Are you thinking of investing in collectibles?
Be careful. The stark truth is that 99% of the items you could go out today and buy at auction will not make you money over the long-term.
Now that may surprise you if you're a regular reader of this newsletter. Because aren't I always saying how memorabilia, stamps, war medals and the like can make you money?
I am.
But what I also always say is this:
"That it is only the rarest, most prestigious items that are investment grade."
These are the 1% items. The ones that other collectors continually fight over. The ones that have more and more suitors with every passing year.
Forget the other 99% if you want to make money.
And since I'm talking plainly with you today, let me also say this.
With few exceptions, successfully investing in collectibles is a rich man's game.
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To own the most coveted items - the ones which have a good chance of rising in value over time - you need to be prepared to make a substantial outlay.
This week's sale of the cowardly lion costume from The Wizard of Oz is a great example.
It sold for $3.1m in Bonhams' film memorabilia auction in New York. That's a 20.6% per annum return on the $826,000 it made in 2006.
Why is it so valuable? Because the film is arguably the most famous ever made. The cowardly lion is one of its best-loved characters. And everyone watched Oz growing up. It's a piece of our collective childhoods. Which means lots of collectors want to own it.
And why is it growing in value?
Because ever-increasing numbers of collectors are realising the importance of these great pieces of film history.
Now, the lion costume is an extreme example. You don't have to fork out $3m to get yourself an investment-grade item. But as I said, you need to be prepared to spend.
You should be ready to part with at least �3,000 ($5,000) on a single item if buying a collectible with investment in mind.
If you're buying from a fair priced dealer, �3,000 should ensure you get a piece of sufficient quality, rarity and desirability that it will have sell-on potential in years to come.
Are you looking to dip your toe into the investment-grade collectibles market? If so, why not get in touch with me today and we can discuss what's right for you?
There will be absolutely no obligation on you to do anything.
Email info@paulfrasercollectibles.com or call +44 (0)117 933 9500.
Hope to hear from you soon.
Best regards
Paul
PS. Just a reminder…
If you want to kick-start your collection, this Black Friday Weekend is your chance to make me an offer on any item of my stock.
Email me at info@paulfrasercollectibles.com or call +44 (0)117 933 9500 with your offer I can't refuse!
Make sure you get in touch by midnight on Monday.
Looking forward to hearing from you.