Why you should be investing in collectibles

If you’re looking for different alternative investments to buy into, have you considered collectibles?

Collectibles can be a great portfolio diversifier as long as you know your niche market inside and out.

What are collectibles?

Collectibles cover a vast array of different items including:

• Art;

• Watches;

• Stamps;

• Motorcycles;

• Antiques; and

• Comic books.

There are two sides to collectibles. There are people who collect items down to their sheer love of them. And there are those people who collect items with the hope of making money from their purchases.

If you have a passion for the collectibles you invest in, you may find this simpler than investing in anything else.

The price and success of specific collectibles comes down to supply and demand. And if you know the market inside out, you’ll be in a better position to make excellent investments.

Key aspects about collectibles

There are a few things that define collectibles…

Firstly, they’re portable and you can trade them anywhere in the world.

Secondly, they tend to produce inflation beating returns.

The main disadvantages of investing in collectibles is the market has a lot of frauds doing the rounds. And if you want to sell quickly, you may struggle to find a buyer. So collectibles aren’t generally the most liquid investment.

But you can make a lot of money investing in collectibles.

At Christies in New York on 11 May, Les Femmes d’Alger, a masterpiece by Pablo Picasso went for $179,365,000. This makes it the most expensive painting to ever sell at auction.

Another area worth looking into is watches. If your watch has the proper supporting paperwork, you can take you timepiece, such as a Rolex, to any city in the world and be able to sell it.

Again you need to watch out for fakes. Get a professional’s opinion before buying a high value watch.

So there you have it. Investing in collectibles.