Exclusively for US investors
I’ll get straight to the point…
You will already have heard of our Guaranteed Minimum Return Contracts.
In the current low interest rate environment, it’s difficult to refuse a guaranteed return of at least 4% per annum over the next 6 years.
However, there is one added variable for US investors…
We are a UK company so you are investing in an asset denominated in British Pounds. That means movements in exchange rates over the next 6 years have a potentially large impact on your actual returns.
You might not want to take that risk. Or, you might think a stronger pound against the dollar in 6 years time is a good bet.
Either way, I have two options specifically for US investors today:
Option 1
If you think the pound will strengthen against the dollar over the next 6 years:
Take out a guaranteed minimum return contract to multiply your total returns. A minimum return of 24% over the next 6 years could become 36% (or 6% per annum) if the pound/dollar rate reverts to its 6 year historic average by the end of your contract.
Option 2
If you are worried that the pound might weaken further against the dollar over the next 6 years or just don’t want any exchange rate risk:
Take out a dollar contract with a fixed rate of exchange on investment protecting your guaranteed minimum return even if the pound goes down. 4% per annum means 4% per annum, plain and simple.
This means Stanley Gibbons takes the exchange risk for you. Well actually, we pay to hedge our exposure but there is a cost to us to offer this service. As such, we can only offer a very limited amount of dollar fixed exchange rate contracts to our US investors.
If you want to protect your capital over the next 6 years and guarantee a minimum return of 4% per annum, I suggest you fill in our online application form now to ensure you do not miss out:
Click here to apply for a guaranteed minimum return of 4% per annum over the next 6 years – dollar contract
Remember 4% per annum is your minimum return. Actual returns could be a lot higher. Your timing to invest in the collectibles market couldn’t be better.
Your investment is in a tangible asset (rare stamps and/or signatures). We expect the value of the assets you invest in to go up by more than the minimum return offered over the next 6 years. It is a business bet we are willing to make.
Historically, collectibles as an asset class have delivered the highest returns:
- In times of high inflation – many economic commentators believe this is the biggest single risk facing the US and UK over the next few years
- During recessionary periods – when investors lose faith in all other asset classes, new money flocks into collectibles as investors seek to protect their wealth in tangible assets
- When interest rates are low – money needs to find a new home when the banks fail to deliver their fundamental service (ie. giving savers a return on their cash). Some of that money finds its way into collectibles. Collectors spend more on their hobby as money in their bank is worthless, pushing prices in the market upwards.
Your timing is right and you don’t need to worry about exchange rates with our fixed dollar rate contracts.
Or multiply your potential returns…
Alternatively, you can take the exchange risk yourself…
Investing in UK assets is cheaper for US investors than it has ever been in recent history.
Buying into a weak pound is no different from buying something at a discount. You get the same asset for less money.
The chart below illustrates the 6 year historic movements in the pound against the dollar:
The average rate of exchange between the pound and the dollar over the past 6 years was $1.82198 = £1. At the time of writing, that’s 10% higher than it is today.
The highest the pound reached against the dollar in the past 6 years was $2.105 = £1. That’s 27% higher than today.
It gets interesting when we look at the potential returns for a US investor signing up to a 6 year guaranteed minimum return contract today for $100,000:
|
Scenario
|
Initial investment ($)
|
Initial investment (£)
|
Minimum value in 6 years (£)
|
Minimum value in 6 years ($)
|
Your minimum return (%)
|
|
Pound/dollar rate remains unchanged
|
$100,000
|
£60,170
|
£74,611
|
$124,000
|
24%
|
| |
|
Pound reverts to 6 year historic average against dollar
|
$100,000
|
£60,170
|
£74,611
|
$135,939
|
36%
|
| |
|
Pound reaches 6 year historic high against dollar
|
$100,000
|
£60,170
|
£74,611
|
$157,056
|
57%
|
Should the value of the pound revert to its 6 year historic average against the dollar, the 6 year return would increase to 36%, (or 6% per annum).
Taking a more optimistic scenario, should the value of the pound reach its 6 year historic high again, your minimum return would increase to 57% (nearly 10% per annum).
To subscribe to a 6 year guaranteed minimum return contract at 4% per annum:
Click here to apply for a guaranteed minimum return of 4% per annum over the next 6 years – pound contract
The Choice Is Yours
All you need to decide now is whether you want to take a foreign currency exposure risk. An effective bet against the strength of the British Pound in 6 years time.
If you don’t want to take that risk, then subscribe to our fixed dollar rate contract, securing your 4% minimum return over the next 6 years, with peace of mind.
Please call us on 0845 026 7170 and our sales advisers will be happy to discuss your investment requirements.
Alternatively, you can email me at mhall@stanleygibbons.co.uk and leave me your details so that we may get back to you.
PS. It would probably cost you at least 10% of the value of the contract to hedge your currency risk yourself. Stanley Gibbons are offering you this service FREE.