3. The financial landscape
Global economic fragility
Geo-political shifts (Israel, Korea, Trust
North Africa, Iran)
Inflationary pressure - even in Asia; Quality
Chinese economy slowing
Volatility of traditional asset classes
Expertise
Increasing regulation in US & China
Maturing investment climate – investors Longevity
demanding more
Real estate and equities still core
but discernible shift towards
tangible assets
Importance of wealth preservation
including for future generations
Changing priorities after crash of
2008/09
11. A surprising asset class
Trust
The world’s most valuable commodity by weight…
Quality
325 x per gram more expensive…
Than weapons’ grade plutonium Expertise
Longevity
What is the world’s most expensive stamp worth?
GBP £ 1,600,000
12. Coining it in
Trust
Better than gold…
Quality
1795 Flowing Hair Dollar
‘A national treasure…’ Expertise
Longevity
What is the world’s most expensive coin worth?
GBP £ 5,100,000
13. Great Britain SG 43, 1864
£550,000 Trust
1864 1d Rose red Pl.77
Quality
Only nine examples of this very rare plate
have been recorded
This is the adjoining stamp to the example Expertise
held in the British library
Longevity
14. Great Britain SG 2, 1840
£120,000 Trust
1840 1d Black Pl.4. four margin block
The world's most iconic stamp Quality
From £300 to £300,000
The ultimate collector piece Expertise
Longevity
15. China SG 2, 1878
£85,000 Trust
1878 thin paper, 2.5mm spacing 3ca red-
brown Quality
Complete sheet of twenty-five from setting I
A spectacular and very rare 'large dragon' Expertise
piece.
Longevity
16. China SG 2968, 1980
£1,300 Trust
1980 8f Year of the Monkey
The first Chinese New Year stamp issued by Quality
the People’s Republic
Catalogued at £1,500, having jumped in Expertise
value from £275 in just 5 years.
Popular with Chinese collectors because of
its colour and the number 8 (the face value Longevity
is 8f). Coincidentally, 8 million printed.
17. Wolfgang Amadeus Mozart
£150,000 Trust
Mozart manuscripts are very hard to
obtain and this particular example is Quality
in near perfect condition
A rare, highly desirable investor piece
Expertise
Longevity
18. King Edward IV document, 1468
£175,000 Trust
A remarkable original
engrossed royal proclamation. Quality
Signed by the King at the close
as ‘EdowardR’ (thought to be
the French form of his Expertise
signature) and with stated
warranty of Parliament .
Documents written by Edward Longevity
IV are the earliest royal ones
that a collector can ever
realistically expect to obtain.
19. But there’s a problem isn’t there…
Trust
Quality
Expertise
Longevity
R.I.P.
20. Trends in prestige collectibles market
Rising number of new collectors and
investors globally – ‘Baby Boomers’
Trust
Supply-demand economics
Quality
New breed of ‘collectors’ – High Net Worth
Individuals
Expertise
Increase in collectors trading at auction
(from Ebay to Sothebys)
Longevity
Impact of internet on liquidity, knowledge
and tradability
Emerging world markets
» China (20 million collectors)
» India
» Brazil
21. Trends in rare stamp market
The Bloomberg-listed GB30 Index of rare stamps has delivered compound
annual growth of over 10% per annum over past 50 years
Trust
Quality
Expertise
Longevity
The GB 250 Index shows a CAGR of 13.4% over the last 10 years
23. The 5 Golden Rules
1. Rarity
Only invest in collectibles where there are a small number of surviving
examples or in unique pieces Trust
2. Condition Quality
Only invest in the best quality examples in existence
3. Authenticity Expertise
Ensure authenticity can be proven – a certificate is only as good as the
person or body issuing it. Seek items with documented history and Longevity
provenance.
4. Liquidity
Only invest in areas where there is a healthy number of collectors
5. Price
Classic value investment principle – seek to buy at below fair value
23
24. Key growth areas
The classics from Great Britain
– top rarities
Trust
GB modern errors
– earn from others’ mistakes
Quality
Historical documents & manuscripts
Expertise
Chinese modern “PRC” issues
Key rarities from British Commonwealth Longevity
(e.g. India, Malaya, Borneo)
Regional pride
25. Perceived risks
Lack of knowledge Trust
Liquidity
Quality
Transparency
Expertise
Authenticity
Large trading spreads Longevity
Charges
Conflicts of interest
Storage and insurance
26. Trust + expertise
A global brand
A British institution since 1856 Trust
Holder of the Royal Warrant since 1914
Quality
Internationally recognised expertise
Expertise
A lifetime guarantee of authenticity
Longevity
“This is a small company
with a big asset: its brand is
imbued with an
unblemished
reputation for expertise and
honest dealing.”
The Times
27. What we offer you?
3 primary investment products
Trust
Capital Growth Plan - straight ‘buy and
hold’ – hassle free investing for the
Quality
medium to long term
Portfolio & Platinum Portfolio Builder - Expertise
build it and manage it – you make regular
payments to suit you to build a growth Longevity
portfolio over time
New Flexible Trading Portfolio -
dynamic trading option where you can add
to your portfolio and sell items when you
choose.
28. What we offer you?
We provide for you:
A balanced, bespoke portfolio for the best Trust
chance of both security and growth
Quality
An investment structure to suit your needs
Outsourcing of expertise Expertise
A dedicated investment portfolio manager
Longevity
Free annual valuations, storage & insurance
Portfolios under management are subject to a
bi-annual independent audit
29. Portfolio Growth Plan – Illustration
The table below shows your potential returns assuming an initial investment of
£100,000: Trust
5 year 10 year Quality
Capital Growth Capital Growth
Plan Plan
Expertise
Sum invested at start £100,000 £100,000
Value at end* £161,051 £259,374
Longevity
Our commission** £12,210 £31,874
Your return £148,840 £227,499
% Growth 49% 127%
* Based on annual 10% compound return
** 20% of profit
30. How to invest – a simple process
With your portfolio manager, decide on the most appropriate product,
time horizon and amount to invest
Trust
Decide on portfolio split between rare GB stamps and/or rare coins
and/or rare Chinese stamps and/or rare signatures (dependent on Quality
availability)
Expertise
Once presented with your portfolio and rationale, agree and confirm it
so the material can be invoiced and removed from stock; review
Longevity
contract details
Complete standard KYC/CDD (proof of ID, source of funds etc)
Provide funds
Contract is then issued and portfolio is sent to our vaults for safe-
keeping
30
31. Rare Stamp Investment Fund
GB rare stamp fund currently being set up as a 5 year closed-ended
Jersey entity
Trust
To be authorised in Jersey as a Jersey Private Placement Fund under the
Jersey Private Fund Guide issued by the JFSC Quality
The likely level of the fund will be £10 million. The minimum amount Expertise
targeted is £5 million and the maximum is £15 million.
Longevity
Minimum investment required per investor to be £250,000
Target launch date of 1st quarter 2013
Provides the opportunity to become involved in a regulated investment
within the collectibles market and part ownership of much larger
collection offering wider diversification
31
32. What the FT, Sunday Times & and IFA say
Trust
Quality
htthttps://www.youtube.com/watch?
v=T2qSR0kE2j4ps://www.youtube.com/watch?
Expertise
v=T2qSR0kE2j4
Longevity
33. At your service
Trust
Quality
Expertise
Keith Heddle, Investment Director Longevity
investment@stanleygibbons.com
0845 026 7170
www.stanleygibbons.com/investment
34. Stanley Gibbons Ltd 399 Strand London WC2R 0LX
www.stanleygibbons.com/investment
London – Jersey – Hong Kong