Are you an investor looking to diversify from traditional investments? Collectables are considered a good alternative investment to help diversify your portfolio.
Collectables can be anything from fine art and investment grade wine to toys and sports memorabilia.
What are some of the best collectables with investment potential?
Coins
Coin collecting is great because you can start small. Every collection starts with a single coin. It’s best to focus on just one type of coin.
The more you educate yourself as to what coins have value, the easier it will be to pick out which coins you should be adding to your collection.
As you build your collection and you’re knowledge you can check with auction houses and dealers to start adding more rare and valuable coins.
Shoes
High-end sneakers have become a popular collectable asset. Limited edition and designer collaborations are most likely to increase in value. For example, low-top Jordans are one of the most valuable shoes on the market.
Look for new releases of designer or artist collaborations. These are often limited releases with more buyers than available products. For example, a recent designer collaboration between Puma and Rihanna quickly sold out. The shoe has already increased in value on resale markets.
If you collect shoes, keep them in pristine condition. Signs of wear will decrease their value. Websites like StockX and GOAT can help you keep up with changing prices and trends.
Sports Memorabilia
If you’re a sports fan, this could be great. Everything from trading cards to jerseys can be worth money. The highest-value items are rare and in good condition.
Jerseys and other apparel of superstars like Michael Jordan, Babe Ruth, Jim Brown, Pele and others can increase in value as the supply dwindles.
If you can get your hands on something worn by a superstar in a world championship game, you have reached the pinnacle. Michael Jordan’s jersey from the 1998 NBA finals sold for over 10 million dollars. Maradona’s jersey from the 1986 World Cup match fetched over 9 million dollars.
How to Choose A Collectable
The most valuable collectables are rare and hard to find. The scarcer it is the more money it will be worth. The condition of your item will determine its market value. Even a small amount of damage can erase a collectable’s value. Keep your collection in pristine condition.
Historical significance is important. Rare coins or stamps from important times in history can become collector’s items. Sports memorabilia from significant games or contests have more value. The more exciting the story is behind your collectable, the more value it has.
Demand and popularity are extremely important. If no one is looking for your item, it has no monetary value. It might have sentimental value, but it won’t add monetary value to your collection. Choose a collectable with high demand that has a broad base of collectors.
Collecting allows you to take something you are passionate about and use it to diversify your portfolio. Your knowledge and passion for collecting can drive your investment decisions to grow your wealth and diversify your assets.
