Posted: 01/08/2013
A study undertaken by prestige rare stamp merchant and publisher, Stanley Gibbons, shows that the market for rare Chinese stamps continues to grow with prices for heritage rarities showing average annual compound growth of 11.6% since 1989.
The company, the undisputed market leader in the field of rare stamps and holder of the Royal Warrant for services to philately since 1914, studied the values of 200 rare, ‘investment-grade' Chinese stamps between 1989, when the company's first China stamp catalogue was released, and April 2012.
The value of the individual 200 stamps in the study has grown by over £4m in 23 years, starting at £358,254 in 1989 and valued at £4,497,400 in 2012; a compound annual growth rate of 11.6%, with a growth of 35.59% between 2011 and 2012 alone.
“Some of the recent growth can be credited to Chairman Mao – but not necessarily for the right reasons - he banned stamp collecting as being ‘bourgeois,' however, the Chinese, with new found freedoms as well as wealth, are eager to reclaim their heritage ” says Keith Heddle, Group Marketing & Investment Director at Stanley Gibbons..
In compiling the study, experts noted that material from the People's Republic of China (PRC) had been accelerating at an even higher pace, at up to 44% growth per annum. However, Stanley Gibbons sound a note of caution here.
“Some PRC material has been growing in price too rapidly, irrespective of quality,” says Heddle. “Often, items were subject to speculation or being presented as gifts, which can create an artificial acceleration in the market. That's why we excluded PRC material from the study. For an authoritative merchant like Stanley Gibbons, we wanted to ensure we continue to focus on quality, authenticity and the type of rare material that is likely to perform consistently over the long term.”
“12% annual compound growth during a time when many portfolios dropped in value shows just how useful rare stamps can be as a means of wealth diversification. The key is that rare stamps are largely uncorrelated with mainstream investments”.
With wealthy investors worldwide looking for assets that satisfy both head and heart ¹ and 64% of China's millionaires currently building collections² the market in Asia is thriving – hence Stanley Gibbons opening offices in Hong Kong and Singapore recently.
For more information on the study, visit stanleygibbons.com/investment
¹ Source: Andrew Shirley, The Knight Frank Wealth Report 2013
² Source: Hurun Report