Investing in rare collectibles

There are huge opportunities across the whole collecting spectrum for...

Investing In....

Collectibles as an alternative asset class , which has gained momentum, and publicity, recently, due to the credit crunch and uncertainty in the mainstream markets .

There is an increasing demand for tangible assets that are limited in supply , with historic prices reflecting favourable returns.

Individuals are also now looking to have greater control over their wealth, and more enjoyment through collectibles where they can act as a custodian , during their lifetime.

Collectibles offer sound diversification from traditional asset classes, and have previously shown to be a good hedge against inflation . Market whispers are saying that inflation could be a real problem in the next few years, and in past cycles collectibles have performed well.

Collectibles, generally speaking, are a very portable asset , and act as a global currency , effectively allowing you to sell wherever the best price can be achieved anywhere in the world.

Clearly the internet helped this transparency in pricing, increased the liquidity of the market, and built demand across the world, particularly in the developing countries and especially in the BRIC Countries (Brazil, Russia, India and China).

People are looking for 'safe havens' , where they can be comfortable in a long term investment with a proven consistent track record.

High-end Collectibles have been subject to serious research by collectors, academics and investors over the years. Paul Fraser Collectibles intends adding to this level of research, detail and background information that will help you invest with confidence.

The 'Baby Boomer' generation, those born between 1946 and 1964, are quickly approaching retirement, and they will be living longer, and have more disposable money and time on their hands than any previous generation or demographic.

Its forecast that there were 80 million babies born in the U.S during that period, and therefore over 4 million will be retiring every year, close to 75,000 per week.

In the U.K the numbers are equally enormous at 15 million babies born in the U.K in that period, with over 800,000 retiring every year, close to 15,000 per week.

Baby Boomers will go travelling, spend time with their family, and enjoy a hobby or recreational pursuit.

The Collectibles market is preparing for this demographic bulge to filter through and this can only increase demand, and with a diminishing supply, prices are set to continue to go higher.

Millions of Collectors have always underpinned the market, but there is a rising tide of investors, and institutional funds now trying to grab a slice of it.

There has been a greater realisation by institutions and museums of the importance of high-end collectibles, and securing them for the benefit of the nation and future generations.

Also in some countries, noticeably the United States, there are tax advantages to bequeathing them to museums. This obviously further depletes the quantities of high-end collectibles available on the market, along with accidents, fires and poor storage.

With Collectibles being such a large field, it allows you flexibility and choice when deciding what area appeals to you and one you will enjoy collecting.

* reprinted by permission from Paul Fraser Collectibles