I went to Sotheby's first ever Rock & Pop Auction in London in the early 1980's.
I hadn't been in business long so had a modest budget of £4,000 ($6,000) to spend.
My initial thought was to go for a wide spread of items, as I wanted a selection to be able to offer for resale.
Then on the day of the sale, I had another thought...
Buy the best you can afford...
I decided to bid for the best item in the auction. To this day it remains one of the best items I've ever handled.
John Lennon's handwritten lyrics for the song Imagine.
This unique piece was estimated to sell for £900 - £1,000 ($1,350 - $1,500).
The bidding was brisk and the other bidders rapidly dropped out.
There came a moment when I thought that I had won.... But no, a new bidder came in on the phone at the last second.
It turned out he had deeper pockets than me and the final hammer price was £6,200 ($9,300).
When the hammer came down, I immediately knew that I had made a great mistake.
Six thousand two hundred pounds... that really knocked me out... but as a Beatles fan I could also see the value of this unique piece.
I have always regretted not pushing the price higher. With hindsight I realised I had missed a once in a lifetime opportunity.
That's just the beginning...
Those same lyrics, 28 years later, are now valued at £1,000,000 ($1,500,000)
Standing in that auction room 28 years ago; did I think, one day, they were going to be worth One Million pounds?
In all honesty, yes, I did.
It's proof that holding unique Collectibles for the long-term has no equal.
I did a bit of research to back up this claim.
What I found was quite staggering....
In 1982 the average house price in the United Kingdom was £23,600 ($35,400).
According to the BBC, in 2010 the average house price is now £219,832 ($329,000).
That's a 9.3 fold return on investment.
House prices tend to be the benchmark for all financial claims. After all, to most of us, our property is our single biggest investment.
Yet if you'd purchased the Imagine lyrics in 1982 you'd now be a millionaire.
Their value has multiplied over 160 times since.
In fact you'd have four-times-as-much-cash for a quarter of the investment, compared to an average UK property investment over the same period.
With unique collectibles it's all about the holding period. Sometimes it takes a matter of weeks for something to reach its true value and sometimes it will take years.
Generally, the longer you hold the better you will do.
But here's the thing...
It's not just the expensive items that have such an impressive track record.
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I've always been keen on Apollo XI memorabilia. I consider the Moon Landings mankind's greatest ever achievement.
When I started my business one of the first items I sold was a set of Apollo XI signed photos... for £60 ($90).
They now sell for £8,500 ($12,750). That's 140 times the price.
I sold signed photos of Winston Churchill for £400 ($600)... They're now worth £5,950 ($8,925) (15 times),
My very first sale was a Beatles signed LP for £45 ($68)... it's now worth £45,000 ($68,000) (1,000 times).
There are many more examples I could mention, but I think you get the gist and the sort of increases in value that are possible when you purchase the correct material.
It is interesting that even in the last two years which covers the deepest recession that anyone has seen in their lifetime, Collectibles have averaged a 20% increase in that period, and some have fared even better.
I am passionate about collectibles and have been from my early childhood, but it has only been in the last few years that I have realised the full potential that they represent as an investment.
I've done my research and unique Collectibles do not seem, to me, to have any other parallel in terms of historic returns, especially amongst the traditional mainstream financial markets.
This has especially come home to me after the chaos in the financial markets in the last two years, and the lack of trust that now exists, from my view point and many other people that I know.
What we took for granted from 'financial experts' for so many years no longer exists, and it is now difficult to believe anything that they say, and this may take a generation or more to rebuild.
So, can you make money out of Collectibles as an alternative investment?
I know you can.
My advice is simple… buy the best you can afford, items that excite you, and that you think are special in some way.
When you come to sell, others will think the same and the process should be easy and profitable.
My personal offer to you...
With no strings attached and no cost.
This is a free service from us to you...
Let me know what you are interested in and our team will happily do the leg-work for you.
Whether it is rare stamps, art or autographs we offer unique items with impeccable provenance.
And more importantly we can find them at the right price.
So, please feel free, at anytime, to give me a call on (UK) 0117 933 9500 to discuss. Or email info@paulfrasercollectibles.com.
Our aim is for you to experience the ownership of unique collectibles and their potential for pleasure and profit in the same way that I do.
Regards
Paul
