As many of you have heard, the United States Post Office is considering a 2 cent stamp increase beginning in January 2011.
I’ve read all the excitement, that we should take advantage of the 44 cent Forever Stamps while we still can, but when it comes down to it, are Forever Stamps great investments? Probably not.
If you could buy 100,000 stamps on December 31st, 2010 sell them all at market price on January 2nd, 2011, you would make a whopping…$2,000. It would be a nice 4.5% investment on your return. That’s pretty amazing. If you could sell them all by June of 2011, you’d still be doing great.
So why aren’t they a great investment? What issues do I see?
First of all, anyone have an extra $44,000 they want to spend on stamps? If you do, let me know. I have a few other investments for you.
Also, when you are ready to sell, do you think anyone would want to buy 100,000 (or even 1,000) stamps the first day the price change goes into effect. So it’s a long term investment. That 4.5% return on your investment will start to drop fast.
How much will they cost to move? Nobody will buy all of them for 46 cents each. Either you’d give them a small discount and lose out on a lot of that “massive” $2,000 profit, or you’ll have to deal with many transactions, costing you both money and time.
If you’ve got $44,000 to invest, you should find something with a higher upside and much less involvement. The goal is to make things simpler! So instead of investing a bunch of money in Forever stamps, spend enough to last 6 months or a year. Instead of trying to strike it rich, focus on saving the time that you usually spend just going to the post office.
Readers, will you be running to the post office to stock up on Forever Stamps??