Written by Asset Strategies

Rising Demand Leads to Change… and Short-term Opportunity

If there is any one thing certain about the upcoming U.S. presidential election, it is that nothing is certain – the outcome, the future of this country, the future of this economy or the future of the global economy we so heavily influence. More on uncertainty in a moment. First, let’s talk about certainty…

Rare coins and stamps are alternative investment options that can fulfill a number of your investment objectives. These assets offer the prospect of outstanding growth and returns in their own right. Research has shown stamps have an average annual growth rate of 11.96% over the long run, and the indices of investment grade coins show an average of 11.4% growth over the last 10 years.

And in the past few years, the price of truly rare coins and stamps has risen appreciably. As non-renewable assets, there is no possibility of newly minted supply coming onto the market as these rare coins and stamps grow rarer over time. Thus, if collectors and their buying power increases – which it appears to be happening as interest grows - the prices of these assets should continue to increase as well.

ASI and Stanley Gibbons are taking steps to ensure we can continue to search for and deliver only the highest level of rarities and maintain the integrity of our Flexible Trading Portfolio (FTP) program for you. To accomplish this, minimums to enter the program are slated to rise appreciably on January 1, 2017 - from £15,000 (approx. U.S. $18,520) to £25,000 (approx. U.S. $30,865).

The rise in minimums is evidence that investment grade rarities have become increasingly desirable around the world. It is estimated there are 60 million collectors of stamps around the globe with a significant increase of interest across Asia. With the increases in buying power and demand on already desirable objects, the value of these stamps and coins are being pushed even higher.

Although there are changes to the minimum, your portfolio will still include free storage, insurance and management along with multiple exit plans. In addition, you get an effective 15% discount on your purchase as the FTP is denominated in British pounds. As a result of this summer's Brexit vote and because of the current strength of the U.S. dollar, you are essentially getting 15% more for your dollar now than you did last year. But who knows how long the pound will remain a bargain relative to our dollar.

Now is the time to act, especially with both the dollar so strong against the pound and the entry level so low. There is no better time than now… especially if you factor in future uncertainty.

We have uncertainty. And, I am certain it will continue for the foreseeable future. Uncertainty leads to volatility – markets and portfolios going haywire. However, even in periods of uncertainty, we do not see volatility in rare stamps and rare coins. They are some of the most un-correlated assets you can find, because collectors drive this market, not investors.

Collectors don’t sell their coins and stamps because Yellen opened her mouth and promised something else she won’t do. They hold them, and they appreciate them as they appreciate.

Call us at 800-831-0007 to speak with an ASI Representative to take advantage of our Flexible Trading Portfolio program before the rise in minimums, while the dollar is strong, while the pound is a bargain and so you can add a little stability to your portfolio regardless of who is elected on November 8th or what they do to and for us.