The volatility of traditional investment classes at the same
time as low interest rates is encouraging a rising number of
investors to look at the collectibles market to secure and grow
their wealth for the difficult years ahead. Rather than telling you
why I think collectibles are a shrewd investment at this time, I
think it is easier to simply repeat what clients tell us. after
all, I am biased as a major investor in the market through both my
investment In Stanley Gibbons and my growing collection that I have
been building over the past seven years.
Top 10 reasons clients give for investing in
To diversify investments, thus reducing exposure to volatile
To hedge against risk of high inflation (historically,
collectibles have performed best in times of high inflation)
To get a better return on savings (low returns on bank deposits
and bonds mean investors must seek other stable and secure
investments offering better annual returns to beat inflation)
The historic returns, exceeding 10% per annum on a compound
basis over the past 50 years, are very attractive
The pleasure and enjoyment from owning historical items at the
same time as watching a collection grow in value
The specific desire to own tangible assets at this time;
collectibles offer an alternative to precious metals, which have
enjoyed a long bull run
The attraction of the supply/demand dynamics in the
collectibles market, with a reducing supply of an already scarce
asset at the same time as rising demand
Growing wealth in the Far East and interest in collectibles
bodes well for rising demand and price appreciation in the
The attraction of looking for a non-correlating asset to
achieve 'true diversification'
The fact that collectibles are portable yet internationally
traded commodities and thus protect against exchange rate risks and
reduce dependence on any one geographical market
The attraction of Jersey
Since opening our offices in Jersey last year, the number of
clients we have attracted has greatly surpassed our initial
This can be attributed to a number of factors including:
The tax advantages from investing in collectibles insofar that
returns from the buying and selling of these tangible assets
represents a capital gain and therefore exempt from tax
Access to high quality staff and service providers
Appropriate premises including secure storage facilities,
which, when combined with third party insurance for the underlying
assets, provide peace of mind to the astute investor
A supportive business environment, which has welcomed a brand
with a 155 year trading history
Stamps, historical documents, rare signatures and other
collectibles are becoming an increasingly popular means of
diversifying, protecting and growing wealth. With current economic
instability, together with inflationary concerns and low interest
rates globally, this demand is expected to continue. On a personal
note, the reasons why I continue to build my own investment in
collectibles are that I am fascinated by history, I love holding
rare and interesting things and my collection is my best performing
asset over the past three years.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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