3 investments to beat the economic blues today

At a time of economic gloom, top end collectibles bring strength to your investment portfolio

Admittedly, the bigwigs at the Bank of England are never the most upbeat of characters, but when governor Sir Mervyn King says that he is "pessimistic about the future of the global economy", it is time to listen.

Speaking on Tuesday, he said: "Over two years now we have seen the situation in the euro area get worse and the problem being pushed down the road.

"There is just enormous uncertainty out there, I have no idea what is going to happen in the euro area."

And it's not just the eurozone that has Sir Mervyn worried.

"My colleagues in the United States are more concerned than they were at the beginning of the year about what is happening to the American economy," he added.

Until the world's economy can steady itself again, we should expect major volatility in the currency and stock markets. In this year alone we've seen the Dow Jones enjoy a strong start to the year before dropping by 5.3% in the past three months.

Diversity means security

In any economic climate, but especially one as uncertain as this, diversity means security.

The 2011 World Wealth Report from Capgemini and Merrill Lynch Global Wealth Management revealed that high-net worth individuals would devote 8% of their portfolio to alternative investments in 2012. That is up from 5% in 2010, evidence of the growing strength of this market, and the concern over more traditional asset classes.

Investment-grade collectibles can play a key role in your 8%, so long as you buy at the very top end of the market. Whether we're talking stamps, coins, rare autographs or memorabilia, the rarest, most-valuable pieces historically have shown the greatest percentage gains.

Here are three blue chip, investment-grade collectibles you can get working for you today.

The Beatles

The value of signed photos containing all four Beatles signatures grew from £5,500 ($8,770) in 2000 to £24,000 ($38,270) in 2011, according to the PFC40 Autograph Index - a rise of 14.33% pa. We have a superb rarity to invest in: One of just eight A Hard Day's Night album covers signed by all four Beatles.

Buzz Aldrin

In 2010 we sold an unsigned NASA boiler suit, worn by Apollo 11's Michael Collins following the crew's recovery from the Pacific Ocean, for £75,000 ($117,500).

We currently have one of the most in-demand pieces of Apollo 11 memorabilia in existence: the signed training suit worn by Buzz Aldrin ahead of the historic mission. It too is available for £75,000 ($117,500).

Princess Diana

The dress Princess Diana wore on her first official appearance with fiancé Prince Charles, in 1981, sold for £192,000 ($300,000) in 2010, 284% above its £50,000 estimate. The PFC40 Autograph Index reveals that signed photos of Diana rose in value by 19.60% pa between 2000 and 2011, from £1,250 ($1,960) to £8,950 ($14,040). We have these custom-made trousers worn by Princess Diana available now - a remarkable item from a woman whose legacy will endure for decades to come.

For more details on these and our vast range of other investment-grade collectibles, please get in touch.

Email info@paulfrasercollectibles.com or call +44 (0) 117 933 9500.

Until next week,

Paul

Paul Fraser

Recent and related articles

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