The diversification of collectible investments is a good safe bet. However, not all of the collectibles will pay off, but enough will! Those that do pay off will provide a cushion. This diversified alternative portfolio is secure, quiet, and ultimately as safe as any market.
The top collectibles are the tried and true stuff: comic books, coins, trading cards, sports memorabilia, toys, and fine art. I dabble in all of the above but primarily focus on comic books, obviously. All of my purchases are safely diversified.
All of these aspects are important to an alternative investor. However, this is not the primary goal of investing in collectibles. Nope. The primary goal of this investment mix is not diversification or security. The primary goal is transportation. By that, I mean transporting assets through time. Essentially comic books allow investors to move assets through time without the harmful effects of inflation on say your savings account.
Collectibles Currently En Vogue:
I collected baseball cards as a kid. Nowadays not only have they come back but so has every manner of trading card. The card group that stands out as a serious market is “Magic the Gathering.” It has a daily price market fluctuation similar to comics but possibly more volatile. Like comic books, these fragile paper collectibles do best when they are kept in mint condition. These cards can be hundreds of dollars in value. An interesting alternative investment, the Black Lotus is a sought-after Magic card of value. It is selling on eBay $519!!!
I once owned a White Lantern Batman collectible action figure. Fairly rare, only 1000 created for each convention sponsored. The collectible costs $39.95 (which at the time I thought was ridiculous). So, I purchased it and threw it in the closet. Three years pass by, I come across this thing and sell it for over $300! That is the deal with some collectibles, they pay off. All you need is a dry place to store it and protect it from elements. Over time, true pop collectibles often increase in value.
Recently, Action Comics #1 sold for over $3.25 million dollars. It was a record-breaker and has increased in value substantially from the previous sale a few years before. Action Comics #1 made the previous owners a positive +62% return.
In addition, it moved this money through time and added value to the collectible piece and the portfolio of alternative investments of the owner. Comic books are an investment every American should be making in their future.
|Title||Grade||Price Previous/ Price2021||Return Trend Estimate|
|Action Comics #1||8.5||$3.25 Million||+62%|
Caution: Antique Furniture
Not all collectibles make money, some have been losers due to demographic trends. For instance, take a look at antique furniture. Experts generally define antiques “as items of value that are at least 100 years old and less than 50 percent restored. They often cite the 1930 Smoot-Hawley Tariff Act, which set the 100-year benchmark for antiques in the United States and also established 1830 as the approximate beginning of mass production in the United States.” Mark C. Grove, an accredited antique appraiser, and blogger based in Virginia prices will continue to fall. “We’re probably within 10 years of the bottom (for antique furniture),” Grove said. “This is going to last another 30 years and may never rebound. (Source: Dayton Daily News by Jim Dillon)
The inescapable conclusion is that collectibles can safeguard your assets over time. Further, they transport these items at cost, into the future with small risks and potential larger rewards. You get diversification, good returns, solid yearly trackable results, and assets that usually gain in value.
The only real cost to the owner of these types of assets is patience. Do you have the ability to maintain your investments in collectibles without constant rotation.? If you can stomach that; then welcome to time travel in the 21st Century. That is, time travel via comic books that become more valuable as time goes by!
Have you started accumulating collectible investments? Tell us about it in the comments!