As the economy continues to struggle and inflation remains high, people are looking for additional ways to make money. Since many people are looking at alternative assets, collectibles have become popular for those who want options outside the stock market. Some have even made a career of buying and reselling collectibles for profit. So if you are thinking about adding this asset to your portfolio, experts predict that these will be the 5 hottest collectibles to invest in 2023.
Learning the Basics of Collectibles
The collectibles market is notoriously fickle. Items that are popular one year may completely disappear the next. You will see many people waste thousands of dollars on fads that never appreciate in value. The truth is that it takes time, patience, and a good eye to build up a valuable collection. It could take decades for certain items to even become valuable. So, you should carefully consider if it is the right type of investment for you.
If you decide to invest, the next step is to choose your niche and learn everything you can. You’ll need to know the rarest collectibles and how to identify them. Furthermore, you will need to be able to gauge the condition of the items. Since rarity and condition have the greatest impact on an item’s value, you will need to teach yourself how to recognize it.
Lastly, you’ll also need to be prepared to properly store your collectibles. Since they won’t improve with age, you need to take precautions to prevent damage or deterioration. Depending on what you collect, this could be an investment in itself. Even if you bought the items in pristine condition, they will be worth nothing if you don’t care for them.
5 Hottest Collectibles to Invest in 2023
For those who want to add alternative assets to their portfolio, collectibles can be a great way to preserve and pass on wealth. Based on expert opinions and current trends, these are 5 of the hottest collectibles to invest in 2023.
The collectible toys industry is still booming. In 2021, it was valued at $12.5 billion. And, it shows no signs of slowing down. On the contrary, it seems more adults are taking an interest every year.
People spend hundreds of dollars on Barbies, Hot Wheels, Legos, dolls, figurines, trading cards, and toys affiliated with popular movies from their childhood. Some Star Wars, Harry Potter, and Marvel memorabilia even sell for five and six figures at auction. So, toys would be a solid choice of collectible to invest in.
Even if you don’t have the capital to buy valuable items, you may discover hidden treasures among your childhood toys. Or, you can try to buy items that will appreciate in time. Franchises like Disney have always had a strong market. So, collectibles from new movies will probably also hold their value.
2. Sports Memorabilia
Diehard fans are always willing to spend top dollar to own a piece of their team’s history. And thanks to e-commerce, you have a much wider market. Not only can collectors find items from around the world, but sellers can also access global communities.
And there is a huge variety of branded items that fetch a good price. Old ticket stubs, newspapers, magazines, trading cards, autographed pictures, uniforms, equipment, and even the original player’s contracts have come up for auction.
However, you must be cautious with the increased number of forgeries. These fakes have undermined the entire market. Always look for authentication. And if you collected an item yourself, get photo evidence whenever possible.
3. Tech and Electronics
It should come as no surprise that there is a huge market for vintage electronics. Just as adults have nostalgia for their favorite childhood toys, movies, and sports teams, many also have strong attachments to certain electronic products. For years, people have geeked out over antique computers and systems that represented pivotal changes in the industry.
So, many people choose to turn their passion into a valuable collection. We are at a point where many items are still fairly common, but that may change in the near future. If you want to look for these collector’s items, seek out things that are the first of their kind, new in box (NIB), and in mint condition. A 1st generation Apple iPod recently went for $23k at auction. So, who knows what an original iPhone, iPad, or Alexa device will bring down the road?
4. Work from Emerging Photographers
Photography is one category in which many collectors have had success in recent years. Several lucky people have stumbled across caches and prints from the early work of respected artists. Back in 2007, someone discovered negatives from Vivian Maier. Since then, they have made a documentary and books of her work. Now, her prints start at $4,000 each.
Another example is the rare photos from Frank Worth. He had some fantastic shots on old Hollywood sets which started appearing on the market in the last decade. One photo of James Dean sold for around $7,200.
If you have an interest in photography, visit local galleries to learn about emerging artists so you know whose work to watch for. And even if you don’t strike it rich, you can still enjoy beautiful art.
5. First Editions of Best Sellers
Many people choose to invest in literature after falling in love with a particular book, author, or series as a child. While many classics are sold for a small profit, it’s the first editions that hold the most value. After publishers print a new book, they release a small number of copies to gauge popularity. Only a few hundred copies of these first editions were released, making them more valuable.
Over time, a book’s value tends to be more linear in appreciation. And based on current collections, a rare book will typically double in value in 7 years. While most of us will never be able to afford any of the most valuable books and manuscripts, you can start building your own collection. Start by finding copies of new releases and put them away somewhere for safekeeping.
Key Considerations Before Investing in Collectibles
It’s true that collectibles can bring in much more money than their original value. But, it’s not as easy as people think to find rare and valuable items. And, there are no guarantees that your investment will pay off.
If you decide to pursue it as an investment, do your research and choose something that you are familiar with. As Warren Buffett said, never invest in a business you don’t understand.
However, the best advice is to discuss it with your financial advisor before you buy anything. You may discover that collectibles are not the best investment for your financial goals.
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Jenny Smedra is an avid world traveler, ESL teacher, former archaeologist, and freelance writer. Choosing a life abroad had strengthened her commitment to finding ways to bring people together across language and cultural barriers. While most of her time is dedicated to either working with children, she also enjoys good friends, good food, and new adventures.