Chinese turn a hobby into a moneymaker
An old-fashioned hobby is thriving in China.
The country is now home to more than 20 million stamp collectors, the largest number in the world, up from about 3 million in 1983. Worldwide, there are an estimated 60 million collectors.
One would have thought that the massive proliferation of mobile devices in the past few years would have distracted young Chinese from hobbies such as stamp or coin collecting.
Not exactly. In fact, interest in China is so high that Stanley Gibbons of London, the world’s premier stamp dealer, has published the 11th edition of its China Stamp Catalogue, covering all the stamps issued by the country in one single volume.
So, what is driving the Chinese enthusiasm? While for most it is just a hobby, for some it is another investment vehicle.
“As investment markets mature in Asia and with volatility in the markets, including in the Shanghai and Shenzhen stock exchanges, more sophisticated investors have looked to rare, tangible assets like investment-grade stamps to diversify their portfolios and spread risk,” said Keith Heddle, managing director of investments at Stanley Gibbons.
“This includes Chinese HNWIs (high-net-worth individuals) and UHNWIs (ultra high-net-worth individuals),” he wrote in an email to China Daily last week.
The global stamp collecting market is worth about $10 billion a year. The compound annual growth rate of the GB30 Rarities Index, which tracks the retail price of 30 top British stamps, has been just under 10 percent for the past 40 years, outperforming other investments.
“Chinese collectors and investors have taken a strong interest in stamps like the Penny Black,” said Heddle.
The Penny Black, the world’s first stamp, was issued in 1840 in Great Britain during the reign of Queen Victoria.
Stanley Gibbons sells a used Penny Black in a presentation frame for 375 pounds (3,200 yuan). On its website, a Penny Black mint block of four is listed for 200,000 pounds.
As for Chinese issues, the Red Monkey of 1980 (photo above) is one of the most sought-after stamps. It was issued to commemorate the Year of the Monkey. In 2011, a sheet of 80 Red Monkey stamps was sold for 1.2 million yuan ($172,000) at an auction in Suzhou, Jiangsu province.
Stamps commemorating the anniversaries of the Long March and the victory in the War of Resistance Against Japanese Aggression (193745) are also in great demand.
A 1942 stamp issued by the United States, featuring Abraham Lincoln and Sun Yat-sen, is another hot item. The stamp was issued in recognition of China’s resistance against Japanese aggression.
While the popularity of stamp collecting as a hobby has diminished over the years in the West, Heddle is fascinated by the growing interest in Asia.
“You will see schoolchildren at a stamp show in China in a way that rarely happens in the West,” he said.
China is also perhaps the only country where stamp collecting is offered as an elective course in schools and universities.
Not a bad idea, considering the rewards it may bring!