Forever Stamps – A good deal?

I received a call last night from a little birdy who kindfully reminded me that if I was late sending my mother a mothers day card to remember the price increase in stamps. I then passed this information onto a European friend who’s living in the states and for the first time just bought a role of stamps. He was deeply vexed when he found out about the price increase and went onto a nice rant on what a waste of time our system is.

I was then surfing digg tonight and came across this awesome post which asks if it would be a wise business decision to stockpile Forever Stamps.

If I purchased $1,000 of Forever Stamps today (2,440 stamps), I expect the value of those stamps in 30 years to be approximately $1,900, based on a 3.3% average stamp increase. I think there are smarter places to put your money. Even placing your money in a savings account is a better option. The major drawback in stockpiling Forever Stamps is your money doesn’t compound, which is the better-than-gold standard of any smart investment strategy. $1,000 compounded at 5% over 25 years brings your investment to about $3,400.

Let me know what you think about this or if you enjoyed this post half as much as I did. Thank you to the other crazy people who took the time to do this analysis. I really digg this stuff.