Go Back  DVD Talk Forum > General Discussions > Other Talk
Reload this Page >

Postal regulators want 2-cent stamp hike - new 'forever stamp' plan

Other Talk "Otterville" plus Religion/Politics

Postal regulators want 2-cent stamp hike - new 'forever stamp' plan

Old 05-26-07, 05:12 PM
DVD Talk Legend
Join Date: Aug 1999
Location: Chicago, IL
Posts: 17,205
Likes: 0
Received 1 Like on 1 Post
Originally Posted by caligulathegod

Should I Invest in "Forever" Stamps?Absolutely not.
By Nathaniel Rich
Posted Thursday, May 17, 2007, at 4:10 PM ET

The postal rate climbed 2 cents on Monday, about a month after the United States Postal Service introduced its new "forever" stamp. As of last week, the USPS had sold more than $82 million worth of the forever stamps, which lock in the 41-cent rate for eternity. One man in Pennsylvania walked into a post office and made an $8,000 investment on his own. Should we all be stocking up?

Absolutely not. Since 1971, postal rates have increased more slowly than the actual inflation rate, as measured by the U.S. Consumer Price Index. So, despite the numerous rate hikes over the last 36 years, stamps have actually been getting cheaper. The 20-cent stamp from 1981, for instance, would be equivalent to 45 cents in today's dollars—which makes today's rate 10 percent cheaper than it was 26 years ago. Should this historical pattern hold, you'd be paying more for today's forever stamps than you would for any stamp in the future, no matter how high the rate goes.

In fact, this pattern must hold—as a matter of law. In December, President Bush signed the Postal Accountability and Enhancement Act, which ensures that future price increases will be kept below an inflation-based ceiling. In other words, postage hikes will never surpass inflation—and the forever stamp will never become a good investment. Incidentally, the USPS announced the introduction of the forever stamp less than two months after Bush signed the act into law.
One thing people don't think about is that this isn't exactly like your traditional investment. You have to hold it yourself -- in other words, if you lose the stamps, you are shit out of luck.
Old 05-26-07, 05:21 PM
DVD Talk Platinum Edition
caligulathegod's Avatar
Join Date: Jul 2001
Location: Grove City OH
Posts: 3,754
Likes: 0
Received 2 Likes on 2 Posts
Originally Posted by OldDude
Or, you could wait and buy them after the next rate increase is announced but not yet implemented. Then, you PROFIT. Timing is everything.

That's really about the only advantage of them. That and the convenience of not having to buy 1-2 cent stamps after rate hike time. Buying a 1000 to hedge against future inflation is actually losing money in the long run, no matter what the price goes to.

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Thread Tools
Search this Thread

Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.