Look after your pennies

Friday 16 January 2015

The value of rare coins is increasing as more people are investing in heritage assets since the economic crash.

With the passing of the years, rare coins have become collectible assets worth far more than the original face value or precious metal value.

Keith Heddle, Managing Director of Stanley Gibbons Investments says he has seen a steady increase since the crash of 2008/9.  

"This is a classic heritage investment, with more than two and a half millennia of history, tangibility, desirability and strong investment growth. With interest rates still at record lows, these alternative assets can not only provide an excellent return for your money, but are in most cases more enjoyable to own than a share certificate or a unit in some fund,” he said.

The latest issue of the Stanley Gibbons English Coin 200 Index (listed on Bloomberg Professional terminals STGIRCIX) shows a 12.6% growth through 2014; one particular coin showed a stellar performance, up 125% in value.  Last year wasn’t unusual either, the ten-year growth rate for the index (2005-2015) has notched up gains of 232.1%.

Last year the most impressive performer, was a William III Silver Crown from 1697, which increased in value from £20,000 at the start of 2014, to £45,000. The best performing coin in the last ten years was a 1663 Charles II, Gold Guinea, which rose in value during the decade, from £6,000 to £45,000.

The Knight Frank Luxury Index which tracks a basket of alternative luxury investments, including wine, art, classic cars, watches, gold and stamps and coins, rose 6% in the 12 months to June 2014. The index also recorded coins as being the least volatile of all the various assets over the last ten years.

The Stanley Gibbons’ English Coin 200 Index tracks the performance of the top 200 investment-grade English coins as detailed in the independent Spink catalogue.