GB30 Rarities Index Update
Stanley Gibbons Group plc Chief Executive, Michael Hall comments on the state of the rare GB stamp market.
I was born in 1970. Back then, an average house in the UK would cost you just £4,452…
Today, you'd need to be able to afford £162,887 to get the same house. That's a total increase in value over 40 years of 3559%, working out at a compound average annual increase of 9.4%.
Obviously, £4,452 was worth a lot more money back then than it is now. But annual returns over the past 40 years still beat inflation by around 2.9% per annum.
You won't find many investments that will give you that kind of long term return, confirming the well-coined phrase, “safe as houses”.
Believe it or not, rare stamps from Great Britain proved safer than houses over the past 40 years…
The GB30 Rarities index provides a telling snapshot of the rare stamp market for GB stamps. It lists 30 top rarities available on the open market, representing examples of the type of classic material we recommend for investment purposes.
Over the past 40 years (1970-2010), the index is up 6403%, giving a compound average annual increase of 11%. Annual returns beat inflation by an average of 4.4% per annum.
Perhaps more importantly, the index has not dropped in value over the past 40 years. You can now see why an increasing number of financial commentators are referring to our market as a “safe haven investment”.
After watching shares in BP drop over 40% recently, it's clear that fear and panic remains firmly in control of investor sentiment. The next unexpected event always seems to be just round the corner.
In times of panic, gold is a popular choice amongst traditional investors as a safety net. But, gold has proved a lot less valuable than rare stamps over the past 40 years.
Not only that, if you were invested in gold between 1980 and 1985, you would have lost 38% and between 1995 and 2000, 29%. So gold is only safe if you get your timing right – not the perfect safe haven investment.
Look at the table below, which clearly emphasises the volatility of gold and property:
Rare stamps provide the perfect hedge against the wealth eroding pain of inflation…
The last time we experienced high inflation, in the period 1975 to 1980, the GB30 Rarities index increased in value by 593%.
When traditional asset classes dropped in 2007/2008, the GB30 Rarities index increased in value by 38.6%.
Over the past year, the GB30 Rarities index went up by a further 7%, showing real stability and continued growth despite the difficult surrounding economic conditions.
Protect your capital and grow your wealth
For a minimum investment of £10,000, Stanley Gibbons offers you the opportunity to grow your wealth at the same time as protecting your capital over a 5-year investment period.
That means you have all the potential upside of historic returns enjoyed by rare stamps. However, in the unlikely event that stamp prices went down, you would still get your capital back at the end of the investment term.
If you are a bit concerned about having your capital tied up for five years, we offer you an early exit opportunity, any time after one year.
You don't need to worry about storage and insurance. We offer that to you free of charge as part of the service.
We will also give your investment a head start. If you invest between £25,000 and £49,999, we will give you a 5% upfront discount on the current market value. If you invest £50,000 or more, we will give you a 10% discount .
By a quirk of mathematics, this means that your investment could start with an immediate capital gain of 11.1%.
Please follow the link below to read the full terms and conditions and to subscribe to this investment:
Click here to read terms and conditions of Capital Protected Growth Plan
Please complete the online subscription form below providing your details and total value you would like to invest. Alternatively, e-mail me our investment team on investment@stanleygibbons.co.uk to place your order.
Subscriptions Limited
We can only accept a limited amount of money in our Capital Protected Growth Plan each year. In light of our guarantee, irrespective of the performance of the stamps invested in, we restrict our risks to a level we can manage easily.
If you are you looking for somewhere safe to put your cash, then we can offer you an investment in a tangible asset that protects your capital to remove your risk, whilst offering the potential of uncapped returns.
Sincerely,
Mike Hall
Chief Executive
The Stanley Gibbons Group plc
PS. Remember, there is no downside and unlimited upside when you invest in our Capital Protected Growth Plan. I'm not sure how long it will be before this product reaches full subscription.
I suggest you act quickly if you want to protect your capital in a tangible asset with a long term history of strong price appreciation.