Annual index shows Coins are worth more than cash for Investors

Posted: 18/12/2013

Charles I Silver PoundThe latest Stanley Gibbons English Coin 200 Index has been released and shows a year on year growth of 10.1% for the last 12 months. The index also shows a 10 year growth (2004 to 2014) of 221.3% which is a compound annual growth rate of 12.4%.

Group Investment Director, Keith Heddle said: ‘The critical factor is not just the double digit annual growth, but it is the consistency of that growth. The index has seen steady rises for the whole of the period we have collected data, which is from 2002, and that of course includes the worst recession years. During that period we have seen high levels of volatility in the FTSE and other alternative investment markets such as art and wine, and whilst of course past performance is not a guarantee of future returns, history shows us that premium tangible assets such as stamps and coins are consistently sought after by collectors and investors alike.'

The best performer in the last 12 months was a Charles I Silver Pound (pictured) from 1644 which increased in value from £35,000 to £52,500, a 50% jump.

Other notable coin news for the year includes a new world record for the most expensive coin ever sold. A 1794 Flowing Hair Silver Dollar was sold by Stack's Bowers Galleries for US$10,016,875

‘Our recent acquisition of Baldwins, the rare coin merchant, has consolidated our already strong offering for investors to ensure a wide range of high quality coins for portfolio diversification'. Said Keith, ‘With the latest report on retirement incomes by the Institute of Fiscal Studies saying that those born in the 60s and 70s haven't saved enough to be as comfortable as their predecessors in retirement, it's clear that the focus on building a balanced and recession proof pension pot is going to increase.'

Stanley Gibbons has recently acquired an exceedingly rare coin which is a good example of the kind of asset that could be included in a portfolio. The gold James I Half-Angel, so-called because it depicts Saint Michael the Archangel slaying a dragon is excessively rare, and this is one of the finest known, having been the prize example in four of the most important and extensive English coin collections ever assembled. It is currently available for £32,500.

The English Coin 200 index data is compiled from the ‘Spink Coins of England and the United Kingdom' 2014 edition. It has shown a growth of 319.72% since 2002, equivalent to 12.7% compound annual growth. The index is listed on Bloomberg Professional terminals (STGIRCIX)

http://investment.stanleygibbons.com/news-and-research/2013-12-13-000000/english-coin-200-index


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