Catalog Value for an F-VF NH plate block is $14.00, and as interest in the stamp has heated up a bit lately, expect to pay full catalog or close to it for a plate block in F-VF NH condition.

As to the FDCs, about 169,000 were produced. Brookman catalogs the FDC at $12.00, but it may frequently be had for considerably less, especially if the FDC bears a common cachet, such as Artcraft (by far the most common), Anderson, House of Farnam, Ioor, or Fidelity. Nevertheless, it is worth paying a premium for the scarcer cachets, especially if the designs are attractive. The market for U.S. FDCs has been stagnant over the last decade or so, providing an excellent opportunity to pick up these FDCs for a song.

The burgeoning market for Chinese stamps has begun to influence stamps thematically related to Chinese history and culture issued by other countries. The 1942 Chinese Resistance stamp was the first such produced by the U.S., and pictured one of the most celebrated figures of recent Chinese history. It is a truly historic issue, produced during a time of desperate struggle that was pivotal to the foundation of the People's Republic.

Stamp Investment Tip: Montserrat 1973 Columbus Souvenir Sheet (Scott #295a)

In 1973, the Caribbean island of Montserrat issued a set and souvenir sheet commemorating the 480th anniversary of the discovery of Montserrat by Columbus. The souvenir sheet (Scott #295a) had a minuscule printing of 4,449, and has been overlooked for decades, despite being an attractive ship topical. Its current Scott Catalog Value is only $ 25.00, and it is frequently offered for 50-70% of Scott.

I view this souvenir sheet as a very low risk speculation. The market may continue to ignore it. On the other hand, it's not beyond the realm of possibility that someone will try to hoard the sheet and then pump it up with buy ads, or that investors will gradually deplete the supply.

Incidentally, I have never seen a First Day Cover of this souvenir sheet, and it wouldn't surprise me if fewer than 200 exist. Should you happen to find one in nice shape and at a reasonable price, jump on it.

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Practical Advice: Comparing Stamp and Equities Investing

Investing in stamps, or in any collectible for that matter, is very different from investing in stocks or mutual funds, and knowing how stamp investing differs from investing in equities is crucial to ensuring that the enterprise is a success.

First of all, stamps should not been seen as a replacement for other types of investments, but rather as a hedge or alternative investment - an area in which to allocate a portion of one's funds so as to diversify. As any seasoned investor knows, diversification is key to minimizing risk. Stamps held up very well during the the recent near-collapse of equities and real estate resulting from the sub-prime debacle, effectively demonstrating the value of diversifying ones holdings into a variety of areas of investing.

For the most part, philatelic investing is basically a form of international investing - a way to profit from economic growth and demographic trends affecting the stamp collecting populations of various countries. Accordingly, the most apt comparison one might make would be between stamps and stocks of foreign companies, or mutual funds which specialize in various types of international investing, specific regions, or specific countries.

Some of the important differences that exist between the two realms are as follows:

• Shares of a particular stock are more readily available for purchase than are examples of a particular stamp. A philatelic investor cannot call his broker and place an order for 1,000 Very Fine Never Hinged singles of a stamp that he feels is a "sleeper."

• Stocks are far more liquid than stamps, and trade at a set price, or set range of bid and ask prices, at any given time. Selling stamps requires greater effort, and a stamp's value may differ widely from market to market, or even from buyer to buyer. Often, there is only a sense of an approximate range of values for a given stamp.

• A corporation may choose to issue more shares of its stock, thereby diluting supply. Once issued, the supply of a stamp never increases, and is always either static or diminishing. The "known" supply of a particular stamp may increase, however, if there is a new find.

• Individual corporations are subject to circumstances which may destroy them or severely damage their prospects, regardless of the long-term outlook of the industries or economies of which they are a part. A corporation may decline or go bankrupt, rendering its shares worthless. due to the ineptitude or criminality of its directors, short- or medium-term changes in market conditions, governmental intervention, or a host of other hazards. A stamp may rise or fall in value, but it will never go bankrupt.

• A stock will increase in value if the underlying corporation experiences or foresees increases in earnings. An investment in a stock reflects a risk/reward analysis specific to the underlying company's prospects, with some attention paid to short- and medium-term conditions.

• A stamp will increase in value due to increased interest among collectors or investors. This is largely a function of changes in the basis of demand for the stamp - the collector population which is bidding for the available supply. As the size of the collector population within a particular country tends to grow with the country's middle class, an investment in that country's stamps represents a general and long-term investment in the country's future economic development.

• A stamp is a tangible collectible investment, so care must be taken to preserve it. A share of stock simply represents an investment in a company; assuming that one even possesses the actual certificate, it will be worth the same whether it is in perfect condition or not.

• The kinds of knowledge and expertise necessary to being a successful collectibles investor vs. a successful stock investor differ widely. While both require comprehensiveness and depth of analysis of prospective investments, the knowledge of the demand-base, collectors vs. consumers, takes on a very different character. The stamp collecting cohort is largely comprised of Renaissance Men (and Women): well-educated, intelligent, and open-minded. Furthermore, there is an undefined continuum between those who are purely hobbyists and those who are interested in the financial aspects of philately- collectors who sell stamps and use the profits to upgrade their collections, vest-pocket dealers, investors, etc.. The successful stamp investor must have a kind of empathy with all types of collectors- an identification with them, in fact- because he is, in truth, a part of this continuum.

Practical Advice: When Do Seconds Come in First?

"Seconds," or "second choice stamps" are stamps with defects, which sell for far less than sound examples. Some beginning collectors mistakenly believe that a stamp with a defect is worthless, but nothing could be further from the truth. While a sound, well-centered stamp with a high catalog value may be out of reach for many collectors with limited budgets, the same stamp with a Very Fine appearance and a minor defect may provide a more affordable alternative.

A variety of factors determine the percentage of catalog value for which a second will sell, including the type of defect, the appearance of the stamp, the popularity of the issue, catalog value, and whether most or all stamps of a particular issue are faulty. A stamp with a crease or a thin will usually sell for more than one with a tear, because a tear may widen. A stamp with a VF appearance will sell for more than one which appears Fine, Average, or Poor. A stamp from a popular issue, such as the U.S. Zeppelins, Columbians, or Tran-Mississippis, will sell for more as a second than one that is more obscure. A second with a higher catalog value will sell for a higher percentage than one with a lower catalog value. Finally, if most or all of the stamps of a particular issue are known to be faulty, as is the case with some rarities, then condition problems will be less relevant. Often when this is the case, it is noted in the catalog.

The third and fourth factors listed above (popularity of issue and differential in percentage paid based on catalog value) are the most relevant to stampselectors, because they reflect market trends which may be analyzed and predicted. If a particular issue appears to be becoming more popular, then the percentage paid for its seconds will also increase. The same is true if a stamp's catalog value substantially increases over time.

Typically, a VF-appearing second of "average" popular appeal, which catalogs for between $500 and $ 1,000 will sell for about 8-10% of catalog value. If a similar stamp has a catalog value of between $ 2,000 and $ 5,000, it will sell for between 12% and 15%. In other words, collectors will pay a higher percentage for a second which catalogs $2,500 than they were willing to pay for the same stamp when its catalog value was $500.

The reason for the difference is obvious. As a stamp becomes more pricey, the pool of collectors willing to buy one with a condition problem grows. Simultaneously, the number of collectors who can afford the far more expensive sound stamp decreases, and consequently, unless demand for the sound stamp is very strong, the sound stamp will tend to sell for a lower percentage of catalog value at a higher level than it did when the stamp was more affordable.

The logical conclusion may seem counterintuitive but is valid nonetheless: a defective stamp (or second) purchased at the right level, may sometimes be a better investment than a sound one.

Stamp Investment Tip: Lithuania 1920 Grand Dukes set (Scott #92-92D)

In 1920, the newly formed nation of Lithuania issued a set of five stamps commemorating the Grand Dukes Vytautas and Gediminas (Scott #92-92D). Initially, these stamps were produced as trial proofs for the far more common Opening of the National Assembly set (Scott #81-91: 60,876 sets issued), and they were printed in different colors than the same denominations of that set. However, in order to raise funds by milking stamp collectors, the Ministry of Posts ordered that 2,000 of these trial proof sets be placed on sale at post offices. Though they were never valid for postal use, they are still listed by Scott and other stamp catalogs, and Scott '10 values the unused set at $ 750.00.

As virtually all of the sets were sold to collectors and none were used as postage, many of the sets issued back in 1920 probably still survive. Nevertheless, given the tiny printing quantity and an attractive design which appeals to Lithuanian nationalism, I believe the set to be an excellent investment, which will track the future economic growth of post-Communist Lithuania.

Stamp Investment Tip: Bulgaria 1933 Balkan Games set (Scott #244-50)

In 1931 and 1933 Bulgaria issued two sets honoring the Balkan Games, a regional version of the Olympics. Both are attractive Sports topical sets, although the second set represents a better investment prospect.

Both sets feature identical designs - athletes engaged in various sporting activities- but the second set was printed in different colors than the first. The first set (Scott # 237-433), available to the general public at post offices throughout Bulgaria, had a printing of 30,000. The second (Scott #244-50), available only at the philatelic agency, had a total printing of only 4,500, and has a Scott '10 Catalog Value of $ 665.00.

Since the fall of communism, Bulgaria, with a population of about 7 million, has experienced rapid economic growth, although its GDP per capita is only about $13,000, about 40% of the European Union average. We may expect better stamps of Bulgaria to increase in value as the economy continues to grow.

Stamps of this issue often have rough perfs. When purchasing, try to select a set with relatively clean perfs, at least on the high values.

General Commentary : Crime and Collectibles Investing, or All You Need to Know about Legally Profiting from Criminality, but were Afraid to Ask

Each year, organized crime nets hundreds of billions of dollars in profits through various illegal enterprises, including narcotics and arms sales, human trafficking, extortion, bribery of government officials, prostitution, illegal gambling, fraud, and other assorted scams and rip-offs. Certainly, such enterprises should be combatted because they tend to be violent, parasitic, and impose a high cost upon the human community as a whole.

Nevertheless, it is possible that criminality and "vice" are inevitable elements of an incipient phase of capitalism, especially in many developing countries. American History provides a precedent: in the United States, much of the original wealth was founded upon land stolen from the Native Americans, slavery, and in the "Wild West," prostitution, liquor, and gambling. The early "robber barons" were not above having their minions commit expedient murders every now and then, yet now, their names are associated with the charitable foundations established by their dynastic families. The harlots of yesteryear have become the respected society matrons of today.

Many of the organizations currenly engaged in criminal activities are family or gang-based and identify with a particular ethnic group or nationality. All share a similar problem: how to launder their ill-gotten gains. The purpose of money-laundering, an industry unto itself, is to avoid exposure, taxation, or other governmental confiscation of revenues obtained through illegal activity. A large proportion of this money is invested in legitimate, or semi-legitimate, businesses, equities, and real estate, but as diversification is key to minimizing risk, a portion is also invested in tangibles- precious metals, art, and other collectibles, including stamps.

The recent increases in the value of many better stamps of Russia, Colombia, and Mexico raise the question of whether part of those increases result from the investment of dirty money into the better stamps of these countries, thereby bidding them up and depleting their supply on the market. I believe that there is such an effect, but that, for obvious reasons, it cannot be measured. It is an interesting factor to consider, however, because it raises the possibility of legally profiting from illegality. A philatelic investor who wanted to profit from such a "criminality trend" might attempt to project which countries are associated with extensive and profitable "up and coming" criminal operations and then buy the better stamps of those countries.

Practical Advice: Know Your Catalogs

The majority of U.S. stamp collectors use Scott Catalogs as a means of classifying and evaluating stamps. The Scott U.S. Specialized Catalog is, in my opinion, the best and most authoritative catalog for classifying stamps of the U.S. and its Possessions, although Brookman is also very useful when it comes to pricing. As far as the rest of the world goes, however, Scott may be generally useful, yet inadequate because stamp collecting is all about specificity.

Any philatelist interested in profiting from buying and selling stamps (in other words, any stampselector), should have some awareness of the vast galaxy of catalogs and philatelic literature that exist beyond Planet Scott, and how he may exploit these information sources. This is especially true of those who wish to collect, trade, or invest in stamps of other countries besides the U.S..

Catalogs from other countries often contain information which Scott does not provide. Michel Catalogs (German), for instance, provide printing quantities for many worldwide issues, and also include a warning when an issue has been extensively faked. Michel's Germany Specialized Catalog also lists and values rare cancellations on early German stamps. Scott frequently will not list all of the major varieties that exist for particular stamps - varieties which often are listed in other catalogs. This is important because a collector or dealer who is only familiar with Scott, and who is therefore ignorant about rare, expensive varieties which Scott doesn't list, will mistakenly evaluate them as the more common basic stamps. Scott also omits many types of non-regular issues of foreign countries, in contrast to specialized stamp catalogs of many countries which list their own "back-of-book" issues, such as revenues, telegraph stamps, franchise stamps, semi-officials, occupation stamps, locals, forerunners, etc..

Furthermore, there may be differences in the market values of the same stamps as sold in different countries, which are reflected in differences in catalog values. A stamp which has a Scott Catalog Value of $5 may have a Michel Catalog Value of 50 Euros, or a Gibbons (British) Catalog Value of 150 Pounds, or an Yvert Catalog Value of 300 Euros, either because of differences between the stamp markets, or simply because one or more of the catalogs is inaccurate. I am not recommending purchasing all of the stamp catalogs and relevant philatelic literature that are published every year, because this would bankrupt most collectors, but I do suggest that it might be worthwhile to accumulate a small collection of reference materials. Frequently, older editions of foreign catalogs may be purchased very inexpensively, and while their catalog values may be obsolete, their listings of varieties, printing quantities and other information will still be very useful. If there is a philatelic library nearby, it might be worth paying a visit in order to see what materials are available. In any case, the important thing is to be aware of the vast array of catalogs and other philatelic literature that exist beyond Scott Catalogs, which are not delivered from Mount Sinai, written in stone.

Stamp Investment Tip: People's Republic of China 1961 Ping Pong Souvenir Sheet (Scott #566a)

The Chinese stamp market is white hot right now, and will continue to be so as long as the People's Republic maintains its rapid economic growth and does not experience a major political disruption. There may be over 15 million stamp collectors in China, and in the year 2000, the Chinese government made it an official policy to foster stamp collecting among its youth, by encouraging elementary and high school teachers to form stamp clubs, as a means of increasing interest in China's history. The country currently has almost 50,000 stamp clubs and philatelic organizations, and universities in Fujian and Jiangxi offer elective courses in Philately. All of this represents a complete reversal of Chairman Mao's prohibition against stamp collecting, which he viewed as a form of "reactionary cosmopolitanism." While he was alive, most stamps of the P.R.C. which were not used for postage were bought by European and American collectors. Now, the Chinese are buying them back.


Among the hottest of issues from P.R. China are many of the early souvenir sheets, produced in absurdly low quantities, and stamps of the Cultural Revolution period. The 1961 26th World Table Tennis Championship Souvenir Sheet (Scott #566a) had a printing of only 30,000. It's a great Sports topical, and as with many similarly scarce Chinese souvenir sheets, should continue to skyrocket in value as long as the P.R.C. continues to prosper and doesn't implode. Scott '10 values the unused souvenir sheet at $ 700.-, and the avid competition to acquire this and other better P.R.C. items is reflected in current buy lists.

Stamp Investment Tip: Japanese Occupation of Malaya and States

From time to time, I'll recommend whole categories or related groups of issues for which the same criteria apply. Such is the case for the issues of Japanese-Occupied Malaya and States, including Japanese-Occupied Straits Settlements. These are listed as "N" numbers following the regular issues of these countries.
In December of 1941, the Japanese invaded Malaya, then a British colony, which included its client states: Johore, Kedah, Kelantan, Malacca, Negri Sembilan, Pahang, Penang, Perak, Perlis, Selangor, Sungei Ujong, and Trengganu. As the Japanese occupiers did not wish to use the postage stamps of their enemies but had no stamps of their own on hand, they simply handstamped or overprinted stocks of stamps that the British had left behind.

Many of these stamps are scarce to extremely rare, with quantities ranging from under 10 for the rarest to the low thousands for the majority. Michel's Asia Catalogue lists the stamps and printing quantities (when known) following the regular issues of Japan. I've included many of the scarcest in the StampSelector Scarce Stamp Quantities Issued List (under British Asia).

These issues I consider among the "bluest of blue chips" in the world of philatelic investing. They are undervalued largely because since they are overprints, fakes exist, and therefore it makes sense to purchase only the better items which are worth getting expertized. Many of the better authentic Japanese Occupation issues were signed by the expert Milo Rowell, although forgeries of his signature exist. Expertization is absolutely necessary for all overprinted Japanese Occupation stamps, and the most recognized certificates for these stamps are issued by the British Philatelic Association and the Royal Philatelic Society of London.

Stamps of Japanese-occupied Malaya fall under 3 collecting areas: British Commonwealth, Japan/Area, and Malaya/Malaysia. As these stamps were stored in a tropical climate, many of them have brownish, toned, "tropicalized" gum. When purchasing unused examples, try to select those which are not toned, or heavily discount for those that are.

With a population of over 28 million, Malaysia is an emerging market nation and the 29th largest economy in the world. It has abundant minerals and petroleum, vast forests, as well as a thriving agricultural sector. Nevertheless, over the last four decades, the Malaysian government has committed the nation to a transition from reliance on mining and agriculture to manufacturing, and is moving to conserve its remaining forests and reforest the overcut areas. The government has recently taken steps to make Malaysia more business-friendly, and the number of Malaysians living in poverty has also decreased. As of 2007, average wages were around $34 per day, up from about $9 per day in 1999. Annual GDP growth has averaged almost 6% over the last five years, although the country is taking a hit in 2010 as a result of the global financial crisis.

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