But... you have 5 days to get in before rates come down
Dear Reader,
The Stanley Gibbons Board of Directors met this morning.
During that meeting, we discussed what to do with the guaranteed minimum return rates offered on our investment contracts. It was a difficult decision to make...
We tried to balance the fact that the rare stamp market continues to grow, providing sufficient growth to support the guaranteed returns. However, we also needed to consider the fact that interest rates in the UK are now 0.5%. This causes two issues for us:
Cash balances held in our Company only generate this return.
Minimum returns are overly competitive in current economic climate
The Board decided to reduce the minimum guaranteed return on our 5 and 6 year contracts by 1%.
The good news...
Guaranteed minimum return rates on 7 to 10 year contracts remain unchanged. That means a 7 year contract still offers a guaranteed minimum return of 4% and a 10 year of 5% per annum.
Stanley Gibbons Reduces Guaranteed Minimum Return Rates on 5 and 6 Year Contracts by 1%
The new rates available on our guaranteed minimum return investment contracts are as follows:
|
Contract Length
|
Minimum Guaranteed Annual Return
|
Min Value at end of term - £10,000 invested
|
Min Value at end of term - £25,000 invested
|
Min Value at end of term - £100,000 invested
|
Min Value at end of term - £250,000 invested
|
|
3 Years
|
3%
|
F u l l y s u b s c r i b e d
|
|
5 Years
|
3%
|
£11,500
|
£28,750
|
£115,000
|
£287,500
|
|
6 Years
|
3%
|
£11,800
|
£29,500
|
£118,000
|
£295,000
|
|
7 Years
|
4%
|
£12,850
|
£32,000
|
£128,000
|
£320,000
|
|
8 Years
|
4%
|
£12,800
|
£33,000
|
£132,000
|
£330,000
|
|
9 Years
|
4%
|
£13,200
|
£34,000
|
£136,000
|
£340,000
|
|
10 Years
|
5%
|
£15,000
|
£37,500
|
£150,000
|
£375,000
|
Interest rates in the UK have fallen by 2.5% to 0.5% since our last rate review.
The lowering of our minimum return rates on our 5 and 6 year contracts to 3% per annum still offer investors a return 6 times the current bank base rates.
On that basis, despite lowering the minimum return rates, our guaranteed minimum return contracts offer an even better investment mechanism to generate a safe return on your capital than ever before. This is thanks to the low interest rate environment we now live in which doesn't look likely to change anytime soon.
You Still Have One Last Chance to Bank an Extra 1% Minimum Return Per Annum
You still have 5 days remaining before the rates change on our 5 year and 6 year contracts. To clarify, you can enter into a 5 year contract by midnight BST on 30 June 2009 guaranteeing a minimum return of 4% per annum, representing a total minimum return of 20% in 5 years time.
If you order after 30 June, the minimum guaranteed return will reduce to 3% per annum, representing a total return of 15% in 5 years time.
I stress this is your absolute last chance to get in and to guarantee a minimum return of 8 times current UK bank base rates.
You don't need to have the funds available right now although we would expect to receive payment from you no later than 31st July 2009.
To bank the higher rate of return now, please complete the order form in the link below:
Alternatively, if you would like one of our advisors to give you a call to discuss options further, please complete the contact request form in the link below:
Don't forget that the guaranteed return is a minimum return.
Over the past 50 years, rare stamps have increased in value by an average of 10% per annum on a compound basis.
Some Food For Thought
I would like to stress that the minimum guaranteed return we offer is simply a statement of our confidence in the rare stamp market. We don't pay for that return. It is free to us...
The rare stamps you invest in pay for that return. We simply underwrite this for our investors to give peace of mind in a difficult economic climate.
Ironically, some investors don't believe that the minimum returns offered are possible. They think it's "too good to be true."
All I can say is that it is easy in life to find reasons not to do anything. You generally find though that successful people find the reasons to do the right thing and make money doing it.
We live in a time where people dwell on problems. What we need right now are solutions.
We offer you a solution to your personal financial crisis - that is how to get a return on your cash currently "decaying" in a bank savings account earning nothing whilst inflation erodes away at it relentlessly.
Current Investors Are Happy
Current investors in our Guaranteed Minimum Return Contracts are happy...
Investors who took out a 3 year contract in 2005 saw their portfolios increase by 28% on average over the 3 year period. The highest return achieved on a single portfolio was 75%.
All portfolios sold in 2005 increased in value by more than the guaranteed minimum returns offered by us.
I leave you with some positive feedback from our recent investment survey:
"Fine service."
"The guaranteed minimum return contracts are in a class of their own"
"This whole business is so much more exciting than buying shares or unit trusts! I collected stamps as we all did 50 years ago and I wish I had bought some higher values then! Your service is truly excellent"
"My point of view is if I had some funds I would invest in stamps as I have in the past. I will not entrust my money to those guys in striped shirts and braces who obviously have no idea what they are doing"
"I will be investing in one your stamp portfolios in the future. Until then keep up the good work and keep sending the email updates."
Kind regards,
Sincerely,
Mike Hall
Chief Executive
The Stanley Gibbons Group PLC
PS. There are now only £400,000 5 year contracts guaranteeing a minimum return of 4% per annum remaining. The door closes on this rate on 30 June 2009 or when all our 5 year contracts become fully subscribed, whichever comes first.
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