STAMPS (COINS and PAPER MONEY) as INVESTMENTS?

We have heard of the World's rarest stamps, the 1856 PENNY MAGENTA of British Guiana, or the so-called Tres-killing (three-shilling)Yellow, issued in 1857 and rescued by a Swedish schoolboy in 1885 from his grandmother's rubbish bin. These stamps have brought record prices for their owners in auctions. Or how about the Hawaiian 2c blue which is priced in the hundreds of thousands of dollars. These facts and stories may or may have influenced some collectors to take up our hobby(s). At the very least, it has inspired most of us that some day, our collections would give us or our heirs a hefty windfall later on.
But in reality, to most collectors, this is just as remote (or as likely, however you want to look at it) as winning in the lottery. As long time hobbyists, we have yet to realize the vast potential gains we have all aspired for in all our years of collecting. Can we really consider them as investments?

It is true however, that some of our items have increased in value. For example; the gold coins, it has not only increased in its market value as observed in the auctions, but it now also has a higher intinsic value as gold prices in the world market has reached 25 year highs of $660 an ounce from just around $300-$400 dollars an ounce a year or two ago. But a vast majority of our collections have remained stagnant in its prices. Just look at its values from foreign catalogues or in the local auctions.

A value of a collection or an item follows the Law of Supply and Demand. The Bigger the Supply (the more common an item is), the lower the price ; and the Bigger the demand; the Higher the price. Why do you think there are hoarders? They contrict the Supply, to create the demand, in order to sell at higher prices.

In the case of Philippine collectibles(with the exception of the rare and scarce pieces), the prices have not really gone into levels where we collectors can turn a handsome profit.

Supply
Some of the past republic stamps have been issued by the millions, so even if they are already old, they still are relatively common. Add to this is the fact that the condition of most Philippine collectibles are suspect because of the lack of education to collectors on the preservation of such items and the absence of a grading system/agency to set acceptable and respected standards (as we have previously put forth and "blogged" upon).

Demand
The more compelling reason for the lackluster returns for collectors is probably because there is little demand in the local market. Local enthusiasts need more access to information and affordable items for their collection. The scope and reach of our hobbies should broaden to arouse interest and attract new collectors. Unless, a collector is able to sell abroad, or until there are more collectors who can appreciate our items, our efforts will remain to be a hobby. Which really is not that bad, isn't it?