Rare stamps offering stellar returns

Investors who have lost their faith in traditional asset classes including bonds, shares, and property are being advised to turn to stamps.

The world market for rare stamps has been growing at an impressive rate in recent years, and the asset's weak correlation with other investments means that even should stock markets fall, or the property market crash, stamp values are unlikely to be affected.

And today specialist stamp dealer Stampinvestment has released new figures, showing there has never been a better time to invest.

The company points out that in the last five years the representative rare stamp index has risen 52 per cent, and could be boosted further by new pensions rules.

Changes to pension legislation, in effect for 2006, will permit stamps to be bought as part of an investment portfolio, with accompanying tax breaks.

And unlike many other commodities, there is a limited supply of rare stamps. This has been steadily eroded as the worldwide collector base grows - pushing up values further.

Developing economies in China and India, new to the stamp scene, are making particularly strong waves, Stampinvestment notes.

There are also other benefits to investments in stamps.

Stampinvestment points out that rare stamps are traded worldwide - in all major currencies and marketplaces, are easily stored, and offer more personal and historical tone than stock or bond certificates do.

But this is not an area to be dabbled in lightly - and investors can benefit from the experience offered by an established dealer.

The firm advises investors to always buy the very best quality they can - as these show the best returns and will continue to be in demand.

Additionally, it points out that rare stamps are not recommended for a quick return, but for growth over a period of more than five years.

"With more and more investors choosing rare stamps the industry looks set to enjoy a buoyant future and bear fruit for those who secure an early involvement as up to now. Rare stamp investment has been one of the best kept secrets of the investment world," the company said today.