Hobby versus Investment

hobby vs investment

In spite of lavish and popular auction rooms everywhere, stamp collecting should be viewed more of a hobby than an investment. No matter how rare a stamp is, one could not guarantee that it would deliver high investment returns. Additionally, the cost of buying stamps is usually higher as purchases may be liable to a sales tax, in which the buyer will never be assured that he could reclaim his expenses. Another thing to consider is that stamps are tangible items; therefore, are at risk of physical damage or deterioration, causing their value to be lower than their original price when bought.


On the other hand, stamp collecting as an investment also has advantages. First is that stamps are easily transported over national borders, and so considered as effortless portable storage of wealth. Unlike other investments, stamps are a relatively private asset (unless bought at a public auction) and there is no need to register them compared to investment in stocks. In addition, there is an increasing number of enthusiastic stamp collectors around the world, creating a global marketplace.