COLLECTOR INVESTMENT RETURNS ON U.S. POSTAGE STAMPS: AN ANALYSIS OF EBAY AUCTIONS AND DEALER ADVERTISEMENT PRICES

Investing for retirement typically involves building a portfolio of stocks, bonds, money-market securities, real estate, precious metals, etc. Some investors choose to add collectibles such as coins, rare art, and rare stamps to diversify their portfolios. Financial investments in rare collectible stamps have been popular since the mid-nineteenth century. The long-term return on stamp investments was positive for much of the 20th century with the market peaking around 1980. This study examines the returns, both nominal and real, on U.S. stamps to investors and collectors since 1980. Furthermore, we examine the impact of the eBay auction stamp market on prices of nationally advertised stamps in collector magazines by regional and national dealers.