Stamps called "Royal Currency"

According to the Scotsman.com., "Investors and financial advisers looking for alternatives to high-risk equity funds and the slowing property market have rediscovered the investment potential of rare stamps."

In an comprehensive article, reporter Jennifer Hill writes, "Rare stamps - also known as 'royal currency' - were among the top-four-performing investments in the period 1907-1990, ahead of bonds and foreign exchange, with average returns of 10 per cent per annum, according to Salomon Brothers Investment Bank. And they have out-performed the stock market every year since 1985. "

The SG100 index, established by Stanley Gibbons - which has seen annual customer growth surge to more than 10,000 from just 850 two decades ago - tracks the 100 most frequently traded stamps in the world.

It has shown a cumulative rise of 150 per cent over the past five years. However, rare stamps are still trading at one-third below their 1980 price levels, while globally stocks are four times above the level they were then.

Stamps are a medium- to long-term investment: at least five years, although many investors wait ten to 15 years for optimal growth.

To read the entire article, click here.