When we think of investing, we tend to think of investing in stocks, shares, or companies directly. We might think of investing in a pension fund, or perhaps using a private stockbroker to help you manage the market. Some people even short-sell, betting on the downfall of certain enterprises in order to sell their original investment and then make money on the difference.
But this is hardly the only investment you can make of a financial nature. Investing in physical goods that retain their value, such as if you buy diamonds from Whiteflash, invest in staple handbags from designer fashion firms, or even retain copies of limited print comics books or collect a library of first edition books – you may be able to make a large profit of your passion in the future.
The truth is that investing in physical goods can be riskier – because they can be lost, damaged, or may not be hugely more profitable in the future. But in some instances, you may make a small fortune from the effort. In this post, we’ll discuss how to better achieve that through some caretaking duties and price predictions:
Consider Scarcity & Historical Value
It’s nice to consider the scarcity and historical value of physical goods. The reason that many older items accrue in value is that they cannot be replaced. There will only be so many first runs of the first Superman comic issues, for instance. It’s why Star Wars figurines from the 80s, still in their packaging, can fetch such a decent price at market. The historical value will also help you understand the context behind the collection and any you may be missing.
Consider Preservation & The Market
How well can you preserve certain goods, and what condition might affect their value? Purchasing vintage antiques and holding onto them is worthwhile, but you may need to make sure they’re stored correctly and cleared of dust. Those who purchase artwork will need space to store and maintain it, ensuring that no damage in transit occurs. So sometimes, that investment will be in the maintenance cost, too. Remember that, because virtual investing such as buying shares is unlikely to require this kind of management.
Research Deeply Into Your Collections
When investing in physical goods, it’s essential to know a great deal of information about them. This includes the history, the context, and the market. You don’t necessarily need a great amount of information about the business you buy shares of in order to see a positive overall trend and make predictions, but with physical collector’s items or goods that may age into value, it’s essential to know why they’re valuable, the craft or business behind them, the storage necessities as discussed, and exactly where your market lies. In effect, you have to become an ambassador for the value of such items yourself, because you have become the collector and trader. It’s more work, but it’s also a passion that you can apply. So – physical goods investing is not just a smart idea for the most part, it’s a lifelong appreciation. However, you can also opt for dispassionate approaches like investing in raw materials such as gold.
With this advice, we hope you can invest in physical goods feeling primed for the responsibility you may be inviting into your life.