Are Collectables a Good Investment Strategy?

Monday 18th September 2017 - Della Bentham

Share:



Are Collectables a Good Investment Strategy?

Are collectables a good investment strategy, or should you stick to the more conventional methods such as stocks and bonds?

 

 

When it comes to investing for the future, there are a number of standard investment methods such as stocks, shares, bonds or property. Some people, however, chose to opt for less conventional methods and buy things such as gold, classic cars or collectables, which they believe will appreciate over time.

 

So, is this a wise move, do these people know something we don’t? As with any form of investment strategy there is of course a risk.

 

It is said that nostalgia runs in twenty year cycles. This is because people inherently want to recapture their youth and relive a certain period in their life. Because of this, they like to purchase things that remind them of a time and transport them back. For some, this will be toys, for others it could be homeware or technology. It stands to reason therefore, that given around two decades, certain items will see a peak in their value, as people look to reconnect with their pasts.

 

So, should you start scooping up items in the sales and saving them for twenty years in the hope they will surge in value…? Probably not, the items that will go on to realise big profits will only be the rare and immaculate. In a society of mass production, how can you tell what will be rare and desirable in twenty years from now?

 

Collectables will return a much lower investment that traditional methods such as stocks or bonds, unless you get extremely lucky. Generally, the higher the risk of an investment, the larger the returns could be. Does this mean that you shouldn’t collect, with the hope of hitting the jackpot? No, collectables can realise a profit, and if you manage to pick them up for a good price, a profit, all be it potentially small, could be made on most items over time.

 

Make Sure You:

 

  • Do your research.
  • Only buy immaculate items, things with damage sell for much less.
  • Store your items carefully. Keep them away from direct sunlight, damp etc.
  • Go to car boot sales, auctions, charity shops, garage sales and so on to try and bag yourself some bargains.
  • Keep an eye on the market, prices rise and fall, so make sure you stay up to date with the popular items while they are hot to sell.

 

Collecting older items may bring quicker returns than collecting modern items in the hope they will go on to become collectable. It’s difficult to know what will fetch big returns, but as a rule something released in limited numbers will always command a higher price, as will anything that becomes rare. Technology could be one to watch in the future. These are items that will be difficult to find in new conditions as we all use, upgrade and dispose of them.

 

Much of today’s goods, such as furniture are disposable and won’t last twenty years to become collectable. Let alone 100 years to become antiques, so what could go on to become a collectable of the future?

 

Modern collectable expert, Tracy Martin thinks these could be things to look out for:

 

  • 1st Edition books such as Game of Thrones, The Twilight Series or the Da Vinci Code.
  • Licensed toys, such as Star Wars, Power Rangers, Harry Potter, Lego etc.
  • The 1st generation iPods.
  • Original Nintendo Ds’.
  • Designer & high street clothing collaborations i.e. Kate Moss for Top Shop.
  • First Release Amazon Echo.
  • 1st Edition Board Games such as Jumanji or Perfection.

 

If you’re thinking about starting to collect to fund your future, just remember, you win some, you lose some. Buy things that bring you a sense of joy and you will never be out of pocket!