Nest Egg for your Grandchildren

The Stamp Man

The Stamp Man

2017-12-29 12:45:39

An innovative way to save for your grandchildren's future

At a Christmas function I attended last week, I was asked an interesting question:
 
“What stamps would you recommend as a nest egg for my grandchildren?”
 
I don’t have grandchildren of my own yet, but I have two daughters aged 21 and 18.
 
And… it was stamps that have paid for their education. All my other investments have crashed and burned in recent years.
 
It hasn’t helped either that, for the past 10 years, banks have given me next to nothing for letting them hold my money.
 
But, stamps have proved to be a safe investment for me over the years and, so far, have never let me down.

Help them with university bills, a house deposit or a first car
 
It turned out, the chap I met last week has three grandchildren (9, 8 and 6 years old). He wanted to put aside £1,000 for each of them. He hopes to watch that money grow and give them something worth more when they are 18 to help with university bills, a deposit for a home or to buy their first car.
 
I think this is a great idea and believe stamps provide an innovative way to set aside a little nest egg for a grandchild.
 
I gave his question a lot of thought and made some personal recommendations, which he has since accepted.
 
I am confident his stamps will do well over the next 10 years or more. My confidence is supported by a recent report in The Economist, which stated:
 
“HNWI wealth will surpass $100trn by 2025, with about 10% invested in collectibles.”
 
With that kind of money flowing into the collectibles market, there is a very strong tailwind ahead for stamp prices.
 
And now, I would like to extend to you the same opportunity… 
 
Nest Egg Stamp Portfolio
 
I have put together a portfolio of rare stamps that: 

  • Have a long term history of rising in value
  • I consider likely to rise in value in the future, based on my knowledge of the market
  • Represent key rarities from different areas of collecting, providing sound diversification 

You can view the constituents of the portfolio in the link below:

CLICK HERE TO VIEW NEST EGG PORTFOLIO

The key points I would bring to your attention are: 

  • The portfolio contains 10 rare stamps
  • The price of the total portfolio is £17,350 ($23,317)
  • It has risen in value by 81% over the past 10 years
  • The SG catalogue price of the portfolio is £24,230 ($32,564). The price you pay represents a discount of 28% against SG catalogue value
  • The best performing stamp over the past 10 years was from India, rising by 131%
  • The poorest performer was a rare sheet of 120 stamps from Gibraltar, rising by only 17% (but, that is why I have included this in the portfolio as I believe it undervalued) 

It is comforting to know that the worst performer in the portfolio still delivered 1.7%pa growth, which is a better rate than many bank savings accounts offer.
 
Obviously, historic growth rates do not necessarily mean future growth rates will be the same. They could be higher or lower in the next 10 years.
 
The table below serves to illustrate the potential difference in value, after 10 years, between holding cash in a savings account and the nest egg rare stamp portfolio:

The nest egg stamp portfolio purchased in this illustration is worth £31,404 ($42,206) in 10 years compared to only £21,150 ($28,425) in a bank savings account. That’s an extra £10,254 ($13,781). Put another way, the growth rate over 10 years is almost 4 times that obtained from a bank savings account.
 
The above illustration assumes a bank interest savings rate of 2% and that the historic 10-year experienced growth rate of the nest egg portfolio continues.
 
The illustration also does not take into consideration the additional benefit of buying in at a 28% discount to the current full market value. That discount should more than cover any selling costs.
 
Obviously, you may not have £17,350 ($23,317) available to invest in your grandchildren’s future. Even so, I still want to help. I have, therefore, provided for you below some recommended nest egg stamps at various price points as follows: 

  • Under £500 ($672)
  • £500 - £999 ($672 - $1,343)
  • £1,000+ ($1,344)

Under £500 ($672)

Canada 1928-29 50c 'Bluenose', very fine, nicely centred unmounted mint example of this classic, considered "Canada's finest stamp". Unmounted Mint. SG 284. One of the most famous stamps in the world, but does not cost the earth! 
Price: £150 ($206) 

BUY NOW

1899-1911 Queen Victoria 3r brown and green, GWALIOR 13mm long, large part original gum. One short perforation (and trivial corner bend mentioned for accuracy only), and much fresher than usually found. Only 576 issued (in 1911!). (SG catalogue price: £325). Excellent value considering its rarity and the fact this is one of the hottest areas of the stamp market. 
Price: £250 ($336) 

BUY NOW

 

Great Britain catalogue-standard Penny Black housed in an attractive frame, complete with certificate of authenticity signed and dated by a Stanley Gibbons director. Also included is a short history of the Penny Black - the world's first postage stamp. The stamp is mounted in the middle of the frame and brought to life by the embossed silver border around it. This striking item is a worthy gift for philatelists and non-collectors alike. This Penny Black is lettered MI. Used. SG 2 
Price: £375 ($504) 

BUY NOW

£500 - £999 ($672 - $1,343)

Northern Rhodesia 1925-29 set of 17 to 20s, brilliant original gum. Post office fresh and exceptionally lightly mounted with the key 20s value apparently unmounted. A very popular set which is seldom seen in such fine condition. Beautiful stamps of this popularly collected area of exquisite quality. Unmounted Mint. SG 1/17. 
Price: £750 ($1,008)

BUY NOW

 

Great Britain 1840 2d Blue Plate 1. Very fine used four margin example lettered EE, cancelled by a complete red Maltese Cross. GB Specialised Catalogue number: DS5. Used. SG 5. The “twopenny blue” is 10 times rarer than the Penny Black. 
Price: £875 ($1,176)

BUY NOW

 

1928-36 Set of 16 to 25r, large part original gum. Top value with tiny red mark on reverse of one perforation inconsequential and still a fine and attractive set with very fresh colours. Scarce complete. (SG catalogue price: £700). 
Price: £600 ($807)

BUY NOW

 

£1,000+ ($1,334)

Gibraltar 1889 10c on 1d rose, folded lower half sheet of 120 comprising two panes 6x10 with gutter between, with full margins showing plate number x2, unmounted original gum. Slight creasing affecting sixth row, a few marginal tones, and a little separation (affecting top gutter pair), still unusually fine and fresh for such an item. A remarkable survival, as only 420 sheets (of 240) were printed. (SG catalogue price: £1,440+) Unmounted Mint. SG 16 – undervalued. 
Price: £1,100 ($1,479)

BUY NOW

 

China 1912 (14 Dec) "Commemorating the Republic" Yuan Shi-kai set of 12 to $5 slate, large part original gum. Mint. SG 254/65. Good quality rarity from the highest growth area of the stamp market in recent years. 
Price: £2,500 ($3,360)

BUY NOW

 

Australia 1931-36 £2 black and rose, watermark 15, very fine and fresh, original gum. A lovely example of this key stamp. Unmounted Mint. SG 138. An iconic stamp with a large collector base. 
Price: £4,250 ($5,713)

BUY NOW

 

1840 Penny Black (QD) Plate 2 four margin MINT (original gum) example. Accompanied by a British Philatelic Association certificate of authenticity when in a pair (the other stamp had faults). The Stanley Gibbons catalogue price is £12,500. Mint Penny Blacks with original gum are very hard to find. Exceptional value at this discount to catalogue price. 
Price: £6,500 ($8,738)

BUY NOW

Taking the mint Penny Black above as an example. Let’s assume historic experienced 10-year growth rates continue for the next 10 years. If you managed to sell the stamp at the full catalogue price, you would be looking at a sales value of £24,000 ($32,262) in 2027, (269% return!)
 
It is time to secure your grandchildren’s future
 
To secure the nest egg collection, please e-mail me atmike@paulfrasercollectibles.com.
 
Alternatively call us today on +44(0)117 933 9500.
 
In the UK, the government has made investing directly on behalf of a grandchild almost impossible. For example, you are not permitted to open a Junior ISA for a grandchild as they must be opened by a parent or guardian.
 
The government even looks for its take when parents give their children money. Children are only allowed to earn £99 a year tax free from money from their parents. The parent must pay tax on any earnings above that. This is why gifts from grandparents can be so valuable.
 
I am offering you a hassle-free way to invest in your grandchildren’s future. Once you have invested in the nest egg stamp portfolio, you can sit back with the warm and happy feeling that you have set aside a secure little nest egg for them.
 
As this is my final communication to you for 2017, I wish you a Happy New Year. I will be back in 2018 and hope to help you with your stamp acquisition needs and to make 2018 a prosperous and fulfilling year for you.
 
Kind regards
 
Mike Hall

Chief Executive Officer

Just Collecting Limited
 
PS. Obviously, you don’t need to have grandchildren to purchase this collection. As I said, stamps have funded the education of my own children and will likely fund my retirement too! The longer term the investment in rare stamps, the better the returns.

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