Collectibles, the alternative investment
Written by Michael Vass
The stock market is down again. Shocking to some I suppose but with a $700 billion bailout being planned I’m not. Yet the question at hands is where do you want to invest your money?
Now some are rushing to gold, up some $30 today alone. Others look to crude oil as a hedge to the weakening dollar, and that was up $25 dollars at one point today (an all-time one day record) before coming to be up only $18.50. Both are big investments that not everyone can or wants to be in. What other choice is there?
Well according to Auction Wally
In fact he goes on to give 10 reasons why you should invest in collectibles as opposed to gold or other commodities. I’ll list what I think are the top 5.
- Collectibles are easier to obtain for the average person
- Collectibles have thousands of different markets they can be traded in vs. the few stock exchanges
- Investments in collectibles can present fun opportunities to include family and friends.
- Many collectibles such as fine furniture and paintings can be enjoyed and used while they accumulate market value
- You can invest in collectibles at almost any dollar level
Those are 5 great reasons. But caution needs to be taken. The ease in being able to gain collectibles is not without risk. Prices can change, and although rare an item could drop in price to a level that is significantly lower than what you paid for. Use of the collectible may alter the value. And appreciation in the price of the collectible may take years, if ever, to occur.
And be very careful when buying a collectible that you think is a rare or severely under-priced find. Always get an expert opinion before picking up that item you thought was worth $10,000 and cost only $1,000. It might not be worth any more than $1,000 or even less.
But in difficult economic times this is a view of a different path. An old adage I used to hear when I was a stockbroker was
“If you want to make money, don’t buy what everyone else is buying today. Buy what they will want tomorrow.”
The adage is usually right in my experience. And I can see how it might apply to collectibles. Just be careful.
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October 6th, 2008 at 10:42 pm
[...] long ago I mentioned that collectibles are an alternative form of investment for some. It was an idea that few were familiar with. Since that time the Dow Jones Index has lost [...]
October 6th, 2008 at 10:45 pm
[...] long ago I mentioned that collectibles are an alternative form of investment for some. It was an idea that few were familiar with. Since that time the Dow Jones Index has lost [...]
October 6th, 2008 at 10:47 pm
[...] long ago I mentioned that collectibles are an alternative form of investment for some. It was an idea that few were familiar with. Since that time the Dow Jones Index has lost [...]