How #investing in art could make you rich
One of my more interesting posts now about how you can make a lot of money buy art and other collectibles.
You may be already interested in artwork or other collecting related hobbies such as stamps, coins, antiques, LP records, baseball cards, art work and sculptures. I can now tell you that by making the right purchase at the right time you stand to make a lot of money quite easily over a ten year period as these items tend to appreciate quite significantly over time.
But before you start buying you need to carefully assess your purchase strategy and assess in which niche you want to specialize in. Ebay is a good place to check out whats in demand and what people are willing to pay top dollar for – it may surprise you that many people are willing to buy even currency from foreign countries for higher than face value! The other big ticket items are antique watches (timepieces) old coins and medals, old certificates and letters and even stamps. The baseball card section too is really impressive.
My advice here is get into a niche that interests you personally so that you won’t be bored easily or just get sick of it. You need to educate yourself by hanging around in the forums and reading relevant collectors and connoisseurs blogs and buy niche specific magazine to keep upto date on whats hot and not.
Once you have a fairly good idea about what you want your collection to look like start buying carefully at first and once you have made a significant sale start buying big ticket items. My tip here would be to use money that you can afford to lose – since these collections are actually your savings in the form of inflation proof assets.
So here’s my checklist about what you should invest in:
- Personal interest in the collection of antiques or hobby is essential to ensure that you continuously invest time and money
- Low barrier to entry – some niches require that you invest significant amount of money to enter the niche so its always better to select one that has low barriers to entry and do not require very high level of expertise
- Showpiece – art and antiques can be used as a good interior decor idea thereby not taking up too much storage space. Some creativity here can make a lovely addition to your living spaces
- Readily marketable – the collectors niche should be actively traded by a large number of buyers and sellers to ensure that you have a quick way to exit from your investment
- Gold and Silver Coins – are very good inflation proof investments you may need to do some research to discover which type of coins tend to have values higher than just the inherent values these tend to be the one’s collectors horde.
- Gems and Jewelry – is another type of big ticket inflation proof investment but needs a little more expertise than collecting coins. Many people make a comfortable living trading gemstones – you may need to have the ability to buy and hold for long periods to make the best returns. This is a cyclical industry.
- Travelling – you may need to travel extensively to keep uptodate and make the best sales – most people consider this a plus in the collectors niche
- Fragile – Some items may be exceptionally fragile or may need to be serviced regularly – if you don’t have the time or money to invest in this type of niche then keep away
- Buying AND Selling – readiness to sell at the right time is also important factor in making money in this type of niche. Emotional attachment to past purchases made could cost you. Ebay can be used to quickly and painlessly sell stuff that remain unused but may have significant value to someone else – e.g. hard cover first edition books, antique glassware, old watches, old CDs, old post cards, collection edition stuff etc
- Storage space – some collection require a large storage space such as collection of antique cars – so you need readily available real estate that doesn’t cost a lot
As you can see investing in art can be profitable as well as rewarding experience.
Give us your own opinion and hobby that you have turned into a lucrative business. Also we like to know your own experience with Ebay and how you profited from selling stuff there.