10 Reasons to Invest in Collectibles

The Top 10 reasons why you should consider investing in collectibles 

 

·         An uptrend market: World record prices and year on year returns are being achieved across a variety of collectibles sectors.

·         Strong historical performance: A wealth of indices reveal the historical long-term growth of these assets, providing an added level of assurance to investors.

·         Tangible assets: As tangible assets, collectibles are not subject to the low interest rates and above average inflation conditions affecting your money in the bank. 

·         Low-correlation to the stock market: Investment-grade collectibles have a low correlation with traditional financial investments, making them the perfect place to preserve your capital during these volatile times.

·         Existing large buyer base: An estimated 200m serious collectors worldwide underpin prices, ensuring there are no sudden nasty surprises.

·         Growing rarity: Supply and demand governs the collectibles market. As years pass, historic collectibles on the private market become increasingly scarce as they are lost, damaged or enter museums and institutions. With growing demand, prices will rise.

·         Expanding middle class: The population of the rapidly expanding BRIC countries (Brazil, Russia, India, China) is set to double in the next 40 years, with those in the middle class bracket predicted to expand by more than 2bn by 2030, according to Goldman Sachs. This will see a huge increase in the amount of disposable income in these nations, with a new generation of buyers repatriating collectibles that have left their country over the years.

·         Baby Boomers are coming: The Baby Boomer generation (born between 1946 and 1964) is making its way through the system. This generation is responsible for 80% of the world's wealth. Over the next 20 years an estimated 75,000 boomers will retire in the US each week (15,000 in the UK). They are living longer, and with a higher disposable income than previous generations. With time to pursue their passions, Baby Boomers will impact the collectibles market for decades. Those investing now can capitalise.

·         Tax breaks: Many collectibles have the added advantage of being termed as "wasting assets", and do not come into Inheritance or Capital Gains Tax calculations.

·         Personal control: As part of your overall investment portfolio, collectibles give you greater personal control over allocating and preserving your wealth, and the ability to manage the process yourself. This gives you confidence where it has been lost in the bigger financial product areas.

·         Paul Fraser Collectibles: With more than 250 years' combined experience and $750m in sales, our panel of experts is in place to offer guidance across all collecting fields around the world. Our Layaway Plan makes the sector open to all. We also provide free storage and handling, no annual charges, and no obligation to purchase.