How you can learn from millionaire investors

Now here's some interesting research that caught my eye this week.

?�         15% of investors with a net worth between $100,000 and $1m invest in collectibles.

?�         20% of investors with a net worth between $1m and $5m invest in collectibles.

And�Ǫ

?�         27% of investors with a net worth between $5m and $25m invest in collectibles.

The figures, from Spectrem's Asset Allocation, Product Ownership and Perceptions of Providers study, suggest something clearly to me - something far more important than simply "rich people like owning collectibles".

Now the cynic will say the numbers merely show that the wealthier you are, the more money you have to "splash out" on luxuries such as collectibles.

And yes, I'm sure there's a bit of that going on.

Diversity

Yet because this survey was about buying collectibles as investments, not merely as items to simply enjoy, I think there's a deeper point to be made here.

Because while, yes, the wealthier you are the more you have to spend, you also have that much more to lose.

When you've worked hard for that money, you don't want to lose it all through a sudden drop in the price of shares, or gold, or see it sit earning little interest in the bank.

Penny Blacks
Top-grade Penny Blacks, such as this block of 12 we have in stock, are a popular alternative investment

Which is why the figures reveal that the very wealthiest investors, those with $5m to $25m in net worth, are the most likely to diversify through collectibles. They are spreading the risk through profitable tangible assets. They're ensuring their fortune can't be lost in a matter of hours. They're able to sleep at night.

It's a lesson that all investors can learn from, whether you're in the $25m bracket, or have a little less at your disposal. Diversity is king.

And the top-end of the collectibles sector, I feel, is a great market to place a small, yet not insignificant portion of your money - whether it's rare stamps, autographs, music memorabilia or something else.

Read our 10 Reasons to Invest in Collectibles to learn why.

Do you agree with me? I'd love to hear your thoughts.

Coins, art or classic cars

The study also threw up some other interesting facts for investment-minded collectors.

Of those with $1m to $5m in the bank, 25% said they invest in coins, while 18% invest in art. 8% invest in cars, 7% each in sports memorabilia and antique furniture, while just 3% opt for books - the same number as who invest in toys.

You can see the figures in full here.

Thanks for reading,

Paul

P.S - You can view our investment-grade pieces for sale here.


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