Stamps register first-class performance

Click to follow
The Independent Online

The stamp specialist Stanley Gibbons said its index of most-traded stamps has risen 3.7 per cent during the first-half of the year.

The stamp specialist Stanley Gibbons said its index of most-traded stamps has risen 3.7 per cent during the first-half of the year.

The company, which yesterday reported half-year profits of £603,000, up 84 per cent on the previous year, said that the index's theoretical rise since 1997 - it only launched officially in October 2002 - has been 51.2 per cent. Over the same period the FTSE 100 rose only about 8 per cent.

Most of the growth has been fuelled by people buying stamps as a long-term investment strategy to avoid the dangers of recent crashes in other more conventional investment areas.

When one considers the low returns given by the stock market and low interest rates, the positive trend for returns on stamps seems to be becoming ever more enticing. Stanley Gibbons' website receives more than 10 million hits per month, and accounts for 7 per cent of sales for the company.

The 150-year-old dealer launched the index, known as SG-100, to serve as a guide to potential investors in the stamp market in general, and those looking to buy the 100 most-traded stamps specifically. Rhys Williams, at Seymour Pierce, says the SG-100 is used as a barometer of stamps' performance against other investment types.

For those with doubts about stamps' investment potential, consider the case of the £1 Lilac Brown, of which there are only five known examples in the world. One was bought in 1999 for £32,000; the same stamp sold this month for £65,000.

Comments