Memorabilia can be a good long term investment, which can not only act as a store of value but also appreciate significantly over the course of many years. However, the opposite is also true. The memorabilia you were so sure was valuable, could become worthless as people lose interest in it. And if you are planning to invest in memorabilia, then the following three points should help you make better decisions.
Supply And Demand
The basic market law of supply and demand also works with memorabilia. If there are only a few number of popular items, then they will fetch a higher price. And the more difficult they are to obtain, the higher their price will keep going. As simple as that. If you have Marilyn Monroe’s autographed photo, then there will be a huge demand for it since she is a famous Hollywood personality. Now, if you are only one among 100 people in the world to have a signed photograph, then you can sell it for a higher price. But if you are the only person in the world with her signed photo, then you can basically set your price. So, consider the rarity of an item and buy such undervalued rare items as an investment.
Focus On Investment, Not Attachment
Do not be emotionally involved in the memorabilia. Many people don’t understand how important it is to remain detached from the memorabilia they are interested in. Remember that it is just an investment, and must only be treated like an investor would treat its investment. Nothing more, nothing less. Being emotionally invested in the memorabilia can make you lose focus and drive you to take illogical decisions that might result in a loss. For example, because of your love for an item, you may end up buying it at an exorbitant price even though from an investment perspective the item would have been classified as a bad investment.
Time And Value
Many people think that investing in a memorabilia and holding it for three or four decades is a guaranteed way to profit. And some even buy memorabilia expecting to hand it over as an asset to their children. While the outlook is not necessarily false, it has some very serious flaws. Memorabilia is not like gold which will always be in demand. Instead, the value of a memorabilia you have will greatly depend on how many people see it as valuable. A signed photo of Marilyn Monroe might be valuable now. But to expect it to remain valuable even 50 years from today when the world will have changed vastly and the people’s preferences would also have undergone a transformation, is a risky bet. So, it is better if you set a profit target for a memorabilia and sell it off when it reaches your expected price level.
And if you need to get sports and celebrity memorabilia at bargain rates, visit Hollywoodcollectibles.com. Search through the items after taking into account the three factors we have just discussed, and you should not face too much trouble in picking up a good memorabilia for investment.