Greece spells 'chaos' for your investments, unless…
Investments, savings, pensions to plummet? If Greece leaves the Euro, diversity could be your saviour
Paul Fraser Collectibles, Wednesday 16 May 2012
If Greece exits the Euro, how will you be affected?
The currencies editor for Dow Jones, and writer for the Wall Street Journal, Katie Martin, answered this very question in an interview with BBC radio on Tuesday.
"You can certainly expect a prolonged period of extreme uncertainty in the financial markets, big falls in stock markets around the world, large gyrations in the currency markets," she said.
"And that's how it ends up affecting the man, woman on the street, through the value of our saving, investments and pension funds. If equity markets crash around the world, they will decline in value.
"I am expecting some significant chaos across the markets were this [Greece leaving the Euro] to happen."
Such is the concern over the impact Greece's withdrawal would have, the markets are already getting jumpy.
The FTSE 100 fell 2% on Tuesday, its lowest level of 2012, while the S&P 500 dropped 0.5%, leaving it more than 6% down since early April.
If ever there was a compelling argument for the need for diversity, this is it.
I'm not going to stand here and tell you that collectibles will solve all your investment woes.
What I will say is that having a diverse investment portfolio will put you in a strong position to handle the ebb and flow of the global economic crisis.
And investment-grade collectibles can play an important role.
I'm going to use rare stamps as an example, but I could be discussing coins, autographs, art, classic cars - you name it.
Investment-grade stamps offer you:
· Security: Stamps are tangible assets. They won't disappear or plummet in value overnight. Alternative investments have a very low correlation to traditional investments: great news in the current climate.
· Excellent long-term performance: Rare stamps are a limited resource. Their rarity and value only increases with time.
· Historical returns: Stamps have been a respected asset with investors for decades and have continued to perform well during the recession, much better than the stock markets. Classic British stamps are up 11.01% pa since 1998, according to the GB30 Rarities Index.
· Liquidity and low volatility: There are an estimated 48m serious stamp collectors globally, and the finest rare stamps are always in demand. Prices are underpinned by this large and passionate collector base; collectible stamps are a $10bn pa global market.
· Enjoyment: The pleasure of owning a rare stamp is something very few other forms of investment can offer.
· A diverse portfolio: By hedging your investments with collectibles such as rare stamps you can decrease the risks that come with poor financial market conditions.
For more information on investing in stamps or other collectibles, please get in touch - we would love to hear from you.
Email email@example.com or call +44 (0) 117 933 9500.
All the best,
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