This Is Guernsey

By Tom Edwards

Stanley Gibbons chief executive Mike Hall holding autographed photographs of Johnny Depp and Angelina Jolie, two of the current stars whose signatures fetch the best prices. (Picture by Daniel Guerin, 0561187)

CHANNEL ISLANDS residents bought more than £1m.-worth of memorabilia from Stanley Gibbons’ Guernsey office last year.

Chief executive Mike Hall said collectables such as stamps and autographs had become an extremely attractive asset class for investors.

He said rather than suffering from the effects of belt-tightening due to the credit crunch, the current economic conditions were working in his company’s favour. ‘People are putting their money into alternative asset classes because they show no correlation with the stock markets.

‘You can take money out of the markets and put it into memorabilia and avoid the effects of the credit crash.

‘Collectables are driven by passion, whereas the markets are driven by fear and greed.’

The facts are in the figures. Stanley Gibbons has announced profits before tax of £4.51m. in 2007, up by 20% from the year before.

The Guernsey office was key to that success, said Mr Hall, as the revenue from Channel Islanders had increased by some £700,000 in the last year alone.

While stamps still accounted for 75% of the business, related collectables and paraphernalia accounted for 15% and autographs made up the remaining 10%.

Mr Hall said it was this last area that had shown the biggest growth and he believed that was down to Stanley Gibbons investing in historical signatures.

The most expensive collectable he had was a document signed by Edward IV, which would go for a minimum of £150,000.

Last year he sold a collection of letters written by Albert Einstein referring to quantum physics and the theory of relativity, which went for £175,000.

Despite those, the majority of business comes from the bottom end of the market, where autographs by current stars such as Angelina Jolie and Johnny Depp are currently the most in demand.

‘People are buying memorabilia not just because it looks good at home, but also because it’s an appreciating asset constantly going up in price.

‘Having said that, it’s quite a new asset class that hasn’t been appreciated until recently and it’s still quite undervalued compared to the silly money that is spent on art and antiques.’

Stanley Gibbons’ Guernsey office is home to a considerable amount of highly collectible memorabilia, including a strand of Marilyn Monroe’s hair for £495.

A song list written by Bob Dylan to be played at a gig is on sale for £4,000 and a Princess Diana signature is available for £7,500.

The company has cemented its position as a dominant force in the memorabilia industry by the introduction of a guaranteed financial product aimed at investors.

‘Customers can take out a contract with us over a fixed term and earn up to 6% per annum,’ said Mr Hall.

‘That’s classed as capital gains so there’s no tax and it’s higher than a bank but with unlimited upside.

‘You could then sell the item back to us at 75% of the value, put it through auction, sell privately or just keep it longer.

‘But you have the security that if the item doesn’t increase in value, you still get your minimum guarantee from us.

‘Because it’s such a good product there are only a limited number of items offered through it and how many is determined by the liquidity of the company.