Unwise to Collect for Financial Return

Question: Please explain to me how to invest in stamps to maximize profits. I have about $3,000 to spend. Should I concentrate on U.S. items or include foreign issues in my stamp portfolio? And when can I expect to see a decent return on my initial investment?--R.H.

Answer: You will get a guaranteed 5 1/2% return on a savings-and-loan passbook account and won’t even have to worry about it.

Collectibles in general, and stamps in particular, are dangerous to invest in because there are so many factors influencing future prices. Supply, demand, changing collecting fads, world events, the state of the nation’s economy (especially inflation) and the marketability (how easy it can be sold) of an investment item are some of the things that determine the price.

For example, the famous U.S. air mail Graf Zeppelin set of 1930 (catalogue numbers C13-C15) currently sells for between $1,500 and $2,200 a set in mint condition. In 1972, I passed up buying a set for $550 because I thought the price was excessive. In the spring of 1980, the Zeppelins were selling for $6,000 or $7,000 a set for superb condition at heavily promoted retail and auction sales.

Clearly, if you bought these stamps in 1972 and sold them in 1980 you would have made a handsome profit. Just the opposite if you got them in 1980 and sold them today. Stamps don’t always go up in value. The future is unknown. Collect for fun and hope for profits, and you’ll sleep better.

Q: In the 1920s, when I was a little girl living in Chicago, I seem to recall that letters mailed locally for delivery within Chicago required 2 cents postage. But 3 cents was needed for such mail delivered anywhere outside of Chicago. Was there actually such a difference or is my recollection faulty, as others have insisted?--E.M.

A: From July 1, 1919, until July 6, 1932, the first-class domestic postage rate for a letter up to one ounce delivered anywhere in the United States was 2 cents. Postal cards from the post office or picture post cards with the message on the reverse side were 1 cent each.

Q: While going through my 80-year-old father’s things recently, I discovered an old stamp album. The title of it is “The International Postage Stamp Album,” illustrated with engravings, 1901 edition, the Scott Stamp & Coin Co., New York.

This album has more than 100 stamps from various countries. These stamps were issued prior to 1900, and some are from countries no longer existing. Could these be worth anything, and where could we get it appraised?--P.D.F.

A: Old doesn’t always mean valuable in stamp deals. It is amazing how many 19th-Century foreign stamps can be purchased today for a few cents each. Supply and demand have a lot to do with it.

What I’m leading to is that your stamps may not be worth much, but see a local dealer for a professional appraisal. Start with the Yellow Pages for a nearby dealer’s address listed under “Stamps for Collectors.”

Q: Do people collect U.S. Postal Service postal cards? I have the following quantity and denominations of these cards: 17 Jefferson 1-cent, 6 Franklin 2-cents, 1 Liberty 3-cents, 17 of the 1973 commemorative 6-cent cards and 6 of the John Hanson 6-cents.--W.H.H.

A: All these are worth face value. Postal cards are avidly collected by postal-stationery specialists, but your cards aren’t old enough to be worth a premium.