Collectibles investments are booming, says The Times

'High net worth individuals are increasingly turning to alternative investments,' reports the respected UK newspaper

Here at Paul Fraser Collectibles, we've long recommended diversifying wealth into collectibles.

Not only will they offer pride and pleasure, but the high-end items can also offer profit.

And now it's nice to have it confirmed by another news source: The Times of London.

In their article, The Times also notes that collectibles are being used by high-net-worth individuals to diversify their wealth.

Alan Brown of 200 year old asset managers Schroders plc is quoted as building up his wine collection focusing on rare Bordeaux, buoyed by the Liv-Ex 100 index of rare wines which has increased 4.6% in the last month alone and 10% in the year to date

Another attraction of wine as an investment is that it is classed as a "wasting chattel", meaning any financial gains are free of Capital Gains Tax (In the United Kingdom).

The Times suggest your wine investment should be stored in a bonded warehouse to help maintain quality.

There are no such storage issues with rare coins, which are championed in the article by Clem Chambers, Chief Executive of stock market website advfn.com.

Mr Chambers describes the return on such coins as typically 7-10% per annum, and his "top tip" is one we strongly agree with:

"My top tip is that if you can buy two good coins for a certain amount, or just one fabulous coin, you should always go for the one fabulous coin."

Ed - sorry to interrupt, but that's the CEO of a share trading company telling you to expect returns of 7-10% from a rare coin collection!

Rare coins have received acres of media space recently with the discovery of the 'dateless 20p', which has sold for up to £7,000 at auction.

The Times also say that The BlackRock Gold & General fund and Jupiter Asset Management both hold rare coin investments on behalf of clients.

Such high powered involvement lends further credibility to the alternative investment argument.

The Times also discusses memorabilia talking to Lord Iveagh, a descendant of Arthur Guinness, the creator of the world famous stout, who unsurprisingly collects Guinness memorabilia .

Memorabilia is such a wide and popular sphere that it caters for all tastes.

Marilyn Monroe, James Dean, JFK and Space memorabilia (Especially the Apollo 11 missions) are perennial favourites that have shown consistent increases over the years.

In fact, take the best quality item from any area, and you'll likely make money in the long term.

 



* reprinted by permission from Paul Fraser Collectibles