Given the unique nature of this investment type, understanding the market and making informed choices is key to aligning this strategy with your financial goals.
What is it?
Collectibles are items like art, coins, stamps, antiques, classic cars, toys, trading cards, and comic books that are worth more than what they originally cost.
How do you invest?
Typically you buy the physical item, online, through a dealer, club, or any other way goods are purchased. The exception being digital assets such as non-fungible tokens (NFTs), see section on Crypto, NFTs and other digital assets. These items will be bought and held digitally.
Some investors buy items that are popular today in the hope that someone’s need for nostalgia and the item's scarcity in the future will make them pay more for the item.
Where to get more information
Search ‘collectible investments’ to find information on investing in collectibles and information on items you are interested in. As this category is extremely broad, there is no one-stop-shop for information.
- Invest in something you love, as there’s no guarantee it will increase in value
- Items in mint condition are most likely to increase in value. The smallest mark, scratch or bit of damage can render the item worthless
- Be aware that this market is rife with fakes, fraud and scams so look for items that can be authenticated
- Know how to care and store your items safely, and don’t forget to insure them. It’s likely you’ll need to hold on to them for a long time
- Collectibles do not generate income and should be considered speculative, they will only be worth what someone is prepared to pay for them
- The market is largely illiquid, meaning there may not be willing buyers when you are ready to sell