I have only ever encountered one problem in offering rare stamps as an alternative investment...
The majority of people accept the collectibles market will be a boom market over the coming decades.
After all, the world is getting older; more & more people are resuming childhood hobbies.
New markets, where hoarding and collecting are second nature, are opening up in India and China, on huge scales.
Investors appreciate the huge demand for the product.
They also appreciate the product, by its very nature, is in limited supply.
In fact; supply is actually diminishing as major collections are donated to museums, unlikely to be seen again on the open market.
The majority of investors with common sense will at least appreciate that the collectibles market offers a compelling investment argument.
However, back to the one problem I have encountered...
Probably best summed up at an exhibition we attended in London two years ago. It was at a Day-Trading and Property Investment Expo.
The Day-Traders turned up with their snazzy presentations explaining how to make 30% returns in a week.
Wow, it turns out all you needed to do to make 30% was buy their trading software for £1,000 ($1,780).
The property developers were selling buy-to-let flats at reduced prices.
Wow, what kind people to sell at hugely discounted prices just for little old me, they must have really liked me to give me that offer.
I seem to remember one even said 'I can do a special deal just for you' within 5 minutes of meeting me. He was my favorite; he must have really liked me.
Meanwhile our exhibition stand was pretty much empty; we probably spoke to a dozen people, tops, on the first day.
You see, Stanley Gibbons doesn't make any outlandish claims. Our offer of a guaranteed minimum +25% capital gain over 5 years was the lowest in the exhibition hall.
"I can make that in the bank" said one. (Let's hope he wasn't with Landsbanki)
I replied "Yes, but with our investment you would benefit from an unlimited upside, for example if rare stamp prices double in value over the next 5 years you'll make far more than the 25% we guarantee. It's all about diversification."
Another said, with a straight face, "I'm looking for guaranteed returns of 50% per annum".
"Good luck, and let me know if you find them" I replied.
One man did give us the time of day and listened intently to our investment philosophy.
He listened as we explained the growing worldwide demand...
He nodded approvingly when we explained the historic returns from the collectibles markets.
However, before I was given the opportunity to explain the diversification benefits of this type of investment he muttered:
"But stamps, they're just not sexy are they?"
...and he walked away to the newly established Bulgarian property company offering 'projected capital growth of 25% over the next year'
"Not sexy".
It's the only problem we have ever encountered whilst making our case 'why you should invest in collectibles'.
Some investors do not deem rare stamps 'sexy'.
It's time they reconsidered... after all; 'safe and secure' should appear on your investment criteria before 'sexy'.
My colleague, Mike Hall, recently told you how the GB30 rarities index, which tracks the 30 rarest British stamps, is up 38.6% in the last year.
Plus 38.6%: whilst the stock-market and housing markets have capitulated.
38.6% seems pretty 'sexy' to me.
Besides, I've heard all of these arguments many times but there is one fact people fail to appreciate.
Stanley Gibbons has been in business for over 150 years. We have not been around for over 150 years by acting irresponsibly.
I wonder how many of the property investment companies from that Expo, two years ago, are still trading?
I wonder how many Landsbanki clients are looking back, saying "I guess it was too good to be true, investing in a bank I'd never heard of just because they offered the best rate of return"
Obtaining hindsight can be an expensive journey.
Jumping on the shirt tales of the next hyped stock, expecting property prices to escalate forever... the times of easy money have gone.
Now it is as important to protect your wealth, as it is to see it grow.
The truth is collectibles investments are a proven way to diversify your wealth.
It's never too late to diversify, to protect and grow your wealth.
In our mind there is no better place to do it than in the rare stamp market, where demand far outstrips supply.
In simple terms: more people collect stamps than anything else on earth.
But be quick: our rare stamp investment contracts have never before been in such demand, so I recommend you contact us sooner, rather than later.
Current availability on the 5 year contracts (guaranteeing a minimum 25% return in 5 years) is now extremely limited, and filling up fast.
Contact me for more details.
We can also cater for a handful of 3 year 4% contracts; these return a minimum 12% capital gain in 3 years time.
And remember, the 12% capital gain is the minimum you'll receive, the upside is unlimited.
The first to apply will qualify.
Call on +44 (0)1481 708 277
Email aroose@stanleygibbons.co.uk
Toll Free from the USA 1 866 644 6146
Regards
Adrian Roose