What I learnt at CNBC
While being interviewed by CNBC for a feature on memorabilia as an alternative investment last week it struck me.
If CNBC, which has 390m viewers globally and is recognised as one of the leading authorities on business news, is paying attention to the investment potential of the $2bn memorabilia market, just how alternative can it be?
In the late 1970s I was the first dealer in Europe to trade in memorabilia, and yes, in those days what I was doing was unusual.
Yet today "alternative" is a misnomer.
Because those in the know realise that investment-grade memorabilia can form an important, sometimes integral part of their portfolios.
"Alternative" conjures up ideas of unusual, wacky, even risky investments. Yet I see nothing risky about the recent figures emerging from the memorabilia sector.
Up 14.85% pa
Music memorabilia items I sold 35 years ago for £45 ($71) now achieve £35,000 ($55,475) at auction.
The PFC40 Autograph Index reveals that the values of 40 of the most sought-after signatures have risen in value by 14.85% pa since 2000.
Compare that with the flat lining FTSE100 or Dow Jones during the same period.
Gold, an example of an "alternative" that has now gone mainstream, is up 26% in the past 12 months. But it too is liable to fluctuations, having dropped by 6% in value over the past six months.
Yet memorabilia, whether music, sports, royal, or political, continues to soar in value, and historically offers much more stability than the stock markets or gold.
The key for the investor is understanding which sectors offer the best value today, with a view to the likely gains in 10, 20, or 30 years' time.
Up 60% between 2010 and 2011
Take Michael Jackson memorabilia.
Those buying his memorabilia now are right on the money.
As with many famous figures, Jackson's memorabilia has acquired far greater value since his passing.
Yet such is Jackson's anticipated popularity for decades to come, his memorabilia has all the attributes to be a long-term profit maker:
- Rarity
- Huge demand
- Enduring appeal
Like Elvis and John Lennon before him, the mystique of Michael Jackson will only grow as the years pass.
It's why the 60% rise in value for Jackson's autograph between 2010 and 2011, from £750 ($1,150) to £1,200 ($1,840), according to the PFC40 Autograph Index, is only the beginning.
It's why a signed red leather jacket, worn by Jackson in the 1983 Thriller video, and which made $1.8m at a US auction in June 2011, will surely break the world record for a jacket again when it next appears for sale.
It's why some may look at this black sequined jacket, worn by Michael Jackson on his world tours during the mid-80s, and think it has been hugely undervalued.
How you can capitalise
Tap into the buoyant market with this Jackson-worn jacket |
At £19,950 (approx. $31,320), this jacket could have the potential to make someone substantial profit over the coming years.
Its provenance is superb.
Originally obtained from Bill Bray, Jackson's full-time confidant, dating back to his Jackson Five days, the jacket was sourced by Brian Murphy, the former-buyer for the Hard Rock Café.
Do not underestimate the power of Michael Jackson: he accrued $170m in the 12 months to October 2011 to place him first in Forbes' list of top-earning deceased celebrities.
That was a staggering $115m ahead of second-placed Elvis.
In the December just gone, more than 500 items from Jackson's last home sold for a combined $1m at auction, more than doubling their $400,000 estimate.
You may not be a Michael Jackson fan. But I'm certain you'll enjoy reaping the rewards that the Jackson memorabilia sector offers.
The jacket travelled the world with Jackson on his tours as a solo artist. It could be heading to your home later today.
To buy or to learn more, please contact my team of experts at:
info@paulfrasercollectibles.com
+44 (0) 117 933 9500
Or download your free Michael Jackson market report.
We also have a number of superb entry-level Michael Jackson items available, which likewise offer great potential for significant yields over the coming years.
Will Michael Jackson memorabilia one day be thought of as a mainstream investment? Not for a while yet. But that's great news for the likes of you and me, who are capitalising now before the crowd catches up.
Best wishes,
Paul
Paul Fraser | |
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P.S. Download our free market report on Michael Jackson here.
P.P.S. Learn about our 120% Guarantee.
Disclosure
Collectibles, including, but not limited to, wine, coins, classic cars, art, autographs and postage stamps are not designated investments for the purposes of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 and as such are not subject to regulation by the Financial Services Authority (FSA) or otherwise.
We believe that the purchase of investment grade Collectibles should be both enjoyable and profitable, but like any traded commodity there are risks and past performance is not a guarantee of future results.
If in doubt we recommend you consult with a tax expert or financial advisor for clarification.
