08-22-2005, 04:35 PM
I think that buying collectibles as investments, certainly in the short-to-medium term, is inadvisable. Collectible markets are volatile and irrational and too often influenced by emotion, pressure from dealers and speculators or a herd mentality. If you are buying at retail prices, then you are already buying ahead of the market that major wholesale buyers are playing in. You are their target market. Who is yours? When it comes time to sell, who will you be competing with?
If you are considering buying this group purely as speculation, well, I wouldn't. Think tech stocks, baseball cards and tulips. If it's too good to be true, well ... ? Sure, you're entitled to speculate -- some speculators have made tons of money -- but don't fool yourself that it is really investing.
The market for Soviet collectibles has risen substantially in the past few years, as we all know. I have only been collecting since 2001 but I have seen the apparent value of some of my things rise to unbelievable levels. Yes, I have bought many things for re-sale too, but only because -- at least in my mind -- my purchases directly from families, or from FSU collectors whom I know well, were something like buying wholesale.
See, I can justify just about anything, too. However, if no one ever bought anything else from me I would still have the pleasure of buying and owning all my stuff. I wouldn't make any money to buy more, but that would still be enough for me. Would it be for you?
HulliganRS got it exactly right. Buy it if it pleases you to own it and if it satisfies your desire to collect interesting things. This hobby fascinates and pleases me. That's enough. If you are truly considering this group as part of your investment portfolio, try to keep collectibles at something like the 5% level of your total portfolio.
Just my two cents, and worth every penny.
Chuck
If you are considering buying this group purely as speculation, well, I wouldn't. Think tech stocks, baseball cards and tulips. If it's too good to be true, well ... ? Sure, you're entitled to speculate -- some speculators have made tons of money -- but don't fool yourself that it is really investing.
The market for Soviet collectibles has risen substantially in the past few years, as we all know. I have only been collecting since 2001 but I have seen the apparent value of some of my things rise to unbelievable levels. Yes, I have bought many things for re-sale too, but only because -- at least in my mind -- my purchases directly from families, or from FSU collectors whom I know well, were something like buying wholesale.
See, I can justify just about anything, too. However, if no one ever bought anything else from me I would still have the pleasure of buying and owning all my stuff. I wouldn't make any money to buy more, but that would still be enough for me. Would it be for you?
HulliganRS got it exactly right. Buy it if it pleases you to own it and if it satisfies your desire to collect interesting things. This hobby fascinates and pleases me. That's enough. If you are truly considering this group as part of your investment portfolio, try to keep collectibles at something like the 5% level of your total portfolio.
Just my two cents, and worth every penny.
Chuck
