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Sunday, 5 August 2018

BREXIT Preparations (continued)

My preparations for BREXIT are very simple.

By the end of March 2019, most of my better stock will be physically located in Finland and Germany, queued for auction at Suomen Filateliapalvelu and Heinrich Koehler.

If there is a Hard Brexit with traffic chaos (including chaos in postal services) and bureaucratic confusions about tariffs and whatever, then I will be able to wait for sanity to return – which may be never, of course. If sterling goes the way of the pesos and liras of the world, then I will benefit from my €uro-denominated auction sales (and so will Her Majesty's Revenue and Customs). 

I have already benefitted in the past two years with sterling an average of 15% down against the €uro since the United Kingdom’s Brexit referendum. There is no scenario in which sterling will regain that loss. Just think, when the €uro was introduced - I was in Amsterdam on changeover day and Guilders had disappeared by lunch time - the rate was 1.40 €uro to one £ sterling and climbed to a peak of about 1.75 in the year 2000.

Back in England, I am afraid I shall only retain cheap stock with a low value to weight ratio which does not justify shipping to Europe. Since it is likely under every scenario that my UK clients will have less money to spend as consumer prices rise and the economy shrinks, then cheap stock is the sensible thing to have – and even then, not very sensible. But it will be something to do, a hobby, and I think it will increasingly remind me of how things were in the old, poorer, eastern Europe. I recall one day in Prague in the 1990s going to the weekly collectors’ bourse where I asked to take a table for the afternoon. It cost me the equivalent of one euro – and I got a receipt! Of course, I didn’t sell very much but it was a happy afternoon.

Meanwhile, like many UK-based businesses large and small, I am buying (investing) very little. I am sitting on money in the bank and letting my stock levels fall, waiting to see what happens and for the moment assuming the worst.

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