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 🙂
Earlier 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 “63¢” 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 🙂 They are always accepted at the current domestic postage price. So if we buy a Permanent Stamp today, we can still use it at any time in the future. No more adding those 1 or 2 cent stamps when the postal rates increase 😎 Hallelujah ＼(~o~)／
Why have I not heard of this brilliant investment opportunity before? I must have been living under a rock all this time lol 😀 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! [63¢/51¢]
On average that’s a 3% return per year 🙂 [(63¢/51¢)^(1/7yrs)]
3% probably doesn’t sound like much 😐 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%. In other words, the price of stamps are going up faster than the cost of living which makes them a great hedge against inflation 🙂
So earlier this week I marched right back into the post office and bought a coil of 100 permanent stamps 😀 Whoop whoop! The coil was smaller than I anticipated 😐 And because I’m so generous I’m going to explain how you can do the same with detailed instructions below 😉
How to Invest in Permanent Stamps:
- Step 1: Go to the post office
- Step 2: Buy some permanent stamps.
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 😕 And don’t worry if we buy too many because we can always return them 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 🙂 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. Great job! Now you know how to invest like a pro, haha! 😆
[Dec 2013 update] Looks like my investment in these stamps are paying off 😀