Collectible Investments

Collectible Investments: 10 Best Assets in 2024, Useful Tips

by Elaine Lau

Collectibles as an alternative investment class includes objects valued much higher than when they were originally sold. Think rare wines, stamps, toys, antique weapons, NFTs, and many more! 

But what makes collectibles so special? 

There’s, of course, the thrill of obtaining a one-of-a-kind, aesthetically pleasing physical asset. Besides that, collectibles also offer portfolio diversification, the potential for high returns, and a hedge against inflation. 

But not without investment risk. 

So, knowing the basics can give you an edge before you dive in!

Check out the 10 best collectible investments, their advantages, disadvantages, and things to consider before investing. We’ll also reveal how Vinovest can help you invest hassle-free in one of the best collectibles - fine wine.

Further reading

10 Best Collectible Investments

Here are the best collectible investments you can add to your portfolio:

  1. Investment-Grade Wine
  2. Comic Books
  3. Toys
  4. Stamps
  5. Fine Art
  6. Coins
  7. Sports Memorabilia
  8. Sneakers
  9. Movie Collectibles
  10. Cars

1. Investment-Grade Wine

Collectible Investments

Investing in fine wine has become increasingly popular in recent years. The Liv-Ex 1000 index also shows a stable growth - a 24.6% annual return in 2022, outperforming the traditional stock market indices like S&P 500 (-1.18%) and Dow and Jones (-10.98%.) 

Some fine wines can fetch great returns due to their rapid price appreciation, low supply, and high demand. For instance, the 1869 Chateau Lafite (estimated at $60,000) sold for $230,000 at a 2010 Sotheby’s auction in Hong Kong.

However, fine wine assets face the same disadvantages as other collectibles  (such as the risk of getting scammed and paying high maintenance costs.) But luckily, Vinovest has managed to tackle all of these obstacles and offers a beginner-friendly and hassle-free wine investment experience (more on that in a bit.)

2. Comic Books

Collectible Investments

First edition or classic cover comic books can fetch pretty good returns. For example, a single comic book page from the 1984 edition of Spider-Man sold for $3.6 million at a Heritage Auction in 2022 (Heritage Auction is the world’s largest collectibles auctioneer.)

But you need to research which comic books will be profitable because not every book would be a valuable physical asset.

3. Toys

Collectible Investments

These tangible assets include dolls, action figures, lego sets, and other popular but extremely rare toys (My Little Pony, vintage Barbie dolls.) 

One of the most expensive toys ever sold was the 1963 prototype of G.I. Joe which was bought for $200,000 by Stephen Geppi in 2003.

4. Stamps

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Stamps are a popular collector’s item because they are:

  • A low-cost initial investment
  • Released in small batches, which increases their value

While finding extremely rare stamps could be quite challenging, the returns are good. For example, the Mauritius Post Office stamps are available in only 27 examples. In 2021, one such stamp was sold for $12,760,600 (more than some of the greatest fine art pieces.)

5. Fine Art

Collectible Investments

The fine art collectibles market was a $65.1 billion one in 2021, and it keeps growing. 

The good thing about fine art collectibles is that they keep appreciating constantly. This means you can sell such items much easier than other collectibles. 

Also, fine art pieces are usually one-of-a-kind, which makes them extremely rare, unique, and thus highly valued (especially by high net worth individuals.) 

The best part? 

You can use them as decorative pieces in your house while waiting to sell!

One of the most expensive art pieces ever sold is the 1986 Rabbit sculpture by Jeff Koons, which sold for $91,075,000 at a 2019 Christie’s auction.

6. Coins

Collectible Investments

Coins that are extremely rare, no longer in circulation, or related to some historical event are usually valuable collectibles. For example, the 1794 Flowing Hair Silver Dollar (believed to be the first coin minted by the US Federal Government) sold for $10 million in 2013. 

If you’re just starting your coin collection, invest in commemorative coins or coins produced in limited batches. 

7. Sports Memorabilia

Collectible Investments

These tangible assets include jerseys, trading cards, bats, balls, baseball card collections, helmets, and more. 

One of the most expensive sports items ever sold is the Diego Maradona “Hand of God” shirt, which he wore at the 1986 World Cup. It was sold for $8,958,124 at a Sotheby’s auction in 2022.

8. Sneakers

Collectible Investments

Sneakers have become a popular collectible among investors only in recent years. 

But don’t rush to your old shoe rack to search for a rare pair of sneakers just yet! 

If you’re seeking to sell a collectible pair of sneakers, they should be brand-new (worn sneakers have no value for collectors.) 

Nike, Adidas, and Air Jordans are the most pursued brands. The original Nike SB What the Dunk was sold for only $120 but is now valued at $5,000.

9. Movie Collectibles

Collectible Investments

Movie collectibles such as items from movie sets and movie posters can fetch high prices. 

To identify a valued movie collectible, look out for things that were used by popular movie stars or beloved celebrities who died tragically. 

For example, Harry Potter’s glasses (worn by Daniel Radcliffe in Harry Potter and the Sorcerer's Stone) sold for $20,000 at Julien’s Auctions in 2015.

10. Cars

Collectible Investments

Some classic automobiles can fetch astonishing prices in the collectibles market. The prices of such cars have increased by 330% in the past decade, but they might fluctuate year to year and show a certain degree of volatility. 

But some rare cars like the 1955 Mercedes-Benz 300 SLR Uhlenhaut Coupe (sold for about $142,000,000 in 2022) can fetch millions of dollars.

A Few Things to Remember when Investing in Collectibles

Here are some things you should keep in mind when starting your collectible investing journey:

1. Buy Collectibles You’re Passionate About

Collectibles can fluctuate in value - one day, you can sell your collectible at a huge profit, and on the other, it might be worthless. 

That’s because the value of such items is in the eye of the beholder. They’re seen as a reflection of the collector’s keen eye and taste!

So, even a small wealth gain should be seen as a fringe benefit. (There’s no guarantee you’ll make a profit - unless it’s an asset like fine wine!)

2. Understand How to Value Collectibles

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Knowing how much a collectible is worth is a vital factor in determining whether you should invest in it or not. 

To assess the investment perspective of the collectible, you should research its:

  • Origin: Always find out the ownership history of the collectible. This way, you protect yourself against buying illegally acquired objects.
  • Authenticity: Being able to prove that the underlying asset is the real deal can skyrocket its value, so always ensure that what you have is 100% authentic.
  • Rarity: If you manage to get your hands on a rare, unique collectible, you can easily sell it at a profit later on. 
  • Condition: Collectibles traded for investment purposes can diminish significantly in value if they have even the slightest visible damage. So, ensure that what you’re buying is well-preserved and undamaged.

Alternatively, if assessing each of these parameters seems like too much hassle, you can seek the expert opinions of financial advisor professionals to help you evaluate the object.

3. Ask for a Written Guarantee

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If you stumble upon a deal that’s too good to be true, ask the seller for a written buy-back guarantee on the underlying asset (usually applicable for a specific time period.) This will allow you to return the collectible to the dealer who will buy it at the same price and resell it to someone else.

4. Consider Buying an Insurance

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Collectibles insurance protects your valuables from theft, loss, or damage. 

Insurance is a must if you own a huge collection of rare items. But you can also purchase it for smaller-sized collections as well.

Advantages of Collectible Investments

Here are some of the pros of getting into the collectibles investment game:

  1. Personal Satisfaction
  2. Portfolio Diversification & Potential for High Returns

1. Personal Satisfaction

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With collectible investing, you don’t simply invest for the profits but also for the thrill of it. 

Imagine how satisfactory it is to know you’re one of the few investors in the world who own a rare piece of art or a century-old bottle of wine! 

2. Portfolio Diversification & Potential for High Returns

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Valuable collectibles have a low correlation with the stock market. So when prices of traditional investment assets like stocks and bonds go down, collectibles and other alternative assets often go up.

Additionally, if you purchase the right collectible at the right time, you might be able to reap huge returns in the future. But this lucrative opportunity comes with a certain degree of investment risk. 

Disadvantages of Collectible Investments

If you start investing in collectible items, you should keep these disadvantages in mind:

1. Fraud

NFT Wine Fraud

Unlike the stock market, the collectibles asset class is not regulated by a legal entity. This means if you get scammed, no one can help you, and you’ll lose your money. 

That’s why you should be very cautious when purchasing collectibles and know how to tell authentic from fake and a legit dealer from a con artist.

2. High Markups

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Since collectibles don’t trade in public markets, they can be sold with extremely high markups. That’s because dealers and auction houses aim to make a profit when selling such assets. 

Very rarely it is the case you can buy directly from a collector at a good price.

3. Maintenance Expenses

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If you plan to store your collectibles until they appreciate in value, you should consider all the maintenance costs that will occur during the appreciation timelines. These could include anything from more affordable protection cases to costly storage rooms that maintain optimal conditions for your precious items at all times.

4. Diminished Value due to Damages

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Any damages like small scuffs, scratches, and other wear and tear signs will bring down the value of your collectible.

5. Liquidity Challenges

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Collectibles are considered illiquid assets since: 

  • You might have to wait quite a while to find the right buyer. 
  • Appreciation timelines can sometimes extend to decades, so you can’t sell immediately (in contrast to most traditional investment assets like stocks which don’t face the same liquidity challenges.)

But what if we tell you there’s a way to invest in a collectible asset without all these hassles?

The leading wine investment platform, Vinovest, can help you build a portfolio of fine wine easily! 

You can simply kick back and watch your precious wine bottles appreciate in value from the comfort of your home.

Let’s see how it works!

Invest in Collectible Wine Through Vinovest

Vinovest

Vinovest is an AI-based platform that helps you buy, store, and sell wine bottles from all around the world with just a few mouse clicks. And you don’t need to be a high net worth investor to get started (minimum investment is only $1,000.)

Here are the main benefits:

  • Storage: All your bottles are stored at bonded warehouses that maintain optimal storage conditions, so you don’t have to worry about building an expensive wine cellar yourself.
  • Selling: Bought a bottle of wine through Vinovest, but now you want to sell it? No worries! Vinovest will help you find the highest-paying buyer and make a profit out of every wine bottle.
  • Insurance: All your bottles are insured against theft, damage, and loss, so you can rest assured your investment is safe and sound with Vinovest.
  • Authenticity: As with any other collectible, getting a counterfeit bottle of wine is possible if you buy from random merchants and distributors. But with Vinovest, you can forget all your worries about getting a fake. Vinovest’s team of wine experts and master sommeliers traces the provenance and guarantees the authenticity of every single bottle of wine before the money leaves your wallet.
  • Fees: All these perks come at a minimum fee of only 2.5% (or 1.9% for portfolios of over $50,000), and this covers all the services, from buying, storing, and selling to authenticity check, insurance, and portfolio management.

So, if wine investing is something you’d like to try, sign up on Vinovest today and build a winning wine portfolio hassle-free.

Make Profits While Pursuing Your Passion

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Collectibles such as trading cards, lego sets, and antique weapons are assets that offer not only financial gain but also personal satisfaction. This might be a good long-term investment option if you know what to invest in, when, and how to preserve your collectible items until you’re ready to sell.

And if you want to dip your toes into the fine wine investment world and build a successful wine portfolio, you just have to sign up on Vinovest, and all else will be taken care of for you.

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