As Asia's appetite for classic goods continues to build, the collectible market is growing into its own as an investment class.

As collectibles forge their way to becoming a credible part of an investment portfolio, soaring demand in China is powering the $3 billion global stamp market.

Of the estimated 60 million stamp collectors around the world, over two-thirds are in Asia and around a third are in China alone, according to the Intelligent Partnership. The China 200 Market Study by Stanley Gibbons reported that the total value of the cross section of 200 rare investment grade Chinese stamps rose by more than $6 million over 25 years, representing a compound annual growth rate of 10.7 per cent.

The changing geography of the stamp market reflects not only Asia's booming middle class but also a growing penchant among the region's young and wealthy for collectibles – particularly those of British heritage.

The Economist Valuables Index raced ahead of the MSCI World Index, growing by over 200 per cent since 2003, with stamps and coins coming in at second place behind classic cars.

The figures defy the common misconception that stamp or coin collecting is a hobby exclusive to enthusiasts and instead present “passion investments” as a long-term, portfolio-diversifying strategy. Against a backdrop of rising demand and limited supply, such alternative assets can offer investors a bright outlook in terms of price growth, the firm said.

“Certain ‘investment grade’ stamps and coins can be very profitable investments that provide diversification, a hedge against inflation and an additional source of returns,” said Intelligent Partnership’s head of research, Daniel Kiernan.