Three Main Uses Capital Appreciation Inflation Protection Self Fulfillment

What is it?
A general name for any physical asset that appreciates in value over time because it is rare or is desirability by many. Many people think of collectibles as things like stamps, coins, art, or sports cards but really there are no strict boundaries as to what is a collectible and what is not.

Objectives and Risks:
Objectives can vary depending on the person and the collectible. Collectibles can take very long to increase in value, and they offer no assurance as to their value in the future. Furthermore collectibles offer no income like other investments do. 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 for the most part is reliant on supply and demand for the asset.

The maturity for a collectible can also widely vary. For fads such as Beanie Babies or Pokémon , the price of the collectible can reach its peak very quickly. Other items such as antiques can take several decades before appreciating in value.

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.

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