{"id":44547,"date":"2013-11-25T08:01:31","date_gmt":"2013-11-25T13:01:31","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=44547"},"modified":"2013-11-25T08:01:31","modified_gmt":"2013-11-25T13:01:31","slug":"investing-collectibles-better-bet-wall-street","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/11\/25\/investing-collectibles-better-bet-wall-street\/","title":{"rendered":"Investing in These Collectibles a Better Bet Than Wall Street?"},"content":{"rendered":"

By John Whitefoot<\/a> for Daily Gains Letter<\/a><\/p>\n

\"Investing<\/a>Not all investing opportunities are created equal\u2026<\/p>\n

Thanks to Antiques Roadshow<\/i> and American Pickers<\/i>, everyone thinks investing in collectibles<\/a> is a great idea. However, the truth is that few actually have anything worth more than the day they were first purchased.<\/p>\n

That doesn\u2019t prevent people from trying to guess what the next great cultural commodity is going to be. I remember (briefly) watching a home shopping channel years ago and listening to someone explain why \u201cBeanie Babies\u201d were the next big thing for those interested in investing in collectibles. He couldn\u2019t guarantee they were a slam-dunk investment, but the prices on the secondary market had soared. Take that into consideration as you call in your order.<\/p>\n

Interestingly, there is no Beanie Baby segment on any home shopping channel.<\/p>\n

Unlike stocks, there is no discernable way to say why, when, or if a collectible will ever increase in price; they also don\u2019t provide a dividend. Investing in collectibles is as difficult as trying to time the stock market<\/a>\u2014it\u2019s virtually impossible.<\/p>\n

Collectibles can also be difficult to value, as it\u2019s a subjective art. For example, on eBay (NASDAQ\/EBAY), you can purchase a rare Princess Diana Beanie Baby bear for either $400,000 or get one from the same edition in similar condition for just $5,000. That\u2019s quite a discrepancy for a really small target audience.<\/p>\n

Here\u2019s a hint: when it comes to investing in collectibles, look for the lowest-selling collectible you want, as that\u2019s the bottom basement price no one is willing to pay. I\u2019m not picking on Beanie Babies, I\u2019m just using them as an example.<\/p>\n

Investing in collectibles isn\u2019t exactly a slam-dunk investment when it comes to your retirement portfolio, at least not for the average investor; though when you consider the record prices modern art is commanding this art auction season in New York City, it\u2019s easy to see why many investors, tired of record-low interest rates<\/a> and near-zero returns on their income investments, are looking elsewhere.<\/p>\n

On November 12, an art collector shelled out over $142 million at Christie\u2019s (a private company) postwar and contemporary art auction for a painting\u2014actually a triptych\u2014by Francis Bacon. A few minutes later, a collector purchased Jeff Koon\u2019s sculpture \u201cBalloon Dog (Orange)\u201d for $58.4 million, an auction record for a living artist. The third-most expensive lot for the night went to a graphic of a Coca-Cola bottle by Andy Warhol, selling for $57.3 million.<\/p>\n

If you\u2019re considering investing in collectibles like art, wine, furniture, etc., but aren\u2019t sure where to start, you could look at Sotheby\u2019s (NYSE\/BID), the only publicly traded auction house.<\/p>\n

If investing in collectibles or paying $50.0 million for a Warhol isn\u2019t in your budget, you could consider doing due diligence on some of the subjects he painted, including The Coca-Cola Company (NYSE\/KO) or a motorcycle company like Harley-Davidson, Inc. (NYSE\/HOG).<\/p>\n

The point is that you can find reasonable, affordable investing ideas anywhere.<\/p>\n

When it comes to investing in collectibles, buy what you like, not what you think you can flip for a profit. After all, investing in collectibles can be a risky venture; not only do you need to find the next hot collectible trend, but you also have to get it at a reasonable price and find someone willing to pay more for it than you did.<\/p>\n

The fact of the matter is it\u2019s easier to perform a little due diligence and find a stock with better prospects. Investing in collectibles might sound like fun, but investing on Wall Street is a better bet.<\/p>\n

 <\/p>\n

http:\/\/www.dailygainsletter.com\/investment-strategy\/investing-in-these-collectibles-a-better-bet-than-wall-street\/2140\/<\/a><\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By John Whitefoot for Daily Gains Letter Not all investing opportunities are created equal\u2026 Thanks to Antiques Roadshow and American Pickers, everyone thinks investing in collectibles is a great idea. However, the truth is that few actually have anything worth more than the day they were first purchased. That doesn\u2019t prevent people from trying to … <\/p>\n

Continue reading “Investing in These Collectibles a Better Bet Than Wall Street?”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-44547","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/44547","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=44547"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/44547\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=44547"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=44547"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=44547"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}