British investors turn to safe assets with Jersey firm in run up to Brexit

Wednesday 22 June 2016

Stanley Gibbons Investment is seeing a jump in demand for rare stamps and coins as investors go defensive ahead of Brexit.

The Jersey-based firm has had an influx of enquiries from potential new British investors seeking tangible assets as a long-term defensive strategy whatever happens with next week’s vote on EU membership.

Keith Heddle, Managing Director, Stanley Gibbons Investment, said: “The truth is that just as Brexit has polarised Britain, it has polarised investment attitudes towards rare, tangible assets, both in Britain and further afield. Our core client base, who understand the asset classes we offer and who have seen performance in recent years (through wider market volatility), continue to top up their portfolios to broaden their asset allocation and diversify - and because they like what they're investing in.”

Foreign investors tend either to be taking advantage of a weak pound to invest now - or are waiting to see if the pound falls even lower to maximise what they can buy.

During the global financial crisis of 2008-9 many turned to stamps and coins for security and long-term capital gains. Over this period, the value of the GB30 Rarities Index, an index tracking the 30 rarest British stamps, rose by 38.8%, while the GB250 Index, which follows the top 250 British investment-grade stamps, increased by 32%.

Mr Heddle said: “Brexit has sown uncertainty in the UK and worldwide; realistically, rare, tangible assets are uncorrelated, and have already proved their worth though several geo-political seismic shifts and socio-economic wobbles. 

“The smart money is still on holding a balanced, diversified portfolio, and including some uncorrelated, heritage assets such as rare stamps and coins in there as a buy and hold could prove to be no bad thing.”