Some of the most challenging investments are antiques, art, comic books and stamps, where one can begin by starting the collection early to conserve it for the next generation.
Stamps and wine can give higher returns as compared to bonds and gilts, where most high net worth individuals hold at least 10 per cent of their wealth in collectables; moreover, some are held for decades, while others move fast.
Last year Bill Gross announced his retirement from the bond market, and his auctioneer handling the collection said these are able to gain, in the range, of 100 to 200 per cent depending upon the rarity and condition.
As per the research by Richard Lehmann, the highest appreciation in last 25 years was reported in postal icons - Tuscany that went from $180 to $ 16,000 (28,788%),East Africa & Uganda $167 to $40,000 (23,852%) and Jammu & Kashmir -$425 to $45,000 (10,582%).
Asian and Western versions
In China, such collection was banned by Chairman Mao, but the ban was lifted in the 1980s when many owned postal icons of leading dynasties of China. The Mao era versions are some of the most durable collectables.
In the West, these were considered geeky where most young collectors wanted to invest in watches or cars; at the same time as; the postal market value in the US is above $10 billion, and it provides a balanced portfolio with extra cash where one can seek appreciation in five years.
The average value of such compilation is assumed to be in the range of £37,000, plus the portfolio takes almost six months to sell. Some of the rare investments include the Penny Black, which was a classic introduced in 1840. Sixty-eight million copies were released, but only a few million could be found.
Price
The prices of some of the rare pieces vary in the range from £400 (for a single Penny Black) to £12,500 for the mint, well-cut original ones. The average return delivered by a Penny Black can be in the range of 11 -12 per cent compounded annually.
The collectors should expand into various variations and gather pieces from distinctive postal eras. Examples of rare ones include are - the Roses 13p -where 3 stamps were faulty, and the Alexander the Great stamp - the gold coin from 340 BC, which is an antique that can be of the size of a thumbnail.
Similar designs in Athena and Nike can be found, where some such coins can be found across the battlefields of Asia and can be worth over £6000.
Getting a Verified Version
It is necessary to authenticate the collection through a verified agent. There is no guarantee on the yields associated with such investments where new collectors are mostly found in Asian countries, and the pool of collectors in the west is shrinking.
The Chinese collectors are gathering stamps of Chinese dynasties, and auctions are held frequently by the State Post Bureau.
Recently, the State Post Bureau announced its forthcoming auction in June, where over 1,300 sets of stamps and 4,500 from the People’s Republic will be exhibited for people from over 80 countries.
To find out more about stamp investment, check 99 Alternatives at (http://www.99alternatives.com).