This piece first appeared in the money section of the Saga website on 4 April 2012
The text here may not be identical to the published text

 

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 year’s supply – including stamps for all your Christmas cards – now.


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