Stamps versus Stocks: The historic truth

With the S&P 500 posting its best start since 1987, investors may be in danger of forgetting their lessons

Standard & Poor's 500 Index enjoyed its strongest January since 1987.

The benchmark US index hit a four-year high on Tuesday, March 27.

Gains in the past six months for the S&P 500 are up 25%.

It's figures like these that have many stock market investors feeling good about the future.

But those who forget what has occurred in the past do so at their peril.

Between December 2001 and December 2011, the S&P 500 rose by just 0.81% pa. London's FTSE was up just 1.25% pa.

You and I both know that without diversity in your portfolio, you're taking a huge gamble on the future performance of the market.

Wealth managers and independent financial advisers will all tell you the same thing. It's just a case of where you diversify.

I believe rare postage stamps deserve their place in any portfolio. Why?

It's down to their historically strong price performance, and their ability to remained unaffected by falls in the world's financial markets.

Rare British stamps up 10.78% pa since 1998

The Tyrian Plum - up 8.99% pa since 2007

Take the 30 most desirable classic stamps from Great Britain.

According to the GB30 Rarities Index, they have recorded a 10.78% pa value increase since 1998.

That kind of long-term profitability was near impossible to find on the stock markets during the same period.

Why are these stamps such strong performers, and why do I believe they will continue to perform well? Because they have:

·         Quality

·         Rarity

·         Demand

You can invest in a stamp with all these properties today.

Take advantage of my hard work

It's a 1910 2d Tyrian Plum - one of the rarest British stamps in existence.

In 2007, a mounted mint example was valued at £65,000 ($102,230), according to the GB30 Rarities Stamp Index. In 2011, the index listed the stamp at £100,000 ($157,290).

That's an 8.99% pa rise in five years.

Just 12 exist today, and only nine remain in private hands.

They rarely appear on the market. When they do, they cause a sensation. On December 6, one of the nine sold for £102,000 ($159,500) at auction in London.

Our example is available for £85,000 (approx. $133,700). That's 15% below the index valuation.

For more information, please get in touch:

info@paulfrasercollectibles.com

+44 (0) 117 933 9503

Or click the following link to see the other rare stamps we currently have available for you.

Until next week,

Paul

Paul Fraser

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