Armand Rousso in the Crain's Chicago Business

Twenty years ago, he had the idea of creating a central, worldwide marketplace for rare stamps. Today, his International Stamp Exchange (ISEC) is the culmination of his efforts. This means that you-or your banker or your broker-can turn your stamp collection into a liquid asset through computer and a telecommunications link.

How does it work? A member of the exchange enters his or her password on the personal computer (PC) or telex to gain access. The member will be taken through a series of questions asking what they wish to see or do. The most important part of the menu is the price quotations. These include the bid and ask price for particular stamps, as well as their condition. The ask price is what an owner is asking for a stamp; the bid price is what someone who is looking for a stamp is willing to pay.

Mr. Rousso believes that the ISEC will play a major role in making stamps a recognized liquid asset. “People today are disappointed in different kinds of investments, including gold, silver and real estate,” he said, “They’re looking for alternatives.”

Mr. Rousso said the market for his exchange includes individuals, financial planners, insurance companies, banks, and brokers. He said today the size of the stamp market is pegged at $500 million annually. There are more than 20 million collectors in the U.S., and Mr. Rousso said that number will grow as the ISEC takes hold.

The ISEC charges a %6 commission from the seller and 3% from the buyer for completed exchanges. At present, there is no charge to join the ISEC, although members must go through an application process.

“In time, financial people will realize that stamps are a liquid asset,” said ISEC President R. Michael Mett. “This will be due to the development of standards and the instantaneous electronic transmission made possible through today’s telecommunications.”