In its day, the Inverted Jenny might have been nothing more than just a mere curiousity that people without a slight interest in philately would have snickered over. It's just a 24-cent stamp, released in 1918, with an upside down image of the Curtiss JN-4 biplane (or the "Jenny," as it is fondly called) printed on it by mistake.
Nearly a hundred years later, the Inverted Jenny is one of the most coveted and precious stamps in the philatelic world. A particularly well-preserved specimen worth $1,175,000 was sold at a Siegel Auction just this year. With a fifteen percent buyer's premium (as per custom at auctions of this caliber), the total price came around to $1,350,000.
What's even more amazing is the fact that the Inverted Jenny is not the only stamp that is valued at sky high prices by collectors. You have the one-of-a-kind 1856 British Guiana ($9.5 million), the Mauritius "Post Office" ($4 million), the Treskilling Yellow ($2.3 million), and the Canada 1857 12-pence Black ($5 million).
With the high prices that stamps and other collectibles like coins command in the open market, people are now viewing them as viable investment alternatives over the usual real estate, foreign exchange, and stocks that the public are more used to.
Are Coins and Stamps Worth Investing For?
Recent history has shown that the mainstream financial market is very mercurial in nature. It is easily influenced by deliberate outside forces, and can be subjected to the whims of those who have the money and power to control it.
The most glaring example of this would be the 2008 recession. Global financial markets took a direct hit, Interest rates were reduced to historic lows, and real estate prices were at an all-time high.
But the market for tangible collectibles like stamps and coins seems to be largely unaffected by these kinds of financial troubles. Even the 2008 recession didn't leave much of an impact on the demand for coins and stamps as a whole.
The reasons for this are many -
*There Will Always be Coin and Stamp Collectors
Coin collecting and philately/stamp-collecting are old, well-entrenched hobbies. Rare stamps and coins are always valued highly by collectors, and their prices do not usually fluctuate- which is something that you can't really say for stocks and real estate).
*The Value of Rare Coins and Stamps Increase Over Time
Real estate prices can depreciate. Not so with stamps and coins. It pays to hold on to your collection for a while. Guy Croton of the Spinks London auction company once told an anecdote of an elderly man taking his childhood stamp collection to be assessed. While the whole lot was priced around $1,000 initially, two rare Chinese Red Revenue stamps were then found within the collection. These two bumped the price of the old man's boyhood stamp book to nearly $10 million.
*Coins and Stamps Are Tangible
Unlike stocks, you can physically hold coins and stamps. While the tangibility of the investment doesn't really much, there's still the fact that seeing an object that you own right in front of your eyes gives you a more concrete sense of ownership. It's like your owning a part of human history that no other person can take part in. Your coin and stamp collection is unique. You are their sole owner.
*The Collectors' Market Are Starting To Thrive
While you usually don't encounter serious stamp and coin collectors on a normal day (as compared to real estate brokers and stock traders), the fact remains that their kind are increasing on a daily basis.
While usually viewed as "old people hobbies," more and more people are taking up stamp and coin collecting especially among the rising middle class who are starting to see the value of these objects as viable investments. China, India, and countries in South America have seen a marked increase in the number of collectors and people who are interested in the collectibles market.
Don't Invest in Coins and Stamps If...
You don't have the patience to wait. Investing in coins and stamps are not for everyone. These kinds of rare collectibles are considered as long term investments. You won't see much gains from them in the short term.
But if you are patient enough and are truly passionate about stamps and coins, then these might probably the best investment that you would ever make in your life.