Unexpectedly back on the market
My Recommended ￡10,000 Rare Stamps Starter Collection
I met a new client at an investment show I attended a couple of weeks ago.
After my presentation, he approached me expressing an interest in building a portfolio.
He talked about how he had fond memories of collecting stamps as a child and wanted to focus on just stamps.
He also said he liked the portability of stamps and that they can be sold in multiple locations and currencies around the world.
After the show, he sent me the following e-mail:
“Hi Mike,
It was great meeting you at the Investor Show and I found your presentation interesting.
I would be interested in building a collection of rare stamps. At this stage I just want to dip my toe in the water so my initial budget is ￡10,000.
Please make me recommendations based on the following:
I look forward to looking at your recommendations.
Kind regards”
The Collection
The collection I assembled for my client included 15 rare stamps, all with modest current values.
The table below presents the basis of my selections and allocation across different areas of the stamp market…
The current Stanley Gibbons catalogue value of the collection is ￡12,235.
To provide a margin of safety on the initial investment, I was able to offer the collection at a discounted value of ￡10,000, representing?18% discount?to full retail selling prices.
Why the collection is unexpectedly back on the market
My client responded to receiving my recommendations…
“Hi Mike,
Thanks for sending through your recommendations. I can see you have put a lot of work into it and your advice seems to make perfect sense.
However, I’ve always wanted a penny black and love the romantic appeal and designs of the old Queen Victorian British stamps. Could we stick to this area please?
Sorry to be difficult, but if you could build a collection of Queen Victoria British stamps I would still be interested.
I await your further advice.
Best regards,”
I provided my client with what he asked for and he is now happy with his new Queen Victorian British stamps collection.
It means the original collection is back on the market.?
It seems a shame to waste all my hard work in building a collection focused on the most likely areas of the stamp market to grow in value.
So, unexpectedly, the collection is now available again.
Before you e-mail me to secure it, let’s take a look at the historic price performance of the areas within the collection…
Historic Price Performance
The table below shows the price changes over the past 20 years of the respective areas of the stamp market covered in the collection…
Overall, the collection has increased in value by 155% between 2003 and 2023. This represents a simple average?annual growth rate of 8%.
The growth rates for each area are worthy of further comment…
India
Stamps from India have proved the most lucrative investment in stamps over the past 20 years. Despite this, the Indian stamps selected in our collection only recorded growth of 160% in that period.
This is because I purposely selected specific Indian rare stamps, which have under-performed the market average. Consequently, they appear undervalued and are more likely to show short term price increases.
China
The Chinese stamps show the highest rate of growth at 478% (24% per annum).
The bull market in Chinese stamps was the biggest story in the stamp market up until 2015. At that point, a slowdown in the Chinese economy spread to the speculative high growth rates in rare Chinese stamps.
The prices of Chinese stamps are starting to rise again as Chinese collectors compete with European collectors to secure key rarities.
British modern errors
British modern stamp errors show the lowest rate of growth in the past 20 years at 103%. However, this is a tale of two halves…
It is particularly unusual to see a fall in value like this in any area of the rare stamp market. I perceive the reduction in value we have witnessed in the past 10 years as artificial in nature. Allow me to explain…
The prices quoted above represent the prices in Stanley Gibbons catalogues. Stanley Gibbons are the oldest stamp dealer in the world and most respected for their printed price catalogues.
As they experienced financial difficulties from 2015, they were compelled to reduce prices in attempts to improve the liquidity and realisation of cash from their large stockholding.
Personally, I think this was a folly and only served to destabilise the market,?resulting in market prices falling further.
领英推荐
I would suggest, today, modern British stamp errors are a contrarian investment in rare stamps. My view is they are the best value they have ever been in my entire career spanning almost a quarter of a century.
Africa
The African stamps in the collection show growth of 112% over the past 20 years. Growth rates were, however, higher in the past 10 years.
This emerging growth market is picking up momentum and with current auction realisations often exceeding catalogue values, looks a strong area to buy into now.
Key Highlights
To give you a flavour of the quality of the rare stamps within the collection, and also my specific reasons for recommending them, take a look at some of the highlights…
Indian Feudatory States Soruth 1a on 4a red, on white laid paper, error with surcharge double, SG38a.
A very fine unused example with both top and bottom margins.
A rare surcharge error.
Soruth?(also known as Junagadh and Saurashtra) was a Princely State near Bombay in the Western India States Agency. After unification, it joined the United States of Saurashtra, and at present it is part of the State of Gujarat.
Stanley Gibbons catalogue value: ￡1,000.
Price: ￡700
China 1912 $1 red and flesh 'Bean Goose', overprinted at the Shanghai Statistical Dept of Customs with 'Republic of China', SG204.
A fine and very fresh mint example with part original gum.
On 10 October 1911 a revolution began in Wuchang. Whilst awaiting the course of events, post offices in some cities overprinted imperial stamps with 'Provisional Neutrality'.
On 15 February 1912, Yuan Shih-kai was elected provisional president of the Chinese Republic. On 11 December 1915 he was elected Emperor, but in face of revolts he revoked the monarchy on 22 March 1916.
Stanley Gibbons catalogue value: ￡750.
Price: ￡500
Great Britain 1973 9d British Explorers (Charles Sturt) error, SG927d.
A very fine unmounted mint, with full original gum, example with brown-red omitted. The missing colour results in the loss of the rivers on the map of Australia in the background.
Offered with an example of the normal stamp for comparison.
A scarce QEII stamp error. Pierron records only 30 mint examples.
Stanley Gibbons catalogue value: ￡950.
Price: ￡900
Rhodesia 1910-13 2s6d sepia and deep crimson, variety 'long gash in ear' (position 2), SG156var.
A brilliant quality mint example with large part original gum.
A few slightly shortish perforations, mentioned purely for accuracy, and further benefiting from?lovely fresh colour.
A very scarce printing variety.
This is probably the most popularly collected area of stamps from Rhodesia, known affectionately as "the double heads", featuring Queen Mary and King George V. They are also widely considered in philatelic circles as being amongst the most attractive stamps ever issued in the world.
The printing varieties, such as this fine rarity, represent the spice of collecting this stamp issue and are highly sought-after. The gash in the Queen's right ear variety only occurred on position 2 of the printing plate. This gash changed progressively as the printing plate was modified or electros were taken off.
The Stanley Gibbons catalogue value is ￡1,275+.
Price: ￡1,000
Now you can secure the ￡10,000 Collection
Today, you benefit from the exclusive opportunity to purchase this collection.
We have not advertised or marketed it anywhere else.
I think it is a strong collection for investment purposes at a low entry level.
You will need to let me know ASAP if you want to secure this collection.
Email me today at?[email protected]?or simply reply to this email.
When this collection is off the market again, it is unlikely to see the light of day for many years.
Thanks for reading.
Kind regards
Mike Hall, CEO
P.S.?If this collection is not for you,?send me an email and let me know the criteria for the collection you would like me to build for you.
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www.paulfrasercollectibles.com +44 (0) 117 933 9500 |?[email protected]
Business Development Manager at K.D. Feddersen Ueberseegesellschaft mbH, Hamburg
1 年Investing in stamps and another collectibles has many advantages. It is a great hedge against the traditional fluctuation of financial assets, the price can not be manipulated, it is a confidential investment which is not registered anwhere, stamps have great mobility and liquidity anywhere in the world to name but few. I have written a book on this topic, it will be published in English and German language in 2024. The first edition in Czech language sold thausands of copies and was awarded at some stamp shows. ??