Part V
Many experts say they are suspicious of any program that promises certain returns, given the unpredictable nature of stamp prices. "If anyone guarantees you a return on your investment, I recommend that you run -- not walk -- to the nearest exit," says Bob Prager of Posner Stamps, a New York dealer.
And investors may not be the only ones who should be concerned. The stamps covered by the contracts and held in the vault are, according to Pena, insured at about €1.2 billion against damage or theft -- again based on contract prices. That is raising concerns at the insurance syndicate Lloyd's of London, according a person familiar with the matter. Lloyd's, this person says, has begun questioning its own evaluation of the stamp holdings. It fears that, in the event of a fire or other disaster, it might have to pay out millions of euros in claims for stamps not worth their insured value. Lloyd's wouldn't comment, citing the confidentiality of client relationships.
In today's global economy, even stamp collecting isn't what it used to be. Caveat emptor |
