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Portfolio Diversification Benefits of Investing in Stamps

19 Pages Posted: 8 Mar 2007  

Chris Veld

Monash University

Yulia V. Veld-Merkoulova

Monash University - Department of Finance; Financial Research Network (FIRN)

Date Written: January 18, 2007


In November 2002, Stanley Gibbons, a large British stamp dealer, introduced the SG 100, an index for stamp investments. This index is used to study whether there are diversification benefits for British and American stock investors to invest in stamps. The Capital Asset Pricing Model regression of the mean monthly stamp index excess returns on the excess returns of stock indexes yields positive alphas for both British and American investors. This means that adding stamps to stock portfolios can improve the investment performance of both groups of investors.

Keywords: alternative investments, stamps, diversification benefits

JEL Classification: G11, G15

Suggested Citation

Veld, Chris and Veld-Merkoulova, Yulia V., Portfolio Diversification Benefits of Investing in Stamps (January 18, 2007). Available at SSRN: or

Chris Veld (Contact Author)

Monash University ( email )

Building 11E
Clayton, Victoria 3800

Yulia Veld-Merkoulova

Monash University - Department of Finance ( email )

Building H
Caulfield, Victoria 3145

Financial Research Network (FIRN) ( email )

C/- University of Queensland Business School
St Lucia, 4071 Brisbane

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