March 21, 2016: Stanley Gibbons has released the latest version of its GB200 Rare Coin Index (the “Index”), depicting a steady 6.2% increase on 2014. In a period where the FTSE 100 lost ground, the Index shows growth and stability for rare coins as an alternative investment asset class – achieving a compound annual growth rate of 11.4% over the last ten years.

Highlights

• Rare coins offer attractive alternative to more volatile assets
• Index shows 6.2% increase in 2015, outperforming FTSE 100
• Index shows compound annual growth rate of 11.4%
• Most valuable coin in the index up by £50,000 to £375,000
• Follows sale of Penny Red Plate 77 stamp for £495,000 – a healthy collectibles market

The Rare Coin Index is a snapshot of the market for investment-grade coins.  It is a representative sample of 200 rare British coins, with values taken from the independent Spink catalogue of English coins, with a view to tracking the performance of the asset class as a whole, as well as that of the individual pieces.   The values are updated annually and are based on aggregating global auction realisations.

In another strong year, the standout performer was the 1738 George II Gold Five Guineas, which increased by 50% to £45,000, although the biggest increase in sheer monetary terms was the 1820 George III, Gold Five Pounds (LX pattern only), which grew £75,000 in value. The most valuable coin in the index, the 1703 Anne, Pre-Union Type Gold Five Guineas also increased in value by £50,000 to £375,000.

News of the coin market’s resilience comes just four weeks after Stanley Gibbons sold one of Britain’s rarest coins, an Edward VI “Boy King” gold sovereign of 30 Shillings to an investor in Asia for £250,000.

Luxury and collectibles continue offer a powerful hedge to global financial instability. In a year when the FTSE 100 lost 4.9%, the Rare Coin Index continued to make solid gains. Indeed, the Knight Frank Luxury Index ranked coins as the least volatile luxury asset over the last ten years.

This follows the news last week that Stanley Gibbons has sold a Plate 77 Penny Red stamp valued at just under half a million pounds to a British collector-investor.

Keith Heddle, Managing Director of Stanley Gibbons Investments, commented: “Coins are a classic heritage investment, with more than two and a half millennia of history, tangibility, desirability and strong investment growth. With interest rates still at record lows, these alternative assets can provide not only an excellent return on investment, but are also much more enjoyable to own than a share certificate or a unit in some fund”.

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March 14, 2016: Stanley Gibbons, the world’s pre-eminent prestige collectibles merchant, has sold one of Britain’s most iconic rare stamps, a ‘Plate 77 Penny Red’, for almost half a million pounds to a private collector.

The £495,000 stamp is only one of five used examples known to the world of philately, including one in the British Museum.

‘Plate 77 Penny Reds’ are viewed by collectors and sophisticated investors, as the ‘Holy Grail’ of philately because Plate 77 stamps should simply not exist.  But a tiny handful made their way into circulation, despite the original printing plate being destroyed.

Keith Heddle, Managing Director of Investments at Stanley Gibbons, said: “This is one of the most desirable and iconic of British stamps for collectors worldwide, highly sought after for more than 100 years. It is testament to the strength of the market for rare stamps and also Stanley Gibbons’ global standing that we have managed to sell not just one, but two Plate 77 Penny Reds in the last four years.  With the last one having been sold to a client in Australia, I’m delighted this one has found a home in Britain.”

The recently sold stamp was purchased for “The Waterbird Portfolio”, the private collection of an anonymous British buyer.  The new owner commented: “I am so pleased I bought this stamp, it has given me a buzz I really didn’t expect.  I am sure it will prove to be a fabulous investment and in an uncertain financial world, will prove its worth.” The world’s most expensive stamp is the ‘British Guiana One-Cent Black on Magenta’, which was sold in 2014, in New York, for $9.48 million.

With global financial markets haunted once again by the spectre of volatility since the turn of the year, the market for rare stamps and coins has remained remarkably resilient.  Only last month Stanley Gibbons sold one of Britain’s rarest coins, an Edward VI “Boy King” gold sovereign of 30 Shillings, for £250,000 to an investor in Asia.

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