Philip J Milton and Company managing director Philip Milton says there are no regulatory controls in place, leaving consumers without any form of recourse if the value of a collection falls.
Milton says: “My concern is that despite the rising numbers of ignorant but well intentioned financial advisers and private individuals investing in stamps, there is no regulatory input at all to ensure that investors are not being duped.
“From my own heavily regulated perspective, I do believe that action should be considered when the term ‘investment’ is promoted so heavily and when guarantees are offered without any regulation.”
Milton says many stamp dealers and private sellers advertise collections as secure investments but he insists that the value can fluctuate like any other commodity.
He is calling for an initiative to ensure that consumers are not being misled and are provided with enough information to make informed investment decisions.
Milton says: “I am happy to endorse the principle of purchasing stamps as an investment but I am wholly against investors perhaps being misled in terms of comparatives or simple selective hindsight and continue to be alarmed at the generalist statements contained in some of the stamp investment advertisements.
“If people are made aware of the various risks and warnings associated with this kind of investment along with all the costs and they are given every opportunity to make an informed and well advised decision, then I commend this type of investment.”