Stamp Investment Tip: Indian Legion 1R + 2R Azad Hind Issue (Michel # VII)

In 1943, the Germans produced a set of stamps for Subhas Chandra Bose's Azad Hind, or Indian National Army (Michel #I-X). These were intended to serve initially as propaganda labels, later to be used as postage after the "liberation" of India from the British by the I.N.A.. The stamps were never transported to India, and stayed in storage in Germany until the end of the war. All of the Azad Hind stamps except the 1R+2R Indians Bearing Azad Hind Flag (Michel #VII) are common, as 1 million of each of the lower values were printed. Three types of the 1R+2R stamp and four proofs are known:

-1R+2R Black, imperforate (1st Printing; Mi. #VIIa- 4,500 produced; Mi. CV= Euros 600.-)

- 1R+2R Black and Orange, imperforate (2nd Printing; Mi. VIIb- 2,000 produced; Mi. Cv = 250 .- Euros .-); a large number of these exist on ungummed paper (Mi. CV= 35.- Euros)

- 1R+2R Black, Orange, and Green, imperforate (3rd Printing; Mi. VII- 7,000 produced; Mi. CV= Euros 250.-)

Proofs noted in Michel:

- 1R+2R Violet (400 produced; Mi. CV= Euros 500.-)

- 1R+2R Carton paper (100 produced; Mi. CV = Euros 500.-)

- 1R+2R On the back of a piece of carton paper, with ad. printed on the front, imperforate (Unknown; Mi. CV= Euros 600.-)

- 1R+2R Proof of Michel VIIb (Black and Orange) on orange colored paper, imperforate (Unknown; Mi. CV= Euros 2,000.-)

Forgeries exist of this issue, so it should be purchased conditional on obtaining expertization.

At this point, many readers might wonder: Why recommend an unissued stamp, not listed by Scott, which is basically just a cinderella?

I feel that the 1R+2R stamp is exceptional, because of its historical significance, its scarcity, and its compelling potential dual market for collectors of both India and Germany. Bose and the I.N.A. are not well known in the West, but his role in the struggle for independence has been recognized by India, which has issued five postage stamps commemorating him and his army. Bose was a prominent figure in the independence movement, and was elected president of the Indian National Congress twice, but had to resign from the post following ideological conflicts with Gandhi. He felt that non-violent resistance would prove ineffectual, and he was willing to assist the Axis war effort, but he never liked the Nazis and once commented that we was willing to "shake hands with the Devil to achieve India's independence." Gandhi is honored as the saint and savior of India's independence movement, but it should be noted that when non-violent political movements succeed, they often do so partly because of the fear that the enraged masses will resort to less humane alternatives.

I view this stamp as an interesting and probably low-risk speculation. In the coming years, the "serious" stamp collecting population of Indians will number in the millions, and I expect that enough of these new collectors will want the Azad Hind Flag stamps to push their values dramatically upward.

Stamp Investment Tip: China - Offices in Tibet (Scott 1-11)

From 1909 to late 1911 China occupied Tibet and the Dalai Lama and his Government fled to India. For approximately two years, five Chinese Post Offices operated in Central Tibet and a Chinese Post Office at Chambo (Eastern Tibet) was open in 1913 and 1914.


Initially, the post office used regular stamps of Imperial China, but in 1911 a set of eleven stamps (surcharged in three languages) was introduced for Tibet (Scott #1-11). The set is very scarce and almost never sold complete. As the purchase of any overprinted stamp entails the risk of buying a fake, I recommend purchase of only those stamps in the set (including the two rare varieties) which are costly enough to justify obtaining expertization. I've listed these, along with printing quantities (when known) and Scott '10 Catalog Values for unused, below:

-1911 3p on 1c Ocher, inverted surcharge (Scott #1a; Very Rare; Scott '10 CV= $ 3,500.-)
-1911 3a on 16c Olive Green, large "S" in "Annas" (Scott #6a; Rare; Scott '10 CV= $1,250.-)
-1911 12a on 50c Yellow Green (Scott #9; 12,000; Scott '10 CV= $ 175.- )
-1911 1r on $1 Red and Pale Rose (Scott #10; 4,800; Scott '10 CV = $ 475.- )
-1911 2r on $2 Red and Yellow (Scott #11; 3,704; Scott '10 CV= $ 900.- )

The dispute between China and Tibet over the matter of Tibet's sovereignty has been ongoing for centuries, and it was following the issuance of these stamps that Tibet regained some of its autonomy and began issuing its own stamps in 1912.

I am confident that the Offices in Tibet stamps will do very well over time, mostly due to continued growth in demand for stamps of China. Interest in Tibet and its stamps may also help to push them higher.

Those readers who are on Facebook are welcome to join the "StampSelectors" group. To find it, simply enter "StampSelectors" in Facebook's search box, and then click on the search symbol ( a magnifying glass) to the right of the box. The group will focus upon philatelic investing, the stamp market, and practical matters regarding buying and selling stamps. It will also offer the opportunity to comment upon this blog, get under the author's skin, and suggest future stamp investment tips.

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 stamp 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.