Philately: New hobby of Smart Indian Investors
Posted on July 20, 2011 by PhilaMirror
Imagine your nearby post office making crores out of stamps. If you find that unbelievable, sample this. The Philately division of the Chennai city region postal department did a business of Rs 1 crore last year.
“Stamps are an esoteric form of investment,” says M S Ramanujan, post master general of the region. It’s not surprising that the evolved Indian investor finds stamp collection not just a hobby, but a way to make money when other asset classes offer volatile returns.
According to Madanchand Darda, a veteran collector of stamps, it is a very stable investment. “The minimum appreciation you will get on a rare stamp is 15-20% every year, going by the standard stamp catalogues,” he says. “There is very little chance of losing money.” A stamp catalogue is a list of postage stamp types with descriptions and prices, updated periodically. The commonly used catalogues in India are Stanley & Gibbons and Phila India. “Beginning 2010, Stanley and Gibbons has been bringing out a catalogue covering India. Earlier, India was included under their Commonwealth catalogue,” says Darda.
N Seshadri, a philatelist from Chennai who has his name in the Limca Book of Records for having a collection of 1.62 lakh commemorative, used stamps of one particular design from different countries, puts the appreciation per annum at 5%. “The stamps are exchanged going by either the catalogue value or the face value. In case of new stamps, the face value method is used while for old stamps, catalogue values are used.”
To sell or buy stamps, you can go through the traditional route of dealers you trust or you can take advantage of some of the auction houses that are coming up—for instance, in Lucknow and Kolkata. Auction houses charge a commission.
The value of stamps vary and some of the expensive ones can cost lakhs. A penny black stamp, which is the world’s first adhesive postage stamp (issued by the UK of Great Britain and Ireland on May 1, 1840), would fetch between Rs 2 lakh and Rs 4 lakh. ”The stamps issued by the British before independence command a great premium,” says Darda. “I know of a collection of 1,000 such stamps whose value is estimated to be in the range of Rs 2-4 crore.”
Stamps depicting Mahatma Gandhi fetch a great value since collectors all over the world vie for it. A 1948 Rs 10 Mahatma Gandhi stamp is worth around Rs 12,000 in the current market, making it one of the most valuable in the post-independence era stamps category. Apart from old and rare stamps and limited edition sets, stamps that have some quirk associated with them such as printing errors command greater values as some sets would have been printed before being recalled. For instance, in 1994 India Post had issued a block of 4 sets of stamps of Indian water birds for Rs 26. It was subsequently withdrawn along with another issue called ‘Begum Akhtar’ for Rs 2 since they had used soluble ink during printing. Today, the water birds collection goes for Rs 3,500 each and a Begum Akhtar’s stamp is valued at Rs 800.
Stamps of countries which no longer exist or have undergone a name change, like Sri Lanka from Ceylon, command a good value. Also, philatelists are moving from country-based collection to thematic collections like birds, celebrities, aeroplanes and railway stations. Of course, stamps have to be in good condition to fetch good values. “Preserving stamps is an expensive activity. Special mounts, imported from Germany, are needed. Good quality albums are costly too,” says Darda. The tropical weather of India with high humidity is not helpful either. ”That is why some prefer collecting coins as it is possible to clean them,” says Seshadri. For long, the image of an Indian philatelist was a middle-aged or a grey-haired individual who had built his collection over the years. However, of late, young collectors are getting drawn into the world of postage. “A lot of IT professionals and others who are drawing huge salaries are now collecting stamps for investment,” says G Balakrishna Das, president, South India Philatelists’ Association. The association that has over 650 members is organizing a three-day stamp exhibition in Chennai from October 7-9. The Chennai city region comprises 2,500 post offices. It has over 2,500 philately holders or members and has released 26 stamp issues based on themes this year. It would be releasing another 12 over the next six months. Darda says he has been introducing almost 500 people to philately every year in Chennai.
Seshadri rates Kolkata as the most important philatelic destination of the country, before Mumbai,New Delhi and Chennai. Kolkata houses a number of valuable stamps from the British era and is also a leader in publishing literature surrounding philately. (Source-The Times of India 17 july 2011)
Tuesday, July 19, 2011
Wednesday, July 6, 2011
Investors Eye Postage Stamps
Investors Eye Postage Stamps
Posted on July 4, 2011 by PhilaMirror
By Wang Jie
The postage stamp market was very hot before the 1997 Asian financial crisis and now it’s heating up again. Experts advise what to watch for. Wang Jie describes the issue.It’s tantalizing to think that among those boxes of dusty old family papers and letters there might be a small fortune – a tiny, long-forgotten postage stamp.The Chinese postage stamp auction market has recently heated up again, but experts warn what’s in the attic probably isn’t worth very much. Unless it’s from the “cultural revolution” period (1966-76) or the Qing Dynasty (1644-1911). Significance, rarity and condition determine value.
Thirteen years ago in 1997, the postage stamp market in China was booming, and several stamp exchange markets emerged. But then the 1997 Asian financial crisis canceled hopes of a new age of profitable stamp collecting.But in the last couple of years, long-forgotten objects such as coins, chops, ancient mirrors and old Moutai spirit have been bringing in money.Rare postage stamps too are selling and collectors hope the enthusiasm lasts.
In 2009, one stamp titled “All the Landscape of the Country is Red,” issued during the “cultural revolution,” was auctioned for HK$3.68 million (US$472,845 today) in Hong Kong.It originally sold for – 0.08 yuan at the time, about 1 US cent. That set a record for “cultural revolution” postage stamps.A year later, another stamp issued during the “cultural revolution” broke the record and sold for HK$6.67 million.Starting in 2010, the postage stamp market has become very, very hot.”Don’t be too optimistic,” says a veteran postage stamp investor, declining to be quoted by name. “From years of experience, I understand the nature of stamp collecting.”One of his friends used to be called “the big brother and winner” in the stamp collecting arena when it boomed in 1997. “But he lost badly. Guess what he’s doing now? Selling lottery tickets.”What accounts for the recent increase in auction prices?”Take a careful look,” says the investor. “It’s only the stamps issued in early periods or the ‘cultural revolution’ that sell for high figures, since rarity always decides the value.”
According to him, the daunting inflation rate has pushed the market up, encouraging ordinary people to invest.”I often blame my parents for not collecting those old things years ago,” says Wu Wei, a 35-year-old professional. “Back then, the prices of everything were reasonable and affordable. But the best time is gone.”Fortunately, he found a set of fabled zodiac golden monkey stamps issued in February 1980. “I’m going to sell if the price keeps rising,” says Wu.
China issued 5 million Monkey stamps to commemorate the Year of the Monkey on the Chinese lunar calendar.They are not that rare but they are familiar to many people and are considered a weather vane in the stamp market.In 1997, a single monkey stamp sold for 1,800 yuan (US$278). In 2010 a single stamp sold for 11,700 yuan.Early this year a whole set of stamps, 80 individual stamps, was auctioned for 1.1 million yuan.That might explain why many Chinese people stand in long queues to purchase special edition zodiac animal stamps during the Chinese lunar new year. Every year, new stamps are issued.
The 1980 monkey stamp, and by extension similar zodiac stamps, are rooted in the minds of many Chinese people as an investment – accessible and affordable.For example, the price of the dragon stamp issued in 2000 has increased 30 times in value; the rabbit stamp from 1999 has increased five times; last year’s tiger stamp has almost tripled in value, according to collectors.”If you look at its original face value, then a 30-fold increase is no big deal. I don’t think much of those stamps, especially those issued after 1990,” says Ji Chongjian, the owner of Shanghai Chongyuan Auction House. “The huge circulation and the boring subject are the reasons. Some stamps have a circulation of 10 or 20 billion, I really don’t see any investment value there.”
Of course, special limited-edition stamps, especially canceled ones, are a different story.Ji suggests ordinary people should not get excited about stamp collecting.”If it’s your hobby, it’s okay,” he says. “But be wary of treating it as an investment.”According to him, there are only two stamp categories with investment potential, those issued during the Qing Dynasty and those issued during the “cultural revolution.”The 100 single stamps issued to mark the ascent to the throne of Pu Yi (1908-1912), China’s last emperor, have been valued at 100,000 yuan each.The rarity of the stamps issued during the “cultural revolution” make them valuable.
The message in all this: The postage stamp market and the flow of capital are not easy to figure out and there’s considerable uncertainty.
(Source: Shanghai Daily)
Posted on July 4, 2011 by PhilaMirror
By Wang Jie
The postage stamp market was very hot before the 1997 Asian financial crisis and now it’s heating up again. Experts advise what to watch for. Wang Jie describes the issue.It’s tantalizing to think that among those boxes of dusty old family papers and letters there might be a small fortune – a tiny, long-forgotten postage stamp.The Chinese postage stamp auction market has recently heated up again, but experts warn what’s in the attic probably isn’t worth very much. Unless it’s from the “cultural revolution” period (1966-76) or the Qing Dynasty (1644-1911). Significance, rarity and condition determine value.
Thirteen years ago in 1997, the postage stamp market in China was booming, and several stamp exchange markets emerged. But then the 1997 Asian financial crisis canceled hopes of a new age of profitable stamp collecting.But in the last couple of years, long-forgotten objects such as coins, chops, ancient mirrors and old Moutai spirit have been bringing in money.Rare postage stamps too are selling and collectors hope the enthusiasm lasts.
In 2009, one stamp titled “All the Landscape of the Country is Red,” issued during the “cultural revolution,” was auctioned for HK$3.68 million (US$472,845 today) in Hong Kong.It originally sold for – 0.08 yuan at the time, about 1 US cent. That set a record for “cultural revolution” postage stamps.A year later, another stamp issued during the “cultural revolution” broke the record and sold for HK$6.67 million.Starting in 2010, the postage stamp market has become very, very hot.”Don’t be too optimistic,” says a veteran postage stamp investor, declining to be quoted by name. “From years of experience, I understand the nature of stamp collecting.”One of his friends used to be called “the big brother and winner” in the stamp collecting arena when it boomed in 1997. “But he lost badly. Guess what he’s doing now? Selling lottery tickets.”What accounts for the recent increase in auction prices?”Take a careful look,” says the investor. “It’s only the stamps issued in early periods or the ‘cultural revolution’ that sell for high figures, since rarity always decides the value.”
According to him, the daunting inflation rate has pushed the market up, encouraging ordinary people to invest.”I often blame my parents for not collecting those old things years ago,” says Wu Wei, a 35-year-old professional. “Back then, the prices of everything were reasonable and affordable. But the best time is gone.”Fortunately, he found a set of fabled zodiac golden monkey stamps issued in February 1980. “I’m going to sell if the price keeps rising,” says Wu.
China issued 5 million Monkey stamps to commemorate the Year of the Monkey on the Chinese lunar calendar.They are not that rare but they are familiar to many people and are considered a weather vane in the stamp market.In 1997, a single monkey stamp sold for 1,800 yuan (US$278). In 2010 a single stamp sold for 11,700 yuan.Early this year a whole set of stamps, 80 individual stamps, was auctioned for 1.1 million yuan.That might explain why many Chinese people stand in long queues to purchase special edition zodiac animal stamps during the Chinese lunar new year. Every year, new stamps are issued.
The 1980 monkey stamp, and by extension similar zodiac stamps, are rooted in the minds of many Chinese people as an investment – accessible and affordable.For example, the price of the dragon stamp issued in 2000 has increased 30 times in value; the rabbit stamp from 1999 has increased five times; last year’s tiger stamp has almost tripled in value, according to collectors.”If you look at its original face value, then a 30-fold increase is no big deal. I don’t think much of those stamps, especially those issued after 1990,” says Ji Chongjian, the owner of Shanghai Chongyuan Auction House. “The huge circulation and the boring subject are the reasons. Some stamps have a circulation of 10 or 20 billion, I really don’t see any investment value there.”
Of course, special limited-edition stamps, especially canceled ones, are a different story.Ji suggests ordinary people should not get excited about stamp collecting.”If it’s your hobby, it’s okay,” he says. “But be wary of treating it as an investment.”According to him, there are only two stamp categories with investment potential, those issued during the Qing Dynasty and those issued during the “cultural revolution.”The 100 single stamps issued to mark the ascent to the throne of Pu Yi (1908-1912), China’s last emperor, have been valued at 100,000 yuan each.The rarity of the stamps issued during the “cultural revolution” make them valuable.
The message in all this: The postage stamp market and the flow of capital are not easy to figure out and there’s considerable uncertainty.
(Source: Shanghai Daily)
Monday, July 4, 2011
Investors Eye Postage Stamps
Investors Eye Postage Stamps
Posted on July 4, 2011 by PhilaMirror
By Wang Jie
The postage stamp market was very hot before the 1997 Asian financial crisis and now it’s heating up again. Experts advise what to watch for. Wang Jie describes the issue.It’s tantalizing to think that among those boxes of dusty old family papers and letters there might be a small fortune – a tiny, long-forgotten postage stamp.The Chinese postage stamp auction market has recently heated up again, but experts warn what’s in the attic probably isn’t worth very much. Unless it’s from the “cultural revolution” period (1966-76) or the Qing Dynasty (1644-1911). Significance, rarity and condition determine value.
Thirteen years ago in 1997, the postage stamp market in China was booming, and several stamp exchange markets emerged. But then the 1997 Asian financial crisis canceled hopes of a new age of profitable stamp collecting.But in the last couple of years, long-forgotten objects such as coins, chops, ancient mirrors and old Moutai spirit have been bringing in money.Rare postage stamps too are selling and collectors hope the enthusiasm lasts.
In 2009, one stamp titled “All the Landscape of the Country is Red,” issued during the “cultural revolution,” was auctioned for HK$3.68 million (US$472,845 today) in Hong Kong.It originally sold for – 0.08 yuan at the time, about 1 US cent. That set a record for “cultural revolution” postage stamps.A year later, another stamp issued during the “cultural revolution” broke the record and sold for HK$6.67 million.Starting in 2010, the postage stamp market has become very, very hot.”Don’t be too optimistic,” says a veteran postage stamp investor, declining to be quoted by name. “From years of experience, I understand the nature of stamp collecting.”One of his friends used to be called “the big brother and winner” in the stamp collecting arena when it boomed in 1997. “But he lost badly. Guess what he’s doing now? Selling lottery tickets.”What accounts for the recent increase in auction prices?”Take a careful look,” says the investor. “It’s only the stamps issued in early periods or the ‘cultural revolution’ that sell for high figures, since rarity always decides the value.”
According to him, the daunting inflation rate has pushed the market up, encouraging ordinary people to invest.”I often blame my parents for not collecting those old things years ago,” says Wu Wei, a 35-year-old professional. “Back then, the prices of everything were reasonable and affordable. But the best time is gone.”Fortunately, he found a set of fabled zodiac golden monkey stamps issued in February 1980. “I’m going to sell if the price keeps rising,” says Wu.
China issued 5 million Monkey stamps to commemorate the Year of the Monkey on the Chinese lunar calendar.They are not that rare but they are familiar to many people and are considered a weather vane in the stamp market.In 1997, a single monkey stamp sold for 1,800 yuan (US$278). In 2010 a single stamp sold for 11,700 yuan.Early this year a whole set of stamps, 80 individual stamps, was auctioned for 1.1 million yuan.That might explain why many Chinese people stand in long queues to purchase special edition zodiac animal stamps during the Chinese lunar new year. Every year, new stamps are issued.
The 1980 monkey stamp, and by extension similar zodiac stamps, are rooted in the minds of many Chinese people as an investment – accessible and affordable.For example, the price of the dragon stamp issued in 2000 has increased 30 times in value; the rabbit stamp from 1999 has increased five times; last year’s tiger stamp has almost tripled in value, according to collectors.”If you look at its original face value, then a 30-fold increase is no big deal. I don’t think much of those stamps, especially those issued after 1990,” says Ji Chongjian, the owner of Shanghai Chongyuan Auction House. “The huge circulation and the boring subject are the reasons. Some stamps have a circulation of 10 or 20 billion, I really don’t see any investment value there.”
Of course, special limited-edition stamps, especially canceled ones, are a different story.Ji suggests ordinary people should not get excited about stamp collecting.”If it’s your hobby, it’s okay,” he says. “But be wary of treating it as an investment.”According to him, there are only two stamp categories with investment potential, those issued during the Qing Dynasty and those issued during the “cultural revolution.”The 100 single stamps issued to mark the ascent to the throne of Pu Yi (1908-1912), China’s last emperor, have been valued at 100,000 yuan each.The rarity of the stamps issued during the “cultural revolution” make them valuable.
The message in all this: The postage stamp market and the flow of capital are not easy to figure out and there’s considerable uncertainty.
(Source: Shanghai Daily)
Posted on July 4, 2011 by PhilaMirror
By Wang Jie
The postage stamp market was very hot before the 1997 Asian financial crisis and now it’s heating up again. Experts advise what to watch for. Wang Jie describes the issue.It’s tantalizing to think that among those boxes of dusty old family papers and letters there might be a small fortune – a tiny, long-forgotten postage stamp.The Chinese postage stamp auction market has recently heated up again, but experts warn what’s in the attic probably isn’t worth very much. Unless it’s from the “cultural revolution” period (1966-76) or the Qing Dynasty (1644-1911). Significance, rarity and condition determine value.
Thirteen years ago in 1997, the postage stamp market in China was booming, and several stamp exchange markets emerged. But then the 1997 Asian financial crisis canceled hopes of a new age of profitable stamp collecting.But in the last couple of years, long-forgotten objects such as coins, chops, ancient mirrors and old Moutai spirit have been bringing in money.Rare postage stamps too are selling and collectors hope the enthusiasm lasts.
In 2009, one stamp titled “All the Landscape of the Country is Red,” issued during the “cultural revolution,” was auctioned for HK$3.68 million (US$472,845 today) in Hong Kong.It originally sold for – 0.08 yuan at the time, about 1 US cent. That set a record for “cultural revolution” postage stamps.A year later, another stamp issued during the “cultural revolution” broke the record and sold for HK$6.67 million.Starting in 2010, the postage stamp market has become very, very hot.”Don’t be too optimistic,” says a veteran postage stamp investor, declining to be quoted by name. “From years of experience, I understand the nature of stamp collecting.”One of his friends used to be called “the big brother and winner” in the stamp collecting arena when it boomed in 1997. “But he lost badly. Guess what he’s doing now? Selling lottery tickets.”What accounts for the recent increase in auction prices?”Take a careful look,” says the investor. “It’s only the stamps issued in early periods or the ‘cultural revolution’ that sell for high figures, since rarity always decides the value.”
According to him, the daunting inflation rate has pushed the market up, encouraging ordinary people to invest.”I often blame my parents for not collecting those old things years ago,” says Wu Wei, a 35-year-old professional. “Back then, the prices of everything were reasonable and affordable. But the best time is gone.”Fortunately, he found a set of fabled zodiac golden monkey stamps issued in February 1980. “I’m going to sell if the price keeps rising,” says Wu.
China issued 5 million Monkey stamps to commemorate the Year of the Monkey on the Chinese lunar calendar.They are not that rare but they are familiar to many people and are considered a weather vane in the stamp market.In 1997, a single monkey stamp sold for 1,800 yuan (US$278). In 2010 a single stamp sold for 11,700 yuan.Early this year a whole set of stamps, 80 individual stamps, was auctioned for 1.1 million yuan.That might explain why many Chinese people stand in long queues to purchase special edition zodiac animal stamps during the Chinese lunar new year. Every year, new stamps are issued.
The 1980 monkey stamp, and by extension similar zodiac stamps, are rooted in the minds of many Chinese people as an investment – accessible and affordable.For example, the price of the dragon stamp issued in 2000 has increased 30 times in value; the rabbit stamp from 1999 has increased five times; last year’s tiger stamp has almost tripled in value, according to collectors.”If you look at its original face value, then a 30-fold increase is no big deal. I don’t think much of those stamps, especially those issued after 1990,” says Ji Chongjian, the owner of Shanghai Chongyuan Auction House. “The huge circulation and the boring subject are the reasons. Some stamps have a circulation of 10 or 20 billion, I really don’t see any investment value there.”
Of course, special limited-edition stamps, especially canceled ones, are a different story.Ji suggests ordinary people should not get excited about stamp collecting.”If it’s your hobby, it’s okay,” he says. “But be wary of treating it as an investment.”According to him, there are only two stamp categories with investment potential, those issued during the Qing Dynasty and those issued during the “cultural revolution.”The 100 single stamps issued to mark the ascent to the throne of Pu Yi (1908-1912), China’s last emperor, have been valued at 100,000 yuan each.The rarity of the stamps issued during the “cultural revolution” make them valuable.
The message in all this: The postage stamp market and the flow of capital are not easy to figure out and there’s considerable uncertainty.
(Source: Shanghai Daily)
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