One aspect that rarely influences a collector’s choices is the future resale value of their collection. Collectors are generally aware that, when one day they or their heirs decide to sell their stamps and covers, they are unlikely to recover what was spent, regardless of the sales channel used. This is particularly true today, at a time when the philatelic market is going through a less than favourable period.
During my research on the internet, I came across two articles dealing with the subject of investing in stamps. In very different ways. I decided to express my opinion on the subject because, besides having been a dealer and now being a philatelic expert, I am also a financial analyst. I know the currency and commodity markets very well, particularly grains, soft commodities and livestock. These are sectors in which sowing, harvesting and processing follow seasonal patterns that are also reflected in prices. Over the years, I have also published several books, still available on Amazon.
The first article was published by Forbes on 22 March 2024 under the title: Stamps as an asset for diversifying an investment portfolio.
“In general, rather than as a way of increasing one’s income, collecting should be considered a means of diversifying a medium- to long-term portfolio, creating an asset that is admittedly illiquid compared with a security but less exposed to market fluctuations. At the same time, it can represent an opportunity for speculators who, thanks to their liquidity, purchase assets at competitive prices and then resell them in different markets: naturally, this falls somewhat outside the sphere of collecting…”
Here, besides taking for granted that collecting can represent a source of profit, it is presented as a means of portfolio diversification, effectively drawing a comparison with the stock market. Even before that, however, a contradiction emerges which suggests that finance and investing are not exactly the interviewee’s everyday field. Describing an illiquid market as having low volatility turns reality on its head. Even more so when this supposed lower volatility is justified by claiming that stamps are less exposed to market fluctuations.
That is nonsense. The lower the liquidity of a market, the greater the impact of a single order on price and, consequently, the greater the possibility of rapid and substantial movements. In the foreign-exchange market, the Euro-Dollar pair is the most heavily traded of all, therefore the most liquid and one of the least easily influenced by a single operator. It is very difficult to see particularly large movements during a normal trading day unless highly significant news intervenes, such as an unexpected interest-rate cut or increase by the ECB or the Federal Reserve.
It would be very different if a fund decided to buy the Pound-Turkish Lira pair heavily, just to give an example. Lower liquidity makes that market more sensitive to large orders and therefore easier to influence, with much wider price movements. Hence a fundamental rule of financial markets: lower liquidity means that prices can be moved more easily and therefore means greater volatility.
The fact that the price of a Gronchi Rosa cannot be watched moving throughout the day on a screen, as happens with a share, does not therefore mean that it is more or less volatile. It will always depend on supply and demand. If the former is greater, the price will rise; if supply is greater, the price will fall. The greater the interest from collectors and market operators, the greater the number of transactions and, consequently, the greater the volatility.
The article then continues with other errors, such as the improper use of the term “macrotrend”: in finance, it refers to a structural, long-term trend capable of influencing markets, sectors or economic behaviour, not a collecting practice that continued for decades, such as the use of stamp hinges. Added to this is the confusion between investment and speculation:
“And since these are therefore investments, the investor’s profile must be taken into account because, while the aim of a collector or a foundation is not profit but to pursue a passion according to their interests and to build up a collection, naturally also according to their budget, the aim of a market operator is certainly profit, perhaps through the acquisition en bloc of an important collection to be broken up and sold individually…”
A market operator, more commonly called a dealer, does not invest: they speculate. That is their job. They buy for less and sell for more. The less time a purchase remains in stock, the happier they are. Investing and speculating are two very different practices, just as investing and trading are different in the financial markets.
The final part moves on to auctions, with a new interviewee.
Quite apart from the fact that the second interviewee fails to mention the commissions charged by auction houses on the hammer price, which exceed 20%, the article conveys the message that buying stamps at auction is a profitable investment. That is not exactly the case. The matter is rather more complicated, as shown by the second article, which is of an entirely different calibre.
Published on 25 February 2022 on we-wealth.com, “The rise of stamps, timeless pleasure assets” is an unfortunately brief interview with Alberto Coda Canati, head of department at the “Il Ponte” auction house.
Since I agree with what Alberto Coda Canati says, I will use his interview as a starting point to set out my own thoughts on the subject, exploring some aspects that, for reasons of space and time, he was unable to develop. For anyone interested, I have inserted links to both articles directly in the titles shown in green: simply click on them to read the articles (they are in Italian).
Investing in a stamp or a cover is not the same as investing in a share or bond, in a commodity such as gold or in an ETF. Almost all financial markets are regulated. This means that trading takes place according to precise rules, with public prices updated in real time and supply and demand immediately visible. The philatelic market is not. It is a niche market, far more volatile and with a much wider spread between supply and demand.
If you buy Stellantis shares and sell them five minutes later because you have changed your mind, even if the price has not risen, your loss will be negligible: it will consist of the bid-ask spread, namely the difference between the best buying price and the best selling price shown in the order book, plus commissions.
With stamps, you do not have this possibility. You may buy an item today for €1,000 and discover, if you need to resell it immediately, that the best buyer is willing to offer you €600 or €700. Or that, at that particular moment, there is simply no buyer at all.
So is it impossible to invest in philately? First and foremost, I recommend collecting for the pleasure of it, for enjoyment and for culture. Investing is possible, but it is very difficult. Taking the example cited by Alberto Coda Canati of the “Apollo 14” cosmogram, which travelled in space and of which only 55 covers exist, we are certainly dealing with a rare item that could potentially be suitable for a long-term investment. Yet this very example shows just how risky investing in philately can be.
The example in the article was sold at the “Il Ponte” auction held on 27 April 2021 for €30,000. On 11 June 2025, the same auction house sold another one for €22,000, a fall of 26.67% compared with the previous result. On 28 May this year, another cosmogram, number 45 of the 55 produced, was offered by Ferrario with a starting price of €15,000 and was knocked down for €17,500, representing a fall of 41.7% compared with the price paid five years earlier.
“Apollo 14” cosmogram, number 45 of 55 produced, sold at the “Ferrario” auction on 28 May 2026 for €17,500
This example shows very clearly how complex investing in philately can be, because the fact that an item is rare does not necessarily mean that its price is certain to rise. As in any market, what moves the price is not scarcity in itself, but the demand that scarcity is able to attract: if collectors have limited interest in a particular item, even the rarest example may remain without a buyer for years or be sold well below expectations.
The historical period is also highly important: periods of crisis or euphoria have a significant effect on demand and, consequently, on prices. Just as in finance, a thorough knowledge of the market is essential. You need to know how to assess the true value of an item, its rarity and the level of interest it attracts. You therefore need to understand when it is the right time to buy and when, instead, it is better to leave it alone.
So collect stamps, collect postal history, because this is a wonderful hobby that can give you a great deal in many different ways. It is not merely enjoyment and a passion for little pieces of coloured paper: it is much more than that. Thanks to philately, I have had the opportunity to meet many wonderful people. It keeps my mind and memory active. It is like a bubble that shields me from problems and worries. And if you want to invest… there are other instruments that are better and less risky.
