Your Cash Invested In A Well Managed Business - Stanley Gibbons has enjoyed an 8-year period of growth in profits. We have grown our net asset base by 167% from the year 2000 to 2008.
What is more important to you is how we make a return on your cash.
The first thing that happens when we take your investment is that we reinvest that cash into our business, mainly through the acquisition of new quality rare stamps and historical signatures. We make an average return on capital of 25% per annum which you will appreciate is far in excess of the 3%, 4% or 5% we guarantee to you on your investment contract.
What this means is that we can turn a £100,000 investment into £300,000 in cash over a 5 year contract term. This gives us a huge margin of safety.
Your Cash Protected
However, we take further measures to protect your cash and to ensure that we can meet all our financial obligations.
During the course of your investment contract, we undertake to transfer monthly amounts into a "client reserve account" to ensure that, by the end of the contract, sufficient funds have been set aside to repay the minimum guaranteed amount to you.
To illustrate, if you invested £100,000 with us on a 5 year contract guaranteeing a minimum return of 15% in 5 years time, we transfer £1,917 per month from the date of your contract into the "client reserve account". That means that at the end of your contract the money required to pay your minimum return is sitting with your name on it waiting for you.
Banks could have learned a lot from us!
But The Underlying Assets Pay For The Guarantee Anyway
Everything above is only added security. In reality, we fully expect your investment in rare stamps or historical signatures to appreciate in value by more than the minimum guaranteed return.
Thus, the minimum guarantee is financed out of the underlying increase in the value of the assets invested in. Consider the guarantee as an insurance policy.
During 2008, 3 year contracts written in 2005 expired. The value of those investment portfolios were, in all cases, higher than the minimum return guaranteed. In many cases, those investors chose to reinvest with us without any guaranteed returns.
Remember that rare stamps have never declined in value in any 5 year period over the past 50 years.
Your ultimate protection is that you own a valuable tangible asset.
Click here for some example returns and to request more information or contact us by email at investment@stanleygibbons.co.uk or by phone +44 (0) 1481 708 270.