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When is a coin not just a coin? When it’s a tangible heritage asset that is worth far more than both its face value and its precious metal value. As many of us start penny pinching following our festive spending, there are some who are sitting pretty thanks to investing in rare coins.
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%.
Keith Heddle, Managing Director, Stanley Gibbons Investments is not at all surprised to see more people investing in rare, tangible assets; he's 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.
“The increase in people wanting to invest in rare stamps and coins is borne out by indices such as the Knight Frank Luxury Index. There are no guarantees that growth will continue, but with a solid and constant ten year rise of 232%, it's tough to argue with the evidence."
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.
Picture credit: St James’s Auctions
