Stamp collecting is a hobby that is a passion for millions of people all over the world. In USA alone there is thought to be in the region of 20 million collectors.

With such a large and passionate group of collectors stamp auctions have become very big business as the interest in old, rare and hard to find stamps as high as ever.

Stamp auctions often feature covers, envelopes and other stamp-related items.

These auctions work the same as any other auction with the highest bidder for each lot making the purchase at the agreed price. Traditional stamp auctions are generally a combination of with live bidding from people attending the auction in person or bidding via telephone and traditional mail. It is possible to mail a bid through on an item before the auction starts.

Online auctions have become incredibly popular with many people logging on to internet auction sites such as eBay and other specialty stamp auction websites to bid on their selected items.

Some small countries actually design and produce stamps for the expressed purpose of appealing to stamp collectors. These stamps feature elaborate designs with limited runs and high price tags. They often far exceed the postal needs of that particular country.

Rare stamps are among the most portable of tangible investments you can make and many collectors, who know generally the rising and falling prices prices of rare stamps, have taken to purchasing stamps as an investing.