Investing in Collectables
Investing in Collectables can be fun.
Hobbies are fascinating, relaxing and provide many hours of engaging entertainment.
Collectable hobbies can be a hidden source of income.
Let’s start with the basics.
Basics of Collectables - Investing in Collectables
People love to collect. It is almost in our genes.
We collect everything! We collect coins, comic books, baseball cards, dolls, antique clocks, old trains, plates, magazines, trinkets and more.
Most of the things we collect are worth almost nothing (magazines, trinkets etc.) however there are a few collectable items that can be a source of income.
Old collectables you may not be interested in anymore
A co-worker Mike collected baseball cards as a youth. Over the years he collected thousands of these cards.
In late 2011 Mike read that some top baseball players were going to be visiting and signing autographs at a local casino here in Tucson Arizona.
Mike selected several player starter cards from his collection and went to one of the local comic and card shops. The shop was interested in the cards, because customers who would be going to the casino to meet the athletes and get signatures would want something for the players to sign.
Mike sold six of the cards for around $200. Not bad for a couple of hours of fun work!
Mike has no interest in keeping any of the cards and they are taking up space in his home. Mike estimates that about 10% of the cards are worth something of value.
Mike may decide to cherry pick the best cards he has and sell them on e-bay, through another outlet. This money could be used to augment his income for awhile, or for another investment such as gold and silver etc.
Making Money from Your Expertise - Investing in Collectables
If you become a serious collector you can gain a certain expertise in a specialized area. This expertise can be profitable. Over time as your knowledge grows you will learn when a collectable is a bad deal, a good deal or a smoking deal.
Buying Collectables for a Profit
There are many people who do not know what something is worth, need the money or are just tired of a collectable and are ready to sell in exchange for money. They may sell an item for significantly less that it is worth. By purchasing these types of collectable items (that are in high demand) at a excellent price, you may be able to turn a profit.
Making Money from your Hobby
Making money off of your expertise can also be applied to other hobbies as well. For example, my sister Margy has collected and sold dolls and miniatures for years. For awhile it was a part time business that grew for years.
Besides collecting she also wrote articles and become a bit of an expert in the area. She would design, construct and sell dolls at various doll shows and made some good money in the process. This was a great hobby for her as it provided many hours of entertainment as well as a part time income.
Benefits of Collectables
There are several benefits of a hobby in collectables:
• It is something you already enjoy doing (fun hobbies are healthy).
• You have something worth value if/when you decide to get out of the collectables.
• If you are a savvy and educated collector/investor you may be able to make money on your hobby.
• Collectables are great for personalizing homes.
• Collectables may save monies that would have been spent on other decorations.
In other words, you are leveraging your hobby with investing. The old saying: “Killing two birds with one stone” is very appropriate in the world of collectables.
Whatever you do, a strong education and realistic expectations about the value of collectables is a key element to potential money making opportunities.
Drawbacks of Collectables
The risks of investing in collectables can be costly:
• Don’t invest too much (too soon) without understanding what you are doing.
o Many people jump into collectables with exuberance and are coaxed into buying overvalued and/or mis-represented collectables at a fraction of their real worth. They get fleeced!
• Don’t get into collectables just to make money. Lack of education and passion for the subject can cost dearly. People who are in it just for the money frequently miss critical elements that drive what a collectable is worth.
Real Life Collectable Stories
To read some real life stories about profiting with collectables see:
Investing in Superman
- This is a story about a speculative adventure I had during the early 1990s. It was educational, fascinating and fun. .
The Baseball Card Craze
- This craze was profitable for many people who took advantage of it. This page provides stories of how two people were able to turn their cards into cash.
Final thoughts – Investing in Collectables
Hobbies are a great source of amusement and there may be hidden wealth in some of your personal treasures. Do you any collectables that might be worth money?
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