British Stamps & Coins: Comparative Index - Geoff Anandappa

British Stamps

Comparative Index

by Geoff Anandappa

Those starting to collect or invest in British stamps and coins face a daunting task, choosing from a history dating back hundreds of years. A comparative Index can show which areas are undervalued or overpriced, and could help determine which areas to focus on.

First, it is important to understand the main areas of collecting for British stamps and coins.

Many stamp collectors choose to collect thematically – that is, by the subject depicted on the stamp, such as art, architecture, science, sport etc. Similarly, coin collectors may choose to collect by denomination: sovereigns, shillings or farthings throughout the centuries, for example. Traditionally, however, collecting areas have been defined by the monarch or ruler usually depicted on British stamps and coins:

Victorian Stamps

Queen Victoria acceded to the throne in June 1838 and the first stamp, the Penny Black, was issued in May 1840 – so the first British stamps are synonymous with Victoria’s reign. Alongside the Penny (1d) Black was the 2d Blue, quickly followed by the 1d Red in a variety of printings – and later by ½d and 1½d values.

Due to the method of printing, these early issues are referred to as Line Engraved stamps, and they lasted into the 1870s. They are the most collected British stamps, representing around 20-25% of the market.

In the 1850s, a new printing process was introduced which lasted into the 20th century. Surface Printed stamps were issued in a range of values and colours, including bi-coloured stamps to celebrate Queen Victoria’s Golden Jubilee.

Larger formats were used for values over 1 shilling (1s), and these were printed in smaller numbers according to postal requirements. These High Values range from 2s 6d to £5 and due to their rarity, this represents a key area especially for investors.

Some Queen Victoria stamps and those of her successor, Edward VII, were overprinted for use by government departments such as the Inland Revenue and Board of Education. Once again, some issues were overprinted in small quantities, and these Officials are amongst the rarest and most expensive British stamps.

British Stamps & Coins:

Queen Victoria Surface Printed stamps issued between 1855 and 1900

Queen Victoria 5s and £5 High Values; and Victoria & Edward VII Inland Revenue Officials George V’s successor, Edward VIII, was on the throne for less than a year (1936) before he abdicated to marry Wallis Simpson – so only one set of four stamps were issued during his reign. The stamps of George VI however, continued the trend for attractive high value stamps and commemoratives: including a stamp to celebrate the coronation (1937), the centenary of the Penny Black (1940), the end of World War II (1946), the Royal Silver Wedding and London Olympics (both 1948).

The Four Kings

Edward VII came to the throne in 1901, and the stamps of his reign followed the same pattern (and often the same designs) as those of Victoria: a central portrait of the monarch with a decorative surround. Such stamps, designed for day-to-day usage over a number of years, are known as definitive stamps. It was not until George V (1910-1936) that commemorative stamps (designed to mark a particular occasion) were introduced.

The high value stamps of George V (2s 6d, 5s, 10s and £1) introduced a more decorative design, depicting Britannia riding a horse-drawn chariot through the waves. These are known to collectors as Seahorses and they are amongst the most attractive and popular British stamps. Other attractive designs followed: for the British Empire Exhibition (1924-5); the Postal Union Congress (1929) and finally, to commemorate the King’s Silver Jubilee in 1935. The stamps of the Four Kings are often collected together because they share many similarities in design and theme, over a relatively short period of about 50 years. They are also easier to acquire than many Victorian stamps, which are not as affordable (especially in unused condition) for the average collector.

Stamps of the Four Kings: Edward VII, George V, Edward VIII & George VI

The Modern Era

Even though Elizabeth II came to the throne in 1952, some 70 years ago, the stamps of her reign are regarded as modern issues. There have been two series of definitive stamps, both named after their designer: Dorothy Wilding (1952-1967) and Arnold Machin, whose classic design continues to the present day. There have also been attractive high values, depicting castles; and a £10 Britannia stamp, the highest denomination for a British stamp.

The change to decimal currency in 1971 was also reflected in stamps, and collectors often make a distinction between predecimal and decimal issues. There has also been a proliferation of commemorative issues: from 9 sets (23 stamps) in the first ten years of Elizabeth II’s reign, to 15 sets (around 100 stamps) in 2021 alone.

Almost all modern stamps were printed in large numbers to satisfy the demand from collectors, so they are easily obtained – often for less than face value. One key exception is printing errors on stamps, such as missing colours, or perforation errors leading to imperforate stamps. These Modern Errors are popular with some collectors, and this represents another distinct area of collecting.

RTA Index: Rare British Stamps

The RTA Index, compiled by Rare Tangible Assets Ltd, shows the change in values of British stamps over the past 20 years. The Index is based on the Stanley Gibbons catalogue, the main reference used by collectors of British stamps. Catalogue prices are usually significantly higher than market value, but changes in catalogue value do reflect changes in the market.

The RTA Index shows that British stamps rose steadily in value until 2017-18, when values fell almost 20%. However, the relative fall in value varied across the sectors. Victorian Surface Printed stamps (down 5%) and Officials (down 10%) suffered the least – whereas Modern Errors, which had previously seen the best growth, fell almost 50% in value.

Prices for rare stamps, as with most collectibles, increased during the Covid-19 pandemic, due to the increased demand from collectors who found more time to devote to their hobby and more disposable income to spend buying online. As a result, prices for British stamps have stabilised, and have even started to increase in some sectors. Some stamps are cheaper now than they have been for a decade, and represent good value for collectors and investors alike.

Modern Errors: pre-decimal and decimal commemorative stamps of Queen Elizabeth II with missing colour errors, shown alongside normal stamps; and Machin 10p & £1 definitives with missing perforations.

Early Coinage of the British Isles

The earliest coins circulating in Britain were continental imports from the tribes of Gaul, dating back to 150 BCE. However, the first coins struck in Britain were gold Staters and silver Units made by Celtic tribes in Kent and southern Britain, from around 65 BCE. This coin production came to an end soon after the Roman conquest of Britain from 43 CE – and for over 500 years, Roman coinage was in circulation.

Years of disruption followed the withdrawal of Roman forces, but coin production eventually resumed with Anglo-Saxon gold Thrymsas and silver Sceats from around 620 CE. Later coinage, predominantly the Penny, was produced by the kingdoms of Northumbria, Kent, Mercia, East Anglia and Wessex. Silver pennies of the period bore the name of the ruler, though not always the portrait.

Following the Viking invasion, Anglo-Viking and Hiberno-Norse coins were in circulation in East Anglia and York. Aethelstan re-conquered the last remaining Viking territory in 927 CE, becoming the first Anglo-Saxon ruler of the whole of England.

TOP: 785 CE Eadberht Bishop of London silver Penny; 890 CE Alfred the Great silver Penny, minted in London. BOTTOM: 990 CE Aethelred the Unready silver Penny; 1040 CE Harold I silver Penny

The First Coins of England

In 957 CE, Edgar was crowned King of all England and he introduced a reformed coinage throughout the kingdom. The portrait of the king became a standard feature, with the reverse bearing the name of the moneyer and the mint where they were produced. The coins of Aethelred “The Unready”, Cnut and Edward “The Confessor”, for example, are well collected.

The penny was still the only denomination issued, but the cross on the reverse of the coin was commonly used to divide it into two halfpennies or four farthings. “THE PORTRAIT OF THE KING BECAME A STANDARD FEATURE, WITH THE REVERSE BEARING THE NAME OF THE MONEYER AND THE MINT WHERE THEY WERE PRODUCED.”

15 BCE Celtic gold Stater; 630 CE Anglo-Saxon gold Thrymsa; 940 CE Viking silver Raven Penny of York

The Normans, Plantagenets and the Houses of Lancaster & York

The defeat of Harold II by William I in 1066 saw the end of the Anglo-Saxon kings and the start of almost 100 years of Norman rule but there was no drastic change in the coinage.

The Plantagenets followed (1154-1399) – the most significant change being the introduction of gold coinage. Henry III introduced the first English gold coin, a Gold Penny (worth 20 silver pennies) in 1257. However, it proved unpopular, and it was not until the Gold Noble of Edward III in 1344 that gold coins came into circulation. This was worth 80 pennies: an impressive coin, depicting the king with sword and shield, aboard a ship – emphasising England’s naval supremacy.

English coinage became standardised into the Gold Noble, Half-Noble and Quarter-Noble; and the Silver Groat (four pennies), Penny, Half-Penny and Farthing. This pattern generally continued as the Plantagenets split into the rival Houses of Lancaster and York, resulting in civil war: the Battle of the Roses.

1505 Henry VII gold Angel; 1545 Henry VIII silver Shilling; 1540 Henry VIII gold Sovereign

The Tudors

Henry VII became King of England & Lord of Ireland in 1485, bringing stability to the monarchy. This was the start of the Tudor dynasty, a very popular era with collectors – especially the coins of Henry VIII and Elizabeth I.

In the 1460s, Edward VI had introduced the gold Ryal (10 shillings) and the smaller gold Angel, depicting St Michael slaying a dragon. Henry VII retained the Angel, slightly redesigned, but introduced a magnificent gold Pound as the largest denomination. Portraying the king enthroned with scepter and orb, this coin became known as the Sovereign. Together with the silver Shilling and the Crown (5 shillings) which also came into use during the Tudor period, these denominations continued in use into the 20th century.

The portraits of the Tudor monarchs on coins became more lifelike, and depictions of the bearded Henry VIII, the boy-king Edward VI and the majestic Virgin Queen are very popular with collectors.

The Elizabeth era also saw a revolutionary change in the method of production of coins:

Since the earliest times, coins had been made individually by hand. The designs for each side were engraved into metal dies, a metal disc (a blank or flan) was placed between the two dies, and the combination was struck with a hammer. Thus, these early coins are called Hammered coins.

In 1561, coins began to be produced by mill & screw press, a machine which applied heavier pressure more evenly, resulting in sharper details and consistent quality. Such coins are called Milled coins. After initials trials with machinery, milled coins came into circulation from the 1660s. This method of production continued until steam powered machinery came into use at the end of the 18th century.

1600 Elizabeth I Hammered Crown; 1565 Elizabeth I Milled Half-Pound

The Stuarts, Civil War & Commonwealth period

The accession of James VI of Scotland to the English throne (as James I) in 1603 was the commencement of the Stuart dynasty. This resulted in a change to the royal titles and the addition of Scottish and Irish emblems to the coat of arms on coins.

The coins of Charles I (1625-49) are among the most interesting and most collected English coins. During the Civil War, coins were produced in Royalist strongholds such as Shrewsbury and Oxford. The most spectacular of these is the Triple Unite, the largest English gold coin. Other towns, under siege by Parliamentary forces, had to produce emergency coins from odd pieces of silver.

After the trial and execution of Charles I, England and Wales (and later Scotland and Ireland) became a Commonwealth, governed as a republic by Parliament. Apart from the lack of a royal portrait and coat of arms on coins, most significant was the change from Latin to English inscriptions. When Oliver Cromwell assumed the role of Lord Protector, his portrait (with a laurel wreath instead of a crown) took the place of the monarch on coins.

The House of Stuart resumed when Charles II was restored to the throne in 1660, and English coinage reverted to the previous pattern: head of monarch on obverse, coat of arms on reverse and Latin inscriptions. By 1663, hammered coinage had ceased and all coins were machine made.

A new denomination, made with gold imported by the Africa Company, came into use – named the Guinea, after the African country. The large Five Guinea coins of the Stuarts (Charles II, James II, William & Mary, William III and Anne) are among the most spectacular and valuable English milled coins.

The last of the Stuarts, Anne, also saw the Act of Union in 1707, after which the kingdoms of England and Scotland (although they had shared a monarch since 1603) were united to form Great Britain, resulting in a common currency.

The House of Hanover

The German Hanoverians came to the British throne with George I in 1715. The main denominations continued to be the gold Guinea; the silver Crown and Shilling; and the copper Penny and Farthing. In George III’s reign, the copper coins became so large that they were called Cartwheel Pennies.

By 1816, steam powered machinery had replaced the hand press, enabling large coins of superior quality to be produced. Among these was the gold Five Pounds of George III, George IV and Victoria – the latter known as Una & the Lion, one of the most elegant gold coins. All these coins, together with the milled gold coins of the Stuarts, have shown a huge growth in value in recent years.

Benedetto Pistrucci’s St George & Dragon design (first used in 1816) came to be used on the reverse of Victorian Sovereigns from 1871, and still continues to be used today. Most Victorian coins were issued annually, bearing the year of production – giving collectors more coins to hunt down.

1822 George IV silver Crown; 1849 Victoria gold Five Pounds Una & the Lion

Modern Coinage

The House of Hanover came to an end with Victoria’s death in 1901. British coinage of the 20th century continued in the same vein. Paper currency gradually replaced the higher denomination gold coins, though the Sovereign continues to be issued. The silver content in coins was reduced to 50% in 1920, and then replaced with cupro-nickel in 1947. The last major change in coinage was decimalization in 1971, bringing in the One Pound of 100 New Pence.

Most silver and copper coinage of the 20th century was produced in large quantities, and is widely available at relatively low cost to collectors. There are, of course, exceptions where some coins were minted in lower numbers in a particular year – such as the 1933 Penny, of which only a few examples are known; and coins of Edward VIII, who abdicated after less than a year on the throne. Proof coins and sets, made in higher quality for presentation purposes, are also rarer and more valuable.

RTA Index: Rare English Coins

The RTA Index of Rare English coins is based on Spink’s Coins of England catalogue, the main reference used by collectors. Catalogue prices may not equate to market value, but changes in catalogue value do reflect changes in the market.

The RTA Index shows that English coins have risen steadily in value for the past two decades, averaging 10.1% compound growth per year. There is, however, significant variation between the various sectors: Norman & Plantagenet coins have increased 240% in 20 years, while milled Hanoverian coins have increased nearly 900%.

Prices for early Celtic, Viking & Anglo-Saxon coins have, in the past, been relatively modest – but they have been on an upward trend more recently. Similarly, prices for Tudor coins, traditionally one of the most popular areas of English coin collecting, have been relatively flat for the past decade. However, prices have started to catch up, no doubt influenced by spectacular collections of Tudor coins recently offered at auction.

“BRITISH STAMPS ARE CURRENTLY CHEAPER THAN THEY HAVE BEEN FOR TEN YEARS, WHILE ENGLISH COINS ARE STILL INCREASING IN VALUE. WITHIN THESE MARKETS, CERTAIN AREAS ARE UNDOUBTEDLY UNDERVALUED AND OFFER BUYING OPPORTUNITIES FOR COLLECTORS AND INVESTORS.”

In Conclusion…

The RTA Indices on Rare British Stamps and English Coins offer an insight on the market to collectors and investors. Rare stamps and coins have both shown stable growth in value over the past decades: British stamps are currently cheaper than they have been for ten years, while English coins are still increasing in value.

Within these markets, certain areas are undoubtedly undervalued and offer buying opportunities for collectors and investors – specifically Modern QEII Errors on stamps; Celtic, Viking & Anglo-Saxon coins; and the Tudor coins of Henry VIII and Elizabeth I. The RTA Index of Rare Stamps and Coins is a guide for collectors and investors to show the relative change in different areas of collecting. The Indices only track the values of the rarest stamps and coins, many of which are not affordable to the average collector. The Indices do not take into account trading costs, such as auction premiums, dealers’ margins etc.

Investing in Rare Tangible Assets (RTAs) is not for everyone. Only those with a significant portfolio of mainstream investments such as equities, bonds or property, should consider diversifying (generally 2-5%) into RTAs.

A Word of Caution

RTAs are a long-term investment (10 years or more) and may be illiquid, taking several months or years to sell.

Collectors can derive much enjoyment with relatively little expense. However, they should not necessarily expect to get their money back if they choose to sell their collection.

Those who choose to invest in RTAs should only focus on the rarest items in the best possible condition – ideally with independent advice and expert guidance.

About the Author

Geoff Anandappa is an independent consultant on tangible assets: rare stamps, ancient gold & silver coins, first edition books, limited edition artworks, autographs & historical documents, vintage film posters and more.

A lifelong collector, Geoff has over 15 years' experience working with international dealers, auctioneers and collectors – as well as investors, financial advisers and wealth managers in UK, Asia, Middle East & USA. He is also a writer and speaker at international conferences, featured on BBC, CNN, Bloomberg and MSNBC.

Geoff is based in London, and is Director of Rare Tangible Assets (RTA) Ltd. He has clients around the world and manages portfolios of tangible assets in excess of £25 million. He has the unique distinction of having brokered the sale of the most expensive British stamp, the Plate 77 Penny Red, no less than three times.

Geoff’s collecting interests include the early coins and stamps of Ceylon, where he was born; the postal history of Great Britain; first edition books by P.G. Wodehouse; and 1960s film posters.

Geoff may be contacted by email at info@RareTangibleAssets.com.