ARE COLLECTIONS GOOD INVESTMENTS?

Oct 19th, 2012 | By Dr Jerry D Elrod | Category: Senior Moments Blog

Antiques and Collections as an Investment?

Collections of almost anything are often touted as not only a satisfying hobby, but a good investment as well. On the former we can give full and complete affirmation.  As to the latter, it just “ain’t necessarily so.”

The first rule of collecting is:  Do so for your own personal satisfaction, but don’t expect a heavy return. Collecting is, by definition, accumulating an item or items that appeal to you personally.  Anything from stamps and coins to weapons of war qualify as a collection.  When you have exhausted both your interest and income on your particular collection fetish and expect to draw huge dividends from your selling it, be prepared to be disappointed.

Many collectors are astute, careful and disciplined in their approach to collecting what they enjoy.  This requires studious examination of the item, an understanding of its history or part in it and appreciation for its promise of increasing in value over time.  Some collections don’t hold their value indefinitely.  Some do.  Those that do are normally, early on, in the higher price range.

Some Tips for Collectors

Finding persons who share your appreciation for a particular collector’s item is the first challenge if you are interested either in purchasing or selling. The huge advantage offered by the Internet enables easier possibilities for identifying persons who may be ready to buy or sell.  Searching requires patience, endurance and willingness to negotiate.  Once the item is identified, the process for reaching an agreeable price requires recognizing that the worth of the item is what the individual is willing to ask or pay.

If you possess a large collection which you desire to liquidate, a planned strategy will be required if you wish to recognize any return on your investment.  Such a time consuming process will likely prove worthwhile.

Collecting’s first satisfaction comes in having and displaying your treasures.  It’s second is in the joy of sharing your treasures.  And the third is taking the time to log and seriously market your goods.  The final one is sometimes left to those who are in charge of your estate.  In any case they or you must do your homework to know what it is you have and what it will likely bring in the collector’s market.



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