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Peter Temple - The Handbook of Alternative Assets: Making Money from Art, Rare Books, Coins and Banknotes, Forestry, Gold and Precious Metals, Stamps, Wine and Other Alternative Assets

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Peter Temple The Handbook of Alternative Assets: Making Money from Art, Rare Books, Coins and Banknotes, Forestry, Gold and Precious Metals, Stamps, Wine and Other Alternative Assets
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The Handbook of Alternative Assets: Making Money from Art, Rare Books, Coins and Banknotes, Forestry, Gold and Precious Metals, Stamps, Wine and Other Alternative Assets: summary, description and annotation

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Alternative assets offer a proven means of diversifying your financial portfolio away from the volatility of the markets. In the past, investors have looked to property, hedge funds or private equity to accomplish this - but the safety and high returns they sought there have perished in the wake of the 2007-2009 financial crisis. As an antidote to this, experienced investment writer Peter Temple here introduces those tangible, and often portable, assets whose returns are impressive but whose value is not so subject to unsustainable bubbles or precipitous collapse.

Including everything from fine wine and rare books to stamps, art and diamonds, these alternative assets can serve as a store of value in the good years as well as in troubled times. Often with restricted supply they offer real security of value. And, though their value is concentrated in capital growth, their liquidity is often impressive; and their aesthetic appeal enduring.

A detailed overview of each sector is presented, including:

- the size and shape of the market, and its key historical and modern trends

- collecting areas and portfolio strategies for investors of all sizes

- the degree of volatility or cyclicality in the market, as well as its liquidity

- the long-term returns that can reasonably be expected based on the past

- whether or not there are tax advantages available

- how best to buy and sell, and through whom.

The book also provides extensive directory resources for where to go for more information - and where to start investing - with each tangible investment area.

This comprehensive and authoritative book shows investors and their advisors how they can use tangible assets as a means of diversifying a portfolio and securing wealth for the long term. It is an essential handbook for anyone interested in making rare, valuable and often beautiful possessions a part of their investment strategy.

Peter Temple: author's other books


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Publishing details

HARRIMAN HOUSE LTD

3A Penns Road

Petersfield

Hampshire

GU32 2EW

GREAT BRITAIN

Tel: +44 (0)1730 233870

Fax: +44 (0)1730 233880

Email: enquiries@harriman-house.com

Website: www.harriman-house.com


First published in Great Britain in 2010

This eBook edition 2011.

Copyright Harriman House Ltd


The right of Peter Temple to be identified as author has been asserted in accordance with the Copyright, Design and Patents Acts 1988.


ISBN: 978-0-85719-111-3


British Library Cataloguing in Publication Data

A CIP catalogue record for this book can be obtained from the British Library.

All rights reserved; no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior written permission of the Publisher. This book may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding or cover other than that in which it is published without the prior written consent of the Publisher.

No responsibility for loss occasioned to any person or corporate body acting or refraining to act as a result of reading material in this book can be accepted by the Publisher or by the Author.

About the Author

Peter Temple trained as an economist and statistician. He has been working in and writing about financial markets for almost 40 years. After an 18-year career in fund management and investment banking, he became a full-time writer in 1988.

His articles appear in the Financial Times, Investors Chronicle and a range of other publications and websites. He has written more than a dozen books about investing, mainly aimed at private investors.

He and his wife live in the English Lake District.

Acknowledgements

I started out writing the original version of this book knowing a little about some of the areas that I planned to cover, but with huge areas of ignorance about the detail of many of them. Fortunately I have been able to call on several experts, collectors and experienced alternative investors for guidance. I have picked their brains, gone to them for tips about research angles, and in some cases they have been good enough to check the chapter that covered their particular area of interest and alert me to any nuances I had failed to pick up, or to the more obvious mistakes I had made. I have called on many of them again, and also a number of newer contacts.

In no particular order of precedence, therefore, I would like to thank the following for their help, patience and forbearance: Barry Townsley; Val Porter-Godman; Peter Holland; Philip Athill at Abbott and Holder; Peter Blaskett of Signature Gallery in Kendal; Martin and Pat Masters of Thomond Antiques in Kendal; staff at Sothebys; Bruce and Kim Stanfield, who auction art for P&O Cruises; Barnaby Faull at Spink; Peter Duppa-Miller at the International Bond and Share Society; Keith Hollender; Colin Steele; Julian Roberts; Christopher Proudlove, Simon Roberts and Tim Schofield at Bonhams; Dave Selby; staff at Spinks coin department; staff at Coincraft; Ian Goldbart, Dimitri Loulakakis, Seth Freeman and Stephen Hill of Noble Investments (UK) plc and Baldwins; Rick Warren and colleagues at Apex Philatelics; Alan Kelly at Mannin Collections; Cathy Roberts at Petra Diamonds; Tim Kirk, Simon Hart and Ruth Roy at UPM Tilhill; Robert Weinberg and Rhona OConnell; Laurence Chard; Michael Hall, Richard Purkis and Geoff Anandappa at Stanley Gibbons; Adrian Roose; Colin Harding at Scotia Philately; Richard Watkins at Spink; Jim Budd; James Sherry at Vineyards of Bordeaux; and Anthony Foster at Bonhote Foster.

Various publications I write for regularly have allowed me to use their columns to explore some of the ideas contained in both the original version of this book and this new edition. In this respect I must thank Simon London, Kevin Brown and Matthew Vincent at the Financial Times, Rosie Carr at the Investors Chronicle, Richard Beddard and Steve McDowell at Interactive Investor, Andrew Pitts at Money Observer, and Frank Hemsley and Andrew Vaughan at Fleet Street Publications for their help. I first got interested in the tangible assets scene through writing articles about scripophily and gold for Accountancy magazine in the late 1980s.

At Harriman House, thanks go to Philip Jenks, Myles Hunt, Nick Read and Stephen Eckett for embracing the original idea of this book so enthusiastically and for the subsequent proposal to convert it into a handbook, and for editing, designing and producing the finished products at a speed that puts most traditional publishers to shame.

Last but not least, my wife Lynn Temple, whose idea this book originally was, has contributed to it in many ways. She conducted or sat in on most of the interviews we had with experts in many fields, attended auctions, researched particular topics in depth for me, and compiled and maintained the database relevant websites and information sources on which a number of the tables in this book and its predecessor are based, wrote some of the text, and proofread the finished version of the manuscripts. Completing the books would have been a much lengthier task without her help and she has, as always, my grateful thanks for her diligence and support.

Peter Temple

March 2010

Alternative Investments and Portable Wealth

There has been increasing focus in the investment world in recent years on finding alternatives to the stock market. For many this has involved looking at real estate, at hedge funds and at private equity. The events of the past few years have highlighted the shortcomings of these different options.

The true alternative investments, in my view, are those that are tangible and perhaps even portable. They can serve as a store of value in troubled times when stock markets are volatile, bond markets subject to inflation and fiat currencies depreciating in value. The aim of this book is to show investors and their advisors how they can use such tangible assets ranging from gold and diamonds to books, wine, forests and more as a means of diversifying a portfolio, and avoiding such pitfalls.

Many investors may already own, or have inherited, tangible investments like this: a stamp or coin collection, or a set of first editions. Or they may pursue collecting stamps, coins, books or art as a hobby. They may not hitherto have thought of their collections as potential investments to be examined and developed systematically as a bona fide part of their overall portfolio.

There is, however, no shortage of examples of successful investment in this vein. One good painting, carefully chosen and bought at the right time, can prove a fantastic investment. The authors own modest portfolio of investment-grade British stamps (recently sold) delivered a return of close to 50% over a four-year period at a time when the stock market was in disarray.

Each alternative asset covered in this book will be examined systematically, taking in:

  • the background to the market
  • whether a particular kind of asset may or may not be appropriate for your investment needs
  • the long-term returns that can reasonably be expected based on past history
  • whether or not there are tax advantages available
  • how best to buy and sell, and through whom
  • and where to go for more information on that particular tangible investment area.

But first lets outline some of the issues that have led us to the conclusion that looking seriously at alternative, particularly tangible, investments is a good idea.

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