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Gold sinks lower: time is running out
As you’ve probably read, gold prices fell to a seven week low this week, down 0.3% to $US1663 a troy ounce, the lowest since October.
There is a reason for this. Gold is strongly correlated to the euro - and we all know where that’s going.
So when the rating agencies start downgrading countries, what do you think will happen to gold?
More to the point, what should you do?
We are clearly biased, and have said this before, but:
Rare stamps are uncorrelated to other mainstream asset classes and are also unaffected by currency fluctuations.
Prices tend to move slowly, steadily and relentlessly upwards.
True, rare stamps lack the romance of gold. But growth has remained strong throughout the recent shenanigans - “boringly predictable” as someone said. That’s exactly the type of ‘predictability’ most investors could do with nowadays.
There is a problem, though.
You can’t dig up more rare stamps or reproduce them. You can’t recreate the subtle quirks and colour variances which make one old stamp, almost identical to another, worth a thousand times more.
There is a very limited supply.
That is why, on December 31st of this year our capital guarantee will be suspended.
I am sure you appreciate that such a warranty can only be offered when we have the stock to justify it.
If, therefore, you have been mulling over the thought of putting some part of your portfolio or savings into rare stamps, this is a wise time to decide.
If you go to the Stanley Gibbons indices (as listed on Bloomberg) you can see the performance of rare stamps for yourself and make your own mind up.
You can also see what other people are saying in this short video.
