...and see our special offer detailing how they can earn an extra 1%pa before 30 June 09

1 - Rare stamps have been considered an important asset class for over 100 years.

Stamps have been collected ever since 1840, when Great Britain issued the Penny Black, the world’s first stamp.

Wealthy families and many of the Royal dynasties of Europe, have regarded rare stamps as a store of wealth - including the Rothschilds, the Roosevelts, the DuPonts, the Czars of Russia, the Rainiers of Monaco and the British Royal family.

Today, the Royal Philatelic Collection of Her Majesty Queen Elizabeth II is the most comprehensive collection in the world, and the Queen’s largest personal asset.

2 – Weight for weight, stamps are the most valuable commodity on Earth.

Many stamps regularly fetch over $1 million at auction.

The most expensive stamp, at $2.97 million, is the 1868 1c Benjamin Franklin Z-grill, owned by US fund manager Bill Gross – closely followed by Sweden’s unique Tre-Skilling Yellow.

3 – An estimated 50 million stamp collectors worldwide spend $10-15 billion per annum.

In the UK and North America, philately is seeing a resurgence of interest amongst the Baby Boomers with more disposable income and time on their hands, returning to their childhood hobby.

Stamp collecting is extremely popular in Asia.  A recent stamp exhibition is China attracted 750,000 visitors, and in the Indian sub-continent, philately is a well-respected hobby among the professional middle classes.

4 – Rare stamps have outperformed mainstream investments.

The Stanley Gibbons GB30 Rare Stamp Index tracks the values of 30 of the rarest Great Britain stamps.  Since 1998, this index has outperformed property and stock markets around the world, and even gold.

5 – Rare stamps are a very stable investment, even during a recession, and show no correlation to more traditional asset classes.

In 2008, the GB30 Rare Stamp Index was up 38.6% - at a time when virtually every other asset class was showing huge losses.  The same index has averaged 9.9% p.a. over the past 50 years and, in that time, has never fallen in value.

This is because the vast majority of stamps are owned by collectors, not investors – and collectors do not rush to sell their stamps at the first sign of an economic downturn.  On the contrary, stamps tend to stay in the same collection for 20, 30 or 40 years, which makes rare stamps a very stable investment.

The Great Depression saw one of the greatest explosions in stamp collecting, especially in the US.  President Roosevelt was a very keen stamp collector, and inspired by him, millions of Americans took up the hobby.  Thousands of stamp dealers started up in business during this period, and hundreds of clubs and societies were formed.  As a result, stamps have long been considered recession-proof.

This has been borne out by recent auctions realisations.  Even in the current economic conditions, rare stamps continue to achieve record prices at auction, with $ millions being spent by collectors every week.

6 – Guaranteed Returns, with unlimited upside

Stanley Gibbons is confident that rare stamps will continue to show great returns over the next 5, 10, 15 years and more.  So much so, that we are offering our investment portfolios with guaranteed minimum returns: 4% p.a. for 5-9 year contracts, and 5% p.a. for 10 years or more.

This means that over an investment of 5 years, your clients can expect a minimum guaranteed return of 20% - or 50% over 10 years.

Investment-grade stamps have typically been showing returns of 10-15% p.a. over the past few years – so we expect these minimum returns to be exceeded over 5-10 years.  Catalogue prices for some stamps have increased over 45% p.a. in the past 5 years.  So the actual returns your clients will see are truly unlimited.

How can Stanley Gibbons offer these guaranteed returns?

• As leaders in this field for over 100 years, Stanley Gibbons has intimate knowledge of the rare stamp market.
• The guaranteed returns we offer (4-5% p.a.) are actually quite conservative, compared to typical returns from investment-grade stamps (10-15% p.a.).
• We only offer guarantees on the rarest stamps in superb condition.  To illustrate, we have 2-3 million stamps in stock, available to collectors; but typically, at any one time, fewer that 200 are recommended for investment.

7 – Currency diversification

Our stamps are priced in GBP, so if your clients are investing in Euros, US dollars or most other currencies, this is a great time to diversify into British pounds.

Although GBP has strengthened over the past few months, exchange rates are still up to 20% less than a year or so ago.

Consider, for example, the cost of a £10,000 Portfolio:

Remember, GBP is getting stronger, so make sure your clients don’t wait too long!

8 – No management fees or annual charges, and free storage and insurance

Investors do not pay any premium when purchasing a rare stamp portfolio.  All our stamps are listed on our website, and priced according to our catalogues – so the price your client pays is exactly the same as any collector pays.

Investors are welcome to take possession of their stamps, but more choose to take advantage of our free storage and insurance for the duration of the investment.

9 – Annual valuations, available on-line

Your clients will receive full proof of ownership, including a contract signed by our Directors, an itemised invoice and full colour scans and descriptions of the stamps they own.

You and your clients can also access the portfolios on-line, with a secure user name and password.  Valuations will be updated annually, based on the most recent published catalogues.

10 – Expert advice, from the market leaders

Edward Stanley Gibbons established the company in 1856, over 150 years ago.  In 1914, King George V awarded Stanley Gibbons Ltd with the Royal Warrant and we have been Philatelists to British monarchs ever since – the only stamp dealers to have that honour.

Stanley Gibbons today is a public company, with shares traded on the London Stock Exchange Alternative Investment Market.  More importantly, Stanley Gibbons is a debt-free company.  Our Annual Reports are available to download here.

As well as retail premises in London, Stanley Gibbons has investment offices in Guernsey, Channel Islands, which may be useful if your client can benefit from offshore investments.

We know that there are many thousands of stamp dealers around the world, but no other dealer can offer the complete service to collectors and investors: expert advice of selecting a portfolio, lifetime guarantees on any item purchased, regular valuations, and a range of options for selling at the end of the investment.

In summary:

• I believe that rare stamps and collectibles are one of the most undervalued asset classes around today.  Compare the price of the world’s most expensive stamp (under $3 million) to antiques and paintings which regularly sell for $10 million or even $100 million.
   
• One third of the 50 million or so stamp collectors in the world are in China.  These Chinese collectors are only now being allowed access to stamp dealers in the West, thanks to the world wide web, eBay and credit cards.  I believe that the next 10-15 years will see an explosion in demand for collectibles from China, with India not far behind.
   
• Rare stamps have proved to be one of the most stable investments over the past 50 years, and show no correlation with mainstream asset classes.  What is more, with the guaranteed returns on offer from Stanley Gibbons, I believe there is no better way to diversify your clients’ investments.

Stanley Gibbons is happy to work with Financial Service Providers, Investment Advisers and Agents in the UK, Europe, North America and Asia.  Remember – we pay 5% commission on all our investment products.

If you think we can help, or if you would like further details, please contact me today!

Geoff Anandappa
Investment Portfolio Manager
e-mail: ganandappa@stanleygibbons.com
tel: 020 7557 4442 (intl. +44 207 557 4442)

P.S.  As a special offer until 30 June, we are offering an extra 1% p.a. on our rates, which means a guaranteed minimum 25% over 5 years or 60% over 10 years.  This offer is available via our Agents and Financial Advisers and will not be publicised on our website.  So contact me NOW to secure this great deal for your clients!

P.P.S.  More information on our investment products is available on our website.  If you would like to see a 15 minute video presentation, please click here.