The rumours were true.
The UK's GDP fell by 0.7% between April and June, it was announced today. The news has sent London's FTSE100 tumbling.
As I write it is down 3% in the space of five days.
Not a huge deal, you may say. Yet this week's bad news is indicative of what we're seeing from the stock market in these uncertain economic times.
Volatility.
After a wonderful first three months of the year for the FTSE where do we now stand? 3.28% lower than we did in January and 7.59% down from the March 16 high.
Investing in collectibles will not solve all your investment woes.
What the sector can do is give you a mid- to long-term opportunity to invest away from the difficult-to-read stock market, in asset classes that have a proven track record of strong returns.
Collectibles offer security
It comes as a surprise to many, but investing in the right collectibles offers terrific security.
· Up 14.84% pa between 2000-2011: The world's 40 leading rare autographs, according to the PFC40 Autograph Index.
· Up 13.4% pa since 1991: The leading 250 UK stamps, according to the STGIGB25 Index.
Barclays' Wealth Insights report, published last month, reveals that high-net worth individuals devote 10% of their wealth to collectibles, a figure that is rising.
What's more, it's up to 17% in Saudi Arabia and 18% in the UAE, two regions that have large numbers of wealthy inhabitants but what Barclays calls "more volatile or less developed financial markets".
Investors in these regions realise the benefit of holding tangible assets, which remain unaffected by inflation, currency fluctuations and the up and downs of the stock market.
But my question is.
With the current uncertainty of the UK stock market, and those around the world (the Dow Jones is down 0.5% since the start of the year), shouldn't collectibles be playing a more prominent role in your portfolio?
A unique investment opportunity
I'm so confident of the potential of collectibles to produce strong returns that I'm offering many of the finest items of our stock with a 120% Guarantee - a superb investment opportunity and an offer that I believe is unique in the sector.
To discuss how the 120% Guarantee can work for you, contact the team:
+44 (0) 117 933 9500 or info@paulfrasercollectibles.com
Until next week
Paul
Paul Fraser
