Beyond the Eagle …

Diversifying Your Investments With Rare & Ancient World Coins

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Beyond the Eagle …Diversifying Your Investments With

Rare and Ancient World CoinsBy Geoff Anandappa, Investment Portfolio Manager for Stanley Gibbons

IN August 2013, the Thomas H. Law collection of gold coins sold for over $5 million at a Chicago auction — more than double the pre-sale estimates. Given the popularity of gold coins among U.S. collectors and investors, multi-million dollar auction realizations may not be that surprising — except that this was a collection of English

coins.

Thomas H. Law, a lawyer from Fort Worth, Texas, had amassed one of the finest collections of early English gold coins ever seen outside Great Britain. They ranged from gold Edward III nobles from the 1300s; to angels from the reign of Henry VIII and Elizabeth I in the 1500s; and Queen Victoria sovereigns from the 1800s. The collection had won many awards at coin exhibitions, and was auctioned by his estate after Law passed away in 2006.

Some of the realizations surprised even British dealers attending the auction:

1. An exceptional example of the first sovereign (so called because it was the first English coin to portray a full-length image of the monarch) issued by Henry VII in 1489, was estimated at $125,000 but achieved just under $500,000.

2. Another sovereign of Edward VI (1551) was estimated at $100,000 but sold for $330,000.

3. And a William IV gold pattern crown of 1831, estimated at $125,000, sold for $305,000.

This is a trend that has been seen throughout the numismatic world in the past decade. American coins date back over 200 years — but widening the scope to the rest of the world reveals some 2,000 years of coinage avidly collected around the globe.

Rare and early coins from increasingly prosperous areas are rising in demand from collectors in search of a piece of history. Coins from Eastern Europe, such as Russia, Poland and Hungary, have seen some prices increase tenfold in the past decade. Coins from India and the Middle East, long ignored by Western collectors, are now of intense interest. Even traditional collecting areas — such as Ancient Greek and Roman, as well as Western European and British coins — have increased over fivefold in the past decade.

Some of this demand has been stimulated by the rise in the price of gold and silver — but the bullion value of rare

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coins is far surpassed by their numismatic value. Far more importantly, collectors have recognized the rarity of coins in exceptional condition, and so the premium for such coins has escalated accordingly.

However, despite the strong demand and price rises, these rare coins are still very much undervalued when compared to their U.S. counterparts. The size and prosperity of the American collector base, coupled with the relatively small number of rare coins, means that U.S. rarities go for 10 or 20 times the price of equivalent coins from England or Ancient Greece and Rome — and perhaps 100 times the price of their Asian or Middle Eastern equivalents.

This discrepancy offers a unique opportunity for U.S. investors to diversify their collection with rare world coins that are seeing substantial and steady growth in value. But any investor looking to add to their collection outside the typical Eagle or the Saint-Gaudens needs to understand the important differences between the U.S. coin market and the rest of the world.

Ancient Coins: Greece and RomeThe first coins were issued in Lydia (now part of Turkey) around 700 B.C., and were made of electrum, an alloy

of gold and silver. These consisted of a design on one side only, with a simple punch mark on the reverse. Although they were irregular in size and shape, they were of a standard weight.

Over the next century, gold and silver coinage spread from Lydia to Greece and the Mediterranean: the Persians, Macedonians, Syrians and Egyptians all issued gold coins. Greek coinage circulated throughout Europe. The gold stater of Philip II of Macedon (the father of Alexander the Great) was widely imitated, as far afield as the Gauls in France and then the Celts in Britain.

Some Greek coins are noted for their exquisite craftsmanship and are of great artistic merit. Many featured the patron god and goddesses of the Greek city-states.

This gold stater from Lydia was issued around 550 B.C.

The Ancient Greek (Thessaly) silver drachm was issued in 350 B.C. and features the nymph Larissa.

Grade: Extremely Fine, £12,000 ($18,700)

The silver tetradrachm, issued in Athens in 500 B.C., features the goddess Athena and her owl.

Grade: Extremely Fine, £3,300 ($5,100)

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The Macedonian gold quarter stater was issued circa 345 B.C. (during the reign of Philip II) and

features Hercules wearing a lion’s skin. Grade: Extremely Fine, £4,000 ($6,200)

The Thracian silver tetradrachm (circa 90 B.C.) features Alexander the Great and the goddess

Athena. Grade: Good Extremely Fine, £4,500 ($7,000)

This silver denarius (47 B.C.) featuring Julius Caesar, was struck at a military mint in North Africa.

Grade: Good Extremely Fine, £1,400 ($2,185)

This gold aureus, featuring Claudius, was struck in Rome (A.D. 45) and displays the goddess of peace

presiding over a serpent. Grade: About Extremely Fine, £16,500 ($25,700)

This gold aureus, struck in Rome (A.D. 65), features Nero and the goddess Salus. Grade: Very Fine,

£9,500 ($14,800)

This gold aureus, struck in Rome in A.D. 125 during Hadrian’s reign, features the emperor on horseback.

Grade: Good Very Fine, £11,000 ($17,150)

Roman coins cover some seven centuries, and include an enormous number of different types. Nearly every emperor issued gold coins, and used coins extensively to spread propaganda: depicting their military victories, highlighting their achievements and almost elevating themselves to the status of gods.

The gold aureus, and later the solidus, were the basic units of coinage. Due to the extent of the Roman Empire, they were circulated widely and were present throughout Europe, North Africa and the Middle East.

Ancient Greek and Roman coins are widely collected around the world, with the biggest market in the U.S. This is one area where the rarity of a coin is less important than its condition and appearance. A well-struck coin of exquisite design will often sell more than a very rare coin in average condition.

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Celtic, Viking and Anglo-Saxon CoinageGold and silver Celtic coinage was used in England around 70 B.C., with many Celtic tribes striking their own

coinage (often fashioned after Greek designs) at mints in southern England. The Roman invasion of Britain, first by Julius Caesar and then by Claudius in A.D. 43, resulted in Roman coinage circulating in Britain for the next 450 years.

Despite their age, not all these coins are rare, and many are still found in hoards by treasure seekers walking the countryside with metal detectors. Most such coins can be purchased in average condition for a relatively modest price, often under $100.

The early Anglo-Saxons started producing coins around A.D. 600. These early coins had geometric or pictorial designs, sometimes with the name of the moneyer who produced them — but rarely the name of the monarch.

The Viking invasions of the British Isles also had an impact on the coinage. The Viking kingdom of Jorvik (York) in the 10th century, produced coins featuring Odin’s raven and Thor’s hammer.

English CoinsFollowing the Dark Ages, a more orderly succession of late Anglo-Saxon and Norman monarchy was established in

England. By the 10th century, it had become common for coins to have a royal portrait and a mintmark, and coins became recognizable in this familiar format.

All early coins, from the earliest Greek coins to the middle of the 16th century, were hand struck or “hammered.” This technique involves placing a gold or silver disc of a specific weight (called a “flan”) between two metal dies with engraved designs — and striking the upper die with a hammer to punch these designs onto the flan. Thus, every

Celtic Gold Stater (15 B.C.)Grade: Extremely Fine, £8,000 ($12,500)

Viking Silver Raven Penny (A.D. 939)Grade: Extremely Fine, £25,000 ($39,000)

Anglo-Saxon Silver Penny (A.D. 978) Grade: Uncirculated £1,550 ($2,400)

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Edward III Hammered Gold Noble (1365) Grade: About Extremely Fine, £6,500 ($10,150)

Charles I Milled Half-Crown (1631)Grade: Good Extremely Fine, £20,000 ($31,200)

hammered coin is unique, and the quality of the coin is defined entirely by the blow of the hammer. A coin can be weakly struck, doubly struck, or struck off-center — and a perfect strike is certainly not common.

During the 1600s, hammered coins gradually gave way to machine-made or “milled” coins. Although these were still individually made with a screw press, milled coins were more uniform in appearance. They often included an inscription around the edge, to deter the clipping of gold or silver from the edge of the flan. It was not until the early 1800s that steam powered machines were developed to mass produce coins for the Victorian age.

The 1642 Charles I triple unite (60 shillings or £3) isthe largest gold coin produced in England (27 grams in weight and 4.6 centimeters in diameter). Struck at Oxford during the English Civil War, only about 200 are known to exist.Grade: Good Very Fine, £98,500

(about $155,000).

Elizabeth I Gold Milled Half-Pound (1564) Grade: About Extremely Fine, £17,500 ($27,300)

Victoria Gold Milled Proof Sovereign (1839) Grade: Good Extremely Fine, £8,000 ($12,500)

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Most English coins were made with gold, silver or copper, sometimes of variable purity. However, the value of the metal is insignificant compared to the numismatic value of these coins to collectors.

Coins were made at different locations around the country, especially in Saxon and early-medieval times — and a particularly rare mint can increase the value of a coin. Some denominations may also be rare during the reign of certain monarchs. Less than 50 examples of Philip and Mary gold angels (1554 to 1558) are known, and only about 200 examples of England’s largest gold coin, the Charles I triple unite (1642 to 1646).

Most coins are easy to find in circulated grades, but much rarer in fine uncirculated condition. As with U.S. coins, condition plays a huge part in determining their value.

U.S. and English Grading SystemsMost coins sold in North America are graded on a scale from 1 to 70 by independent grading services such as

Professional Coin Grading Service (PCGS) or Numismatic Guaranty Corp. (NGC). This may be possible for more modern, mass-produced coins. However, grading is much more difficult and becomes more subjective with older coins — especially hammered coins where the quality of the strike makes each coin unique, even before any wear due to circulation is taken into consideration.

In England and Europe, there are essentially four grades of condition: Fine, Very Fine, Extremely Fine and Uncirculated (“Fleur de Coin” if exceptional). The terms “Good” and “About” can qualify these grades. Thus, Good Very Fine (GVF) is better than Very Fine (VF) which is, in turn, better than About Very Fine (AVF).

After grading, most U.S. coins are encapsulated or “slabbed” in a protective plastic case. This practice is little used in Europe, because hammered coins are not of uniform shape or size — and it is even frowned upon by many collectors who like to handle their coins to fully appreciate their beauty.

As with U.S. coins, a small difference in grade can make a significant difference to the price of a coin, which is indicative of the rarity of better grades. Most English coin catalogues only list prices for Fine to Very Fine for early coins. Extremely Fine coins are usually very rare, and hammered coins in Uncirculated condition are virtually unknown.

Some common denominations found on English coins (prior to decimalisation in 1971):

1 Pound (£1) = 20 Shillings (20s)1 Shilling (1s) = 12 pence or pennies (12d)

• Farthing (¼d)• Half-Penny (½d)• Penny (1d)• Sixpence (6d)• Shilling (1s or 12d)• Florin (2s)• Half-Crown (30d or 2½s)• Crown (60d or 5s)• Noble or Angel (80d)• Sovereign, Unite or Pound (£1 or 20s)• Guinea (21s)• Triple Unite (£3 or 60s)

U.S. GRADE ENGLISH GRADE DESCRIPTION

MS 67-70 FDC (Fleur de Coin) Pristine, with no imperfections and a bright mint luster

MS 64-66 UNC (Uncirculated) As issued by the mint, but with some bag marks

MS 62-63 GEF (Good Extremely Fine)

AU 58-MS 61 EF (Extremely Fine) Slight surface marks or wear visible upon close inspection

AU 55-57 AEF (About Extremely Fine)

AU 53-54 GVF (Good Very Fine)

AU 50-52 VF (Very Fine) Some wear on raised surfaces, but retaining much detail

EF 45 AVF (About Very Fine)

F 30 F (Fine) Considerable wear on raised surfaces; main features visible

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Prices for a George IV milled silver crown (1821) in varying grades:

F = Fine £ 60VF = Very Fine £175EF = Extremely Fine £750UNC = Uncirculated £1,600

European CoinsCoinage in Western Europe was restricted to

silver until the 13th century. In the Middle Ages, many European cities had their own coinage — issued not only by kings, but by nobility and high-ranking clergy. Later, the large quantities of silver and gold flowing into Europe, first from the Middle-East after the Crusades and then from Spanish America, allowed large coins to be produced.

The Renaissance also brought improvements in minting techniques and quality of design. Responding to the demand for a standard unit of value from traders in the Mediterranean in the 13th

century, Florence and Venice issued the florin and ducat. These were widely imitated throughout Europe.

This was the age of exploration, trade and colonization. Portuguese coinage spread around Africa, and into India and China. Spain’s gold, from Latin American mines, financed its military conflicts. Ducats from Dutch mints were struck for traders in Amsterdam. French coinage became the model for currencies in Latin America. And, of course, the British sovereign spread throughout the Empire.

Henry VII Gold Angel (1505)Grade: AVF (top), GVF (middle), AEF (bottom)

Russia: Peter the Great Silver Rouble (1720)Grade: Good Very Fine, £2,100 (£3,275)

Venice: Rare Gold Osella (1706)Grade: Good Very Fine, £10,000 ($15,600)

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European coins have always had a loyal following amongst collectors. However, new wealth in Russia and Eastern Europe has resulted in an upsurge of interest in their coins and commemorative medals. Rare, high-quality items have attracted enthusiastic bidding at auction. The Linden collection of Russian coins, auctioned by Baldwin’s (part of the Stanley Gibbons Group) in New York, realized over $5.3 million in January 2014.

Asian CoinsThe first metal coins produced in China date from around 700 B.C., though they were initially spade- or knife-

shaped, rather than round. Circular coins with a hole in the center (so that they could be threaded on a rod or string) were introduced around 350 B.C. In contrast to European hammered or milled coins, Chinese coins were cast in moulds, and usually made from mixtures of metals, such as copper, bronze or iron.

From the late 1800s, Chinese currency and coinage went through many changes through the Republican period and Civil War. The most valuable Chinese coins today tend to be gold coins for the early 1900s, though very few were in circulation.

Increasing wealth in China, and Asia in general, has meant that Chinese coins have followed the same pattern as Chinese antiques, art, stamps and other collectibles — with dramatic auction realizations and world-record prices in the past five to 10 years.

Poland: Vladislav IV Silver Thaler (1638)Grade: Good Very Fine, £1,900 ($3,000)

Anglo-French: Salut d’Or issued at Rouen (1430)Grade: Extremely Fine, £1,900 ($3,000)

Japan, Shogun Eoshi: Gold Hammered KobanGrade: About Extremely Fine, £2,900 ($4,500)

China (Yunnan): General T’ang 10-Yuan (1919)Grade: About Extremely Fine, £2,400 ($3,750)

China: Chang Tso-Lin Gold 50-Yuan (1927)Sold for $529,000

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India and CeylonCoinage in India has a long and complex history: from the Kushan Empire in the 1st century A.D., the Gupta

Empire from 4th to 6th century A.D.; the Islamic Sultans of Delhi and the Mughal Emperors. Many of India’s independent sultanates and princely states also issued their own coins. Later, the East India Company, the Portuguese and British colonists, all followed suit.

The neighboring island of Ceylon (now Sri Lanka) had gold coins from the 9th century, extending into British rule, and then into its independence in 1948.

China: British Gold Trade Dollar (1902)Sold for $236,000

A warning! All the coins referred to here, from China or the rest of the world, are generally well over 100 years old and truly rare, numismatic coins — not modern “limited editions” or commemorative coins produced for collectors. Investors who buy recently minted gold and silver China panda coins, for example, will find that they are worth little more than the bullion value of the metal. The coins may be beautiful, but they are not numismatic and the re-sale market is limited.

India, Kushan Empire: Huvishka Gold Dinar (A.D. 150) Grade: Extremely Fine, £4,000 ($6,250)

India, Mughal Empire: Gold Mohur (1566) Grade: Good Very Fine, £1,900 ($3,000)

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Despite price rises in recent years, early coins of India and Ceylon are still very much undervalued. The most expensive Indian coin, a 1939 silver pattern rupee, was recently sold by Baldwin’s for just $200,000. It is still possible to purchase rare gold coins, 500 or 1,000 years old and in superb condition, for relatively modest sums.

Turkish and Middle Eastern CoinsIn parallel with the growing wealth of the region, coins of the Middle East are increasing in demand. Coins were

first issued here in the 7th century and, reflecting the tenets of Islam, they feature no images of individuals — simply Arabic script and numerals. The lack of imagery and difficulty in deciphering the script means that these coins have limited appeal to collectors outside the region.

Though Middle Eastern coins are widely available, this is a complex area for the novice. Dates and mintmarks are often absent or illegible. Specific inscriptions that can tie a coin to a specific sect or a particular area will increase its value. Coins struck in Mecca are sought after, as is anything connected with Saladin, the scourge of the Crusaders.

East India Company: Victoria Gold Mohur (1850s) Grade: Extremely Fine, £3,100 ($4,800)

Ceylon: George III Pattern-Rix Dollar (1815) Grade: Uncirculated, £7,500 ($11,500)

Turkey: Sultan Muhammad V, 500 Kurush (1913)Grade: Extremely Fine, £3,000 ($4,700)

Yemen: Gold Half Ahmadi Riyal (1959)Grade: Good Extremely Fine, £2,800 ($4,400)

Umayyad Gold Dinar 105h (A.D. 724). This is probably the most important coin ever struck in the Arabian Peninsula. The gold it’s made with comes from land owned by the prophet Muhammad. Grade: Uncirculated, £1.75 million ($2.75 million)

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In 2011, an Umayyad gold dinar dated 105h (A.D. 723) and struck with gold from the Caliph’s mine, sold for a record £3.7 million ($5.8 million) in London. In the same auction, an extremely rare Umayyad silver dirham dated 90h (A.D. 709) struck in the Sultanate of Oman, sold for £1.08 million ($1.7 million). The total auction realizations from the sale were £6.67 million ($10.5 million), shattering the estimates by a factor of five.

Size of the Market: Liquidity and VolatilityThe U.S. is the largest market for gold and silver coins due to the numbers of collectors, investors, dealers and

auction houses in North America. Many investors own some U.S. numismatic coins, and most own U.S. bullion coins. Such coins are easily traded, and buy/sell prices are readily available — but with this liquidity comes volatility. Bullion coins and many U.S. numismatic coins fell in value during the 2008 to 2009 economic crisis as investors panicked in their flight to cash.

The rare coin market in other countries is (individually) much smaller — but, critically, these markets are driven by collectors, rather than investors. Very rare English, European and Middle Eastern coins sell for a fraction of the price of their U.S. equivalents. So it is possible to acquire rare coins from these areas for relatively modest prices.

As an example, the most expensive U.S. coin, the 1794 flowing hair silver dollar (the best of about 130 known) sold for just over $10 million in 2013. In contrast, the record price for an English coin has just been broken by a 1937 Edward VIII sovereign (one of only two in private hands), which sold for just $875,500 at a Baldwin’s auction in London.

The market for English coins has shown stable, consistent returns for many years. The Stanley Gibbons English Coin Index, which tracks 200 rare coins, has averaged 12.4% per year over the past decade — and it continued to increase in value through the 2008 to 2009 financial crisis.

1937 Edward VIII Sovereign This is the most expensive English coin.

Grade: Sold for £516,000 ($800,000)

Performance of Rare English Coins vs U.S. Equities, Property and Gold 1995-2014

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Building Your Rare Coin InvestmentUnless you wish to start collecting coins, rather than investing in them, it is not advisable to try to put together

“sets.” Often, a set will include less rare coins that are not of investment quality, and therefore less likely to increase in price. Additionally, a set of similar coins will tend to rise (and fall) in value at the same rate. Instead, concentrate on finding rare coins, in the finest condition, from a range of different collecting areas. All of the coins should, in time, show a good return — with a few showing exceptional returns as new areas become more popular.

A Sample Portfolio of Ancient, English, Asian and Middle Eastern Coins Worth £48,500 ($75,000):

Ancient Greece, Dynasts of Lycia: Kherei Silver Stater (440 - 410 B.C.)

Obverse: Head of Athena, wearing a crested helmet with earring and necklace.

Reverse: Head of Kherei wearing a Persian headdress.

Well struck and of attractive style. A very rare issue, and this coin is one of the finest known.

Grade: About Extremely FineRef: CM001012 • £5,500 ($8,500)

Roman Empire: Valens Gold Solidus (A.D. 364 - 367)

Obverse: Bust of Valens with pearl diadem.Reverse: Emperor holding a labarum and Victory

on globe.A few very light marks, lustrous.

Grade: Extremely FineRef: CM001156 • £2,500 ($3,900)

Celtic Britain, Catuvellauni Tribe: Prince Andoco Gold Stater (15 B.C. - A.D. 10)

Obverse: Two crescents back to back in the center of a crossed wreath pattern.

Reverse: Prancing horse with a bull’s skull and rosette above.

A very rare coin with marvellous Celtic symbolism: a bull’s skull, an important animal in Celtic belief, and

hidden faces and mystic designs on obverse.Grade: Extremely Fine

Ref: CM000247 • £8,000 ($12,500)

England: Henry VII Gold Angel (1505 - 1509)Obverse: The angel Michael, in armor, spearing a

fallen dragon-like devil.Reverse: A medieval ship with royal arms.

Beautiful, well-struck coin with clear crisp features and very little traces of any wear. An exceptional

example of this rare coin.Grade: Good Extremely Fine

Ref: CM000979 • £5,750 ($9,000)

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England: Elizabeth I Silver Half-Crown (1601 - 1602)

Obverse: Crowned bust of Elizabeth, holding scepter and orb, while in an ornate dress and ruff.

Reverse: Garnished royal arms with Latin legend: “I have made God my helper.”

Scarce and very rare in such good a condition. Attractive gray toning with a strongly struck

portrait of Elizabeth, created a couple of years before her death.

Grade: Good Very FineRef: CM001222 • £5,000 ($7,800)

England: Charles I Large Silver Pound, Oxford Mint (1642)

Obverse: Crowned king in full armor riding over strewn arms, including a canon.

Reverse: Declaration in Latin: “Protestant Religion, Laws of England, Freedom of Parliament.”

The largest British silver coin ever issued: well struck, with very attractive toning. It’s very rare to

find in such good condition. When the English Civil War began in 1642, the tower mint fell into the

hands of Parliament and Charles was forced to open mints at Shrewsbury and Oxford. In September

1642, he made his famous declaration promising to uphold the Protestant religion, the laws of England

and the liberty of Parliament.Grade: Almost Extremely Fine

Ref: CM001193 • £12,500 ($19,500)

India, Kushan Empire: Huvishka Gold Dinar ( A.D. 150 - 190)

Obverse: Crowned, diademed bust of King Huvishka Kushan holding a mace.

Reverse: Deity Shiva standing with one hand raised in blessing.

Well struck with high relief.Grade: Extremely Fine or better

Ref: CM000923 • £4,000 ($6,250)

Turkey, Seljuq of Rum: Kaykhusraw II Gold Dinar (1237 - 1246)

Obverse and Reverse: Double-bordered square panel filled with Islamic legend.

Rare and in unsurpassable condition, this attractive coin marks the end of the Seljuq empire, which was

swept away by the Mongol hoards.Grade: Uncirculated

Ref: CM000409 • £2,750 ($4,200)

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Dealers and CataloguesOutside the U.S., there are several major dealers and auction houses, and many thousands of smaller dealers

operating via websites, eBay and coin shows. One of the main auctioneers is Spink, with offices in London, Europe, Asia and U.S. Other notable auctioneers are Künker in Germany, and Numismatica Genevensis in Switzerland.

Spink also publishes the standard catalogue and reference work Coins of England. There are a multitude of books and catalogues covering the coins of the rest of the world. Krause publishes several guides, including the Standard Catalog of World Coins in several volumes. Gold Coins of the World by Friedberg is also a good general reference.

The leading U.K. dealer is A. H. Baldwin & Sons Ltd., established in 1872 and located in London. As well as English coins, Baldwin’s has expertise in the coins of Europe, Asia and the Middle East. Unlike many other dealers, Baldwin’s offers a complete service to collectors and investors: the largest coin shop in the U.K., with extensive stock; a comprehensive website; a valuations and appraisals service; regular coin Auctions in the U.K., U.S. and Asia; and a presence at all the major international coin shows.

In November 2013, Baldwin’s became part of the Stanley Gibbons Group, now the largest group of collectibles companies in the world, and a debt-free public company quoted on the London Stock Exchange AIM market. Stanley Gibbons Ltd., established in 1856, holds the Royal Warrant: Philatelist to British Monarchs for 100 years.

Dealers, of course, exist primarily to serve the needs of collectors — so investors should proceed with caution. Many investors do their research on which coins to buy, and haggle with dealers to get the best possible price — but they forget to consider their exit options. When it is time to sell, they find that a large chunk of their profits are wiped out by an auctioneer’s commission (up to 25%) or by dealer margins (often over 50%).

Stanley Gibbons InvestmentsStanley Gibbons offers a dedicated service to investors from its offices in London, the Channel Islands, Singapore

and Hong Kong. It can advise the investor on compiling a diversified portfolio of rare coins from England, Europe or the rest of the world. Free storage and insurance is available if required, and annual valuations are provided. There are no management fees or annual charges — and commission is only payable when the coins are eventually sold.

Any rare-coin portfolio from Stanley Gibbons is sold with an investment contract that specifies the terms of the investment and, most importantly, the exit options available to the investor. Collectibles should always be a medium to long-term investment, but the most popular investment contract, The Flexible Trading Portfolio, has no minimum holding period. Investors are free to sell one or more coins at any time, and either take their profits or reinvest in other collectibles.

When it comes to selling the portfolio, several exit options are available:

1. The coins may be sold via Baldwin’s Auctions, for a 0% commission, i.e. the investor receives the full hammer price.

2. The investor may take possession of the coins at any time, and either negotiate a private sale with another dealer or

British India, East India Company: Queen Victoria Gold Mohur (1850s)

Obverse: Bust of young Victoria.Reverse: Lion under palm tree.

Beautiful condition with traces of original mint luster, and marvellous iconology: the British lion under an Eastern tree. Although dated 1841, the “frozen date” remained in production until 1866.

Grade: Extremely Fine or betterRef: CM001097 • £2,500 ($3,900)

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collector, or pass on the coins to any third party, such as a spouse or child. In either case, no commission is payable to Stanley Gibbons.

3. The investor may instruct Stanley Gibbons to market and sell the coins at full retail value to Baldwin’s huge database of collectors, via its website and mailing lists. In this case, the commission payable to Stanley Gibbons is a percentage of the profits only. If the coins have fallen in value, no commission is payable.

The third option is the most popular because it allows investors to buy and sell at retail prices — so there is no dealer margin to worry about. Finding the right collectors to buy the coins from a portfolio may take a few weeks, but it is usually the best way to achieve maximum returns.

In Summary …Rare English, European, Middle Eastern and Asian coins are still very much undervalued, in comparison to their

U.S. counterparts. Yet these markets are seeing increased interest from collectors around the world. This represents a unique opportunity for investors who are seeking to diversify into rare world coins.

These rare coin markets are still driven by collectors, not investors — which means that they are stable and uncorrelated with mainstream investments, such as equities, bonds, property and gold. Rare collectibles were one of the few investments that actually went up during the 2008 to 2009 financial crisis.

Stanley Gibbons is a British company and its collectibles are priced in British pounds — so this may be a unique way to diversify out of the U.S. dollar. Offshore storage is also available with assets held in the Channel Islands or Hong Kong.

Investing in any type of collectibles should not be undertaken without expert advice. Stanley Gibbons is the leading brand name and the largest group of collectibles companies worldwide. More importantly, Stanley Gibbons is the only major company promoting rare collectibles with investment contracts and well-defined exit options.

For many centuries, coins have been collected by some, and hoarded by others. In times of uncertainty, they have provided security against war, disaster, inflation and panic. An added bonus, of course, is the pride of ownership of a unique piece of art, with a history dating back 400, 600 or perhaps 1,000 years.

Kind regards,Geoff AnandappaInvestment Portfolio Manager, Stanley Gibbons

Editor’s Note: Geoff Anandappa is an investment portfolio manager for Stanley Gibbons Ltd., the world’s leading brand name in collectibles, based in England but with offices in London, the Channel Islands, Hong Kong and Singapore. The Stanley Gibbons Group includes the world’s oldest rare-stamp merchant (established in 1856) and Philatelist to British Royalty since 1914; and the U.K.’s largest coin dealer, A. H. Baldwin & Sons (established 1872).

Geoff is based in London, but you can contact him directly at 1-707-466-4999 or by email at ganandappa@stanleygibbons.com.

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