Stamp investment: The facts

The facts

In the midst of the economic downturn, investment-grade stamps continue to go from strength to strength

• The values of the finest rare stamps - the investment-grade specimens - have historically performed superbly: Up 9.5% pa in the past 50 years.

• The market has gathered pace in the past decade with more collectors and investors entering the market: The leading 30 Great Britain stamps are up 10.8% pa on average since 1998, according to the GB30 Rarities index.

• China is the fastest growing market: The world's fastest growing economy is producing vast numbers of high-net worth individuals keen to invest in stamps from their homeland. The China rare stamp index is up 51% pa since 2006.

• Stamps offer excellent portfolio diversification - vital in times of economic uncertainty: Stamps have a low correlation to stock markets, and indeed have comfortably outperformed the flat-lining FTSE and Dow Jones over the past decade.

• Stamps offer tax-free investing: Up to £10,100 a year in the UK, or £20,200 with a compliant spouse!

• Stamps have better risk adjusted returns than more traditional investments: They comfortably beat the Dow Jones and gold, according to a recent comparison by Livemint.com - 50m serious collectors worldwide ensures volatility remains low.

Source: www.paulfrasercollectibles.com