February 10, 2016

Collectibles: Some common investment characteristics that should be considered

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antiques

You may have collected things all your life, you may even have been passed items down from your parents; or you may simply have a lot of storage space and never throw anything away. Whatever your personal scenario it is possible you are sitting on some valuable collectibles.

For something to be collectible it must have a sentimental, nostalgic value to at least a few people. It should also be in perfect condition; a damaged collectible is worth much less than a pristine one; or it may be of no value at all! If something is rare it is also likely to be collectible as there will be many people who would like to get their hands on it.

antique shop

The majority of items which you can buy today and put aside will not become collectibles; mass production is making it harder for people to find true collectibles. This means that the best reason to collect something is because you like it; if it increases in popularity and value this is simply a bonus!

In general collectibles will have the following characteristics:

Heirlooms

Anything which has been passed down through your family may be of value to others. It could be a significant piece of history or simply a beautiful trinket which reminds people of a time gone by. These items are often received for nothing so the profit margin is always good!

Antique pieces

As with heirlooms the older an item gets the more likely it is to have an appeal to someone. One of the biggest advantages of many antiques is that they are often a useable item as well. Antique furniture can look fantastic in the right house and setting, whilst an antique mirror will add a touch of glamour and mystery to any room. Some people buy antique furniture in the hopes of selling it sometime in the future; but then again, this business is rather challenging. Nothing can guarantee you that a 1950s hardwood desk would have any value in another 10-20 years.

antique collection

Condition

The better the condition of a piece if history or the nostalgic item the more valuable it is likely to be. Even items such as toys can be exceptionally valuable as time progresses; but they need to be pristine and in their original box. For their condition to stay perfect it is essential to store them safely and in the right conditions. Pictures are particularly vulnerable to the effects of damp, heat and even cold.

Condition

The majority of items which become collectible are well made in the first place; this is to ensure they last the ravages of time. The fact that they are well made will equate to a higher original price tag and it is this which helps to make them collectible! The more expensive an item is the more exclusive it is and the rarer it will become. Add this to a touch of nostalgia and you have a common item of twenty years ago worth ten times as much and marked a collectible.

Enjoyment

Perhaps the most important characteristic of any collectible and also one of the greatest benefits is the pleasure it can bring its owner. People generally collect items because they like them, the bigger the collection becomes the more important the missing items are. Thus, when an item turns up they will be happy to pay it to build their collection. The collection may well be on display and provide its owner with hours of enjoyment as they marvel over the quality and construction of each piece.

Returns

It is important to distinguish between collectible and investments. If you invest in something, whether shares or wine; you are looking to obtain a good rate of return on your purchase. In other words you want to see a profit. If you collect something you are not looking for what it may be worth in the future; you simply want it for its aesthetic and nostalgic value.

But then again if that collectible increases in value and gives you the chances to make a profit, why not take that chance and see where it leads you? This can be a great opportunity to diversify your investment portfolio. May people invest in wine these days; and it’s not just because collecting fine wine is in trend. Believe it or not, managed wine investment fund can render visible returns. To make that happen, an investor must get to know the wine market, as well as its current trends. Since we’re talking about an investment, this usually means that you’ll be taking a risk.

Not all wine types available have investment potential. Consult with a wine merchant to know more, and transform your collectible into a “hobby” investment that might become quite valuable in 5-10 years.

By James Stallion and WineInvestment.com!

Category : Finance

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