I'm just back from China, having secured a supply of investment grade stamps exclusively for you...
I am just back from a fascinating business trip in China.
Before I share some of my experiences with you, let me get straight to the point, as you don’t have long if you want in on this…
I have secured a very limited and perhaps one-off supply of investment grade stamps from China. I don’t know if I will ever manage to do this again. I will explain later why it is so hard to get your hands on this kind of material.
I will soon be taking delivery of a fine collection of Chinese stamps.
In China, demand continually outstrips supply. Despite this, I have managed to get my hands on a collection worth approximately £1 million. Without our brand name, I would not have stood a chance…
The only reason I managed to secure them, is that my supplier is keen to build a long term business relationship with us - the biggest stamp brand in the world. Otherwise, they would have told me what they say to every other stamp dealer looking for this kind of material: “Join the queue: you can bid at our auctions”.
<Click here to register your subscription to a Chinese stamp investment portfolio>
Every stamp auction in China seems to set a new record price. It is not unusual for stamps to double in value between one auction and the next.
Take the complete sheet of 80 Year of the Monkey stamps from 1980 (illustrated below). Six months ago, this realised HK$500,000 (around £44,000) at an auction in Hong Kong. Last week, it realised RMB$990,000 in Beijing (over £100,000)! That’s more than double your money.
This is not a one off…
A month earlier, an example of this sheet realised HK$1.07 million, at an auction, again in Hong Kong.
I could literally give you dozens of examples of this kind of performance, but I’m sure you get my point.
I don’t know whether the market will continue to rise at this rate but if you are a believer in the principle of momentum investing – this is it.
I’m offering you a rare opportunity to get into the hottest area of the worldwide stamp market. I’m delighted to have achieved this for you.
The dynamics of the Chinese stamp market
During my recent trip to China, I spoke to many dealers, auction houses, price catalogue publishers and stamp retailers. The story was the same wherever I went:
“This market is hot and shows no signs of cooling.”
Enough hyperbole - let me share with you some facts from my investigations…
I managed to get to the heart of what is driving prices of Chinese stamps to ever increasing new levels right now.
Firstly, there are 20 million stamp collectors in China (or thereabouts) although they are still what I would categorise as the “immature collector”.
Their collecting habits involve taking stamps off envelopes, buying them from the post office and picking them up in bundles at stamp fairs then sticking them in an album. There’s not a lot of money in this market right now, as those collectors don’t spend much on their collections.
Once upon a time, the UK market was just like this. But, what happened was collectors “matured”, became more knowledgeable, and started to appreciate the importance of buying quality to create a valuable collection. That’s when the money comes into the market.
It seems inevitable that over time this vast number of collectors will begin to mature and have a major impact on the stamp market, not just in their home country, but worldwide.
For now, the consensus with those I spoke to was that there are around 1.2 million specialised collectors in China. Not a huge market yet still much bigger than the UK market. This is a market that is already active and having an influence on prices there.
It gets much more interesting though…
By far the biggest element of the Chinese stamp market, creating unprecedented levels of demand at this time, is the tradition of purchasing stamps as a souvenir or gift for good service or loyalty. A gift that will appreciate over time, they recognise a tangible asset when they see one.
Imagine opening up an Argos catalogue and seeing four pages devoted to stamps. That’s exactly what they have in the Chinese equivalent. This market is huge…
Stamp collecting will always be a niche market. But, when stamps become of interest to everyone in China, you are then looking at a potential market comprising 1.5 billion people.
It is no surprise then that demand exceeds supply. The biggest difficulty facing the Chinese stamp market right now is finding the supply.
Coming soon: The China 100 Index
I am currently working with a philatelic expert in China to compile an index of Chinese stamps (similar to our SG100 and GB30 Rarities indices already published on Bloomberg).
The index will include a mixture of both modern and classic issues covering a broad range of collecting areas, including those stamps purchased as gifts.
We aim to publish a backdated 10 year performance history to show prospective investors historical returns in this market.
Following publication of the China 100 index, we expect to create a new dimension to the dynamics in the market. Once the information is out there, we are likely to see a substantial uplift in interest from the investment community looking for a tangible asset in a strong market. A rare find in today’s economic climate.
I write to you now to give you the chance to get in early before the market really takes off…
How to subscribe
As mentioned earlier, the total value available is restricted to £1 million.
Because of this restriction, I cannot promise that we will be able to supply you with the full amount that you request. If demand is high, I will need to spread availability to ensure that everyone can at least get in the door.
I hope that, as I nurture my relationships in China, I will be able to source more material from China in the future. Unfortunately, the very thing that makes it a good investment – demand outstripping supply – makes it inherently difficult to obtain.
Please complete the online subscription form below providing your details and total value you would like to invest. Alternatively, e-mail me at mhall@stanleygibbons.co.uk to place your order.
<Click here to pre-order your Chinese stamp investment portfolio>
You have 7 days to subscribe. After 7 days, the door closes and I will allocate the portfolio to those registered.
We will be in touch with you in 7 days to let you know whether you have been successful in securing your total investment requested.
This is the first time I have been able to offer the opportunity to our investors to get into the Chinese market. Historic investment lessons tell us that you are better to be one of the first, than one of the last.
One final point…
Until I take delivery of these stamps and have them inspected by an independent expert, I cannot yet guarantee that they will pass our quality control checks. As a result, I must warn you in advance that this offer may fall through. But, this doesn’t stop you registering your pre-order to make sure you get in.