Investing in Stamps

According to the Proactive Investors Web site, "Rare stamps and autographs are the only investment that's risen in value every year for the past 50 years."

They quote Stanley Gibbons Chief Executive, Mike Hall, who explains, "...why rare stamps and autographs could be the best investment you've never heard of: Why rare stamps and autographs are the perfect, safe, alternative asset with distinct tax planning advantages; returns you can expect in the short, medium and long term."

Hall is quoted as saying, "“I would recommend investors allocate around 10% of their wealth into alternative assets which can help to produce more stable overall long term returns. Rare stamps and signatures provide the perfect mechanism to achieve this, being a tangible asset with a value embedded in history."

He goes on to say, "An investment in rare stamps and signatures should be considered as a medium to long term investment and we would recommend a minimum investment term of 5 years. Short term gains are possible depending on movements in the market for rare stamps as a result of 3rd party auction realisations."

Rare stamps have increased in value by an average annual compound growth rate of 10% in the past 50 years. Probably more compelling is that rare stamps have never gone down in value at any time during the past 50 years according to the article.

Also, an investment in rare stamps and signatures is an investment in a tangible asset and the profits represent a capital gain as a chattel. This provides distinct tax planning advantages.

Halls says, "My recommendation is to focus only on rare stamps in premium condition which historically have always achieved the best returns at auction. Condition is all important when considering investment merit."

Stanley Gibbons, stamp dealers and publishers since 1856, diversified into collectibles and memorabilia in 1990 with their acquisition of Fraser’s Autographs and began offering alternative investment portfolios in 2003.

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