With the postage rate going up to $0.42 on Monday, the USPS has announced that they will now be selling 'Forever Stamps.' These stamps will show no face value and will be good in perpetuity. They will always be sold at the then-current rate for stamps, but once you have them you can use them forever - regardless of future postage rate increases.
With the perception that stamp prices are always rising, that might seem like a pretty good deal. In fact, you might imagine some folks stocking up on Forever Stamps, thus protecting themselves against future rate hikes, or even facilitating some stamp arbitrage down the road!
Think again. Looking back at the CAGR of stamp prices, you could easily make more money investing in other ways - like a 4% money market account (unless you plan on holding onto those stamps for close to 40 years! Better get the peel n stick - wouldn't want to lick them at that point!).
2000 - 2007 CAGR = 3.51%
1990 - 2007 CAGR = 3.10%
1980 - 2007 CAGR = 3.89%
1970 - 2007 CAGR = 5.40%