Collectible

DEFINITION of 'Collectible'

An item that is worth far more than it appears because of its rarity and/or demand. Common categories of collectibles include antiques, toys, coins, comic books and stamps. Items that have been mass-produced, and thus are not rare, are often marketed as collectibles to drive consumer demand.

BREAKING DOWN 'Collectible'

A good example of a mass-produced being marketed as a collectible can be found in the Beanie Baby collecting fad of the late 1990s. Ty, the product's manufacturer, produced hundreds of varieties of small plush toys with a floppy, bean-bag like feel. Consumers purchased them like mad, believing that they would one day become valuable. Limited editions that were hard to find became valuable the instant they were released. However, most of the plush toys were so widely owned that they never became valuable, instead becoming garage-sale castoffs.

By contrast, the T206 Honus Wagner baseball card issued by the American Tobacco Company in 1909, is a rare and very valuable collectible. In 2007, a well-preserved Wagner card was purchased for over $2 million.

RELATED TERMS
  1. Consumer Spending

    The amount of money spent by households in an economy. The spending ...
  2. Appraisal

    A valuation of property (ie. real estate, a business, an antique) ...
  3. Appreciation

    An increase in the value of an asset over time. The increase ...
  4. Appraisal Right

    The statutory right of a corporation's minority shareholders ...
  5. Demand

    An economic principle that describes a consumer's desire and ...
  6. Illiquid

    The state of a security or other asset that cannot easily be ...
Related Articles
  1. Economics

    The 4 Countries that Produce the Most Wine

    Learn about the four largest wine-producing countries in the world, along with information on the most notable wines these countries produce.
  2. Economics

    Understanding The Consumer Confidence Index

    We look at this closely watched economic indicator to see what it means and how it's calculated.
  3. Retirement

    Consumer Confidence: A Killer Statistic

    The consumer confidence is key to any market economy, so investors need to learn the measures and how to analyze them.
  4. Markets

    Consumer Spending As A Market Indicator

    What people buy and where they shop can provide valuable information about the economy.
  5. Forex Education

    4 Factors That Shape Market Trends

    Trends allow traders and investors to capture profits. Find out what's behind them.
  6. Economics

    A Practical Look At Microeconomics

    Learn how individual decision-making turns the gears of our economy.
  7. Personal Finance

    Why We Splurge When Times Are Good

    The concept of elasticity of demand is part of every purchase you make. Find out how it works.
  8. Retirement

    Contemplating Collectible Investments

    Profit margins are slim, but that needn't deter those with a passion for eras past.
  9. Investing Basics

    10 Habits Of Successful Real Estate Investors

    Enjoying long-term success in real estate investing requires certain habits. Here are 10 that effective real estate investors share.
  10. Investing Basics

    5 Types of REITs And How To Invest In Them

    Real estate investment trusts are historically one of the best-performing asset classes around. There are many types of REITs available.
RELATED FAQS
  1. What is a derivative?

    A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, ... Read Full Answer >>
  2. What is securitization?

    Securitization is the process of taking an illiquid asset, or group of assets, and through financial engineering, transforming ... Read Full Answer >>
  3. Can hedge funds trade penny stocks?

    Hedge funds can trade penny stocks. In fact, hedge funds can trade in just about any type of security, including medium- ... Read Full Answer >>
  4. Can hedge funds outperform the market?

    Generating returns that exceed those provided by the broader market is the goal of nearly every investor. However, the methods ... Read Full Answer >>
  5. Where do penny stocks trade?

    Generally, penny stocks are traded through the use of the Over the Counter Bulletin Board (OTCBB) and through pink sheets. ... Read Full Answer >>
  6. Where can I buy penny stocks?

    Some penny stocks, those using the definition of trading for less than $5 per share, are traded on regular exchanges such ... Read Full Answer >>
Hot Definitions
  1. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  2. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
  3. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  4. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  5. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
Trading Center