Tag: collecting

Looking for Collectable Investments at Auction?

by Fred Fuld III

Whether you spell it collectable or collectible, there is a great fascination with collecting and some of those collections turn out to be great investments.

Investing in collectibles, such as artwork, rare coins, stamps, vintage cars, or sports memorabilia, can have both advantages and disadvantages. Let’s explore them:

Advantages of investing in collectibles:

  1. Potential for high returns: Some collectibles can appreciate significantly in value over time, especially if they are rare or in high demand. For example, certain pieces of art or rare coins have fetched enormous prices at auctions.
  2. Diversification: Collectibles can be an alternative investment that diversifies your portfolio beyond traditional assets like stocks and bonds. They may have a low correlation with the stock market, which can provide a hedge against market volatility.
  3. Tangible assets: Unlike stocks or other financial investments, collectibles are tangible assets that you can physically enjoy. Owning a valuable piece of art or a classic car can bring aesthetic pleasure and emotional satisfaction, in addition to potential financial gains.
  4. Privacy and autonomy: Collectibles can be stored privately, offering a level of anonymity and independence from financial institutions or regulatory bodies that govern traditional investments.

Disadvantages of investing in collectibles:

  1. Illiquid assets: Collectibles are often illiquid, meaning they can be difficult to sell quickly, especially at a fair price. Finding a buyer who is willing to pay the desired price may take time, which can limit your ability to access funds when needed.
  2. Lack of income generation: Unlike stocks or rental properties that can generate regular income through dividends or rent, most collectibles do not generate any ongoing income. Their value is primarily determined by the buying and selling market.
  3. Volatile market: The collectibles market can be highly volatile and subject to fluctuations in demand. The value of collectibles is often subjective and influenced by factors such as trends, popularity, and changing tastes. Market sentiment can greatly impact prices, making it challenging to predict or control investment outcomes.
  4. Expertise and authenticity risks: Investing in collectibles requires specialized knowledge to accurately assess the authenticity, condition, and value of items. Without proper expertise, there is a risk of purchasing counterfeit or overpriced collectibles, potentially leading to financial losses.

If you are a Disney (DIS) fan, Van Eaton Galleries will be auctioning The Joel Magee Disneyland Collection, the largest privately owned collection of Disney Parks memorabilia in the world. There are over 1500 Disneyland items on July 17, 2023 through the 19th. The auction offers everything from a Disneyland Security Officer badge to a One of a Kind Hitchhiking Ghosts Animatronic Display with an estimate of $100,000 to $200,000.

If that’s too rich for your blood, you can pick up Peter Pan’s Flight Original Attraction Vehicle with n estimate of $75,000 to $100,000.

The item with the lowest start price is a Disneyland Donald Duck Birthday Squeaker Hat with a starting bid of $20 and an estimate of $100 to $200.

For you music fans out there, you can get Tupac Shakur’s inscribed Gold, Ruby, and Diamond Crown Ring, designed and commissioned by him in 1996. The estimate is $200,000 to $300,000. It is being offered by Sotheby’s on July 18.

If you enjoyed watching M*A*S*H, Heritage Auctions is offering Alan Alda’s “Capt. Benjamin Franklin ‘Hawkeye’ Pierce” Screen Used Dog Tags and Boots from MAS*H. It is currently bid at $11,500 and closes on July 28.

It’s important to note that investing in collectibles carries inherent risks, and outcomes can vary significantly based on individual items, market conditions, and personal expertise. It’s advisable to research thoroughly, seek professional advice, and diversify your investment portfolio appropriately to manage risks effectively.

Investing in Old Collectable Baseball Cards: How to Get a Share for Free

by Fred Fuld III

Did you collect baseball cards or other sports cards when you were a kid? Did you save your collection?

Hopefully you did, and hopefully your collection is in good condition, because you could be sitting on a lot of money.

If your mother threw away your collection after you moved out, not to worry. You can still build your collection again, albeit at a much higher price.

Some investors are even looking at sports cards and other memorabilia as long term investments and short term trading vehicles.

This is done through shares in these cards, just like shares of stock, through a company called Collectable, and the shares are registered with the SEC.

The company offers IPOs (Initial Public Offerings) in shares of rare sports cards. After 90 days, the shares start trading like regular stocks.

Collectible has already had substantial buyout offers on some of its cards. Just one example from a few months ago. Collectable received an offer to buy out the Wilt Chamberlain 1954 High School Full Uniform for $632,000. The uniform was IPOed on Collectable on December 10, 2020, for $316,000. The asset had been trading on Collectable’s secondary market at $442,400.

As another example, back inn April, Collectable received an offer to acquire a 1979 Wayne Gretzky card for $225,000 which had its IPO in December at $67,000. Including Collectable’s equity interests in the offering and broker dealer transaction fees, the offer represented a 213.8% premium over the price investors paid on the IPO.

Collectable is now offering a free share of a collectable sports card or other memorabilia, just for signing up. They give you a free share and me a free share.

If you are interested, click HERE.

Just remember, I never recommend collectables as investments. Don’t forget to check out my article called Last month I bought a Racehorse, an NFT, and a Collectable Baseball Card: Are We In a Bubble?

 

 

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Are Rock and Roll Collectibles a Good Investment?

by Fred Fuld III

Last week, a Cloud 2 Blue Angel guitar that was owned and played by Prince was sold at auction for $563,500 by Julien’s Auctions in Beverly Hills, California.

If you think that’s a lot of money, Kurt Cobain’s 1959 Martin D-18E guitar which he played on Nirvana’s “MTV Unplugged” performance had an estimated value of $1,000,000 to $2,000,000, but was hammered at an incredible $6,010,000.

Of course, there were a few lower priced items you could have purchased, such as the Fender Stratocaster guitar signed by Jerry Garcia of the Grateful Dead, which went for $15,625.

But you aren’t just limited to guitars. You could have bought a poster signed by Bob Dylan for $4,480. Or The Who album poster for just $192. Or a Jimi Hendrix Experience Band album signed by Jimi Hendrix, Noel Redding, and Mitch Mitchell which went for $7,680.

If you are an Elvis Presley fan, you could have bought his army patches or his deputy sheriff badge or his scarf, his tie, his hat, or his ring.

So if you are wondering, should you be putting some of your stock market profits into rock and roll collectibles, the answer is maybe.

Over time, entertainment collectibles can appreciate in value, but the decision on whether to purchase and what you purchase should not be based on resale value but on which entertainer or musician you are a fan of and what you really want to collect. The value you receive should be the knowledge that you own something that a famous person has played, or held, or wrote.

Happy collecting!!!

Disclosure: Author does not own any of the above.