Invest in Rare Stamps
Rare Stamps Flexible Trading Portfolio
This is the most popular way to get into investing in stamps at the entry level. Stamps are an investment for someone with patience and a long investment horizon.
Minimum investment: 20,000 GBP
Benefit from an investment in tangible, luxury assets but with more dynamic trading options
“The growth in the value of classic British stamps has outstripped gold, house prices and the FTSE (UK stock market). When it comes to alternative investments, stamps are like a fixed-term ISA.”
Knight Frank’s Luxury Investment Index (KFLII) tracks the performance of a theoretical basket of selected collectable asset classes – such as art, classic cars and wine – using existing third-party indices.
The Stanley Gibbons 200 Index rose 10% over the one year period from Q2 2013 – Q2 2014.
A rare Edward VIII Sovereign, illustrated on the cover of this report, set another auction record when it was sold by Baldwins for £516,000 in May.
Not to be outdone, the only surviving example of a British Guiana 1856 1c black on magenta cemented its reputation as the world’s most desirable stamp when it was sold at auction in New York by Sotheby’s for $9.48m in June.
Rare Stamps – A Steady Investment for the Sophisticated Investor
Whilst the FTSE 100 (UK stocks) has a standard deviation of around 10% with gold being even more volatile, rare stamps’ price tends to swing by only a couple of percentage points each year.
Rare Stamps – Higher Returns than UK Stocks and UK Property
Over a 10 year period (2004-2014), rare stamps are up 195%, significantly outperforming both UK equities (51%) and top-end London houses (135%).
The Penny Black Stamp 1840
Above: The Great Britain SG2 1840 1d Black Stamp, also known popularly as “The Penny Black”.
This is the must have trophy asset for any rare stamp collector / investor. This is the world’s first postage stamp and has risen in catalogue value from £4,500 to £12,500 in just 10 years.
The Flexible Trading Portfolio
The Flexible Trading Portfolio (FTP) gives you specialised access to the growing market for rare stamps and coins – but gives you greater flexibility as to how you want to invest.
You really don’t need to know anything about rare stamps or coins to invest with us. Stanley Gibbons has more than 150 years’ of investment experience, and they know exactly what to look for:
- Condition / Quality
- Growth potential
- Portfolio balance and diversification
You’ll be allocated a Dedicated Investment Portfolio Manager to ensure we understand your investment aims in order to build the best stamp investment collection for you. They will also be your key point of contact going forward.
Benefits of the Rare Stamp Flexible Trading Portfolio
- No minimum holding period or contract – You can trade your stamps whenever you want
- Excellent growth potential – Rare stamps and coins trade slowly (which gives them an underlying strength and
- Enhanced profits – Hold for a longer period and benefit from an enhanced profit split, up to 80% on top of your original investment if you hold for five years or more (see below for more detail)
- Buy and sell at any time – Enabling you to benefit from movements in the rare stamp or coin markets or your personal circumstances. You can also add to your portfolio at any time, which almost 50% of investors do
How Do I Profit from These Rare Stamp Investments
Your profit is determined by how long you hold after you first invest:
Up to 1 year – you receive 30% of the profit (on top of the original invested sum)
1 to 3 years – you receive 50% of the profit
3 to 5 years – you receive 70% of the profit
Over 5 years – you receive 80% of the profit
We recommend a minimum holding period of five years to gain a worthwhile profit.
The average hold period is just over seven years.
Many clients invest for their children or grandchildren for intergenerational wealth planning or hold it for their own pension pot in twenty years’ time as a separate and alternative investment to their regular retirement plans.
Sample Investment Trading Portfolio
Original Investment: £200,000
A Long History of Tradition – Partners that Will Be Around to Protect Your Legacy
Stanley Gibbons has been the home of stamp collecting since 1856, just 16 years after the first stamp was issued, the Penny Black, in May 1840.
They are the undisputed market leader in the field of rare stamps and have held the Royal Warrant for services to philately since 1914, a true mark of quality. Baldwins, probably the world’s leading coin merchant, are also part of the Stanley Gibbons Group and have been trading since 1872.
Penny Black advisers are authorised introducers for Stanley Gibbons. You can read more about us here.
Whatever your goals for protecting your wealth, we can help you achieve them.