We stumbled onto this article the other day, and even though it's from this summer, we thought it might interest more than a few of our readers.

Investors turn to stamps as a way to lick credit crunch

By David Prosser, Deputy Business Editor, The Independent (UK)

Investors spooked by falling stock markets, plunging house prices and concerns about the security of their cash savings have found a new safe haven in postage stamps, Stanley Gibbons, the world's largest philatelic dealer, claimed yesterday.

Announcing first-half profits of £1.9m, an 11 per cent increase on the same period last year, Martin Bralsford, chairman of Stanley Gibbons, said investors were increasingly attracted to stamps and other collectibles. "The benefits of investing in collectibles as an alternative asset have never been clearer," Mr Bralsford said. "The prices of rare stamps show no correlation with the stock market, property prices and other traditional forms of investment, and historically collectibles have increased the most in times of high inflation."
...

There is some evidence to support Mr Bralsford's claims for the appeal of stamps as a safe haven. The GB30 Rarities Stamp Index, an index of the value of 30 of the rarest stamps in the world, has risen 39 per cent over the past 12 months, seemingly oblivious to the global credit crunch.

The index has also performed well over the longer term, with an average annual return of 10.7 per cent over the past 10 years. Indeed, stamp prices have proved remarkably resilient to economic woes, producing positive returns in even the most difficult of financial climates.

The wider SG100 index, which tracks the value of the 100 stamps most commonly traded, has also performed strongly, gaining almost 60 per cent since the turn of the century.

Moreover, stamps have additional attractions not offered by other more traditional safe haven assets. Unlike gold, for example, even a sizeable collection of valuable stamps is easily transported – one reason why several leading Nazis fleeing Germany after the Second World War chose to smuggle wealth in the form of rare stamps. Such collections also need less careful storage than many other assets. Mr Bralsford said demand for stamps had increased around the world.

Stamp Collecting in a Troubled Economy

Most stamp collectors - like most people nowadays - probably have less money available to spend on their stamp collections than they would like. After all, collecting stamps is a hobby, and not essential.

But many (if not most) stamp collectors are absorbed, if not addicted to, their hobby. So what's a stamp collector to do now that the world economy is troubled and less money is available to spend?

Try buying a bulk wholesale stamp assortment or mixture. Something along the lines of a mystery box. They're inexpensive and fun to sort through - you never know what you'll find. And they'll let you start a new country collection for very little cash.

If you've reached the point in your stamp collection where every stamp you still need is very expensive, but you don't have the money, this can be a perfect solution to your dilemma. You'll be able to purchase a large number of stamps for very little money, and kick-start your collecting hobby by adding a new country or countries.

Perfect, even in today's economy.

Give it a shot, buy a mystery lot of stamps.

How Will the Current World Economic Crisis Affect Stamp Collecting?

No one can say.

It's a pretty safe bet that, as a general rule, people will be much more conservative in spending their money since the price of necessities such as food and gasoline has skyrocketed. High prices for necessities leave less money available for adding to stamp collections. And now, with the current stock market in turmoil and major banks failing and otherwise in financial trouble, the situation will only become worse.

But.

Collectible stamps can also be seen as a hedge against a falling stock market and rising prices for goods. They aren't as liquid as gold (which has seen a huge jump in its prices) but stamps - especially classic, vintage stamps - historically have risen in value over time. There are thousands of examples of stamps that are worth 10 or 20 or 100 times as much today as they were 20 or 30 years ago. These types of stamps can be considered an investment. And they're an investment that won't decline in value the way stocks or mutual funds will.

It's too soon to tell how the current global crisis will affect stamp collecting. But don't panic.