Are you making 'sub-optimal decisions'?
Barclays' Profit or Pleasure collectibles report suggests some buyers are making 'sub-optimal decisions'
Paul Fraser Collectibles, Wednesday 13 June 2012
Barclays' provocatively titled Profit or Pleasure report on collectibles, or "treasure assets", is a fascinating read, and offers those with an eye on the investment potential of the sector with crucial insights.
It confirms that treasure assets form a key part of high-net worth individuals' (HNWIs) holdings - 10% on average.
What's more, this figure is growing. 49% of the 2,000 HNWIs surveyed said they invest in fine art, up from 41% five years ago. Wine is up to 28% from 21% in 2007, antique furniture has grown from 30% to 37%, and rare coins are up to 23% from 21%.
But the statistic I found most intriguing was this: Of those who own treasure assets, 82% do so for reasons other than purely investment purposes.
Of those 82% I am certain there are many who have not given the financial considerations of their purchases much thought at all - for them the joy of ownership is everything, it's an item to cherish, it's an opportunity to impress their friends.
Yet in my opinion they're missing a trick.
Just how much more pleasurable is a superb historical artefact when it offers you the potential for significant financial gains?
At Paul Fraser Collectibles we've long championed the dual delights of world class collectibles: the pleasure of ownership coupled with the pleasure of profit. You can have both.
"The emotional and social attachment to treasure means that investors are extremely likely to make sub-optimal decisions about when to buy, sell or how much to pay."
Barclays' June 2012 Profit or Pleasure report
If you can be one of the few collectibles investors able to separate their heart from their head, there can be significant financial rewards.
If you can get to know a sector - movie memorabilia or autographs for example - realise what a fair price for an item is, and be one of the few investors to avoid making "sub-optimal decisions", you are in a strong position to capitalise on those unwilling to study the market.
Or you could talk to the experts.
I've been in the collectibles business for more than 35 years - and know the true value of each of its many sectors. My team of experts has 250 years' combined experience. We source the finest items from across the world, at below market prices - and we pass these savings on to you.
If you're keen to derive the utmost pleasure from investing in collectibles, and by that I mean enjoying the ownership and revelling in the profits, a call to Paul Fraser Collectibles is a must.
Email email@example.com or call +44 (0) 117 933 9500.
Until next week,
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