Stamp seller Stanley Gibbons has seen a rise in profits saying investors are steering away from erratic financial markets and seeking other investments.

Pre-tax profits for the six months to June rose by 6% to £1.8m, on sales that jumped by 12% to £9.8m.

And it said online transactions were gaining popularity, with about £2.4m of sales through its websites.

Stanley Gibbons sells rare stamps such as Penny Blacks and the autographs of celebrities and historical figures.

‘All-consuming’

Chairman Martin Bralsford said rare stamps and autographs were a good means of diversification and were also a “safe haven” in volatile economic times, helping to hedge against inflation.

“Collecting is an all-consuming passion. That is why the prices of rare stamps and historical signatures show no correlation with the stock market, property prices and other traditional forms of investment,” he said.

Stanley Gibbons said it would allocate “significant resources” to invest in longer-term opportunities.

The company was founded in 1856 and the stamp business received a Royal warrant in 1914.

It later established an auction house and expanded its business to include other rare collectors’ items.

News reported by The BBC