Forever Stamps: A Smart Investment?

Forever Stamps are a type of stamp introduced by the United States Postal Service (USPS) in 2007. They can be used to mail a one-ounce letter at any time, regardless of when they were purchased or how much the price of stamps has increased. While some people may be tempted to invest in Forever Stamps in the hope of profiting from future price increases, there are several considerations to keep in mind. Firstly, the cost of mailing a first-class letter has been decreasing due to government regulations, and the price of stamps is increasing at a slower rate than inflation. Secondly, it would be challenging to purchase enough Forever Stamps to make a significant profit, and selling them would likely involve fees and discounts. Overall, while Forever Stamps can help individuals save money on postage and avoid the inconvenience of buying new stamps every time the price increases, they may not be the best investment option for those seeking substantial financial gains.

Forever stamps as a long-term investment

Forever Stamps are a unique type of postage stamp offered by the United States Postal Service (USPS) that allows consumers to mail a one-ounce letter at any time in the future, regardless of when they were purchased or how much stamp prices have increased. Introduced in 2007, Forever Stamps were designed to make postage stamps more user-friendly as stamp prices tend to increase over time.

The question of whether Forever Stamps are a worthwhile long-term investment has been a topic of discussion and debate. Some people view Forever Stamps as a simple and low-risk investment opportunity. The idea is that by purchasing Forever Stamps at their current price, you are guaranteed to be able to use them at a later date when stamp prices have potentially increased. This can result in savings and a form of profit, especially if you buy in bulk. For example, if you buy 1,500 Forever Stamps at 60 cents each and the price increases to 70 cents in a few years, you could potentially make a profit of $150 if you sold those stamps at the new rate.

However, there are several considerations and challenges to keep in mind. Firstly, the rate of return on Forever Stamps as an investment may not be very high, especially when compared to other investment options. The price of stamps does not increase at a rapid pace, and the return on investment is closely tied to the rate of increase in postage prices. Secondly, reselling stamps can be difficult. The USPS will not refund or buy back stamps, and selling them on platforms like eBay would incur listing and shipping fees, eating into your potential profit. There are companies that will buy back Forever Stamps, but often at a discounted rate.

Additionally, it's important to consider the purchasing power of your investment. While the value of Forever Stamps may increase nominally with rising postage prices, when adjusted for inflation, the real value of your investment may not increase or could even decrease. This means that while you may have technically made a profit on paper, your investment may not actually buy you more goods or services in the future.

Lastly, the rules regarding postage rate increases are subject to change, which could impact the potential for profit from Forever Stamps. For example, if the rate of increase in postage prices slows down or if postage prices are capped, it could reduce the potential gains from investing in Forever Stamps.

In conclusion, while Forever Stamps may seem like a straightforward way to protect yourself from future postage price increases, they may not be the best long-term investment strategy. The potential for profit is limited, and there are various challenges associated with reselling stamps. Therefore, it is essential to carefully consider all factors before deciding whether to invest in Forever Stamps.

The rate of postage increase

Historically, the USPS has raised postage rates twice per year. In 2023, for example, rates increased in January and July. The July 2023 increase saw the price of a first-class stamp rise from 58 cents to 60 cents. This was the second increase in just over a year, with the previous increase occurring in August 2021 when the price rose from 55 cents to 58 cents.

The frequency of postage rate increases has some people considering whether to invest in Forever Stamps. The idea is that buying Forever Stamps now could insulate consumers from future price increases. However, the effectiveness of this strategy depends on how quickly rates increase. For example, if rates increase slowly, the benefit of buying Forever Stamps today may be minimal. On the other hand, if rates increase rapidly, buying Forever Stamps now could be a wise investment.

It's also worth noting that the rules regarding postage rate increases may change. The Ensuring Accurate Postal Rates Act, introduced in 2022, could result in a new rate-setting system that caps postage increases at the Consumer Price Index. This could slow the rate of postage increases in the future.

Inflation and its impact on stamp prices

The price of postage stamps is influenced by inflation, with the US Postal Service (USPS) citing rising operating expenses as a reason for increasing stamp costs. Stamp prices have been steadily increasing over the years, with the USPS raising rates multiple times between 2021 and 2024. For example, in July 2024, the USPS proposed increasing the cost of Forever stamps from 68 to 73 cents, marking the sixth increase since January 2021.

While the impact of inflation on stamp prices is evident, it's worth noting that the price of stamps has not always kept pace with the overall inflation rate. In fact, when adjusted for inflation, the cost of a first-class stamp has remained relatively stable over time. This suggests that the purchasing power of a stamp has not significantly changed, even as the nominal price has increased.

The USPS faces challenges due to the decline in demand for physical mail, with more people opting for online communication. This has resulted in a decrease in mail volume, which is a major factor driving price hikes for first-class mail. However, the impact of inflation on operating costs cannot be overlooked, as wages for mail carriers continue to increase, contributing to the overall financial strain on the USPS.

The relationship between inflation and stamp prices is complex. While inflationary pressures have contributed to rising stamp costs, the USPS also faces productivity issues and regulatory constraints that impact their ability to respond to economic changes. As a result, the USPS is often left with few options other than increasing stamp prices to generate much-needed revenue.

In conclusion, while inflation has influenced the price of postage stamps, it is not the sole factor. The interplay between economic conditions, labour-intensive industries, and the evolving digital landscape has created a challenging environment for the USPS, leading to the steady increase in stamp prices observed in recent years.

Selling Forever stamps: Is it legal?

Forever Stamps are a type of stamp introduced by the United States Postal Service (USPS) in 2007. They are unique because they can be used to mail a one-ounce letter at any time, regardless of when they were purchased or the current price of stamps. This means that Forever Stamps always match the current first-class postage rate.

Given that the price of stamps has been steadily increasing over time, some people may consider purchasing Forever Stamps in bulk as a form of investment. But is it legal to sell Forever Stamps?

In short, yes, it is legal to sell Forever Stamps. There are no laws or restrictions on buying and reselling postage in the United States. Anyone can purchase Forever Stamps from the USPS and then resell them, whether as an individual or a business.

If you are an individual looking to sell your Forever Stamps, you don't need any special permits or licenses. However, you will likely need to sell them at a percentage of their "face value", as buyers can purchase them at the same price from the Post Office. Postage buying services, such as Sell Forever Stamps, will typically pay around 50%-70% of the current face value, depending on the condition of the stamps.

Businesses, on the other hand, can mark up the price of Forever Stamps to make a profit. Common places that resell stamps include Wal-Mart, Costco, local gas stations, and grocery stores. These businesses need a reseller's permit, but they are fairly easy to obtain, and there are no restrictions on how high they can mark up the price.

While it is legal to sell Forever Stamps, it may not be the best investment strategy. It can be challenging to buy enough stamps to make a significant profit, and you may need to hold onto them for a long time before their value increases substantially. Additionally, you will likely need to sell them for less than their face value, especially if you are an individual seller.

Where to buy Forever stamps in bulk

When it comes to buying Forever stamps in bulk, there are several options to consider. Here is a list of places where you can purchase Forever stamps in bulk:

United States Postal Service (USPS)

The USPS offers a variety of Forever stamp designs, which can be purchased directly from their website or at your local post office. Buying from the USPS ensures the authenticity of the stamps, and you can also take advantage of their online ordering option to have the stamps delivered to your mailbox along with your regular mail.

Online Retailers

A. Amazon

Amazon offers a wide range of Forever stamp options, including various designs and quantities. You can find rolls or books of Forever stamps on Amazon, with some offering free delivery. However, be cautious of counterfeit stamps, as some users have reported issues with fake stamps purchased through Amazon.

B. eBay

EBay is another online marketplace where you can find Forever stamps in bulk. Similar to Amazon, be cautious of counterfeit stamps, and always check seller reviews before purchasing.

C. Stamps.com

Stamps.com offers a subscription service for purchasing stamps, but some users have expressed concerns about the difficulty of cancelling the subscription.

D. BuyDiscountStamps.com

This website offers discounted stamps at wholesale and bulk pricing, with free shipping and no sales tax. While some users have had positive experiences, sending a check as the only payment option may raise concerns about fraud.

E. Stamps Marketplace

This website offers Forever stamps at wholesale prices, with free shipping across the United States. They have a range of designs, including the U.S. Flag 2023 roll and the Celebration Blooms 2024 stamps.

Retail Stores

A. Costco

Costco offers rolls of 100 Forever stamps at a price that is usually lower than the post office. This option may be convenient if you are already a Costco member and want to purchase stamps in person.

Precautions

When purchasing stamps in bulk, it is essential to be cautious of counterfeit stamps, as this is a rampant issue. Always purchase from reputable sources, and if a deal seems too good to be true, it probably is. Remember that stamps are like currency, and using counterfeit stamps may result in your mail being returned or disposed of.

Frequently asked questions