The collectables and memorabilia market has grown in popularity and is now worth over one billion pounds. With over 200 million serious memorabilia collectors worldwide, how as a beginner do you get started in this market?
Olympics 2012 merchandise will be an almost guaranteed moneymaker but there is a difference between the mass-marketed merchandise and the sought-after memorabilia. For the smart investor there are ways to cash in on products that will grow in value over the long term. Memorabilia can be a sound investment if you can recognise the items to buy now for little outlay that will generate a profit in the future.
What turns an item into valuable memorabilia?
When it comes to memorabilia the item, itself may not essentially be worth much. What turns an item of little value into a much sought after and extremely valuable piece of memorabilia is association and scarcity. For example, items associated with celebrities are much sought after, and collectors are willing to pay a high price to get their hands on these items. One of the highest prices paid for a piece of celebrity memorabilia in recent years was the famous white dress worn by Marilyn Monroe in the film The Seven Year Itch, which sold for a whopping $4.6 million (£2.8 million) in 2011.
How to add value to your memorabilia
Provenance is a vital aspect when it comes to the value of collectibles and memorabilia. This means you must be able to prove that the item is actually what you are claiming it to be in terms of origin and history. A verbal statement of history won’t carry much weight but some form of proof such as a valid certificate of ownership will add to the item’s credibility. A photograph of an athlete signing an item, with the seller in the photograph, will also help when it comes to claiming provenance.
What makes Olympics 2012 Memorabilia a potential investment?
Olympics memorabilia comes with the two basic memorabilia requirements; scarcity and celebrity sports names. The last UK Olympics were held in 1948 and the Olympic Torch from that year is now valued by Bonham’s auction house in London at £1500. But according to Paul Fraser from Paul Fraser Collectibles in Bristol, “It is the athletes themselves who do well at the Olympics that will add value to an item.” Signed photographs and clothing worn by an athlete will increase in value as long as the athlete has won a medal at the Olympics, and can be even more valuable if the athlete sets a new world record.
Investment returns for Olympics 2012 memorabilia
So how much can you expect to make on your initial investments? Paul Fraser says, “The average return on memorabilia is 10% to 20% increase per year and with low interest rates and low inflation collectables are scoring well.”
Supply and demand is also a key component when it comes to buying and making a return on your investment. The scarcity of an item of memorabilia will make a difference to how much you will be able to sell for and expect to make.
What about the mass-marketed items?
Some mass-marketed items can be worth money in the future. McDonalds are one of the official sponsors of the UK Olympics 2012 and they are already producing a range of products such as toys given free with meals.
According to Dan Clifford, owner of Curiositeaz Antiques and Collectables in Perth, Australia says, “Olympics 2012 memorabilia that will increase in value will include McDonald’s toys if kept untouched in the packaging as this is an iconic company. These toys are already being sold on eBay but the longer you keep them the better.”
Remember that memorabilia collectors and sellers can be found worldwide so it may be worth not limiting yourself to auction houses. You could make the most of resources such as the internet when it comes to buying and selling. In the end, the investor who has bought wisely and allowed their purchases to increase in value over the long term could see a good return.
Some tips for new collectors
There are a few rules that could prove beneficial for new memorabilia investors including –
- Memorabilia is often a ‘feel good’ purchase but it is worth keeping in mind not become emotional and form an attachment to your investment.
- It could be wise to research your items and remember that the law of supply and demand is a golden purchasing rule.
- Well-known sporting names attached to scarce memorabilia will always increase in value.
- It makes sense to ensure the items are in pristine condition if buying from a seller.
- Why limit sales to auctions houses? Buyers can be found through many venues including high street antiques stores and online auction sites.
|Written by :|
|Garry Crystal is a news reporter for compareandsave.com.Having worked as a journalist on a number of UK personal finance websites, he now researches and investigates UK personal finance stories and angles to help our readers save money.For press enquiries, please visit our Media Centre page.|