A recent question elsewhere was moved to this discussion.
4 thoughts on “Forever Stamps Holding Value?”
This comment is about USPS stamps, but not specifically about the John Lewis issue. I don’t know where else to post on website. I noticed that recent no longer available from USPS Forever sheet issues of modern stamps are selling for about 2x face value in the secondary marketplace. Same for blocks of 4 and a header of 10. Buying a Forever sheet of 20 that currently has a face value of $12.60 for around $25 is kind of expensive in my opinion. A block of 4 of the same issue that has a FV of $2.52 sells for $5 in the secondary marketplace. Still 2x but not as much $ outlay. Do you think a Forever issue where every stamp has the same image, that a block of 4 will command the same premium as a sheet in the future?
Yes and no. First, you can’t apply the economics of a block of 4 to a full pane (sheet) of 20 or 16 or whatever. Second, a dealer supplying you with a block of four not only has to buy the entire pane, he or she has had to buy other issues in case another collector or customer wants them. The dealer is likely to sit on the remaining stamps for some time, before using them as postage or selling them off at a discount. During that time, he or she could have invested the money in something else, hopefully something that would have generated a faster profit.
All that doesn’t take into consideration the time and effort of the dealer, including extracting a block of four from the pane without separating the stamps. (Not that simple: Do you use some of the removable tape to hold the block together, hoping this isn’t one of those issues where the removable tape isn’t; or do you remove the 5+ stamps surrounding the block so that you can cut the backing paper?)
Years ago, I was selling individual USPS “souvenir pages,” which could only be purchased on subscription. The cost per page was $1 (unless the face value was higher). I had 5 subscriptions. A collector called up and asked how much for the Lou Gehrig page. $5, I said. “What! You’re a crook! I know you only paid $1 for that.” Yes, I replied, but I also had to buy the issue right before that. the 1¢ Official Mail stamp. How many of those would the man like to buy? There was a moment of silence and then the customer said, “Oh. I guess you know what you’re doing.” (Wish I had learned some of those lessons earlier! And, no, I never ever sold a 1¢ Official Mail Souvenir Page.)
Thank you for the explanation. I now have more of an understanding of a dealer/seller’s perspective.
Regarding the primary market (buying from USPS directly) what do you think the probability is of them selling partial panes or blocks in the future given the ever rising cost of a full sheet of 20, coupled with the plethora of issues in a year?
The chances of the USPS selling partial panes or blocks is none. Some individual local post offices may do so, but they are in violation of orders from HQ. The result of selling partial panes or blocks is an accounting nightmare, with too many “pieces” to count easily, and too much time to do that accounting. It also takes up time at the post office retail windows, as collectors say, “no, I want the Jubilation T. Cornpone stamp in the upper right, and I like that pane’s printing better than this one, but could I see a few more?”
Finally, why should the USPS go through all that to sell you $2.64 in stamps (block of 4 Forever) when it can sell you a $13.20 pane of 20? Even if you later use the other 16 stamps, the USPS gets the “float” on the money.
This comment is about USPS stamps, but not specifically about the John Lewis issue. I don’t know where else to post on website. I noticed that recent no longer available from USPS Forever sheet issues of modern stamps are selling for about 2x face value in the secondary marketplace. Same for blocks of 4 and a header of 10. Buying a Forever sheet of 20 that currently has a face value of $12.60 for around $25 is kind of expensive in my opinion. A block of 4 of the same issue that has a FV of $2.52 sells for $5 in the secondary marketplace. Still 2x but not as much $ outlay. Do you think a Forever issue where every stamp has the same image, that a block of 4 will command the same premium as a sheet in the future?
Yes and no. First, you can’t apply the economics of a block of 4 to a full pane (sheet) of 20 or 16 or whatever. Second, a dealer supplying you with a block of four not only has to buy the entire pane, he or she has had to buy other issues in case another collector or customer wants them. The dealer is likely to sit on the remaining stamps for some time, before using them as postage or selling them off at a discount. During that time, he or she could have invested the money in something else, hopefully something that would have generated a faster profit.
All that doesn’t take into consideration the time and effort of the dealer, including extracting a block of four from the pane without separating the stamps. (Not that simple: Do you use some of the removable tape to hold the block together, hoping this isn’t one of those issues where the removable tape isn’t; or do you remove the 5+ stamps surrounding the block so that you can cut the backing paper?)
Years ago, I was selling individual USPS “souvenir pages,” which could only be purchased on subscription. The cost per page was $1 (unless the face value was higher). I had 5 subscriptions. A collector called up and asked how much for the Lou Gehrig page. $5, I said. “What! You’re a crook! I know you only paid $1 for that.” Yes, I replied, but I also had to buy the issue right before that. the 1¢ Official Mail stamp. How many of those would the man like to buy? There was a moment of silence and then the customer said, “Oh. I guess you know what you’re doing.” (Wish I had learned some of those lessons earlier! And, no, I never ever sold a 1¢ Official Mail Souvenir Page.)
VSC,
Thank you for the explanation. I now have more of an understanding of a dealer/seller’s perspective.
Regarding the primary market (buying from USPS directly) what do you think the probability is of them selling partial panes or blocks in the future given the ever rising cost of a full sheet of 20, coupled with the plethora of issues in a year?
The chances of the USPS selling partial panes or blocks is none. Some individual local post offices may do so, but they are in violation of orders from HQ. The result of selling partial panes or blocks is an accounting nightmare, with too many “pieces” to count easily, and too much time to do that accounting. It also takes up time at the post office retail windows, as collectors say, “no, I want the Jubilation T. Cornpone stamp in the upper right, and I like that pane’s printing better than this one, but could I see a few more?”
Finally, why should the USPS go through all that to sell you $2.64 in stamps (block of 4 Forever) when it can sell you a $13.20 pane of 20? Even if you later use the other 16 stamps, the USPS gets the “float” on the money.