4.29.2007

Forever Stamps

With postal rates going up on May 14, the USPS has introduced Forever Stamps.

Since rates are now set to increase slightly on a more frequent basis, the Forever Stamp is good for first class postage "forever," reducing the need for make-up stamps. I bought a few the other day. As an investment.

Consumers could squirrel away forever stamps for months or years; they essentially would gain value every time rates increase.

Assuming a modest annual increase of 1-2 cents in the first-class rate over the next few years, buying a sizable bulk stock of Forever Stamps at today's rates could save costs, depending on individual opportunity costs - and, I suppose, inflation rates over the upcoming years when you plan to use them.

And then there is the question of why anyone would ever buy a regular first-class stamp again if it costs the same as a forever stamp but its value could never grow.

To hoard or not to hoard?