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What prevents me from stockpiling 'forever stamps' and selling them at a profit in 20 years?

I'm thinking arbitrage, baby! Let's assume that the increase in first class postage rates is inevitable, thus guaranteeing that the future value of my stamps is greater than today's value. What prevents me from purchasing stamps today and selling them tomorrow at a profit? Historically increases have been small but it sounds like the USPS needs to make a bigger increase to break even.

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  • Anonymous
    1 decade ago
    Favorite Answer

    inflation and purchasing power will decrease. So while, for example you buy them at X price. In the future, you can sell them for X+Y, Y being the additional money accumulated over time. However, due to inflation, you will have to make more in order to recoup your losses from the inflation. As for purchashing power, the american dollar is not worth as much as it once was, and in time, will be worth alot less. Yes, you will make a nominal profit, but there will be no real profit.

  • 1 decade ago

    See - I don't think that it will return basic investment - not because face value, which You will received back, but question is - to whom You will sell large quantity of it.?

    Existed some combination, like, in the case that You have good connection in some gov't offices who spend lot of this stamp, or in the case that You alone have an PO Branch, but again is question, to whom sell and over which time ?

    US Post made one really great "tactics" with this "forever stamps", because people will buy at least 10 of it, just to have it (like You say, in the case of prices increase) but when they will use it, and as long period - as better, because UPost received money in advance.

    And more of it, say that 10% of all issued will be destroied, forgotten somewhere in, for 1 mil it is 100.000 that will never be used, plus quantity that will be inside collectors book - it can rise to 25% of all that will never-never-never be used for postage! Not good gift to Postal Administration?

    best regards

    Chastven Miloje

    http://balkanstamp.blogspot.com/

    http://serbiastamp.blogspot.com/

    Source(s): personal experience over 25 yr
  • kate
    Lv 7
    1 decade ago

    Well , since the evolution of the internet and online banking (and online bill pay & auto debits ) . . .

    My purchase of stamps has decreased about 75% and FedEx is often cheaper for packages .

    Also 95% of my incoming mail is bulk rate commercial stuff . . . so . . .

    I'm thinking you would be banking on there being lots of people who use regular 1st class mail in 20 years . . .

    Good luck on that !

    >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

  • 1 decade ago

    in the preceeding 20 years postage has increased in the US 77%.

    That's a very small annual rate of return and it isn't even inflation adjusted!

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