Factors affecting the investment potential are

Design

"A thing of beauty is a joy forever". For this reason, a great deal of time, trouble and money is expended nowadays by postal administrations in selecting competent artists and designs that are aesthetically appealing even for strictly utilitarian stamps.

Method of Production

All manner of production methods have been used to print postage stamps - from photography to typewriting and woodcuts. Ignoring the odd methods used in times of emergency such as war, there are four major techniques used nowadays - photogravure, intaglio or recess printing, offset lithography and typography or letterpress.

Numbers Issued

Undoubtedly, the chief factor to watch is the number issued. Here the age-old law of supply and demand has to be taken into consideration.

Country of Origin

Whether the numbers of stamps in existence are sufficient to meet the demand or not very largely depends on the popularity of the country of origin. Politics play a part in philatelic popularity. The political and economic stability of a country is reflected in its stamps and there is thus little market for the issues of Ghana and the Congo. Purely from an investment point of view the country is of great importance, since universal demand as well as a strong indigenous market are the prerequisites of the stamp's future prospects.

Condition

All other things being equal, it is a stamp's condition which determines its value and yet this is probably the most difficult factor to assess. The terms most commonly used to describe a stamp are as follows. 1, 2 and 5 are ideals to aim for.

Errors

One of the peculiarities of philately is that so much attention and monetary importance should be lavished on errors and imperfections.

How to Look at a Stamp

The process of looking at a stamp is a trial of skill in detection.

Design

The first thing to catch your eye is the design, especially in the case of colourful, modern stamps. Next you will try to find out where the stamp comes from and what value is printed on it. Then judge its colour, look at the way it was detached (imperforate or perforated), inspect the paper, watermark etc.

Consider the face of the stamp, its design. It is usually measured in millimeters, first the width and then the height. The proper way to measure is from one edge of the design to the other. The size is important when there were several printings or if different printing techniques were used. They can very often be distinguished by the different size of the stamp design.

Condition

Having established that the back of the stamp is in good condition and nothing radically wrong with the appearance of the front, hold stamp up to light. A tell tale patch indicates thinning. It is a serious factor in valuing stamps. Then turn the front to light in such a way that the light reflects from it. If the stamp has been thumbed and mauled it will glisten in patches. Also perform a severe examination of the details that do not of themselves spoil a stamp from a collector's point of view, but which can affect the investment angle. See if the stamp is well-centred, equidistant from the perforations. Check that they are not forgeries with edges re-perforated to even them up. Sometimes, printing method makes desirability of centred stamps non-applicable.

Sometimes there are 'short perfs' caused by part of the perforation being torn away when one stamp is pulled from another.

Postmark

Is the postmark more important than the stamp itself? If not, position on stamp is important. The postmark cannot obliterate the main vignette but should lightly mark a section of the stamp that does not spoil the visual aspect of the design. Make sure they are not cancelled to order. If the postmark is important then more of it should be shown. To be able to discern the importance of a postmark requires the investor to have very good knowledge of philately, even expert knowledge.

Authenticity

The stamp must be genuine. In the case of rare stamps, it is best left to the experts to decide. Cancelled to order stamps is considered a kind of forgery. So are reprints and remainders, the withdrawn or replaced stamps.

For more information on stamp collecting, visit www.stamp2.com.