While some investors may be satisfied in waking up and checking their portfolios, for others, owning expensive rarities is the path to future wealth.
Buying collectable items combines the hobby of collecting with a simple investment principle - the value of in-demand items tends to trend upwards. Art, antiques, stamps, toys, coins and comic books are among the most common collectables sought by investors. And while some are one-off rarities, others are mass-produced items that have become desirable and valuable over time.
Some Pokemon trading cards, for example, have appreciated in value by over 10,000% since their release in 1996, according to XTB.com.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
With many of these items now hugely sought after you may be thinking what collectibles are worth investing in and what you need to know about buying, collecting and selling rare items.
Why should you consider investing in collectables?
By incorporating some form of collectables into your investment portfolio, you are adding another layer of diversification.
Owing to their tangibility, collectables are not subject to interest rate changes, inflation, or other factors that may shape the value of your cash, equity or bond holdings.
The low level of correlation between the value of collectables and the broader stock market means collectables could be resilient during difficult periods. So, as long as the value of your collectable keeps up with inflation, you could find they generate a healthy return for you.
Although, like any investment, there is no guarantee that this will happen and for many people, their investment is usually also tied up with passion.
But, the market is growing according to analysis by Market Decipher, which found that the toys collectable market is growing by 10% annually, alongside with other sectors, such as UK wine growers, which is also currently in demand.
Here are six collectables you can buy today that could make worthwhile investments.
Six collectables to invest in
1. Are Barbie dolls a good investment?
Since the release of the live-action Barbie film in July starring Margot Robbie, we have entered the era of a Barbie boom. Not only has the colour pink hit the roof, but interest in collectable dolls has also risen.
According to BonusFinder, the first ever Barbie doll was priced at three dollars back in 1959, equivalent to $32 now. Today, it is worth a whopping $27,450.
More recent Barbie dolls are also worth thousands of dollars, with Dahlia Barbie, from 2006 worth $2,423- though the Swarovski crystal brooch might add a unique touch.
Investing in toys doesn't stop at Barbie dolls. Matchstick toys can also make you money. Lego is also a popular investment.
2. Gamers - can you make money from gaming consoles and games?
The popularity of gaming in the modern world means that a lot of these items may not be as scarce as they were in the past, but if older consoles and games give any indication to the future value of current-day originals, then it’s definitely an area to consider.
Consoles or games that redefined gaming or were a first of its kind over the recent years, such as the Nintendo Wii or the Oculus Rift, could be great investments for future collectors if they are maintained in good condition.
For example, a Sony PlayStation game that was released in 1997 called “Elemental Gearbolt” is estimated to be worth over $10,000 (£7,982) today, which is a 19,900% increase on its original US retail value of $49.99.
3. Can you make money on trainers?
Fashion and luxury goods can pay dividends, and there is certainly a big community around trainers which has turned certain pieces of footwear into highly valuable assets. Many of these high-value shoes are associated with celebrities or are only available in certain markets.
Even shoes that had no limited-edition releases have appreciated in value since their release such as the original Nike Air Jordan I from 1985, which originally retailed in the US for $65 and are now valued at over £30,000 per pair.
4. The value of first-edition modern books
Whilst it may be difficult to establish which first-edition books will go on to be worth a lot of money in the future upon their release, some of these literary art pieces can appreciate in value tremendously.
And in fact, the popularity of rare books went up during lockdown, suggesting there is certainly a market for them.
So, if you’re thinking about purchasing some modern books and novels, opting for the first-edition release could end up being a worthwhile investment opportunity also.
For example, a first-edition Harry Potter and the Philosopher’s Stone by J.K. Rowling, which was originally released in 1997, is now estimated to be worth around £44,000. Jane Austen’s Pride and Prejudice is the most valuable book released in 1613, listed at £139,356 according to Homeprotect.
David Joyson, Chief Customer Officer Homeprotect advises: “If you have any of these valuable items lying around your home, or if you come across an item you think may have a high value, get them professionally valued, so you know if they are worth insuring and to avoid underinsuring.
“Rare or antique books may be covered by your contents insurance, but it’s always worth checking the specific policy terms with your insurer and to confirm that you have an adequate amount of contents cover.”
5. Investing in fine Wines
As the saying goes, fine wines age very well, both in quality and in price. Collecting fine wines can be quite expensive initially as they need to be stored properly and safely in order for them to maintain their quality, but they can turn into valuable collectables for the future as they can be either sold for profit or opened for pleasure. See our article on how to invest in fine wine for more on investing in wine.
One of the most expensive wines in the world today due to its supreme quality and low supply is the Screaming Eagle Cabernet Sauvignon 1992, a bottle of which, just 5 years after its release, was sold at auction for $500,000 (£399.740).
6. How much could you get for your vinyl records?
Spotify or Apple Music might be your go-to in the car or on your commute to work, but vinyl records are making a comeback- and they’re worth a lot.
If you hoard old vinyl records, you could be sitting on thousands of pounds as classic vinyls have appreciated in value.
Original copies of The Beatles ‘The White Album’ is worth up to a whopping £10,000. The albums that are in great condition, with an original Apple logo and low serial numbers are worth checking.
Rock album Complex by Complex has been sold for £10,000 according to A2DR, due to its rarity.
Read more on the top ten vinyl records that could fetch you up to £10,000.
-
Adidas, Nike or Jordans - could collectable trainers make you rich?The right pair of trainers can fetch six figures. Here's how you can start collecting vintage Adidas, Nike or Jordans now
-
Early bird ISA investors flock to global funds, India and the USThere’s been an increase in investors maxing out their ISA at the start of the new tax year. But where are they putting their cash and why does it make sense to be an early bird investor?
-
Halifax: House price slump continues as prices slide for the sixth consecutive monthUK house prices fell again in September as buyers returned, but the slowdown was not as fast as anticipated, latest Halifax data shows. Where are house prices falling the most?
-
Rents hit a record high - but is the opportunity for buy-to-let investors still strong?UK rent prices have hit a record high with the average hitting over £1,200 a month says Rightmove. Are there still opportunities in buy-to-let?
-
Pension savers turn to gold investmentsInvestors are racing to buy gold to protect their pensions from a stock market correction and high inflation, experts say
-
Where to find the best returns from student accommodationStudent accommodation can be a lucrative investment if you know where to look.
-
Best investing appsWe round up the best investing apps. Looking for an easy-to-use app to help you start investing, keep track of your portfolio or make trades on the go?
-
The world’s best bargain stocksSearching for bargain stocks with Alec Cutler of the Orbis Global Balanced Fund, who tells Andrew Van Sickle which sectors are being overlooked.
-
Revealed: the cheapest cities to own a home in BritainNew research reveals the cheapest cities to own a home, taking account of mortgage payments, utility bills and council tax
-
UK recession: How to protect your portfolioAs the UK recession is confirmed, we look at ways to protect your wealth.
