Investing in Rare Stamps
The Penny Black
The Penny Black is the world’s first adhesive postage stamp used in a public postal system. It first was issued in Great Britain on the 1st of May 1840 and went into official use from the 6th of May that year. Queen Victoria’s head features on the stamp.
Philatelic investment is investment in collectible postage stamps for the purpose of realizing a profit. Philatelic investment was popular during the 1970s.
Philately is the study of postage stamps and postal history.
When stamp collecting became a common hobby in the 19th century, one philatelist called it “catching the fever”. The fever rose in June, 2021 in New York when Sotheby’s auctioned the British Guiana One-Cent Magenta, the world’s most valuable stamp, for US$8,307,000.
It is a triumph for imperfection. Precise copying is routine in the age of mechanical and digital reproduction, and most modern stamps will never be worth more than their face value. But a few fetch millions because they are historical oddities, or unique blunders that can never be corrected.
How Much is a Penny Black Stamp Worth?
The Penny Black Stamp is worth up to 20,000 GBP at today’s prices.
Ask to set up an investment portfolio with a collection of rare stamps.
The pre-paid adhesive postage stamp was borne out of a need for a standardised rate of postage in the United Kingdom that was available to all and not just the wealthy. Until 1837, sending a letter was an expensive and complicated task. Like any other transaction, payment was received at the end but this meant it was the recipient who was left to settle the bill.
Rowland Hill, a schoolmaster, was so moved by the inefficiency of the process that he took it upon himself to revolutionise communication forever. Hill published a pamphlet, Post office reform; Its importance and practicability, in which he made a case for a big change. He argued that the new system should require a cheap, flat-rate which would be prepaid when posted.
After months of lobbying, Hill’s idea took shape in the world’s first postage stamp.
- The Penny Black is not a rare stamp, there were over 68 million printed and it is estimated that approximately 5% still survive. Nevertheless, they can be very valuable with the rarest pieces changing hands well in excess of £100,000.
- The introduction of the Uniform Penny Post increased postal traffic from 75 million to 410 million in under ten years
- The scarcest Penny Blacks are from printing plate 11, originally produced for the Penny Red, plate 11 was drafted in for an emergency printing in black of only 700 sheets.
- The Penny Black, although considered an icon of classic philately, was actually a failure. Fraud was a major concern for the Post Office, the original red postmark was removable so the stamp could be reused, and the replacement black postmark couldn’t be readily seen on a black stamp. The Penny Red was developed to overcome these problems and was issued in various guises for the next 40 years.
- The Penny Black was the world’s first postage stamp but it is only half the story, a 2d stamp in blue was issued at the same time and is actually ten times rarer!
- As Great Britain was the first country to issue a postage stamp, it is not required to include the country name in the design to this day.
Set Up a Rare Stamp Collection
We work exclusively with the world’s most distinguished heritage stamp company dating back to 1856. The company is the world’s longest established rare stamp merchant. Their world-leading experts are at the heart of everything they do and they travel globally in search of authentic, high quality material often of extreme rarity and value. It is this adherence to quality that gave them a Royal Warrant in 1914 and allows them to offer a lifetime guarantee on all their collection of coins & stamps. To this day, they remain the only philatelist to offer this assurance.
How are My Stamps Stored?
You can elect to hold the stamps in a vault or you can have them delivered to your home.
Minimum Investment
The minimum investment is 20,000 GBP.
Invest in Rare Stamps
Rare Stamps Flexible Trading Portfolio
This is the most popular way to invest in stamps at the entry level. Stamps are an investment for someone with patience, who understands it takes at least a ten year holding period.
Minimum investment: 20,000 GBP
Benefit from an investment in tangible, luxury assets but with more dynamic trading options
The growth in the value of classic British stamps has outstripped gold, house prices and the FTSE (UK stock market). When it comes to alternative investments, stamps are like a fixed-term ISA.
Knight Frank’s Luxury Investment Index (KFLII) tracks the performance of a theoretical basket of selected collectable asset classes – such as art, classic cars and wine – using existing third-party indices.
The Stanley Gibbons 200 Index rose 10% over the one year period from Q2 2013 – Q2 2014.
A rare Edward VIII Sovereign (above) set an auction record when it was sold by Baldwins for £516,000 in May.
Not to be outdone, the only surviving example of a British Guiana 1856 1c black on magenta cemented its reputation as the world’s most desirable stamp when it was sold at auction in New York by Sotheby’s for $9.48m in June.
Rare Stamps – A Steady Investment for the Sophisticated Investor
Whilst the FTSE 100 (UK stocks) has a standard deviation of around 10% with gold being even more volatile, rare stamps’ price tends to swing by only a couple of percentage points each year.
Rare Stamps – Higher Returns than UK Stocks and UK Property
Over a 10 year period (2004-2014), rare stamps are up 195%, significantly outperforming both UK equities (51%) and top-end London houses (135%).
The Penny Black Stamp 1840
Above: The Great Britain SG2 1840 1d Black Stamp, also known popularly as “The Penny Black”.
This is the must-have trophy asset for any rare stamp collector. This is the world’s first postage stamp and has risen in catalogue value from £4,500 to £12,500 in just 10 years.
The Flexible Trading Portfolio
The Flexible Trading Portfolio (FTP) gives you specialised access to the growing market for rare stamps and coins – but gives you greater flexibility as to how you want to invest.
You really don’t need to know anything about rare stamps or coins to invest with us. Stanley Gibbons has more than 150 years’ of investment experience, and they know exactly what to look for:
- Rarity
- Condition / Quality
- Liquidity
- Growth potential
- Portfolio balance and diversification
You’ll be allocated a Dedicated Investment Portfolio Manager to ensure we understand your investment aims in order to build the best stamp investment collection for you. They will also be your key point of contact going forward.
Benefits of the Rare Stamp Flexible Trading Portfolio
- No minimum holding period or contract – You can trade your stamps whenever you want
- Excellent growth potential – Rare stamps and coins trade slowly (which gives them an underlying strength and
solidity) - Enhanced profits – Hold for a longer period and benefit from an enhanced profit split, up to 80% on top of your original investment if you hold for five years or more (see below for more detail)
- Buy and sell at any time – Enabling you to benefit from movements in the rare stamp or coin markets or your personal circumstances. You can also add to your portfolio at any time, which almost 50% of investors do
How Do I Profit from These Rare Stamp Investments
Your profit is determined by how long you hold after you first invest:
Up to 1 year – you receive 30% of the profit (on top of the original invested sum)
1 to 3 years – you receive 50% of the profit
3 to 5 years – you receive 70% of the profit
Over 5 years – you receive 80% of the profit
We recommend a minimum holding period of five years to gain a worthwhile profit.
The average hold period is just over seven years.
Many clients invest for their children or grandchildren for intergenerational wealth planning & can hold it in their own retirement portfolio which they can access in 20-30 years’ time as a separate and alternative investment to their regular retirement plan.
Sample Investment Trading Portfolio
Original Investment: £200,000
| Year | Value | Growth |
|---|---|---|
| 1 | £210,000 | 5.3% |
| 2 | £228,600 | 14.3% |
| 3 | £228,600 | 14.3% |
| 4 | £279,500 | 32.7% |
| 5 | £290,500 | 45.2% |
A Long History of Tradition – Partners that Will Be Around to Protect Your Legacy
Stanley Gibbons has been the home of stamp collecting since 1856, just 16 years after the first stamp was issued, the Penny Black, in May 1840.
They are the undisputed market leader in the field of rare stamps and have held the Royal Warrant for services to philately since 1914, a true mark of quality. Baldwins, probably the world’s leading coin merchant, are also part of the Stanley Gibbons Group and have been trading since 1872.
Whatever your goals for protecting your wealth, we can help you achieve them.