www.stanleygibbons.com/investment

Stanley Gibbons Ltd 399 Strand London WC2R 0LX

London – Jersey – Guernsey - Hong Kong

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The financial landscape

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The financial landscapeGlobal economic fragility

Geo-political shifts (Israel, Korea, North Africa, Iran)

Inflationary pressure - even in Asia; Chinese economy slowing

Volatility of traditional asset classes

Increasing regulation in US & China

Maturing investment climate – investors demanding more

Real estate and equities still core but discernible shift towards tangible assets

Importance of wealth preservation including for future generations

Changing priorities after crash of 2008/09

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The financial landscape

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BBC’s Nick Robinson

“Things are going to get worse, a lot worse, before they get better…”

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Charles J. Windass

“The numbers don’t lie…”

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“The numbers don’t lie…”

10.1%

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“The numbers don’t lie…”

13.4%

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“The numbers don’t lie…”

13.1%

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“The numbers don’t lie…”

ZERO

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A surprising asset class

The world’s most valuable commodity by weight…

325 x per gram more expensive…

What is the world’s most expensive stamp worth?

Than weapons’ grade plutonium

GBP £ 1,600,000

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Coining it in

Better than gold…

1795 Flowing Hair Dollar

What is the world’s most expensive coin worth?

‘A national treasure…’

GBP £ 5,100,000

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Great Britain SG 43, 1864

1864 1d Rose red Pl.77

£550,000

Only nine examples of this very rare plate have been recorded

This is the adjoining stamp to the example held in the British library

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Great Britain SG 2, 1840

£120,000

1840 1d Black Pl.4. four margin block

The world's most iconic stampFrom £300 to £300,000

The ultimate collector piece

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China SG 2, 1878

£85,000

1878 thin paper, 2.5mm spacing 3ca red-brown

Complete sheet of twenty-five from setting I

A spectacular and very rare 'large dragon' piece.

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China SG 2968, 1980

£1,300

1980 8f Year of the Monkey

The first Chinese New Year stamp issued by the People’s Republic

Catalogued at £1,500, having jumped in value from £275 in just 5 years.

Popular with Chinese collectors because of its colour and the number 8 (the face value is 8f). Coincidentally, 8 million printed.

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Wolfgang Amadeus Mozart

£150,000

Mozart manuscripts are very hard to obtain and this particular example is in near perfect condition

A rare, highly desirable investor piece

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King Edward IV document, 1468

A remarkable original engrossed royal proclamation. Signed by the King at the close as ‘EdowardR’ (thought to be the French form of his signature) and with stated warranty of Parliament . Documents written by Edward IV are the earliest royal ones that a collector can ever realistically expect to obtain.

£175,000

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But there’s a problem isn’t there…

R.I.P.

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Trends in prestige collectibles market

Rising number of new collectors and investors globally – ‘Baby Boomers’

Supply-demand economics

New breed of ‘collectors’ – High Net Worth Individuals

Increase in collectors trading at auction (from Ebay to Sothebys)

Impact of internet on liquidity, knowledge and tradability

Emerging world markets

» China (20 million collectors)

» India

» Brazil

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Trends in rare stamp market

The Bloomberg-listed GB30 Index of rare stamps has delivered compound annual growth of over 10% per annum over past 50 years

The GB 250 Index shows a CAGR of 13.4% over the last 10 years

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“The numbers don’t lie…”

38.6%

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The 5 Golden Rules

1. RarityOnly invest in collectibles where there are a small number of surviving examples or in unique pieces

2. ConditionOnly invest in the best quality examples in existence

3. AuthenticityEnsure authenticity can be proven – a certificate is only as good as the person or body issuing it. Seek items with documented history and provenance.

4. LiquidityOnly invest in areas where there is a healthy number of collectors

5. PriceClassic value investment principle – seek to buy at below fair value

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Key growth areas

The classics from Great Britain – top rarities

GB modern errors – earn from others’ mistakes

Historical documents & manuscripts

Chinese modern “PRC” issues

Key rarities from British Commonwealth(e.g. India, Malaya, Borneo)

Regional pride

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Perceived risks

Lack of knowledge

Liquidity

Transparency

Authenticity

Large trading spreads

Charges

Conflicts of interest

Storage and insurance

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Trust + expertise

“This is a small companywith a big asset: its brand is

imbued with an unblemished

reputation for expertise and honest dealing.”

The Times

A global brand

A British institution since 1856

Holder of the Royal Warrant since 1914

Internationally recognised expertise

A lifetime guarantee of authenticity

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What we offer you?

3 primary investment products

Capital Growth Plan - straight ‘buy and hold’ – hassle free investing for the medium to long term

Portfolio & Platinum Portfolio Builder - build it and manage it – you make regular payments to suit you to build a growth portfolio over time

New Flexible Trading Portfolio - dynamic trading option where you can add to your portfolio and sell items when you choose.

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What we offer you?

We provide for you:

A balanced, bespoke portfolio for the best chance of both security and growth

An investment structure to suit your needs

Outsourcing of expertise

A dedicated investment portfolio manager

Free annual valuations, storage & insurance

Portfolios under management are subject to a bi-annual independent audit

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Portfolio Growth Plan – Illustration

The table below shows your potential returns assuming an initial investment of £100,000:

5 year Capital Growth

Plan

10 year Capital Growth

Plan

Sum invested at start £100,000 £100,000

Value at end* £161,051 £259,374

Our commission** £12,210 £31,874

Your return £148,840 £227,499

% Growth 49% 127%

* Based on annual 10% compound return** 20% of profit

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How to invest – a simple process

With your portfolio manager, decide on the most appropriate product, time horizon and amount to invest

Decide on portfolio split between rare GB stamps and/or rare coins and/or rare Chinese stamps and/or rare signatures (dependent on availability)

Once presented with your portfolio and rationale, agree and confirm it so the material can be invoiced and removed from stock; review contract details

Complete standard KYC/CDD (proof of ID, source of funds etc)

Provide funds

Contract is then issued and portfolio is sent to our vaults for safe-keeping

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Rare Stamp Investment Fund

GB rare stamp fund currently being set up as a 5 year closed-ended Jersey entity

To be authorised in Jersey as a Jersey Private Placement Fund under the Jersey Private Fund Guide issued by the JFSC

The likely level of the fund will be £10 million. The minimum amount targeted is £5 million and the maximum is £15 million.

Minimum investment required per investor to be £250,000

Target launch date of 1st quarter 2013

Provides the opportunity to become involved in a regulated investment within the collectibles market and part ownership of much larger collection offering wider diversification

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What the FT, Sunday Times & and IFA say

htthttps://www.youtube.com/watch?v=T2qSR0kE2j4ps://www.youtube.com/watch?v=T2qSR0kE2j4

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At your service

Keith Heddle, Investment Director

investment@stanleygibbons.com 0845 026 7170 www.stanleygibbons.com/investment

www.stanleygibbons.com/investment

Stanley Gibbons Ltd 399 Strand London WC2R 0LX

London – Jersey – Hong Kong