An index charting the value of Britain’s 200 rarest coins has shown solid growth, with some coins increasing in value by up to 50%, or by as much as £75,000 in one year.
The Stanley Gibbons GB200 Rare Coin Index grew by 6.4% in 2015, a rise of £344,750, outperforming the FTSE 100, UK property, and Gold.
Over past 10 years the Rare Coin Index has grown by 194.9%, giving a Compound Annual Growth Rate (CAGR) of 11.4%.
The most valuable coin in the Index is a 1703 Anne, Pre-Union Type Gold Five Guineas, which increased in value by £50,000 to £375,000. The standout performer was the 1738 George II Gold Five Guineas, which increased by 50% to £45,000, although the biggest increase in monetary terms was the 1820 George III, Gold Five Pounds (LX pattern only), which grew £75,000 in value.
Stanley Gibbons’ Rare Coin Index is a snapshot of the market for investment-grade coins. It is a representative sample of 200 rare British coins, with values taken from the independent Spink catalogue of English coins, with a view to tracking the performance of the asset class as a whole, as well as that of the individual pieces. The values are updated annually and are based on aggregating global auction realisations.
Luxury and collectibles continue offer a powerful hedge to global financial instability. In a year when the FTSE 100 lost 4.9%, the Rare Coin Index continued to make solid gains. Indeed, the Knight Frank Luxury Index ranked coins as the least volatile luxury asset over the last ten years.
Keith Heddle, Managing Director of Stanley Gibbons Investments, said: “Coins are a classic heritage investment, with more than two and a half millennia of history, tangibility, desirability and strong investment growth. With interest rates still at record lows, these alternative assets can provide not only an excellent return on investment, but are also much more enjoyable to own than a share certificate or a unit in some fund”.
News of the coin market’s resilience comes just four weeks after Stanley Gibbons sold one of Britain’s rarest coins, an Edward VI ‘Boy King’ gold sovereign of 30 Shillings to an investor in Asia for £250,000, and a week after Stanley Gibbons sold a Plate 77 Penny Red stamp, worth nearly half a million pounds, to a British collector-investor.