posted on July 19, 2001 06:11:44 AM new
Has anyone checked their savings account/money market or cd interest rate lately? I'm fed up with dismal 3% earnings, & putting my $$ into collectibles & memorobilia--which seems to be appreciating at 15% or more a year. Anybody agree?
[ edited by belalug3 on Jul 19, 2001 06:13 AM ]
posted on July 19, 2001 06:20:46 AM new
I agree, but if you are new at it, some advice. Nothing that says "collectible" on it is. A $50 older, scarce collectible will end up being twice as valuable as 10- $5.00 newer items. Search ebay- if several are for sale, it is not scarce and may not increase in value. These are just my experiences in dolls, toys, cameras and coins. (since 1960) And when things slow down on ebay, you'll find there are always bidders at top dollar for the truly scarce stuff. On poor stuff I get a hundred lookers and 20 lowballers. On scarce stuff I might get 5 lookers and 2 or 3 of them will bid top dollar. And one of those is usually an international bidder. jmho Dave
posted on July 19, 2001 06:27:46 AM new
LoL Tomwii!
I had a few beanies that I bought because I thought they were cute, paid regular retail of.. what is it, like 6 bucks? Got tired of em and decided to sell. Fuhgidabowdit on eBay! Sold em at my garage sale for 4 bucks each. One lady complained that she could get them for 2 elswhere. (I almost told her to go "elsewhere" if you get my drift....)
Pokemon - Bought two little toys for my nephew at g sales. He had them already so I sold one at my sale, managed to get what I paid for it. The other I guess I will have to donate and lose my .25 investment. I couldn't even get a quarter for the danged thing!
Furbies - I got one of those for myself at a sale, paid 2.00, got 5.00 for it! I actually made a profit of of something I had played with! Oh wait, I had to buy batteries and sold them with it.. never mind the profit, I only broke even.
The trick with collectibles is getting in on the craze the minute it catches on, and not getting caught with the inventory when the bottom falls out.
I myself stay away from the "pop culture" items though. That's the risky stuff.
posted on July 19, 2001 08:02:24 AM new
Invest in beauty and quality and things guaranteed to be a set quantity. Fads often go nowhere. Barbies, beanies, furbys (ies?) all show this - because the manufacturers want to cash in on the craze and just manufacture more once the item gets hot.
My personal love story with "collect what you like" is a lithograph I paid $600 for when I was down to my last $1000 in the world. I'm usually pretty conservative with money, but I wanted that litho. Appraised value (and what they sell for at art dealers in cities) is now $7000. But I didn't do it for the profit.
Also remember that risk and return go hand in hand, so when going for that 15%, your investment is much riskier than the 3-6% in your money market or cd.
posted on July 19, 2001 08:05:54 AM new
I agree with the statement about selling collectibles on eBay earning "much" more money than the stock market! By accident and a little (hint) guidance from reddeer, I was able to find out exactly what those choice items have been an have been riding the wave ever since. (Thank you reddeer!)
As an example: item I paid $1, sold for $177; another $3 & $6 items I combined inton one auction, sold for $88; item I bought for $1, sold for $38. Then I stuck my neck out and bought a $31 item at a sale, started item at $9.99 and within 24 hours after the auction started, it was up to $182.
As mentioned above, these items fall in the toy, camera/camera accessory, memorabilia, and advertising character categories. None of these items fall under the "craze" items either. Do your research under completed auctions and you will find what people are buying. Believe me, there is still a lot of disposal income out there!
It also makes a big difference in how much your your item ends by, the title, category it is listed in, detailed and well-written description, and good clear photos. Sometimes using up to six pictures so the buyer can see everything.
edited to add last paragraph.
[ edited by brie49 on Jul 19, 2001 08:12 AM ]
posted on July 19, 2001 08:06:17 AM new
Investing in collectibles is just as speculative as stocks. The trick, just like in stocks, is to know when to sell. Collectibles that get "hot" real fast are best sold during the midst of a craze, before everybody gets sick of seeing the things. Beanie Babies (except for some of the genuinely rare ones) are not a blue chip collectible - they were like dot-com stocks that were best day-traded and dumped before the market crashed. Same rules apply to the "hot" toys where supply doesn't meet demand, especially at Christmas - have to sell those in time for Christmas since afterwards demand goes down and the manufacturers catch up with their supply.
Picking out the collectible "blue chips" is harder to call, especially considering they will tie up your money for a while before they are worth cashing in, not to mention the space they take up. I buy tie-ins of licensed toys (movies, tv, etc) when they are on clearance - the more unusual or visually striking the better, especially if it's licensed from a tv show or movie that I think will grow in popularity over the years. Think of "Nightmare Before Christmas" - the movie did poorly in the first release and the tie-ins stagnated on the shelves. Only a few years later, it's a cult hit and the original collectibles flew in value. Pick up the same types of items (when in good condition) at yard sales and hold them as well - I used to buy up entire Star Wars collections at yard sales for $60 back in the 80s, and now I can make that back by selling one item from the collection!
Also keep in mind that these days there's a lot more collectors doing exactly the same thing - buying collectibles as investments. I suspect that today's collectibles, even the ones that rise in value, will not go up nearly as much as items collected from the pre-late-1980s when toys were manufactured to be played with, and not marketed to the collector's market. With more people "hoarding" the stuff, there's the risk of a mass dumping on the market some day - the trick is to sell at the beginning of the "dump" and to just be very choosy about what you buy today.
posted on July 19, 2001 08:28:55 AM new
nothing mass produced will ever be collectible. nothing that has millions is rare. remember value comes from supply & demand. hot\trendy collectible have value driven on demand only. there is so much supply that once people start selling them to recoup their investment the house of cards tumbles. the only thing "new" that will ever be collectibles are the "limited run" stuff that has a proven demand. like franklin mint or what ever. i am not an expert on them but that type on stuff, they know they will have "X" demand & they produce under it. go with the older stuff. once a field becomes dubbed collectible, it stops being so. everybody buys it, production runs go up, everybody saves theirs it never gets rare.
posted on July 19, 2001 08:36:49 AM new
I wish to thank those who took the time to respond to my post. I have gained many insights. I'm also curious how some of you visionaries see the investment potential for:
-rock records, fifties -Beatles records
-Beatles collectibles (non-records)
-Presidential autographs
-Autographs of famous (dead) celebrities
Thanks again to all of you!
posted on July 19, 2001 09:13:17 AM new
Only key collectible items are worthy of buying. There's plenty of junk on the market as in the tool categories on ebay. Just stick with a reputable seller, and buy quality goods. Collectibles have always been of interest when economy hits their toes. Stay away from CGC type of gimmicks. You'll pay up to 10 times the actual amount of the items worth and never be able to get that money back.
posted on July 19, 2001 09:46:51 AM newbelalug3, yes, Beatles items & records do fairly well. As do Kiss and the like, but remember, there are going to others selling the same item. You have to write your description so that you make the buyer want yours, instead of the others.
Certain autographs do well too. All depends on who it is and who wants it. It takes two people for an auction, and three or four people make for an even better auction!
Also, some deceased celebrity (music and movie) autobiographies can rake in the dough. Do your research!
posted on July 19, 2001 10:07:51 AM new
belalug3, all those items you mentioned are certainly worthwhile collectibles but the problem with them is that they are already "mature" collecting fields. If you're looking for investment potential, Beatles and vintage Rock records are not the way to go, as most have already climbed in value to the point that they've leveled off. Future gains in value is likely to be minimal, probably just keeping up with inflation but not staying ahead of it. If you are going to buy the Beatles stuff, it's best to go with the vintage 60s stuff - but prepared to pay and arm and a leg for it.
Autographs of deceased celebrities and presidents are much the same way - most people know that the items are valuable, so you're likely to not get them cheap. Appreciation of autographs has a lot to do with the future popularity of the deceased. Unfortunetly, given modern society's short memory, values of a lot of celeb autographs can actually devalue with time, except for the most iconic ones (Marilyn, Elvis, etc). Then of course there's the question of authenticity - something which you'll have to be cautious of when buying them, and people will be equally cautious when you go to sell them. I collect autographs myself, but for the most part I only collect ones that I can get in-person so that at least I will know their origin. Of course, I never pass up a cheap autograph at a yard sale - so far I've picked up a Paul Lynde, Arnold Schwarzeneger (sp?) and a Leonard Nimoy each for $2 or less at yard sales.
If you really want to "invest" in collectibles, you'll have to stay ahead of the curve and buy them before everybody else catches on. Identifying them is the tricky part.
posted on July 20, 2001 08:13:42 PM new
WOW This is even a better sign that the Economy is about to rebound shortly.
When the people that have investments with garenteed return in a period when stocks are in a down turn complain about there 3% returns and are itchy to spend there money and find better investments.
posted on July 20, 2001 08:44:00 PM new
most collectibles will never bring "book" prices......in my opinion the valu of a collectible is what you can get for it at that partticular time not what a book says.....
posted on July 20, 2001 08:57:18 PM new
Yeah thats about right Collectables will never bring book Price.
Book price is based On the highest price someone paid for it at the time.
other like items price will vary greatly also prices vary greatly in different parts of the country.
Collectable prices are set by the market Two like Items equal in qulity sell one in the morning might go for $200 the day day in the evening sell the other you might only get could get $50.
How ever the one that sold for $200 will become book value...
posted on July 20, 2001 08:57:29 PM new
I've been dealing in collectibles since 1980 - And collecting since the 1970's.
The 15% statement comes out of thin air - You can't make a general statement like that.
To begin with, It's almost impossible to make 15% return in one year as a collector. Most collectors who buy items (be it stamps, coins, cards, watches, antiques, etc.) will take a big loss. It's because the prices they pay (which are close to retail) are probably not what they are going to sell it for. Now, Ebay changes things a bit, because for the internet savy collector, it gives them more options, but for the average collector, they will buy a collectible for a great deal - 50% of catalog value! They are thinking that they can sell this for a much higher price. The problem is that when it is time to sell, they are getting offers from dealers at 10-30% book value! How can a dealer stay in business and not make money!
Collectibles are great if you enjoy collecting.; The number one rule for collecting is that enjoy it as a hobby, but don't collect strictly for investment. Nobody knows what the market will be like a year from now, and if you are doing this strictly from a perspective of making a profit, stick with something that is much more of a sure thing!
posted on July 20, 2001 09:19:12 PM new
Have to agree with everyone here that investing in collectibles is not for the faint of heart or light of wallet. Definitely don't bet your kid's college fund on it.
I managed a comic book and card shop for a number of years in the late 80's-early 90's. Had lots of customers buying multiple copies of stuff for investment. Back then you could make money turning stuff like that over in a short time until the market crashed around '94. The trick is to get in on a fad/craze at the very start and get out at the peak. Figuring out the when and what is an art form.
Collect what you enjoy and if you can make money on it, all the better.
posted on July 20, 2001 09:57:44 PM new
From a collector/buyer standpoint, I'd say it all depends on what one decides to focus on selling as to whether or not you'll make your money back, let alone a profit. But - be prepared to enjoy your investment in case the item doesn't take off like you'd expected.
I collect one very specific vintage doll that was originally heavily mass-produced and somewhat cross-licensed, and very popular in the early 60's (but was only available from 1962-1966). In five years, I have been fortunate enough to be able to purchase nearly every single item produced in the USA for this doll. My collection is now in the process of upgrading, which keeps me buying.
The 1997-published, and foremost, book on this doll has extremely outdated prices -- today's eBay winning bids usually bring a minimum of 2, 3 and even 4 times the list price. It's a highly overlooked, underrated, yet very specific subset of doll collectible today and seems to be getting hotter each week.
It's true - I buy what I like, with my husband looking at my purchases towards my collection as an "investment". The doll is a decade-plus away from turning 50. I can't even imagine beginning to sell any of my collection at that point, but hubby seems to think the value will leap significantly around the golden anniversary.
Who knows what'll happen? I know I'll be pleased whichever way it turns out.
[ edited by oldfashioned on Jul 20, 2001 09:59 PM ]
posted on July 21, 2001 01:09:32 PM new
"nothing mass produced will ever be collectible."
I 100% disagree with this statement. Just take a look at the Happy Holidays Barbie dolls. HOT collectible, all mass produced. Well, pretty much any hot Barbie doll you can name was mass-produced, including all the vintage dolls that are high-end collectibles now. Not to mention GI Joes and probably a bazillion other mass produced toys that are all collectible. Even if there is a large supply, it is possible that there is a LARGER demand, from people who had the toy and lost/sold/broke it but want it back for nostalgia or to give to their kids.
Investing in collectibles is risky business, but if you don't understand the stock market and you do understand the collectibles market, I think your odds are better with collectibles.
posted on July 21, 2001 07:39:06 PM new
And I disagree with the statement that collectibles never bring book price. It happens quite often as a matter of fact, at least with me.
Right now I have a collectible up for auction that books for $125. So far it has been bid up $205, with two more days to go.
posted on July 21, 2001 07:48:32 PM new
Okay, never say never, I've had lots sell on Ebay that went for WAY higher than "book" value - There are always hot items that go above book, modern US Mint Proof sets are one example of this. However, this is usually short lived, and as one person said, things go hot and cold very quickly, and just because something that you paid $25 for is selling for $100 today, in six months you may not be able to get $15 for it.
posted on July 22, 2001 06:35:18 AM new
Also, I think now might be a good time to (SELECTIVELY) get those things like Pokemon cards that are at rock-bottom prices now. 20 & 30 years from now, those kids who are playing with pokemon cards (and thrashing their sets) are going to grow into adults who want their old toys back. But it only makes sense to do that if you have a place to store the stuff long-term that's not costing you money, and a way to keep the stuff in good condition.
