Stamps

Stamp collecting is often regarded with some scepticism as a good investment. In the 1970s collecting was a trendy investment strategy. However with prices bottoming out in the 80s and 90s the rare stamp trade has experienced a bit of a renaissance with a dramatic increase in value, as new collectors realise the value of a discounted investment (undervalued).

Stamps are the most portable of all tangible investments. As they are not correlated to other investment indexes they offer a useful avenue of diversification. This confidential investment strategy doesn't just bring good returns and a broader portfolio, it also give you an aesthetically pleasing and historical object to own. Due to the fact that the supply is finite their long-term value trends toward continued growth, especially when it comes to the select, rare stamps worth investing in.

On the downside stamps are rather illiquid and should be deemed as a long-term addition to an already varied portfolio. As they are tangible it is important to insure your precious stamps against theft and damage. The premiums on buying and selling are also relatively high compared to other investments, however this does buy you a very simple way to consolidate a large quantity of cash in a space no more than a cigarette tin. If you have the most sought after stamps there is always a buyer; liquidity is directly relative to rareity.

The GB 30 index tracks the value of the very rareist stamps. Over the last 10 years this index has grown 245%. It's current value is around £1,462,000 up from £423,500 in 1997. A full list of the SG30 stamps can be found on the following stamp page.