THE NEW FORMS OF SAVING-INVESTING: TANGIBLE GOODS

Contracts with repurchase commitment.

The small economizer-investors, acquire tangible goods, and philatelic values through sale contracts of these values with repurchase commitment - in which a yield or interest on the side of the institution of investment in philately goes implicit. In this way the purchase of philatelic values becomes the acquisition of values of fix rent (the speculation on the value of the philatelic value is supported by the institution of investment in philately, normally, where the philatelic value in most of the occasions acts for the economizer-investor as guarantee in front of a possible non-payment on the side of the institution of investment in philately).

Lack of regulation as financial market.

ADICAE consulted to National Bank of Spain, the CNMV and the DGS on the responsibility of the authorities of controlling the financial markets on this type of investments, before which they answered that the acquisition of philatelic values was not an investment in values (they do not quote in regulated markets) and therefore the competent authority was the Consumer National Institute, as before any purchase of a consumer good.

Doubts for consumers.

Are safe these investments? Are safe the institutions that sell this type of products?

INTRODUCTION

1. - Professor José Luis Coca Pérez

Philately - "we can consider this form of investment as a - value refuge -.

"With the passage of time, the market of investors is extended from collectors to other investors with saver profile, prioritizing in this way the financial yield on the benefit yield (associate traditionally to collectors)."

It appears the figure of the "Market Creator", intermediaries with legal personality - societies of philatelic investment-, professionalized, and as integral operators of the market of tangible goods". They offer investors counterpart to their operations, giving liquidity to the system.

The Creator of market, turns investment in selected philatelic values, which will have a strong revaluation (perhaps within 100 years) in titles and contracts that give interests or constant yield in 1 year, 5, or 20, so that these titles or contracts achieve to interest small economizers.

2. - Professors: Joaquín López Pascual y Pilar Laguna Sánchez
They emphasize the development of the philatelic market as the development of the financial market (without prejudice of the traditional use of the philately linked to collecting), they even see the possibility of creation a investment funds in philately, and emphasize some existing products of investment in philately as Plans of Complementary Income, or Philatelic Instalment.

EXHIBITION: DOUBTS OF SAVERS-INVESTORS

Refuge Value is the value of an object, or title that is characterized for offering guarantees as far as the conservation of its value, before crisis situation.

1. - The refuge value of an investor before small crisis is the account balance, national debt and real estate investments, before international economic crises, would be the dollar, Euro, gold, etc. But a small investor who invests in philately to obtain 6%, the aspect of refuge value (is not provided for the sale of his values to traders with which they would lose most of the money) it is provided for the supply of repurchase of the Institution of Investment in Philately and the solvency of this last one, therefore the lack of control of the authorities of the financial market on this solvency snatch it the aspect of value refuge for the economizer-investor.

Types of valuation

A - Value by its physical characteristics, of consumer or industrialist.

The value is in the direct benefit that could be obtained from the good, and the supply and demand of this benefit, and therefore through this offer and demand the price is fixed.

A consumer or industrialist good can only act as refuge value, if its characteristics and the benefit that it provides has a stable demand. (Always it is going to be someone who wants to buy it)

Cocoa does not have individualized market as gold. What could you do with a kilo of pure cocoa? It is easier to know what to do with a kilo of gold, because there is retail market.

The tangible goods do not have value by their physical characteristics (it is not possible even to send a letter with them, another common error)

B. – Artistic/Historic Value

The value is in the subjective valuation of this object as representation of the human greatness (artistic, representation of a little historical moment, etc.) and in addition this subjective valuation is generalized and recognized by most of the people (it is not a sentimental value). This would be one of the aspects of the valuation of the philatelic values.

Related to its aspect like value refuge: The art, a Goya’s picture always is going to revalue itself. It is a good refuge value, but in time of crisis or within 100 years how much values a picture of 6000 Euro of a new and promising painter. All the art and antiquity levels are not equally revalued, nor they support equal a crisis. In this case, the philatelic values, investment object would be "young promises” not philatelic values consecrated by their peculiarity, artistic value, and with a high valuation already at the present time.

The art market is in auctions, private purchases, acquisitions of museums, purchases by Internet, and other nonregulated markets. A non regulated market allows to sell the same object to one price to one person, and to another price to another one, it does not exist a unique price for all the possible purchasers, an approach to the regulated markets are the auctions.

The historic/artistic value of the philatelic values bought as save-investment form, and its revaluation in nonregulated markets, is into the hands of the ability of the professionals who select the values. The value of the forecasts of the managers of investment funds, stock-exchange agents, etc. is based on its successes, on its yields in the short and medium term.

Questions of small economizer-investors:

1. - Which successes could guarantee the professionalism of the investments selection of these philately companies?

2. - Which sales make in auctions or other markets in which the values leave their own control?

C. - Speculation value.

It consists in fixing the price of a good in the supply and in the demand of that good independently of its physical and artistic/historic characteristics, taking care only about time, to choose its ideal moment of sale. If I have a vacated house, I know many others that have them and they supply them, and more that demand them, for this reason I do not fear for its revaluation. (Unless the supply at a low price promoted by the public sector increased enormously).

Markets in which great speculation exists used to be or regulated ones, or have an ample diffusion (a house can be sold easily in 4 months). The philatelic value cannot be sold easily, and if it is sold it will be with lost in most of the cases. Only the repurchase by the own institution of investment in philately to contract expiration guarantees us a sale without losses.

Goods in which their value is in its speculation, do not serve as refuge value (a house or an art job, with which it is speculated on, in case of crisis will continue having a value - artistic or consumer- but it will lose the speculation component).

The investment in philatelic values has its main component in the speculation. They guarantee the price or interest that jeopardizes on the supply that they generate and the demand that obtain with the new fixed interest rates. They guarantee the promised interests, not on the basis of the immediate revaluation of the philatelic value, but based on the situation of the new demand of investment in these values.

In the case of philatelic values, the buyer not even knows the price of the philatelic values in its moment of emission (in the case of shares it would be the nominal value, or in fix rent values its price of emission) is to say when they are emitted by the House of Currency (the Emitting Market).

This speculative valuation must be based on the conscience of the long-term yield of the increase of value of the chosen philatelic values (big demand), at the moment to the outside sale that will be chosen, and in the exclusive feature of the philatelic value on sale (small supply).

3. - The investment institutions in tangible goods, have expenses in commissions of their representatives, offices etc. How are paid these current expenses? With the yield of the purchase and sale operations of philately or picking up new clients. If this last one is the case, when would be able to pay the expenses increases, some time would finish the possibility of paying the benefits of contracts in vigor with the incomes of the new purchases of new clients? If it never finishes it would be a form of pyramidal sale.

4. - If a bank is requested by all its clients to refund the money to them, the bank will have lack of liquidity quickly, but most of its investments in quoted markets will allow that the clients receive their money (although it has to act the guarantee fund, see Eurobank case), but if this happens in a philatelic company, this one will break since it will not be able to fulfil the repurchase commitments and the hasty sale of philatelic values in non regulated markets would decimate the value of these. Any guarantee fund exists in philatelic investments.

5. - If a bank does not have new clients, this will not harm the future of contracts of old clients, but if a philatelic company does not have new clients how it will fulfil monthly or annually the payment of interests in effective contracts. Exists any sales calendar in auctions or other non regulated markets that make anticipate benefits - not jeopardized with new repurchased contracts- to pay the interests generated until then?

6. - They only buy complete series of philatelic values, this apparently provides them the control of the supply of that value and its exclusive feature to guarantee its yield in the future, but if a rival company - in the Spanish market they are duopoly- bought part of all these series or substitute philatelic values, going directly to the small economizer-investors, and sold these values in the auction markets, If it was lost, by the competence, the election of the moment, and the exclusive feature in the sale of the philatelic values, which value would rest for the other series in which the economizer-investors have invested?