Friday, Mar. 14, 2008

Forever stamps lock in today's prices

The cost of a first-class stamp will increase to 42 cents on May 12. But between now and May 11, it's possible to lock in lower rates by purchasing "Forever stamps." Introduced in April 2007, Forever stamps are valid first-class stamps regardless of future price increases.

Forever stamps purchased in April 2008 for 41 cents can be used to mail a first-class letter without additional postage even after the new rate kicks in.

"In this case, forever means forever. There is no fine print," says David Partenheimer, a spokesman for the U.S Postal service. "The Forever stamp is a big hit for us."

The Post Office already has sold five billion Forever stamps and plans to issue another five billion to fill demand. They are sold at the Post Office, over the Internet (www.usps.com) and by phone (1-800-stamp24).

Some financial speculators spot a long-term investment ploy that involves purchasing and hoarding large quantities of Forever stamps and watching the value of those stamps appreciate as a result of future rate hikes.

As an investment, however, Forever stamps may not yield a practical return, according to www.PennySaved.com. Storing and cashing out on large quantities of stamps may not be realistic. Other investments - stocks, bonds and money market accounts - offer potentially higher rates of return.

The stamps definitely have an "economic value," but convenience is the main selling point, Partenheimer said, adding that Forever stamps eliminate the need to scramble for additional penny stamps when postal rates increase.