- Personal Finance
Investing in Collectibles
Investing in Collectibles
1. Purchase only what you wish to specialize in; if it is something you like, all the better, as it will maintain your high level of interest over the next ten years and decades thereafter.
2. Buy the best you can afford, even if you must accept limited quantities at first. If possible, purchase your collectibles from a dealer who will guarantee your purchase price back in the future if you trade in for a higher quality.
3. Confine your purchases to collectibles in excellent condition. These will always enjoy outstanding resale value. Look for quality— to be a fine buy, it should be in mint condition.
Find out its rarity and its value, as well as its most recent price; verify its date; and determine how many of such items were made.
4. A collectible of any real value should carry a ticket guaranteeing its origin and, in the case of very fine items, its travels as well.
5. The authenticity of the collectible should be guaranteed against a full cash refund.
6. Read as much literature as you can on the subject.
7. Attend auctions, wander through antique stores, talk to people, and familiarize yourself completely with the area of interest before you buy anything. Study your line of collectibles for quality, art form, and all aspects of its category.
8. Buy only from reputable dealers and/or reputable auctions.
9. Hold your collectibles for long periods of time. You must allow time for the mark-up to cover the difference between wholesale and retail prices.
10. Purchase and specialize in collectibles of known and proven work with a history of regular price appreciation.
11. Avoid galleries that operate on a commission "basis. This situation encourages pressure tactics by the salesmen in the gallery.
12. Be aware of antique shops with large selections and fancy frames. These angles can lead to overvaluation of the price itself.
13. Undergo a "comparison-shopping" spree before you actually purchase your item. If you are considering a major purchase, call in a professional appraiser.
14. Be informed and up to date on all prevailing economic and political trends that will influence the collectibles market.
15. At auctions, try to spot the dealers in the crowd. Generally they bid inconspicuously, but the auctioneer usually knows them. Look for "quick glances" between the auctioneer and his known customer. It may pay to outbid the dealers. They are planning to pay wholesale prices.
16. Regarding sealed bids, bid what you are ready to pay, and don't expect to get the item at a lower price.
17. When bidding from the floor, start high. A high bid can knock competition out of the game before the crowd knows what is happening.
18. Go to the top for advice.
19. Always arrange and investigate trucking arrangements, insurance, storage areas such as bank vaults or safety deposit boxes, storage fees, pick-up terms, burglar alarms, and other security precautions, etc., before buying the actual items.
20. One way to find a shrewd investment is to observe the actions of the wealthy, the sophisticated, and those who have demonstrated beyond question their acquisitive abilities.