Collectible Investments: Early U.S. Air Mail Stamps

Filed under: Other issues, Columns

Can investing and collecting go hand-in-hand? Yes -- especially if you are collecting coins, stock certificates, bank notes, or other rare items of value. Larry Schutts, an expert in investment-related collectibles, will review items of interest from his collection and answer your questions here each week.

When I was in grade school, much of the money I made delivering the morning paper went into my stamp collection. I specialized in U.S. issues.... and what do you know? All those things I was learning about in history class was right there on the stamps, from Columbus and the Capitol Building to the U.S. Presidents and the Pony Express. I was particularly fond of the early air mail issues, because of the old flying machines and emblems they depicted. Many of them were too expensive for me then, but I bought them all about five years ago and thought it might be worthwhile to look at the value of the group as an investment vehicle.

First, some pictures. The set I'm talking about consists of the first fifteen stamps issued by the U.S. postal system specifically for the purpose of funding transport by air.

These are listed as C1 through C15, in the industry standard Scott Catalogue. C1-C3 feature a picture of the Curtiss Jenny and were used for service on a Washington-Philadelphia-New York run that began operation in 1918. The initial rate was 24 cents per ounce, requiring use of the red and blue C3. Over the next few months, that rate was cut to 16 cents and then to 6 cents, allowing for use of the green C2 and then the orange C1. Stamps C4-C6 were issued for transport through three cross-country postal zones established in 1924. The rate was 8 cents per ounce for each zone. The C4 carries a picture of an airplane radiator and propeller. The C5 illustrates the Air Service emblem. The C6 shows a DeHavilland biplane.

Stamps C7-C9 were created in response to a 1925 Act of Congress that declared a rate of 10 cents per ounce for distances to 1,000 miles, 15 cents per ounce for 1,000-1,500 miles and 20 cents per ounce for more than 1,500 miles. All three showcase a map of the United States, with biplanes flying inland from each coast.

Stamp C10 was printed in tribute to Charles Lindbergh's 1927 non-stop flight from New York to Paris. It features a picture of Lindbergh's "Spirit of St. Louis" and the flight route. C11 (1928, beacon) and C12 (1930, winged globe) were issued to meet a subsequent rate of 5 cents per ounce.

Stamps C13-C15 were sold in 1930, for use with mail carried on the first Europe-Pan America round trip flight of the Graf Zeppelin. They show the airship over the Atlantic Ocean (C13), between continents (C14) and passing the globe (C15). The "Zeps" are in demand, due to the extremely small number issued. They were only on sale for five weeks.

Now, the investment angle. The examples pictured are all well-centered, never used pieces, in post office fresh condition. Five years ago, the total Scott Catalogue price for all fifteen was $2881.75. Now, it's $3451.25. That's a gain of only 20% in five years and nearly all of the improvement was due to a $500 jump in the price for the three Zeppelins. As collectibles, these stamps are great. As investments, however, they are only appropriate for those with a longer-term horizon. As it turns out, it's much the same for most other postage stamp collectibles. Values tend to advance steadily, but slowly. If you want to invest in stamps, it's best to look to specialty items like the fancy cancellations discussed in this column last month.

Larry Schutts has invested in high grade collectibles for over twenty years and recently opened an online Collectible Investment Store.

 

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