Are Stamps Recession Proof?

Rare Stamps & Collectibles
An Alternative Investment With A Difference!
Geoff Anandappa
Investment Portfolio Manager, Stanley Gibbons Ltd
“Who The Heck Collects Stamps?”
F D Roosevelt
Queen Elizabeth II
Geoff Anandappa
Bill Gross
Maria Sharapova
President Sarkozy
“Who The Heck Collects Stamps?”
$10-20
Billion
48 Million Worldwide
18 Million Chinese
Worldwide Collector Base
Europe & N America
• well organized societies & events
• research & publication
• 45+ age group
• high average spend
Worldwide Collector Base
Asia & Far East
• vast numbers
• younger age group
• increasing use of internet
• compulsive collectors
The Royal Philatelic Collection
Block of ten Penny Blacks,
used on 6 May 1840
2001 - £250,000
2010 - estimate £1-2m
1847 Two Pence
“Post Office” Mauritius
1904 - £1,450
2010 - estimate £5m
Bill Gross
$700 billion
USA 1868 1 cent Z-Grill
$2.97 million
The Inverted Jenny
Plate Block
The Bond King
is a stamp collector!
The William H Gross Collection
Bill Gross's British Stamps
Outperformed PIMCO Fund
“The manager of the world’s
largest bond fund stands to raise
$5 million from the stamps he
bought for $2 million.”
Linda Sandler
Bloomberg.com
The William H Gross Collection
22%
per annum
The Largest Known Block of Penny Blacks
$350,000 in 2001
Realised over $1.15 million
The William H Gross Collection
13%
per annum
Block of six 1840 Two Penny Blues, Unused
$30,000 in 1990
Realised over $240,000
The William H Gross Collection
14%
per annum
The Unique 1904 6d IR Official, unused
$180,000 in 2001
Realised over $400,000
The William H Gross Collection
34%
per annum
1869 6d Mauve Imprimatur
$4,000 in 2002
Realised over $17,000
The William H Gross Collection
It’s four times profit
– better than the
Stock Market!
Purchased for $2.5 million
Realised over $10.5 million
A Typical Stamp Collector…
John Lennon’s Stamp Album
sold to the Smithsonian for £30,000
Autographs & Memorabilia
Historical Documents & Autographs
Queen Victoria
£4,500
Marie Antoinette
£12,500
Abraham Lincoln
£15,000
Napoleon Bonaparte
£3,000
World War II
Benito Mussolini
£2,500
Winston Churchill
£5,000
Emperor Hirohito
£6,500
Adolf Hitler
£4,500
The Arts
Renoir
£4,500
Mark Twain
£3,750
Frank Lloyd
Wright
£2,500
Mendelssohn
£6,500
Historical Performance
Price Data since 1865
GB30 Rare Stamp Index
available on
Bloomberg.com
Comparative Performance
290%
no correlation
with mainstream asset classes
GB30 Rare
Stamps Index
240%
Gold
190%
US Property
Dow Jones
140%
90%
FTSE100 TRI
40%
-10%
-60%
1995
1998
2001
2004
2007
2010
The GB30 Rare Stamp Index
• consistent, sustained growth
40%
30%
• average 9.7% per annum
since 1954
20%
10%
0%
-10%
-20%
May-07
Jul-07
Sep-07
Nov-07
Jan-08
Mar-08
May-08
Jul-08
Sep-08
• never fallen in value in
50 years
• up 38.6% in 2008
• no correlation with
mainstream asset classes
Are Stamps Recession Proof?
The Great Depression
• stamp collecting flourished in
1930s, popularised by FDR
• prices and spending on
stamps continued to rise
throughout the decade
• many new dealers, shops,
clubs and magazines were
established
Are Stamps Recession Proof?
Recent Auction Realisations
• US
$15m (record price for US collection)
$5.6m (7 over $100K and 1 over $1m)
US 1867 3c B Grill
estimate $276,000
$1,035,000
Are Stamps Recession Proof?
Recent Auction Realisations
• US
$15m (record price for US collection)
$5.6m (7 over $100K and 1 over $1m)
• Costa Rica
$2.65m (3.6 x estimate)
Costa Rica 1901 2c
inverted centre
$67,500
Are Stamps Recession Proof?
Recent Auction Realisations
• US
$15m (record price for US collection)
$5.6m (7 over $100K and 1 over $1m)
• Costa Rica
$2.65m (3.6 x estimate)
• British Empire
$1.7m (138 lots)
Mauritius 1848 2d
catalogued $35,000
$97,850
Are Stamps Recession Proof?
Recent Auction Realisations
• US
$15m (record price for US collection)
$5.6m (7 over $100K and 1 over $1m)
• Costa Rica
$2.65m (3.6 x estimate)
• British Empire
$1.7m (138 lots)
China
China
18971968
Revenue
The Whole
Country Is Red
HK$2.6m
HK$3.7m
$334,000
$475,000
• China
record prices
How Can I Invest In
Rare Stamps?
capital protection
unlimited upside potential
backed by Stanley Gibbons
assistance & expertise
free storage & insurance
no management fees or charges
Capital Protected Growth Plan
individual portfolio of rare stamps
investment period 5 years
5%-10% discount on purchase
typical investment $40,000
100% capital security
no charges free storage
Exit Options
- sell to SG clients, profits shared
- money back on unsold items
- Auction (commission free)
- retain or sell privately
- roll over contract
Early exit after 1 year
Why Stanley Gibbons?
• Established 1856 - 150 years of tradition
• Royal Warrant - philatelists to the Queen
• Market leader, global prominence
Why Stanley Gibbons?
• Expert advice and guidance
faked
cancel
fine stamp
£4,500
faked
SPECIMEN
SPECIMEN
£2,000
RECOMMENDED
INVESTMENT
Why Stanley Gibbons?
• Expert advice and guidance
• Lifetime guarantee of authenticity
• Dedicated investment department
London & Channel Islands
• No fees or management charges, free storage
• Public company – debt free
My Investment Portfolio
In Summary…
Diversify into Collectibles
an undervalued, non-correlating asset class
Consistent, sustained growth
~10% p.a. over 50 years
Capital Protection
unlimited upside
Currency Diversification
GBP 20% cheaper vs USD
Offshore
London & Channel Islands
Free Competition
Win a £5,000 Portfolio!
Stanley Gibbons Ltd
Philatelists since 1856
Geoff Anandappa
Stanley Gibbons Ltd
399 Strand
London
WC2R 0LX
United Kingdom
+44 207 557 4442
[email protected]