20 Investments: Collectibles
  1. 20 Investments: Introduction
  2. 20 Investments: American Depository Receipt (ADR)
  3. 20 Investments: Annuity
  4. 20 Investments: Closed-End Investment Fund
  5. 20 Investments: Collectibles
  6. 20 Investments: Common Stock
  7. 20 Investments: Convertible Security
  8. 20 Investments: Corporate Bond
  9. 20 Investments: Futures Contract
  10. 20 Investments: Life Insurance
  11. 20 Investments: The Money Market
  12. 20 Investments: Mortgage-Backed Securities
  13. 20 Investments: Municipal Bonds
  14. 20 Investments: Mutual Funds
  15. 20 Investments: Options (Stocks)
  16. 20 Investments: Preferred Stock
  17. 20 Investments: Real Estate & Property
  18. 20 Investments: Real Estate Investment Trusts (REITs)
  19. 20 Investments: Treasuries
  20. 20 Investments: Unit Investment Trusts (UITs)
  21. 20 Investments: Zero-Coupon Securities
  22. 20 Investments: Conclusion

20 Investments: Collectibles

What Is It?
Generally speaking, a collectible is any physical asset that appreciates in value over time because it is rare or it is desired by many. Many people think of collectibles as things like stamps, coins, fine art or sports cards, but there really are no strict rules as to what is or is not a collectible.

Objectives and Risks
The objectives behind investing in collectibles vary depending on the person and the collectible. Collectibles can take very long to increase in value, and they offer no assurances as to their value in the future. Furthermore, unlike other investments, collectibles offer no income. The one advantage is that most collectibles increase in value along with inflation.

How to Buy or Sell It
Collectibles can be bought just about anywhere. More popular places are flea markets, antique stores, collectible retailers, auctions, garage sales, and more recently, online exchanges such as eBay. The value of the collectible can vary widely, but is dependent for the most part on supply and demand for the asset.

The maturity for a collectible can also widely vary. For fads such as Beanie Babies or Pokémon cards, the price of the collectible can reach its peak very quickly. Other items such as antiques can take several decades before appreciating in value. (To read more on collectible investments, see Contemplating Collectible Investments.)

Strengths
  • Many collectibles offer reasonable protection from inflation.
  • Weaknesses
  • Not very liquid, they can often be hard to sell at a desirable price.
  • They do not provide any tax protection.
  • Collectibles do not offer any income to the investor.
  • The true value can often be difficult to determine.
  • Because there are so many uncertainties don\'t count on any collectible for your retirement.
  • Three Main Uses
  • Capital Appreciation
  • Inflation Protection
  • Self Fulfillment
  • 20 Investments: Common Stock

    1. 20 Investments: Introduction
    2. 20 Investments: American Depository Receipt (ADR)
    3. 20 Investments: Annuity
    4. 20 Investments: Closed-End Investment Fund
    5. 20 Investments: Collectibles
    6. 20 Investments: Common Stock
    7. 20 Investments: Convertible Security
    8. 20 Investments: Corporate Bond
    9. 20 Investments: Futures Contract
    10. 20 Investments: Life Insurance
    11. 20 Investments: The Money Market
    12. 20 Investments: Mortgage-Backed Securities
    13. 20 Investments: Municipal Bonds
    14. 20 Investments: Mutual Funds
    15. 20 Investments: Options (Stocks)
    16. 20 Investments: Preferred Stock
    17. 20 Investments: Real Estate & Property
    18. 20 Investments: Real Estate Investment Trusts (REITs)
    19. 20 Investments: Treasuries
    20. 20 Investments: Unit Investment Trusts (UITs)
    21. 20 Investments: Zero-Coupon Securities
    22. 20 Investments: Conclusion
    RELATED TERMS
    1. Collection Agency

      A company hired by lenders to recover funds that are past due ...
    2. Fiscal Effort

      The amount of revenue collected by a government, often shown ...
    3. Average Collected Balance

      The average balance of collected funds (less any uncleared or ...
    4. Collectible

      An item that is worth far more than it appears because of its ...
    5. Net Collections

      A term used in medical accounting to describe the amount of money ...
    6. Debt Buyer

      A company that purchases debt from creditors at a discount. Debt ...
    RELATED FAQS
    1. Why is Average Collection Period important to a company?

      Discover why the average collection period can be a particularly important accounting ratio for a company that relies heavily ... Read Answer >>
    2. How is cash flow affected by Average Collection Period?

      See how reducing a company's average collection period can help cash flow, and learn why collections practices are so important ... Read Answer >>
    3. In which industries is Average Collection Period most important?

      Find out which industries are most concerned with average collection period, and how different types of companies interact ... Read Answer >>
    4. How can a creditor improve its Average Collection Period?

      Read about some of the ways that a business can improve its accounts receivable management practices to shorten its average ... Read Answer >>
    5. If a collection agency buys my debt from another agency, does the debt become 'new'?

      Find out what happens when your debt account is sold from one collection agency to another and the impact on your balance ... Read Answer >>
    6. How do Social Security benefits for widows or widowers work?

      Understand the basics of survivor's benefits for spouses of deceased workers, when you can begin collecting and how your ... Read Answer >>

    You May Also Like

    Hot Definitions
    1. Stop-Limit Order

      An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
    2. Keynesian Economics

      An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
    3. Society for Worldwide Interbank Financial Telecommunications ...

      A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
    4. Generally Accepted Accounting Principles - GAAP

      The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
    5. DuPont Analysis

      A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
    6. Call Option

      An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
    Trading Center