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Collectibles are items of value that people may, well, collect, such as stamps, coins, artworks, and automobiles, as well as the recently popular rare digital art known as non-fungible tokens (NFTs). Investing in collectibles allows you to diversify your portfolio while also acquiring items that you enjoy.
Can collectibles outperform stocks, bonds, and other standard investing classes?
Normally, the value of a collectible is determined by the beholder, and there is no assurance of profit, as with any other investment.
We hope this article enlightens you and guide you to where your money goes when investing in these collectibles.
What Are Collectibles?
Collectibles are objects that are worth more now than they were when they were first sold. Collectibles include art, antiques, stamps, literature, coins, trading cards, and comic comics. Rare treasures frequently command higher prices, and the value of collectibles tends to rise with time.
These items/trinkets should ideally excite the collector’s interest. An original Babe Ruth baseball card is likely to be valued far more by someone who enjoys baseball and collects vintage sports cards than by someone who is uninterested in the sport’s history.
The value of a collection is also affected by nostalgia. Nostalgia cycles typically occur in 20- to 30-year periods. That is, something that is trendy now, like apparel or collector toys, has the potential to become a collectible in 20 or 30 years as people need a connection to their past.
But, there is no assurance that will occur. In other words, if your retirement strategy entails collecting today’s top-trending things in the hopes of making a fortune selling them to nostalgic Gen Zers two or three decades from now, you might want to reconsider.
Lastly, the condition of a collection typically determines its price. Even the tiniest flaw might diminish its worth. Likewise, a vintage Babe Ruth card in its original and flawless condition would command a greater price than one that has been rendered worthless due to a few scratches or a bent corner.
Pros & Cons of Collectible Investments
You invest in collectibles not just for the earnings, but also for the excitement of it.
Consider how satisfying it is to be one of the few investors in the world to possess a rare work of art or a century-old bottle of wine
Portfolio Diversification & Potential for High Returns
Valuable collectibles have a low correlation with the stock market. So when prices of traditional investment assets like stocks and bonds go down, collectibles and other alternative assets often go up.
Additionally, if you purchase the right collectible at the right time, you might be able to reap huge returns in the future. But this lucrative opportunity comes with a certain degree of investment risk
The collectibles asset class, like the stock market, is not governed by a formal institution. This implies that if you are scammed, there will be no one to aid you and you will lose your money.
As a result, you need to exercise extreme caution when acquiring collectibles and understand how to distinguish between original and fake items, as well as a legitimate dealer and scam artist
Because collectibles are not traded on public marketplaces, they might command exorbitant prices. This is because dealers and auction houses want to earn money when they sell such items.
Seldom will you be able to acquire straight from a collector at a reasonable price
If you intend to hold your collectibles until their value increases, you should factor in any maintenance charges that will arise throughout the appreciation period.
They might range from less expensive protective cases to more expensive storage chambers that maintain ideal conditions for your valuable belongings at all times
Diminished Value due to Damages
Little scuffs, scratches, and other evidence of wear and tear will reduce the value of your item.
Collectibles are considered illiquid assets since
- You might have to wait quite a while to find the right buyer.
- Appreciation timelines can sometimes extend to decades, so you can’t sell immediately (in contrast to most traditional investment assets like stocks which don’t face the same liquidity challenges.)
What makes collectibles a good investment?
Before you invest in collectibles, you should be aware that the whole industry centers around interests and hobbies. In other words, it is more about emotional appeal than pure investment.
Yet, investing in collectibles has the distinct benefit of combining your passion with the potential for large rewards. Let’s look at some additional reasons why collecting is such a popular hobby.
People of various ages, social classes, economic levels, experiences, and places are drawn to collectible investments.
Collectibles run the whole gamut—from classic cars, fine wines, toys, vintage ceramics, and blue-chip art. The golden rule of becoming a collector is to buy something you love and treat the monetary gains as a fringe benefit.
Collectibles, unlike stocks or cryptocurrency, have a tangible utility, sentimental value, or both. If things don’t work out, you can still adorn your home with excellent paintings or drive that old automobile.
Most significantly, collectibles are frequently scarce. If you have a truly rare object, you can almost certainly expect collectors or auction houses to pay a premium for it.
Store of value
Collectibles having a track record of holding or growing in value during difficult economic times might help safeguard money.
Because collectibles aren’t inherently related to the stock market, their prices are determined by demand and supply rather than linkage to other assets. Most collectibles, especially great wines, and spirits, increase in value with age.
High potential returns
Collectible investments beat standard instruments like equities and bonds. Vintage vehicles, fine art, coins, and stamps are attractive collector asset types with high potential Rewards.
Sports cards, celebrity memorabilia, watches, vintage whiskey bottles, old pictures, and even dinosaur bones may be profitable for collectors.
Collectible investments provide a great deal of pleasure and delight. Collectors frequently display their treasured collections publicly or privately in order to get personal attention and to demonstrate their knowledge and money.
The same result would not be achieved by framing a real estate deed or stock certificates.
Collectors are frequently members of clubs comprised of people who have the same interest.
They hold monthly meetings to share information and frequently travel together to swap meets and auctions to help each other discover missing parts of their own collections.
Being a collector might assist you in developing and maintaining a social group.
Transfers in the collection market are often personal, secret, and unrecorded, in contrast to the regulated securities markets, which keep historical records of security transactions.
Despite the exposure that comes with high-value auction sales, most collectibles have values in the tens to low thousands of dollars, which isn’t enough to warrant coverage in the press.
The benefit of this anonymity is that the worth of your collection is not known to the general public. Being a collector might assist you in building and maintaining a social circle.
Collectibles are one of the many distinct asset groups that may help investors diversify their portfolios.
Because the prices of collectibles and the stock market can often go in opposite ways, your collection might assist you to limit losses during a down market or inflationary period.
Best Collectible Investments in the Philippines
Collectible investments are a unique and interesting way to diversify one’s portfolio. In the Philippines, there are several collectibles that have shown to be profitable investments over the years.
These can range from vintage coins and stamps to rare books and artwork. In this section, we will take a closer look at some of the best collectible investments in the Philippines, exploring their history, value, and potential for growth.
Whether you’re a seasoned collector or simply looking for a new way to invest, this guide will provide valuable insights into the world of collectible investments in the Philippines.
Sneakers are clearly having a moment: the industry was valued at $69 billion in 2021 and is expected to reach $113 billion by 2025. So don’t expect to be able to sell your beloved, well-worn sneakers for a tidy sum.
When it comes to collectible footwear, you want soft leather or fabric uppers, immaculate soles, and no scuffs. To summarize, you’d be better off if the shoes had never ever touched your feet, let alone been worn outside.
Stamps are frequently at the top of lists of investible collectibles because they are smack in the heart of several overlapping features that make collectibles attractive investments. Stamps are:
- Small and lightweight, which makes them inexpensive to store
- Low-cost (at least, with initial investments)
- Frequently released in limited-run batches, which drive up value over time
Whether you’ve inherited a ready-made collection that you wish to expand, or are starting your own, the Stanley Gibbons Simplified Catalogue “Stamps of the World” is an excellent place to start.
It lists all of the stamps issued globally, along with their prices, and can either be purchased or borrowed from most libraries.
Coin collecting is more than just preserving your extra coins. The study and collecting of cash — especially, a specie that is no longer in circulation — is referred to as numismatics.
The value of a coin is frequently unrelated to the amount initially printed on its face. The Flowing Hair Silver Dollar, for example, was produced in 1794 and was valued at more than $10 million by September 2020, making it the most expensive coin in the world.
Even if you don’t have that much spare change, the coin-collecting industry is still worth exploring. With a market share of up to $3.8 billion in 2018, there’s plenty of room for investors at all levels.
While most of the objects on this list must be properly stored away in order to gain value, beautiful art is a rare example of a collection that may be admired as it grows in value.
The $65 billion worldwide art market can accommodate any display item, from paintings to photography to sculpture, with works by live artists such as Jeff Koons, Jasper Johns, Cindy Sherman, and Damien Hirst now proving particularly popular.
A PSA 10 Gem Mint grade Shadowless 1st Edition Holo Charizard Pokemon card sold for $420,000 in 2022. Don’t worry if you don’t understand all of the lingoes. In simpler terms, someone just paid the equivalent of a nice house for a child’s collectible playing card.
Investing in trading cards is not a new concept; individuals have been buying and selling trade and sports cards for decades.
Nonetheless, there has been a recent increase in specific trading card niches, such as Pokemon.
This rise in interest has been largely fueled by people picking up new hobbies during the pandemic and card collecting becoming more mainstream with celebrities getting involved.
Vintage vehicles are another popular collection investment, and unlike many collectibles, they are an asset with function. It is totally up to you whether you drive your historic automobile about town on a bright day or leave it locked up in a showroom.
Rally Rd., for example, allows you to buy shares of antique automobiles such as a 1955 Porsche 365 Speedster or an Aston Martin V8 Vantage Oscar India.
This is perfect if you just have a little amount of money to invest or if you don’t want to spend enough to buy a classic automobile entirely.
According to a Hagerty analysis from July 2022, inflation is currently surpassing antique automobile valuation.
Hagerty monitors statistics like auction volume for vintage automobiles, and this is bad news if you’re a dedicated motorhead expecting to beat inflation by buying in cars.
Researchers stated in a 2022 study published in the journal Research in International Business and Finance that Lego beats major equities, bonds, and gold.
The researchers examined secondary market pricing for Lego from 1987 to 2015 and discovered that the average yearly return is around 11%.
You’re spoiled for choice when it comes to sports memorabilia—from cards, balls, and sneakers to jerseys, signed signatures, and photos, you name it.
Any memorabilia linked to renowned athletes and historical events will be snapped up by sports fanatics. But how do you obtain sports memorabilia without breaking the bank?
If you manage to run across a renowned player, have them autograph a ball, jersey, or something else for you. Don’t forget to have a buddy photograph the scene to establish its veracity. Yet, this strategy is somewhat dependent on chance.
Thus, if you want a sure thing, utilize a site like Collectable, which allows you to acquire fractional shares of some of the most valuable sports memorabilia on the market.
Musical instruments, vinyl albums, ticket stubs, and 1950s and 1960s fan publications are all desirable treasures. In 2015, an autographed copy of a With the Beatles album sold for $36,250.
Having your celebrity autograph a record or a poster is a low-cost approach to getting started as a newcomer. Except for the expense of concert tickets and backstage access, that is.
“Metropolis” (1927) is the most expensive movie poster ever auctioned, fetching $690,000 in 2005. The United States sold a lot of posters for “Metropolis,” “King Kong,” and “The Invisible Man” for $1.2 million in 2012. Insolvency Court.
The value of movie posters is determined by elements such as the popularity of the film and its stars, as well as scarcity and age.
Most posters from the 1980s, for example, have not increased in value significantly.
Whenever an object is linked with a celebrity, it can be valued. Russell Crowe sold personal possessions in April 2018 to fund his divorce.
The armor he wore in the film “Gladiator” sold for $117,000 at a Sotheby’s auction titled “The Art of Divorce,” while his leather jockstrap from “Cinderella Man” sold for $6,500.
According to Forbes, other notable artifacts sold at auction include Marilyn Monroe’s brush, comb, and mirror set for $23,985, and Liberace’s handmade diamond and gold piano ring for $23,370.
Dana Auslander, a former Blackstone managing director, has been collecting diamonds, emeralds, rubies, and precious stones since 2011. She plans to create LUXUS, a platform for investing in rare gems, jewelry, and watches, in early 2023.
Initially, Auslander assumed her target audience would be luxury retail consumers eager to invest in jewels.
Throughout the previous year, amid rising inflation rates, the Russia-Ukraine War (which reduced diamond availability), and growing skepticism in cryptocurrency, Auslander recognized that gem and jewelry investing may have a larger base of investors than she had anticipated.
Acquiring the correct jewelry may be both profitable and gorgeous. According to Forbes, a Rolex Daytona 6239 watch given to actor Paul Newman by his wife Joanne Woodward in 1972 sold for $17.8 million at auction in 2017.
According to The Wall Street Journal, Swiss luxury timepieces could be purchased for up to 40% off during the same year.
According to the publication, high-end manufacturers such as Rolex, Audemars Piguet, and Patek Philippe were purchasing back inventory and destroying timepieces for their gold and precious metals.
Fine wine is a category best suited to a patient investor. Returns on a vintage Merlot might take years, if not a decade.
Yet, wine is becoming an increasingly appealing alternative asset class due to its consistent returns. According to the Liv-ex Fine Wine 1000, an index that analyzes 1,000 excellent wines from around the world, fine wine has returned 10.6% on average over the last 15 years.
In recent years, it has also been simpler to invest in categories such as wine.
Historical Artifacts & Antiques
Antiques and historical objects are too specific to be generalized as an investment. For example, the market for ancient coins is likely to be substantially different from the market for vintage US weapons.
But, recognizing fakes and validating your potential investment is critical for any antique or historical piece.
Several comic book series and characters, like trading cards, have extremely devoted admirers. From the perspective of collectors, this may make ancient, rare comic books quite valuable.
By investing in comic books and holding them for the long term, you’re betting on the trend continuing and your comics appreciating.
It is, after all, the logic behind comic book investment, however for some investors, possessing a 1977 Star Wars #1 comic book in mint condition may be purely nostalgic.
Vintage books can be a good investment for several reasons. First and foremost, they have a certain historical and cultural significance that can make them highly valuable and sought after by collectors.
Depending on the rarity and condition of the book, it may be considered a unique artifact or even a piece of art. Additionally, the value of vintage books tends to appreciate over time. As the years go by, the number of surviving copies may dwindle, making those that remain even more valuable.
Furthermore, some vintage books may gain increased relevance or popularity over time, further driving up their value. Finally, vintage books are a tangible asset that can be held, admired, and enjoyed, providing a sense of ownership and connection to history.
This makes them a unique and satisfying addition to any collection or investment portfolio.
NFT means non-fungible tokens (NFTs), They are often constructed utilizing the same sort of programming used for cryptocurrency.
To put it simply, these cryptographic assets are built on blockchain technology. They cannot be swapped or traded in the same way that other cryptographic assets may. Such as Bitcoin or Ethereum.
Tips for Collectible Investing
Don’t go out and spend your life savings on one piece of art.
Each collectible – whether fine art, antiques, or other items – is its own animal that requires careful study and research.
Talk to local pawn shop owners and analyze genuine things in reputable stores, galleries, museums, and collectors to get a sense of what is selling well. Because fakes are a worry, do not buy unless you are certain it is genuine.
Investigate gathering patterns that may have an influence on future value, such as the impact of millennials.
Buy while it’s cheap
Auction prices are often more than what you would earn if you were to sell, therefore purchasing cheap is the key to generating money at any time.
But, be wary of prices that appear to be too good to be true, since no professional dealer will sell something for significantly less than market value, according to Barry Stuppler, president of the Professional Numismatists Guild.
Don’t expect to sell anytime soon
Unlike many stocks and bonds, art and collectibles are highly illiquid. You must be patient in waiting for the value to come up.
Buy it because you love it and can afford it
Art and collectibles, like any investment, must normally be held for a period of time before seeing a return, if at all.
So make sure you like what you are collecting because you will see and hold them for a long time.
Where to Sell Collectibles in the Philippines
Is a community marketplace/classifieds platform in Singapore, Hong Kong, the Philippines, Malaysia, Taiwan, and Indonesia that lets you buy & sell everything from fashion, beauty products, handphones, computers, furniture, books, luxury goods, cars, bikes, houses & home services (aircon, renovation, carpentry, home repair, cleaning, movers & delivery).
Is the website that connects buyers and sellers. The method of selling is usually in the form of an auction or auction. eBay trading begins with listing a product and is followed by buyers raising bids.
Is a subscription-based software that allows anyone to set up an online store and sell their products. Shopify store owners can also sell in physical locations using Shopify POS, our point-of-sale app, and accompanying hardware.
Social Media Marketplaces
A social media marketplace is a platform feature that enables users to purchase and sell goods and services via social media.
Many businesses use social media marketing to develop interest and engagement with their target audience and then direct them back to their website, where they may convert.
But, a lot may go wrong in the meantime. Leads, for example, might become cold, and customers may bounce from landing pages owing to poor design or slow page loading times, among other things.
By setting up a storefront on your social media pages, you can capitalize on the audience’s interest while it’s still at its peak.
You won’t leave much opportunity for customers to change their minds if you further pique their interest with marketing methods and create a feeling of urgency using FOMO (Fear Of Missing Out) approaches. Instead, they’ll simply buy from you there and then.
Launched in 2015, it is a platform tailored for the region, providing customers with an easy, secure, and fast online shopping experience through strong payment and fulfillment support.
The company believes online shopping should be accessible, easy, and enjoyable. This is the vision Shopee wants to deliver on the platform, every single day.
Lazada Group, which was founded in 2012, is Southeast Asia’s top eCommerce platform. We link this large and varied area through our technology, logistics, and payment capabilities, which we have in six countries: Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.
We now have the most brands and sellers, and by 2030, we hope to service 300 million people. Lazada was named the Alibaba Group’s regional flagship in 2016, and it is supported by Alibaba’s best-in-class technical infrastructure.
Collectible Investing FAQs
How do I determine the value of a collectible?
- Check Trends and Demand
- Check Condition of Collectibles
- Rarity of the Collectible
- Aesthetic Appeal
- Check Recent Auction Selling Prices
- Consult Online Price Guides
- Look at Written Price Guides
What are the risks associated with collectible investing?
Common risks include the high costs and fees, a lack of investment income or dividends, the prevalence of counterfeits, and a greater than average risk of destruction of the assets.
How can I protect my collectible investment?
- Avoid Direct Sunlight
- Invest in Basic Climate Control
- Buy the Right Insurance to Protect Your Collectibles
- Use Display Cases
Is collectible investing a good long-term investment strategy?
This might be a good long-term investment option if you know what to invest in, when, and how to preserve your collectible items until you’re ready to sell.
How do I buy collectibles for investment purposes?
You can look for collectibles in online stores or on social media marketplaces. You can also join toy conventions and other toy enthusiast meet-ups.
How do I sell my collectibles for a profit?
Best way is to make sure it is genuine first and then understand its value by knowing its rarity etc.
After assessing the item’s value you can bring them to conventions or post it on social media marketplaces.
Should I invest in collectibles as a primary investment strategy?
From a financial safety perspective, it’s generally best to view collectibles more as a hobby than as a way to make money.
While they can grow in value over time, there are costs beyond purchase, storage, and care, such as auction or broker fees.
What tax considerations should I be aware of when investing in collectibles?
There’s no tax if you don’t sell
The tax hit only happens once the collectible is sold or transferred for consideration. There’s no tax liability for the mere appreciation of value of a collectible, simply because there isn’t any income to begin with.
So, if you’ve rummaged through old boxes to find a Trapper Keeper of basketball cards from the ’90s and early ’00s and have the amazing fortune to discover that you owned a Gem Mint 2003-2004 Upper Deck Patch Autograph Parallel Lebron James, don’t worry.
You don’t have to pay the taxes on that yet, even if it’s current value once graded is US$1,845,000 (or 100,617,997.50 in Philippine Peso). Income tax kicks in once the collectible is sold and there’s a gain on the sale.
Again, income tax only hits you once you sell it. So, if you’re not keen on paying income tax, just don’t sell it at all.
Disclaimer: All information listed in this article is for information purposes only. Although utmost effort was made to ensure accuracy of information on this website, readers must not solely rely on it in making any investment or financial decision since it does not take into consideration the risk tolerance, financial situation, investment goals, and experience of readers. It is best to consult a professional financial planner or your bank before investing to make a more informed choice and limit your risk exposure.
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