Stamp Investment Tip: South Africa 1936 JIPEX Souvenir Sheets (Scott #72-73)

In 1936 South Africa issued a pair of souvenir sheets for the Johannesburg International Philatelic Exhibition (Scott #72-73). Only 5,000 sets were issued, and Scott '10 prices the set at $ 11.75 ($ 25.00 for NH).

I feel that the set is undervalued, given its appeal to collectors of British Commonwealth and South Africa.

South Africa is a country of vast potential but many problems. As a a middle-income country of about 49 million, it has an abundant supply of resources, well-developed financial, legal, communications, energy, and transport sectors, a stock exchange that ranks among the top twenty in the world, and a modern infrastructure supporting an efficient distribution of goods to major urban centres throughout the entire region. South Africa is ranked 25th in the world in terms of GDP. Annual GDP growth has averaged about 4% over the past 5 years.

However, the country has a two-tiered economy- one rivaling other developed countries and the other with only the most basic infrastructure, similar to a Third World nation. Unemployment is extremely high and income inequality is approximately equal to Brazil. Also, there is an 18% HIV infection rate among South African adults, among the highest in the world.

Nevertheless, I believe that the sheets represent a low-risk speculation, and given their current inexpensiveness and low printing quantity, the downside is virtually non-existent.

Stamp Investment Tips: Mulling Over Moldova

There's an old saying in real estate investing which I believe applies to the many of the stamps of Moldova: "Buy the worst house in the best neighborhood."

Flipping through the Moldova section of a Michel Osteuropa 2009/2010 Catalog (Band 7), I've noted that the country was established in 1991, and that the sets and souvenir sheets it has produced since then have been issued in low to moderate quantities- mostly 100,000 or fewer, with many under 30,000. Furthermore, many of Moldova's issues are attractive topicals, with international appeal.

On the other hand, Moldova is the poorest country in Europe, and about a quarter of its population of 3 1/2 million live on less than $2 per day. The country has no mineral deposits but enjoys a favorable climate and good farmland, and depends heavily on agriculture (mainly fruits, vegetables, wine, and tobacco). Currently, Moldova imports all of its supplies of oil, coal, and natural gas, mostly from Russia, and consequently is extremely vulnerable to increases in energy prices. Annual GDP growth has been strong recently, averaging about 5.5% over the last five years.

My view is that the Moldovan economy will probably gradually improve, and that even if it doesn't, it doesn't have much further to fall. Development of domestic alternative forms of energy could improve its situation considerably. While I do not believe that a significant stamp collecting base will develop within the country in the near future, its scarcest popular topical sets and souvenir sheets should be considered for speculation. I've listed a few of them, along with quantities issued, and Scott '10 Catalog Values, below:

1995 Mushrooms (Scott #153-57; 22,500; Scott '10 CV = $ 16.65)

1995 Relics (Scott #161-63; 25,500; Scott '10 CV = $ 9.40)

1995 Films (Scott #187-89; 20,000; Scott '10 CV = $ 9.15 )

1996 Mushrooms (Scott #190-94; 20,000; Scott '10 CV = $ 9.00)

1996 Summer Olympics s/s (Scott #199a; 10,000; Scott '10 CV = $ 3.50)

1996 Monasteries (Scott #200-04; 17,000; Scott '10 CV = $ 10.40)

1997 Composers (Scott #232-35; 19,500; Scott '10 CV = $ 7.00)

1997 UNESCO World Heritage Sites (Scott #250-55; 18,500; Scott '10 CV = $ 6.35)

Stamp Investment Tips: Canada 1952 $1 Fisheries Official (Scott #O27)

In 1951, Canada issued one of its most attractive stamps, honoring its Fishing Industry (Scott #302). In 1952, 40,000 of the Fisheries stamps were overprinted "G" for government use (Scott #O27). Scott '10 prices the unused Official stamp at $ 100.00.

In my opinion, the $1 Fisheries Official is undervalued and has been ignored because it is a back-of-book issue. Interest in stamp collecting in Canada is much stronger than it is in the U.S., and I favor better B.N.A. stamps for investment, especially if they have modest printings and have been unjustifiably overlooked thusfar.

With a population of about 31 million, Canada is one of the world's wealthiest countries, and is one of the world's top ten trading nations. GDP growth has averaged 2.2% over the past five years, which takes into account the 0% growth of 2009 due to the global financial crisis. Canada's population is expected to age significantly over the next decades, thereby bolstering its population of serious collectors. Canadians over 60 are projected to increase from 16.7% of the population in 2000 to 27.9% in 2025, and 30.5% in 2050. Consequently, in the future, many more Canadians will be spending time working on their stamp collections on cold winter days.

Stamp Investment Tip: Lagos 1904 Edward VII Issue (Scott #40-49)

In 1904, Lagos, a British Protectorate which later became part of Nigeria, issued a set of definitives picturing Edward VII (Scott #40-49). Only 720 sets were issued, based on the printing quantity of the 10sh high value (Scott #49), and Scott '10 prices the unused set at $ 694.10 . The 2sh6p and 5sh values (Scott #47 and 48) are also scarce, with printing quantities of 1,440 and 1,680 respectively.


Stamps of Lagos have the potential for a strong dual market among collectors of British Commonwealth and Nigeria.

A nation of over 154 million people, Nigeria is an an emerging market country, and is rapidly approaching middle income status, with its abundant supply of resources, well-developed financial, legal, communications, transport sectors and stock exchange (the Nigerian Stock Exchange), which is the second largest in Africa. It is the eighth largest exporter of petroleum in the world. GDP growth has average almost 6% over the last 5 years. However, the country also has major problems, including corruption, human rights abuses, grossly unequal distribution of income, and internal religious and tribal conflicts.

Based purely on the growth of demand from British Commonwealth collectors, the Lagos 1904 Edward VII set and its high values represent a conservative investment with little downside risk. Should Nigeria develop even a modest base of stamp collectors, the set will soar.

General Commentary: Getting in on the Ground Floor

There is a saying on Wall Street that a good time to buy stocks is when there is "blood in the streets." The old adage also applies to philatelic investing, sometimes quite literally, when it comes to stamps of "basket case" countries which have "bottomed out" due to war or economic stagnation, and for which the situation can't get much worse. Of course, there is the possibility that such a country's situation may not improve much in the long-term, but remain bad indefinitely. Fortunately, there are ways of investing in stamps of stricken nations which minimize the consequences of this risk.

There have been many notable examples of countries which have risen from misery, and for which the stamps have followed suit. The three Axis powers of World War II - Germany, Japan, and Italy- were impoverished for years following their defeat, and stamps of those countries purchased during the lean years of recovery and reconstruction have risen considerably. Many of the countries of the Far East and South Asia were considered Third or Fourth World nations only a few decades ago, yet based on their recent growth, the time may come when Chinese or Indian parents tell their children to finish the food on their plates and pity the poor, starving Americans. Latin America, once a region dominated by corrupt, oligarchical dictatorships and American multi-nationals, has experienced a mega-trend of democratization and economic reforms which has created greater prosperity and a nascent middle-class where none existed before.

Of course, it is always possible that a stricken country will remain so for decades. When investing in stamps of such a country, the risk of loss may be minimized by investing in stamps which are sought by collectors outside of the country itself - extremely scarce to rare key items which are of interest to specialists, and scarce popular topical issues which appeal to collectors worldwide. Demand for such stamps will not be significantly affected should the country remain in the doghouse or even decline further, but will increase rapidly if it breaks out.

Stamp Investment Tips: Great Britain 1929 1 Pound Postal Union Congress (Scott #209)

In 1929, Great Britain issued the 1 Pound Postal Union Congress stamp picturing St. George Slaying the Dragon (Scott #209). Many collectors believe this to be Great Britain's most beautiful stamp. 61,000 were issued, and Scott '10 prices it unused at $ 850.00 ($1,400 for NH) . Many were probably used on packages and then discarded.

This is one of two or three stamps that could serve as a representative investment for all of the stamps of Great Britain. I view it as a blue-chip which should do well over the long haul, but probably does not have the same potential for explosive value increases as the more speculative items of emerging market nations.

Stamps of Great Britain are popular worldwide, especially in Commonwealth nations and in the U.S.. With about 61 million people and an advanced, diverse economy, Great Britain had annual GDP growth of around 2-3% until the the nation participated in the train-wreck of the global financial crisis, from which it is recovering. As with much of Western Europe, Great Britain's population is projected to age significantly over the next decades. The proportion of British citizens over 60 is projected to rise from 20.6% in 2000 to 29.4% in 2025, and 34% in 2050, according to a 2007 UN report. This will add to the ranks of stamp collectors seeking better material from Great Britain and its former colonies.

Stamp Investment Tips: Belgian Congo 1910-15 Scenes (Scott #45-59)

From 1910-1915, the Belgian Congo issued a set picturing various scenes of the Colony (Scott #45-59). 85,000 sets were issued, and Scott '10 prices it unused at $ . Additionally, some of the values of the set were surcharged in 1918, creating the Colony's first semi-postal set (Scott #B1-9). Only 7,500 of the semi-postal set were issued, and Scott '10 prices it unused at $ 181.59 ($500 for NH) .

I recommend purchase of both of these sets, because they have a potential dual market among collectors of Belgian Colonies and the Congo.

With about 66 million people, the Democratic Republic of the Congo (formerly Zaire), is endowed with a vast potential wealth of resources, but has been plagued by wars, corruption, mismanagement, and poverty. Annual GDP growth has been between 6% and 7% over the last 3 years, but little of the new wealth has been distributed amongst the majority of the population, which is extremely poor.

I favor both sets based upon the probable growth in demand for stamps of Belgium and Colonies. Given the economic situation in the D.R.C., I do not feel that a significant stamp market will develop there for at least a decade. If and when the situation in that country substantially improves, however, the increases in value for its better stamps could be quite dramatic.