Got Junk?
"Gold loves bad news, so do collectibles", but what do I mean by that?
The first part of the sentence refers to the well known fact that in times of economic trouble those with money to invest are wise to put it in gold, silver and other precious metals. Hence, the reason gold has been hovering around $900 an oz. for the last 6 months.
The second part of the question reflects the lesser known fact that many areas of the collectibles market does very well for the same reason. People are looking to diversify stock and other paper financial assets that have become risky.
My top ten reasons for investing in collectibles.
- Unlike gold, which has a set market price, collectibles are much more diverse.
- Collectibles are easier to obtain for the average person.
- Collectibles can be easy to liquidate.
- Collectibles are a tangible asset which means they can never drop to zero value, so. you are never at risk of losing your entire investment.
- Collectibles have thousands of different markets they can be traded in vs. the few stock exchanges.
- On average, educational information is not as technically cryptic for the collectibles market as it is with other investments.
- Investments in collectibles can present fun opportunities to include family and friends.
- Many collectibles such as fine furniture and paintings can be enjoyed and used while they accumulate market value.
- When you invest in collectibles, you are likely to make connections with people who have an interest in helping you to further your success in the business.
- You can invest in collectibles at almost any dollar level.
Like any other investment, you should be careful when investing in antiques, art and collectibles. Don't spend money you don't have, don't assume the piece you see in an antiques shop for $500 is the same one you saw on the Antiques Roadshow for $50,000, unless you have access to an expert that can help you.
But on the other hand, if you see it at a yard sale for $50.00, take a chance!
And collectibles are fun. I would personally rather have a set of Beatles bobble-heads, than a $500 savings bond. I'm not sure what the savings bond would have cost in 1964, but the bobble-heads sold for about $1.99 and easily sell for over $500 today.
Yeah, yeah, yeah!
Selling valuables in tough economic times.
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