An investor without objectives or strategy is like a going on a road trip without directions. You must know the market you are investing in and how to profit. Otherwise, you will just get lost. The collectibles market is a good place to start. So, what are the right collectibles to invest in for your needs?
What you must keep in mind is that the buyers of collectibles are investing in nostalgia. You must know your buyer market to understand the market you invest in.
Here are some collectible markets for you to consider getting started in.
Comic Books
Before the pandemic hit, the comic book movie industry was doing blockbuster numbers. Marvel comic book movies in particular easily grossed $700 million to a billion per film.
Avengers Endgame grossed almost $3 billion.
What modern fans of comic book films forget is that before 2008, when comic book films became popular, comic book films weren’t that popular.
Yes, there was 1989’s Batman or 1978’s Superman. Beyond those classics, comic book fans had to read comic books to experience comic book adventures.
In fact, the source material for the comic book films of this era were born in comic book stories published decades ago.
Generations of comic book fans have been collecting and trading comic books long before Robert Downey Jr. first became Iron Man on screen.
So, if you want to know about collectibles to invest in, comic books might be a good start. However, it takes a youth spent reading comics to know what is valuable.
If you aren’t inherently a natural comic book fan, then you will need to do your research.
Comic books derive their value based on scarcity and the plot events that occurred in the comic book.
For example, if you watch The Walking Dead TV show, you probably know that it is based on a comic book. The Walking Dead #100, released in 2012, is worth $110.
The villainous Negan first appeared in that comic book.
The first appearance of Superman in Action Comics #1, published in 1938, sold for $3.2 million.
Fantastic Four #52, published in 1966, features the first appearance of the Black Panther. An issue recently sold for $94,000.
What you should remember is that it may take decades for a particular comic to accrue in significant value.
Toys
Childhood toys are a great form of collectibles to invest in, and usually attract good money.
It is called a nostalgia market for a reason.
Sarah Fysh, the Online Operations Manager for valuation company Value My Stuff, remarked that collectors are regular people looking to recapture their childhood.
“People really are buying into their nostalgia, their childhood memories,” said Fysh. “Toys are becoming one of the biggest areas of investment for collectors,” added Fysh.
The toy collectible market was probably worth about $23 billion in 2012.
That being said, the key to the toy collectible market is figuring out your buyer demographic. In other words, you need to know the current age estimates of your potential buyer to research the toys oft heir youth.
For example, Fysh said that the mint condition Micro Machines toys, which were popular in the 1980s, could fetch hundreds of dollars.
According to Fysh, mint condition Micro Machines could sell for anywhere from $7.70 to $308.
Pop Culture Memorabilia
Pop culture memorabilia are items, mementos, clothing, and other things that may have been owned or used by famous people.
In terms of collectibles to invest in, the pop culture memorabilia market may be easier to get into than others.
When celebrities finish a concert or movie production, for example, the things that they use often end up in auction.
It’s your job to network and find out ways to become a middleman and get in on the action.
“If I was going to suggest somebody start collecting something, I would probably suggest where they could make the highest amount of return [are] things such as pop memorabilia,” said Fysh.
“We see things come up quite regularly at auction assigned value by the right name could be worth quite a lot in actuality when you didn’t pay anything for it,” added Fysh.
For example, a collector took the song set list from the stage after rock legends Nirvana played their first Philadelphia concert in July 1989. The concert occurred a month after the release of their debut album Bleach.
That set list sold for $8,750 in 2015.
Modern Art
In 2019, artist Jeff Koons sold a 3-foot-tall sculpture of a rabbit called, “Rabbit,” for over $91 million.
It is the most expensive piece of art ever sold by an artist who is still living. When it comes to collectibles to invest in, art usually accrues in value long after the artist has died.
Koons also sold a Balloon Dog sculpture, sculpted to look like a dog made out of balloons, for $58.4 million in 2013.
Your success in selling modern art may vary. To start with, you should aim to sell for hundreds or thousands of dollars first.
For one thing, the collectors in the art market are very small and very rich. You will need to learn how to network with the right people to make sizable returns.
This isn’t impossible, but it won’t be easy.
Collectibles to Invest In – Take it Slow
Get to know the market you will invest in.
Create a reliable network of likeminded individuals or businesses that will help you facilitate deals.
Learn the value of the collectibles you transact in and their nostalgia value with collectors.
The collectibles market is a good place to start for the novice investor. Just be prepared for a lot of research and deal making.
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Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.
