Stanley Gibbons Chief Executive, Mike Hall, explains why rare stamps and autographs could be the best investment you've never heard of: Why rare stamps and autographs are the perfect, safe, alternative asset with distinct tax planning advantages; returns you can expect in the short, medium and long term and how to find out more about ’the best investment you've never heard of’.
Also gain insight into a relatively immature market believed by Mike to be ripe for the picking by canny investors...
Benefit from an investment product that everyone can get into - stamps
As Chief Executive of Stanley Gibbons, I am often asked, “Do you collect stamps?”
I always find this a bit of a tricky question to answer. The reason being, I got into buying stamps primarily as an investment. Many collectors look down on me for this reason.
However, although I started buying stamps as an investment, I ended up developing an interest in what I was buying.
Consequently, I am now specific on the items I want to purchase for my collection. I am trying to build a collection of what I consider “the most attractive stamp designs in the world in the best condition I have ever come across”.
This isn’t an easy collection to build. The vast majority of stamps that come onto the market are not of the quality I am looking for. But, quality is the number 1 priority when considering stamps as an investment and a long term store of value.
Anyway, let me get to the point…
What I wanted to do was to introduce a product that enables collectors to share in some of the unique benefits our investment clients enjoy.
I appreciate that not everyone has the minimum investment of £10,000 required to enter our rare stamp investment programmes. So what I have done is create a new product accessible to everyone…
For a minimum initial investment of £1,000, followed by a minimum monthly direct debit of £100 (or £300 per quarter) you can build a stamp collection with long term investment potential, enjoying some of the guarantees on re-purchase by Stanley Gibbons normally only offered to larger investment clients.
There is no limit to how much you can invest. The higher your monthly direct debit contributions, the quicker you will build a rare stamp investment portfolio of significant breadth and value.
“Portfolio Builder” investment service
With this service, you can select the stamps you want for your portfolio from our listing of recommended investment grade items. We select only stamps that we consider have the best opportunity of good long term investment returns.
Now you can make easily manageable payments into our investment plan, providing you the opportunity to put aside part of your pension plans into an asset that you can really enjoy.
The great benefit of rare stamps as an investment is that they are not subject to the systematic pressures prevalent within traditional investments such as equities and property. We are now living through proof of that fact right now.
The Portfolio Builder allows you to create an investment that suits you over a period of time that you are happy with.
There is no tie in period or long term contract, although we would recommend an investment holding period of at least 5 years. That gives you enough time to benefit fully from increases in value within the rare stamp market and to build up a valuable collection.
Stanley Gibbons will offer guidance on the type of material that we feel is appropriate for investment. Ultimately, though, this is your portfolio and if you prefer you can personally select the stamps you want to purchase within this plan from our listing of investment grade items.
In addition to other collections you may have, this is your chance to build a valuable stamp collection as a part of your pension fund and create a family heirloom to pass on.
Build Your Own Collection
This service allows collectors to take the stamps home with them if they wish. That way you can build and enjoy your collection whilst it goes up in value.
You can choose to specialise in one or more specific areas if you wish to focus on areas of the market where you have an interest - One client recently retired from shipping and has built his collection around a marine theme!
There is another hidden benefit to this service…
You can reserve items up-front which you would like to purchase for your collection provided that the cost will be covered by no more than 12 months of direct debit payments. In other words, you have the added advantage of up to 12 months interest free credit payments on your purchases.
Quite simply, I believe this is the best product I could possibly offer to collectors.
Manage Your Tax Liability
Because rare stamps are a tangible asset, investment returns are treated as a capital gain for tax purposes. The current rate of Capital Gains Tax in the UK is 18%. The first £10,100 of capital gains in any tax year is exempt, and therefore tax-free.
One of the key benefits of the Portfolio Builder service is that you can choose to sell a part of your collection at any time. This provides you with the flexibility to manage your tax liabilities by selling a part of your portfolio up to the tax-free threshold each year (or £10,100 per annum).
Furthermore, with a joint investment with your spouse you can double the value of this tax exemption giving you the opportunity to create tax-free gains each year of £20,100.
How To Proceed
Subscribing to our Portfolio Builder service couldn’t be easier.
Once you are happy with the terms and conditions, there are 3 easy ways to order:
1. Call us on +44 (0) 1481 708270 or +44 (0) 20 7557 4430 and our sales advisers will be happy to discuss your requirements.
2. Complete the online application form by following the link below:
Click here to subscribe to our Portfolio Builder service
3. Read the full report on this product and complete the application form, then send it back to us at the following address:
Stanley Gibbons (Guernsey) Limited,
18-20 Le Bordage,
St Peter Port,
Guernsey, Channel Islands
GY1 1DE
Click here to read report on Portfolio Builder service
P.S. Remember that you control your investment at all times. Although Stanley Gibbons will guide you in the type of items you should be looking to place in your portfolio, ultimately this will be your portfolio, and you can have the final say in building your own collection.
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27/11/09 The popularity of investing in rare stamps continues to grow
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17/11/09 4 Easy Ways To Protect and Grow Your Capital - Stanley Gibbons
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06/11/09 Frasers Rarities Index continues to outperform FTSE 100 and UK House Price Index
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27/08/09 Colour trials lead to a plum investment
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