Memorabilia as an investment

[lumberjack]

This is related to Leon's poll re the stock market and it relationship to buying memorabilia. Do you look at your cool stuff as being an alternative to conventional investing. Is it bomb proof, can it be easily disposed of in good times or bad, does it promise a better return. Tell us....

[Balticfox]

In a word, "No!" Memorabilia does not, in fact cannot, kick off an income stream which means the success of your "investment" is tied to some future person being daft/starstruck/bent (fill in the term) enough to pay more than you did. Talk about building an edifice on shifting stand! Moreover most memorabilia isn't fungible meaning there's no solid way to check present day "values".

[Mark17]

I define "investment" as something that holds wealth, and hopefully appreciates over time. So, look at what you are collecting, see if prices have been holding relatively steady over time, or preferably, going higher.

Memorabilia is very illiquid. It's probable that when you might need some cash, like in a major economic downturn, that would be the worst time to sell memorabilia.

So, overall, I'd say memorabilia is an investment in that it holds value generally. But it should only be a minor part of a well-diversified asset portfolio.

[packs]

If you're a longtime collector and your collection hasn't appreciated you aren't investing. I don't think that's the norm for people who have collected for decades though. Even your beat up T206 commons have appreciated.

[Musashi]

My cards and memorabilia are purchased out of the entertainment part of my budget. (or money made from flipping non PC items). I'm aware that it has value, but I don't account for it in my financial planning.

With the investment/savings portion of my budget, I only put my money into things that pay dividends or interest.

[Balticfox]

Originally Posted by Musashi

My cards and memorabilia are purchased out of the entertainment part of my budget. (or money made from flipping non PC items). I'm aware that it has value, but I don't account for it in my financial planning.

With the investment/savings portion of my budget, I only put my money into things that pay dividends or interest.

+1

Moreover you can only make money if you actually sell the item. And I can't see parting with a personal treasure.

[Rhotchkiss]

We have discussed this many times before. Ultimately, its personal whether someone buys cards/memorabilia for investment. By definition, anyone who buys memorabilia intending to profit is investing.

The definition of "Investment":

Cambridge Dictionary: "the act of putting money, effort, time, etc. into something to make a profit or get an advantage"

Merriam Webster: "the outlay of money usually for income or profit"

I buy cards with the exclusive intent of selling them down the line for profit. I recognize they do not produce income and that they are somewhat illiquid, neither of which attributes is requisite for an investment. Thus, to me, cards are an asset class that I invest in with the intent of profiting.

And, in my experience, if you buy the right stuff and you are patient, memorabilia can be VERY profitable

Many people buy memorabilia to display or because they like it and want to own it. That's great. These people are not investing in memorabilia. The fact that the memorabilia they own may go up in value does not make it an investment, to them. The key is that the buyer spends money with the intent of making a profit. It’s nice when people collect stuff that could go up in value, but unless acquired to make money, it’s not an investment.

Accordingly, whether memorabilia is an investment is personal and turns on whether someone buys something hoping to profit off it.

[JollyElm]

I treat hobby purchases as (new word) Heirvestments.

Although I am cheap and, except for rare occurrences, always look for turnaround value in anything I buy (in other words, were I to immediately sell something I just bought, I'd be able to realize a profit on it), but I actually have no interest in selling anything.
In essence, my motivation is to enjoy the stuff I have while I'm still here, but have a collection that continues to grow in value, so when I'm gone my inheritors could have a decent payday.*



*Yes, they will probably (with complete disinterest) liquidate everything quickly and turn it into a deceased loss for me.

[Bobbycee]

I first noticed T206 cards when I was about 12, and admired how small yet colorful they were. I started collecting them, 1 at a time in the mid to late 90's & now have a 520- all mid grade. It started for the wow factor but, damn right it's an investment now too.

[bmattioli]

I invest in the Market and collect cards as a hobby..

[bnorth]

Originally Posted by bmattioli

I invest in the Market and collect cards as a hobby..

+1 Plus my Memorabilia collection is mainly Wade Boggs. I have easily 40+ Boggs bats and even though they are all different LS models there are just too many to sell at one time without taking a bath on them. Same with cards it is just fun for me. Granted if I see a card/memorabilia WAY below market and I know I have a buyer I will become a short term investor.

[vintagerookies51]

Intentional or not, a lot of the top cards would have made very good investments over the years. I remember PWCC's "Top 500 Index" or whatever that showed how it compared to the S&P 500. I never looked at the details, but I'm assuming it was very cherry picked. Either way, my memories tell me it was pretty common to find low-grade '52 Mantles for 4 figures when I started collecting in 2011 that would go for $30K today. Many other popular cards have also at least tripled over that timeframe.

[BioCRN]

I mean, I don't care about the value of most of the stuff that I only own a single example of because it's not going anywhere.

A $100 investment I made is worth $500 now? Neat, but I'm not selling it because I own it for a reason.

...but let's not pretend some of the biggest names in the hobby, living and dead, aren't collecting green paper as their major hobby focus.

As a hobbyist I'm glad they're out there finding the stuff and bringing it to market.