2008 5 Year Contracts Approach Full Subscription: Only £120,000 Remaining
Dear Reader,
It is no surprise to me that we have experienced record demand for our guaranteed minimum return investment contracts.
Pretty much everything that could be in our favour is in our favour at this time:
- Base Interest rates in the UK at 2% means the return from savings accounts is below inflation
- Lack of confidence in the security of financial institutions
- Stock market volatility with expected declining earnings during recession
- Record low level in the value of the pound against all other major currencies allowing foreign investors to effectively "asset strip" the UK at this time
- External evidence from major philatelic auctions this year has demonstrated that the market in rare stamps remains strong during this difficult period in economic history
Surely, This Investment Guarantee Is Too Good To Be True?
The main objection or concern from potential investors in our guaranteed minimum return investment product is that some people don't believe it is possible...
How can a collectables company offer a guaranteed minimum annual return double that you could get from a bank?
The answer is quite simple...
The assets you invest in (rare stamps and historical signatures) should rise by more than the value of the minimum guarantee we offer.
I can understand that in the current economic climate investors may need further reassurance.
The main questions most investors want answered are:
- How secure is the Company "Stanley Gibbons"?
- Why are rare stamps and historical signatures a good investment at this time?
- How secure is my guaranteed minimum return
I will briefly tackle each of these questions in turn...
1. Stanley Gibbons' Financial Strength
Stanley Gibbons is a highly profitable, cash generative company...
We have sufficient funds to meet our forecast working capital requirements and capital expenditure plans in the foreseeable future.
The business has a strong capital base underpinned by the biggest stock holding in the world of rare stamps and historical signatures with a total current value of approximately £20 million.
Our recent half year results shows Stanley Gibbons is financially sound with a rise in earnings after tax of 23% on the same period last year during a period in which many other businesses have reported trading difficulties, particularly in the retail, finance and investment sectors.
Stanley Gibbons has achieved a sustained growth in earnings of more than 20% per annum since its listing on the London Stock Exchange in August 2000.
Stanley Gibbons is the biggest, and perhaps the only, brand name in its field and has been trading for over 150 years. As such, Stanley Gibbons has experienced and prevailed through previous recessions in history.
2. The Strength Of The Stanley Gibbons Investment Products
The unique benefit of investing in rare stamps and historical signatures is that historically they have shown no correlation with any other asset class. This is true diversification...
Rare stamps and historical signatures have continually risen in value over the last 50 years.
Rare stamps and historical signatures have performed well in previous recessionary periods. History shows that in periods of economic turbulence, there is a heightened interest in "alternative investments" which includes rare stamps and signatures.
Rare stamps show some unique qualities including the fact that they have such a well established market, an established guide to the values (the Stanley Gibbons Catalogue) and are readily transportable. Consequently, rare stamps have always been a favourite "alternative".
It is also VERY IMPORTANT to understand where Stanley Gibbon's catalogue prices come from. Prices for rare stamps are predominantly from third party auction realisations, which are the INDEPENDENT MARKET PRICE, not our opinion.
Prices in the majority of asset classes are driven by the motivating factors of "greed" and "fear." A "passionate" base of collectors drives the market in rare stamps and historical signatures.
More people collect stamps than anything else on Earth.
The defensive investment qualities are therefore far superior in the stamp market than in say, fine art. It is an important point to understand that the "passion" of collectors ensures that demand prevails during difficult economic conditions.
3. The Security Of The Stanley Gibbons Investment Products
First and foremost, an investment in rare stamps and historical signatures represents an investment in a tangible asset. In time of economic turbulence, there is a natural tendency for investors to gravitate towards tangible assets.
We expect rare stamps and historical signatures to appreciate in value over time by an average of 10% per annum on a compound basis. The performance of underlying assets you invest in should be more than the guaranteed minimum return over time.
During 2008, our 2005 3-year contracts expired. The underlying assts, in all cases, beat the minimum return. In many cases, those investors chose to re-invest with us without any guaranteed returns.
We have a growing database of satisfied investors all sharing in the returns available from the highly lucrative collectables market.
The Directors have imposed internal limits on the value of sales permitted each year containing buy back guarantees at a level appropriate to the size, asset value and liquidity of the business.
We will take further measures to protect your cash. During the course of the contract, we undertake to transfer monthly amounts into a "client reserve account" to ensure that by the end of the contracts sufficient funds have been set aside to repay the minimum guaranteed amount to you.
In the highly unlikely event that the Stanley Gibbons Group were to cease trading or become insolvent, as an investor in one of our guaranteed minimum return investment contracts, you would not lose your investment but simply the guaranteed return. In this circumstance, investors would take personal ownership of the underlying assets which they could dispose of personally.
It is vitally important to me that our investors feel confident about Stanley Gibbons and the enduring security and quality of our guaranteed minimum return investment contract offer. Not only are our investment contracts a useful means of securing your wealth but also offer an attractive investment opportunity during this difficult time.
Unfortunately, part of that security entails that we must restrict the subscriptions permitted to our guaranteed minimum return investment contracts. As a result of the record levels of demand experienced over the past month, we will soon be closing our 5 year guaranteed minimum return investment contracts which currently secure a guaranteed minimum return of 20% in 5 years time.
We have just £120,000 remaining. Once they have been taken up, the 5 year contract window will close. To subscribe to a 5 year guaranteed minimum return investment contract guaranteeing a minimum return of 20% in 5 years time, please complete the order form in the link below:
Click here to order a 5 year contract
Alternatively, if you would like one of our advisers to give you a call to discuss options further, please complete the contact request form in the link below:
Click here to request contact from
one of our advisers
There are very few certainties in life...
So, when you are presented with a guarantee which is quite obviously genuine and backed up by economic facts, it is an opportunity worth grasping.
Sincerely,
Mike Hall
Chief Executive
The Stanley Gibbons Group
PS. I take this opportunity to wish all our readers and investors a Merry Christmas and a prosperous New Year. Collectables looks set for another strong year in 2009. With the International Stamp Show coming to London in 2010 the stage is set for exciting times ahead.