Forever Stamps Tell Us Much

Financial Sense ^ | Fri, 31 Dec 2010 | by Peter D Schiff

[Gondring]

Well, there was that guy who bought something like 20,000 of them as an “investment”...

[Gondring]

Also remember that the Do Not Call list doesn’t matter if you have a business relationship...which is why there are so many “free” offers out there, just to get your contact info opened up to marketing.

[Graybeard58]

44¢ to send a letter across country is a bargain to me.

(Your opinions most likely will vary)

[XRdsRev]

Actually modern US postage rates are a good deal historically speaking.

In 1847 (when the US issued its first postage stamps) it cost 5 cents to mail a 1/2 ounce letter, 300 miles or less (over 300 miles cost 10 cents). Adjusting for inflation, those same letters today would cost $1.14 or $2.28 respectively.

Our postage rates are actually at a minimum, less than half of what Americans paid before the mid-19th century. Early 19th century US Postal rates were even higher.

[stylin19a]

the same Feds that pay 1.6 cents to make and ship a penny and 9.5 cents to mint & ship a nickel.
the last batch of pennies to be minted will be in 2011.

[blam]

"In fact, by suggesting people buy postage in large quantities in advance, it increases the chance that some will be lost. Every lost or destroyed stamp is revenue without obligation*, or nearly pure profit, if we figure a replacement stamp will be needed."

Good thinking...I hadn't thought of that. It's like an un-used gift card. ($2+ billion gift cards are unused annually in the US)

[blam]

"In fact, by suggesting people buy postage in large quantities in advance, it increases the chance that some will be lost. Every lost or destroyed stamp is revenue without obligation*, or nearly pure profit, if we figure a replacement stamp will be needed."

Good thinking...I hadn't thought of that. It's like an un-used gift card. ($2+ billion gift cards are unused annually in the US)

[Apogee]

I have wondered about that. It seems, based on what I have read, and your information about this Act, that the way to make a real profit on these is to buy a bunch right before an announced rate hike, then resell them immediately.
I wonder if this article was written by someone here:
http://shop.ebay.com/?_from=R40&_trksid=p5197.m570.l1313&_nkw=forever+stamp&_sacat=See-All-Categories

Nothing really prevents a default on these, so I would not want to by thousands of dollars worth.

Happy New Year

[Gondring]

‘zactly

[Gondring]

But why spend $9.99 on ebay for $8.80 of stamps

buy a bunch right before an announced rate hike, then resell them immediately.

If you find buyers...will they be redeemable at the new rate? I doubt it.

[Apogee]

Hmmm - single stamp sale: List cost - % varies from zero up sells - 3.5%? been a while. Stamp for free shipping - ≥ 100% so we have a greater than 200% loss on this item. Any one doing this is either not thinking, or very shrewd indeed (wonder who their buyers are).

[nascarnation]

Post 42 had one possibility - legally making you a junk phone call target.
Other than that I’m clueless, LOL.

[21twelve]

I imagine in a few years we will be hearing about the “forever” dollar bill. That will save a lot on having to create new bills ($10,000 - $50,000 - $100,000, etc.)

[muawiyah]

The No Value is one idea. The Forever Good for First Ounce of FCM is a newer idea.

[blam]

"I imagine in a few years we will be hearing about the “forever” dollar bill."

That's good. I'm stealing that idea.

[Gondring]

The No Value is one idea. The Forever Good for First Ounce of FCM is a newer idea.

Yes...a friend of mine sent me a block when they first came out in the late 80s. He didn't explain and I wasn't a serious collector, so I didn't know what I^ST meant. He later sent me a 2^ND, and I got it. I originally thought the ST meant "Pound Sterling" and wondered why it didn't just say £I.⁰⁰ like my others!

[goat granny]

I don’t keep track of the postal rates when they go up so I like the forever stamp...don’t have to go to the PO and buy 1 or 2 cent stamps to cover the new rates. Oh wonder if the rates went up and my stamps are not enought to send a card or bill.

[goat granny]

My lawn grows plastic bags with papers in them also...I hate spring when all the snow melts and I have to go pick up a winters worth of useless plastic bags with mushy papers in it you couldn’t read even if your wanted to..

[Verginius Rufus]

I think the Liberty Bell "Forever" stamps were first sold when the first-class rate was 42 cents. The variety called "Holiday Evergreens" was issued in 2009.

(Why not just "Evergreens"? Unless to remind us that they don't like the word Christmas, like the Lexus car commercials do.)

Stamps which show a definite monetary value are still needed for mail sent to other countries.

[sickoflibs]

The Peter Schiff/Austrian Economics ping. (Washington Bankrupting our Nation by Spending your past, present and future money!)

Schiff from above on Anytime Stamps: Apart from sounding the death knell of the one cent stamp, the news is interesting on two fronts: it provides insight into remarkably irresponsible government accounting, and it provides investors with the most attractive Federally-guaranteed inflation protected asset available on the market today......But the real reason behind the permanent switch is that it allows the Post Office to hide its insolvency behind phony accounting numbers, setting itself up for a massive taxpayer financed bailout in the not too distant future.

And maybe they figure no-one will buy stamps in the future anyway. I cant see a reason to buy the stamps with the prices still on them anymore, but people actually do.