Collectable investments are an attractive alternative in an era where non-debt assets are the new safe-haven assets in times of monetary inflation.
What are Collectable investments?
These are tangible items worth far more than their original sale price and are viewed as alternative investments because they do not fall into any other category like stocks, bonds, cash, or real estate.
Some collectable investments have outperformed bonds and stocks since the 2008 financial crisis and Great Recession
Vinyl records, an example of a collectable investment, are currently being sold for record amounts.
Collectors are paying up to £10,000 for some of their Vinyl albums.
Exclusive vinyl songs and artwork are popular among Taylor Swift and Beyonce fans, raising a new generation of record collectors.
Wessex Auction Rooms said it has experienced buoyant demand for 1990s records.
A copy of the second album released by Oasis (What’s The Story) Morning Glory? Signed by Noel Gallagher and drummer Alan White, sold for an impressive £413 during an auction it held in September.
“If you have managed to hold on to your record collection from when you were younger or could never really let it go, you could be sitting on vinyl worth up to £10,000,” reports Money Week.
Rarity, condition and demand determined the value of Vinyl albums.
Tatty covers or scratched discs may not be worth much amongst vinyl collectors.
Some of the UK’s most valuable records include The Beatles – The White Album.
Original copies of this seminal album fetched up to £10,000, especially those in top condition with low serial numbers and the original Apple logo.
However, a copy once owned by the late John Lennon sold at auction for £128,000 in February.
Complex – Complex progressive rock album in pristine condition sold for as much as £10,000.
Led Zeppelin with its turquoise typography and a unique ‘Superhype’ credit sold for £7,100 in 2013.
The Beatles – Please Please Me with the black and gold label is highly sought after and sells for around £6,000.
Sex Pistols can also command a price of up to £6,000.
Collectable high-end classic Cars outperformed the stock market until 2024, according to Hagerty
The collectors’ car market operates on emotions and relationships.
Cars are typically bought for enjoyment and utility but collectable autos can also offer financial gains.
Owning and driving a cherished vehicle is where the true value lies. But it is also worth noting that classic cars come with expenses not associated with traditional investments, such as maintenance, insurance, and storage costs.
Classic car investors view the market in 2024 as “cautious,” “softer,” and “selective” but still “healthy.”
Hagerty’s Blue Chip index includes iconic cars such as the Aston Martin DB5, Ferrari 250 California Spider, Lamborghini Miura, and Mercedes-Benz 300SL—vehicles that have long been coveted by collectors. From the 2007 launch of Hagerty’s Price Guide, classic cars largely weathered the economic storm of the Great Recession better than many other investments, including the S&P 500. The classic car market post-recession recovery in the early 2010s was robust, with prices climbing steeply, outperforming the stock market for years.
The 1990s classic car market is experiencing robust demand, particularly for SUVs and trucks.
10 Awesome Collectible 1990s Cars sheds light on some affordable collectable auto investment opportunities.
What about the untapped fortune in collectable comic books?
Could you be lucky enough to have stored a comic book under the stairs or in the attic, which is now worth a fortune?
Did you know the first Superman comic sold for a record $3.2M on eBay?
After 10 days of competitive bidding, with the first bid at $1M only three minutes into the auction, Action Comics #1 has found a new home after breaking auction records. Selling for $3.2M, $1.04M more than the previous record.
The previous record for the most expensive comic book was set in 2011 when another copy of Action Comics #1 with off-white pages sold for $2,161,000. Though the book itself was initially priced at $.10 when it hit newsstands in 1938, the prices have hit the stratosphere because this is the comic that introduced the character of Superman for the very first time.
Even the Rubik Cube has become a collectible.
A British man has sold what’s thought to be the world’s “most expensive Rubik’s Cube” on eBay and netted himself £988 profit.
Traditional collectable investments; Stamps and coins
A Mauritius Post Office Stamps, Mauritius, 1847, sold for $4 Million.
British Guiana 1 Cent Magenta, British Guiana, 1856 ($9.4 Million) at a June 2014 Sotheby’s auction. Before then, it belonged to John du Pont – an American man who bought the stamp for $935,000 in 1980.
In 2016, Inverted Jenny, United States, 1918 sold for $1.6 Million.
As an upside-down print of the Curtiss JN-4HM – a plane used during World War I, and the first flight used to deliver mail.
Just one single sheet of 100 inverted Jenny stamps was created.
September 2024, part of Lars Emil Bruun’s 20,000-piece Danish coin collection, fetched millions at auction in Copenhagen. Shocked by the destruction of WWI, the butter magnate ordered the collection to be in reserve for a century.
Collectable investing in whisky and wine
Moreover, in recent years, whisky has climbed the ranks of alternative investments. It’s become a highly collectable asset, with a bottle of 1926 Macallan changing hands for 1.5 million at Sotheby’s in a new world record.
So collectable investments could also be a rewarding and fun way to protect yourself against a fiat currency diluted to junk.
When Ray Dalio asked whether you have non-debt assets, collectables fall within this category.
Gold shines bright in these times, but where is the fun?