Academic
Stamp Arbitrage Part 2
So, the Forever Stamp is coming to the Post Office this monday. For 41 cents you can lock in the price to send a letter FOR.........(wait for it).....EVER.
http://shop.usps.com/webapp/wcs/stores/servlet/ProductDisplay?catalogId=10152&storeId=10001&categoryId=18401&productId=29351&langId=-1
Just as a reminder of the financial implications of this:
If you buy $1,000 worth of stamps you would get 410 stamps at $0.41.
If it goes up $0.02 a year, which is conservative, then in 10 years you could sell those same 1,000 stamps for $$1731.71, for a cool profit of $731.71 or a 30% margin or a 6.39% IRR.
Yes I know sounds stupid, but what about companies that send lots of mailers? How many Xmas cards do you send every year? US Treasuries only go up 3% a year and a 6.39% IRR is better than most apartment buildings get.
So get in line and buy as many as you can, or plan out your life and be set for all those xmas cards, birthday cards, mothers/fathers day, and invites to all your parties.
http://shop.usps.com/webapp/wcs/stores/servlet/ProductDisplay?catalogId=10152&storeId=10001&categoryId=18401&productId=29351&langId=-1
Just as a reminder of the financial implications of this:
If you buy $1,000 worth of stamps you would get 410 stamps at $0.41.
If it goes up $0.02 a year, which is conservative, then in 10 years you could sell those same 1,000 stamps for $$1731.71, for a cool profit of $731.71 or a 30% margin or a 6.39% IRR.
Yes I know sounds stupid, but what about companies that send lots of mailers? How many Xmas cards do you send every year? US Treasuries only go up 3% a year and a 6.39% IRR is better than most apartment buildings get.
So get in line and buy as many as you can, or plan out your life and be set for all those xmas cards, birthday cards, mothers/fathers day, and invites to all your parties.
posted by Frank
at 3:21 PM
2 Comments:
But how much profit will there really be when you factor in selling costs (you gotta mail the stamps, probably pay ebay/paypal fees) and inflation?
Don't u mean 1,000 stamps for $410?
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