Oct 082013
 

Most investments I blog about are moderate to aggressive in nature. Some readers may feel neglected because they’re looking for a more conservative (safe) way to invest. Well if you’re one of those people then today’s post is for you ๐Ÿ™‚

13-10-liquidstampEarlier this week I mailed a letter. When I went to buy a booklet of stamps however I noticed they didn’t have any indication of value on them. Instead of “63ยข” I only found the letter “P” in the corner of the stamps. The friendly post office lady, Jackie, kindly explained that these are Permanent Stamps ๐Ÿ™‚ They are always accepted at the current domestic postage price. So if we buy a Permanent Stamp today, we can still use it atย any time in the future. No more adding those 1 or 2 cent stamps when the postal rates increase ๐Ÿ˜Ž Hallelujah ย ๏ผผ(~o~)๏ผ

Why have I not heard of this brilliant investment opportunity before? I must have been living under a rock all this time lol ๐Ÿ˜€ These perma-stamps were first introduced to Canada in 2006. Back then regular stamps sold for 51 cents. Today they sell for 63 cents as I mentioned earlier. That means if you bought perma-stamps 7 years ago, they would be worth 24% more today!ย  [63ยข/51ยข]

On average that’s aย 3% returnย per year ๐Ÿ™‚ย  [(63ยข/51ยข)^(1/7yrs)]

YearStamp Price
201363ยข
201261ยข
201159ยข
201057ยข
200954ยข
200852ยข
200752ยข
200651ยข
200147ยข
197917ยข

 

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3% probably doesn’t sound like much ๐Ÿ˜ But it’s a lot better than a 1.4% government savings bond (PDF link to bonds info) or any short term GIC right now. Furthermore the average annual inflation rate over that same 7 year period was only 1.8%.ย In other words, the price of stamps are going up faster than the cost of living which makes them a great hedge against inflation ๐Ÿ™‚ 13-10-inflationcpi

So earlier this week I marched right back into the post office and bought a coil of 100 permanent stamps ๐Ÿ˜€ Whoop whoop! The coil was smaller than I anticipated ๐Ÿ˜ And because I’m so generous I’m going to explain how you can do the same with detailed instructions below ๐Ÿ˜‰

How to Invest in Permanent Stamps:

  • Step 1: Go to the post office
  • Step 2: Buy some permanent stamps.

13-10-stampcoil

Perma-stamps can also be used in conjunction with additional postage to mail larger letters, parcels or to send mail internationally. Since we’re probably going to spend more than $63 on postage for the rest of our lives one coil doesn’t seem like that much anymore ๐Ÿ˜• And don’t worry if we buy too many because we can alwaysย return themย and get a full refund, as long as we have the original receipt.

Ways to Profit from Permanent Stamps After a Postage Increase

  • Method 1: Mail something using your perma-stamps
  • Method 2: Sell them to friends/family/Craigslist buyers
  • Method 3: Hold for several decades and sell them to a stamp collector

Non-denominated stamps aren’t exclusive to Canada. The equivalent US version is called the Forever Stamp, New Zealand has the KiwiStamp, the UK has an entire series of their own, etc.

Stamps can be an essential part of a balanced portfolio ๐Ÿ™‚ A couple coils of perma-stamps together with some diversified mutual funds or ETFs can provide a stable portfolio of income, growth, and capital preservation.ย Great job! Now you know how to invest like a pro, haha! ๐Ÿ˜†

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[Dec 2013 update] Looks like my investment in these stamps are paying off ๐Ÿ˜€

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18 Comments on "Permanent Stamp of Approval For Conservative Investors"

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hungry hungry artist (@blerghhh)
Guest

But I haven’t actually mailed anything in years… Who’s going to buy my stamps?

Not Working
Guest
Not Working

I am done, buying 100K$ in stamps NOW.

Simon @ Modest Money
Guest

Balanced portfolio…hahahaha. I wonder what asset class is this, precious collectibles?
Am with the hungry hungry artist here, the last time I bought stamps was ages ago…all email and IM this days, saving the planet and all ๐Ÿ™‚
Still, the thought of buying the stamps and holding them for decades and selling them off has a certain appeal, might even become a collector myself ๐Ÿ™‚

Phil
Guest

That’s hilarious! We bought 4 books of 30, back in 2006 when they came out… so that was a little over 7 years ago now, and we still have 2-1/2 books left… When I read about permanent stamps, I said, well let’s stock-up! Did not realize they are up 23%. Boohyah! I prefer flat books as opposed to rolls so I can attach to the fridge with a magnet- Cheers.

Agent Fang
Guest

Hehe at work, we still use the Raccoons P stamps from 2012. Large companies usualy use Pitney Bowes for mass stamping. Why pay stamp fees to Pitney Bowes when you can stick cute little stamps in the corner! Bought a whole bunch of rolls though they are dwindling down now. 2013 is the white rabbits. I sort the mail so I am usually saving stamps if they are unmark by Canada Post when I get mail.

Agent Fang
Guest

Ohh oppsie the white rabbit must be for something else… Cute Baby woodchucks!

MG
Guest
MG

Hi Liquid,
I used to collect stamps as a hobby and am now looking to divest. When I look on eBay, I see brand new stamps selling at less than face value! So, it seems that I will actually take a major loss on brand new unused stamps. It is highly unlikely that anyone will make money from buying and holding regular stamps.
Cheers,
MG

seapotato
Guest

I mail tons of stuff, so I had bought 2 rolls of 100 last year.

if you have a costco membership, you can get the rolls at a slight discount (about 5-6% less).

Also Rexall and Shoppers Drug Mart both have stamp “sales” where a booklet is 10% off. you are basically buying 9 stamps and getting 1 for free.

Anne @ Unique Gifter
Guest

Well, I’m going to have to rush out and buy even more stamps! hehehe. But seriously, I am going to adopt this for a post!

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