STAMP UP PRICES
There has never been a better time to rush out and buy postage stamps. Not old
ones, but brand new 1st and 2nd class stamps. Because on
April 30th those stamps will magically become worth up to 39% more.
It is a rate of return even people in Ponzi schemes can only dream of.
The new regulator of postal prices, Ofcom, decided last month that Royal Mail
should be free to fix its first class prices at any level. And although Ofcom
retained control over all second class prices it said that the price of a second
class stamp for a standard letter could be as high as 55p and that limit would
rise with inflation in future.
Within minutes of being granted this new found freedom, Royal Mail announced it
would put up the price of standard first and second class stamps by 14p from
36p to 50p for second and from 46p to 60p for first. It would also raise the
price of the large firsts and seconds by similar amounts currently they are
58p and 75p. From 30 April they will cost 69p and 90p.
The best return of nearly 39% is on standard second class. Buy 100 and you spend
£36 today. But they will be worth £50 from Monday 30 April.
And their value goes beyond sending first and second class letters. They will
also be worth those new values when you use them to make up other postal rates.
So a 100g packet to Europe will cost £2.21 from the end of the month. You can
pay for it with two first and two second class stamps and a penny stamp
(2x60p+2x50p+1p). Total cost if you buy then now £1.65, saving 56p or 25% on the
new price. Similarly, a 200g packet to the USA or Australia will cost £4.50 from
30 April. Make that up with nine standard second class which you bought today
and it will cost £3.24, saving you £1.26.
Last year I advised buying stamps for a 10.5% instant return. This year at more
than 30% the return is even better. It is certainly worth buying a years supply
including stamps for all your Christmas cards now.
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