By: Nia Williams
Stanley Gibbons Investments has launched a rare book index measuring the value of 30 first edition 20th Century classics.
The index will help guide investors and collectors looking to build a rare book portfolio as part of a long-term investment strategy.
The index of first editions includes Ian Fleming’s Casino Royale and Live and Let Die, which are valued at £24,000 and £8,000 respectively; J.R.R. Tolkien’s The Hobbit, valued at £65,000; while F. Scott Fitzgerald’s The Great Gatsby is the highest at £247,000. George Orwell’s Animal Farm has experienced significant value growth according to auction data, rising from £190 to £5,100.
Overall the index has shown 398% growth, an 8.8% annual growth for the last ten years.
“As an authority in the collectibles market, Stanley Gibbons aims to help guide and provide access for investors who are looking to diversify some of their wealth into alternative assets,” said Keith Heddle, managing director of Stanley Gibbons Investments.
“While the index may cause households to start examining their collections, it is important to understand that in order to be investment grade these books must be of a certain condition, have the ‘dust jacket’ still intact and have a particular history and rarity associated with them. That said, they can give immense pride of ownership as well as strong capital growth potential.
“There is a book in everyone and this resonates with investors.”
The rare books index follows the now established rare stamps and coins indices, which Stanley Gibbons says demonstrates these collectibles to be one of the most reliable, long-term ‘buy and hold’ alternative assets for investors looking for portfolio diversification and low volatility.
Over the past 10 years, the GB250 Index, which tracks the performance of the top 250 traded, investment grade British stamps, recorded a CAGR of 11.4%. The GB200 coin index, charting the performance of 200 rare British coins, showed a CAGR of 12.75% without a drop in that time.