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There is a very simple reason why collectibles investments are gaining popularity...
The size of the market.
200 million collectors underpinning prices...
There are over 200 million serious collectors around the world.
Their passion underpins the market and ensures a low volatility in pricing.
With an ageing worldwide population, and emerging economies, the size of the collectibles market is expected to double over the next 30 years.
We are personally witnessing this growth in demand.
Our collectibles investment news service now has readers in 212 countries around the world, confirming the global interest in high-end collecting.
Goldman Sachs: Middle Class explosion
A survey by Goldman Sachs confirms we are in the middle of a global middle class explosion. Goldman Sachs estimates 70 million people a year are joining the 'middle class' ranks.
And the next 20 years will see a huge expansion.
One of the main areas of growth is in Asia. This is witnessed by the huge impact the Chinese have had on the collectibles investment markets, particularly fine wines, rare stamps and art:
China's first-ever wine auction is $1.3m success
1897 Chinese stamp breaks world record
Chinese Art sales are a 'bull market'
By 2030 Goldman predict some two-billion extra people will be in the middle-class bracket.
The economic story is also a demographic one, with a rapidly ageing population.
Baby Boomers resuming childhood hobbies...
The Baby Boomer generation are now retiring and resuming child-hood hobbies which is having a marked effect on the demand for investment grade collectibles.
The Baby Boomer generation, those born between 1946 and 1964, are quickly approaching retirement, and they will be living longer, they now have more disposable money and time on their hands than any previous generation or demographic.
It is forecast that there were 80 million babies born in the USA during that period, and therefore over 4 million will be retiring every year, close to 75,000 per week.
In the UK the numbers are equally enormous at 15 million babies born in the U.K in that period, with over 800,000 retiring every year, close to 15,000 per week.
Baby Boomers will go travelling, spend time with their family, and enjoy a hobby or recreational pursuit.
The collecting market is preparing for this demographic bulge to filter through and this can only increase demand, and with a diminishing supply, prices are set to continue to go higher.
This is cited as one of the reasons the high-end collectibles markets are booming as retirees appreciate tangible assets with a low correlation with traditional financial investments such as stocks and shares.
The internet has also given the collectibles market a greater transparency.
Easily accessible to investors...
What might once have been alien to investors is now easily accessible with the ability to conduct detailed research before investing. Price levels, supply levels, demand, scarcity and provenance are now totally transparent.
And the proof that investors are now taking the market seriously?
Institutional investors are moving in and investment funds have been set up.
Wine, stamps, violins, classic cars... they all have investment funds.
However the majority require at least a £100,000 minimum investment and charge various management and performance fees.
We are able to offer you a direct involvement in the collectibles investment market, with no management fees, with our unique Build a Collection service.
In fact our expert panel has sold over $750m of investment grade collectibles, and has over 250 years of experience.
We are ideally placed to assist you.
Where next?: Why Paul Fraser Collectibles?
Contact us for more information on investing in collectibles
+44 (0) 117 933 9503
info@paulfrasercollectibles.com