Sunday, June 3, 2012

Time is right to buy into Indian stamp market

How do you view the Indian stamp market from the perspective of an investor?
The strength of the domestic market in India is causing exceptional growth in prices. A number of newly wealthy collectors and investors seem keen on buying back all the great Indian rarities. Though this has not gone as mainstream as the interest as in Great Britain or like the recent boom in Chinese material, Indian stamp markets are developing rapidly and we believe they may provide a good opportunity for investment.

With India's economic rise, it is only a matter of time before we see the record being broken for Indian stamps, which as of October 2010 stands at about Rs 74,50,000 for a single example of the 1854 blue and pale red 'Four Annas'. The time could be just about right to buy into this market before the big buyers get involved.

Are stamps a better investment option than stocks or bonds or just a way to diversify an investment portfolio?
It is both. Rare stamps offer a fine safe investment, where the investor's capital is guaranteed, and is coupled with the potential for strong returns in the medium to long term. Over the last few decades, investors seeking alternatives to high-risk stocks and the cyclical property market have increasingly looked to rare stamps. Rare stamps were rated among the top-performing investments of the 20th century, ahead of bonds and foreign exchange with average returns of 10% a year, according to Salomon Brothers. That's the kind of return that doubles your money every five to seven years. In fact, rare stamps have outperformed the stock market since 1985.
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