Some postage stamps or other collectibles can reach 100% appreciation in a single year.

Yes, you read that right! And they don't have to be world class rarities, or stamps of big collecting nations like the United Kingdom, Germany, the United States or China. It can be stamps of smaller countries, where only a few tens of thousands of collectors collect stamps.

At the beginning of 2020, one rare stamp of Czechoslovakia was sold in the USA, the so-called 10 K Coat of Arms on Granite Paper, narrow format, with overprint Pošta Československá 1919, type II. It is one of the most famous Czechoslovak rarities - it is estimated that there are only 14 pieces, and only a small part of them is in a narrow format, which is confirmed by the fact that it is practically non-existent on the market. At that auction, this stamp reached a price of USD 24,780 (including the buyer’s premium), which is approximately CZK 570,000 at the then exchange rate. (23 CZK/1 USD).

Exactly the same specimen was offered again in the auction, this time in the Czech Republic, in May 2021 and reached CZK 1,090,000 = approx. 52,400 USD (20.8 CZK / 1 USD). The seller therefore earned CZK 520,000 (or USD 27,600), or evaluated his transaction by more than 90% - in one year!

Of course, there were other ways how to increase the value of money during this period, for example some cryptocurrencies. The only difference is that cryptocurrencies can lose 50% of their value within a few days, while I do not know a single such case for valuable stamps or coins. Auction sales like the one mentioned above set a new price level, which is a fundament for any other subsequent sales. You will never encounter this with stocks, commodities, precious metals, bonds, etc.

There is no collector or investor who would sell such stamp at a loss of tens of percent. Why should he do that? This stamp exists in only a few pieces, while there are tens of thousands of collectors of Czechoslovak stamps. Among them, there are always a few wealthy individuals (two are enough) who will compete at the auction for the item just offered, because they can not know whether there will be offered another one in the next ten years.

The price of rare stamps, coins, banknotes, old prints, orders and decorations, simply all collectibles, has long been driven upwards by a large excess of demand over supply. Which is good both for collectors who increase the value of their collection and for investors.

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