Coming May, 2007: a first-class stamp will likely cost 42 cents. But you'll be able to purchase "forever stamps" that will increase in value when the price goes up.
If you could have bought $100 worth of "forever stamps" in 1974, they would be worth $420 when the rate changes next year. You'd have to invest at 4.44% (do the math) to match that rate--not always easy. (And often better than bond rates.)
With stamp values increasing at a consistent rate over time, maybe "forever stamps" will be a good, safe investment--as long as you can figure out how to get past hoarding limits.
Warning: Free investment advice is worthless. Just like stamps in twenty years, when cat flu has wiped out the human race.
That is if you can sell your stamps
ReplyDeleteat the face value they represent. For example here you can buy stamps LESS face value:
http://www.postlynx.com
Rgds.
Kalle