Finished Reading Stamp Investing By Datz

Hi All,

I finished reading the book Stamp Investing, by Stephen R. Datz, it came out in 1999 but was still a useful read for me. Now I know a little bit about the basics of investing in stamps: especially what not to do. The author has expertise in economics as well as being a stamp dealer, which informs his writing. I enjoyed the book, so I thought I'd post about it here.

Now I am looking for my next stamp investing book to read, I'd like to get an up to date one.

Stamp Investing was my first investing book about stamps, and now I have more interest in the topic.

I don't plan to make thousands and thousands of dollars on my collection, but I want to see whether I can make it worth something significant during my lifetime.

I very much enjoy stamps just as a quiet hobby, not because I think I can make money. But the idea of adding value to my collection intrigues me.

I hope you all have a great day!
JP

Forget the book. 1999's stamp market is ancient history. Many attempts have been made at running stamp investing indices and funds after 1999. Hardly anyone remembers them. They failed miserably.

If you are looking for a way to, wisely, invest in stamps, stop spending money you can put into stamps into books about investing in stamps.

Besides this forum, are there other good places to learn about stamp collecting to increase the value of my collection?

The book doesn't try to predict the market nor talk about stamp collecting indexes or funds, except to say that they failed even by the time the book was written.

The general rule is that by the time you sell your collection, it will generate less than you put into it. The only material that tends to keep or increase its value is the high quality classical stuff. And then, only part of it. And in 20 years, interests may have shifted and today's good material will have lost its value.

Many countries that were popular when that book was published are difficult to move now.

Some fool in London came up with a scheme to sell a unique stamp in parts. I doubt they sold all participations. If a next buyer interprets it as a lack of demand for it, that next buyer will offer less than it cost. Then, even a unique item may lose its value.

Just enjoy the hobby.

When it comes to stamps NSK is very wise. And has years of market experience. Take his advice......
Regards mark

Thank you, NSK, I appreciate the wisdom.

I do enjoy the hobby, and that is the strongest reason I collect.

I will probably not buy another book on stamp investing, now that I have listened to your input.

At this point, I plan to focus on deciding which stamps to collect and which to sell. Then I can complete parts of my collection that I decide are important to me.

Again, I appreciate your helping me decide how to handle my collection.

I went to a dealer and asked which stamps were worth anything and he said that anything after 1925 was worth only face value. This agrees with what you are saying here, NSK.

Very cynical and generalized response from the dealer and patently untrue.

Shermae, I'll keep that in mind. He seems grumpy and cynical, so that fits his description.

There is a way to break even or make money collecting. It requires buying like a dealer- secure collections at 15 or 20% of catalog and build the collection from this material. As you acquire duplicates and material that doesn't fit your collection, it should be either saved for future selling or sold off as you go.

This approach takes a lot of focus and being plugged into auctions but it ensures you are buying low, the way a dealer does. Later, if you can sell items/sets one at a time at 25-30% of catalog, you can make money on these sold items. The rest can be lotted up into country collections.

Buying at 30-50% of catalog just won't allow for "investment" opportunities.

That is a very American answer. Many European stamps are not even worth that as they have been invalidated when new currency was introduced. Also, extremely expensive stamps exist that were issued after 1925.

I am posting in a thread on airmail overprints used in the Canary Isles during the Spanish civil war. There are a couple of expensive stamps. Are they worth much? I do not know for sure. If I find a good book that can tell me more about them, I might spend even more money on that collection that I shall never recuperate. It is highly addictive. It, very much, is an unknown subject. To someone who does not know where those islands are, they may just be a distraction from completing a mainstream Spanish collection. My problem is, I have memories of the Canaries where I spent many summer holidays. Later, I flew there a couple of times a year to visit a family member. They are worth a lot to me.

At the other end of the spectrum are the Spanish "Monumentos y Paisajes" stamps. They are worth very little. I, probably, saw more than half of the depicted monuments or landscapes. The sentimental value to me is much higher than the market value. I have no intention to sell them. I shall be throwing money after them to mount them on pages and put pages in albums. Then I spend money on catalogues, just because I am curious. Money lost, enjoyment gained.

Some buy large lots and break them down into parts to sell separately after they have removed material for their collections.
Some have been able to build impressive collections for less than they would have if they bought everything individually.

Reading this topic made me get out my copy of Datz's Stamp Investing and take another look at it. There are many chapters that are still relevant today...Basic Economics, Condition & Grade, Buying, Selling, Speculation, Statistical Tools, Conservation, Caveats. There's some good advice in the book, some of which can be useful to a collector who wants to build a high-quality collection. There's also information that is dated and not so useful.

While I agree that we should just enjoy the hobby, I also believe that careful, thoughtful acquisition of the stamps that go into that collection should be a priority. Personally, I've never been one to just fill an empty space with a low-quality stamp. I also don't believe that one should "stop spending money you can put into stamps into books about investing in stamps" as knowledge about all aspects of philately can be helpful.

Just my 2¢.

Generally speaking... the dealer was correct... 99.99% of collectors of USA issues would not spot a 544, or a rarity that has been passed over by a couple of hundred other collectors prior to them, me included.If you are looking, check out the grubby, used, not attractive issues that others have also passed over. (I only only collect USA, prior to 1950, only posting to what I collect). Exceptions exist of course, but they are the exception. As an investor/investment stamps are like Hummel's, close but no cigar..so to speak. Enjoy the ride, the hobby and the ride end soon enough.
Regards mark