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Collectables
Over 10 per
cent market returns per annum from stamps, books and autographs offer the
perfect investing platform to diversify your wealth. Such a belief is
underpinned by a variety of performance monitoring indices in this sector.
The Fraser's 100 Index, one of the worlds leading experts in autographs and
collectables acts as a definitive guide to the autograph market performance.
Indeed the 100 most popular autographs have shown very impressive growth
over the past 6 years with a cumulative increase in value of 174 per cent,
with some seeing value growth in excess of 400 per cent. Demand is
outstripping supply for the rarest and most sought after items.
Collectable tangible asset investments do very well over time because their
supply is highly restricted. Prices rarely go down as they are underpinned
by a huge worldwide collector base. Indeed, with an ever-diminishing supply
and increases in demand, together with loss through damage, destruction and
donations to museums, there is a consistent increase in prices for rare
items in excellent condition. Paper is a perishable commodity, providing an
inherent increase in the scarcity value to the investor over time.
Rare and unique books and autographs, which benefit from being portable, are
internationally traded in all currencies and the price is never capped. Over
30 million collectors worldwide protect both the price and liquidity. This
market alone represents a global business of over $10 billion per annum.
The internet has opened up the market for rare books and collectables and
provides increased visibility and tradability. Auction prices very often
exceed listed catalogue prices on limited edition books and autographed
memorabilia. Moreover, auctions and the internet are now reducing the spread
on the buy and sell price, which in turn provides increased confidence to
both collectors and long-term investors alike.
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