China’s stamp of approval
April 2010. Stanley Gibbons reports that China now has approximately 50,000 philatelic associations comprising 20 million stamp collectors. This is nearly one third of all stamp collectors globally. Stanley Gibbons reported pre-tax profits of £4.1million ( 31 Dec) up from £3.7 million twelve months previous.
In January 2010 MSN Money published a report “Things that beat the property boom”, listing stamps as one of the asset class that demonstrates a higher growth rate than real estate.
Stanley Gibbons claims the value of stamps has risen every year for the past consecutive 50 years.
Stanley Gibbons profits up 13%
Stanley Gibbons reported a 13% rise in pre-tax profits to £1.4m for the first half of 2009. Recent success is evidenced in their June stamp auction which brought in £650,000 compared with £500,000 last year. Stanley Gibbons may also launch a rare stamp fund in the first quarter of next year after recognising a demand from institutional investors. According to an article in The Times, British, British colonial and 19th-century Eastern European stamps are currently in favour, with stamps in general still performing well. However, collectors are more cautious with regards to condition and anything that is considered in poor condition is not doing well.
Last year saw stamps maintaining their value, although prices flattened out during the latter half of the year. The SG Index rose by 3.4% in 2008 whilst the FTSE 100 was down 31.3%. Despite the credit crunch, rare and top-quality pieces, in particular, gained in value. A new world auction record was made for a Russian philatelic item when a unique Imperial Russian cover with stamps from 1857 and 1858 sold for €1.3 million. Like other Emotional Asset markets, the upcoming auctions in the early part of this year will see how stamps are faring in this deteriorating economic climate.
Source: Stanely Gibbons
David Feldman, a Geneva philatelic specialist, is launching a rare stamp fund this year. Feldman believes unique stamps are a sound investment and states that rare stamp prices are not subject to large movements and are supported by ‘passionate’ collectors.
Tangible assets have been gaining attention during the economic crisis as a more robust investment in this environment. Feldman’s firm also runs an auction facility out of their Geneva location.
