The stock market ventures daily into unprecedented territory, and as a new tax plan is implemented next year many investors will find themselves with more money to play with.
About one in four will sink their newfound gains into collectibles. For some, it will be a good investment, but not for all.
A survey by financial firm UBS Group finds that among those who millionaires who purchase collectibles, most have averaged placing ten percent of their overall wealth in their passion.
David Lewis runs Houston’s largest auction house, Lewis & Maese, and sells collectibles to investors, often art, generally contemporary, vintage or antique from the 1920’s to current. Also an appraiser, he says Texans, and locals especially, have a strong attraction to local art and artists.
Among millionaires who collect, their preferences are precious metals (49%), fine art (36%), precious jewelry (26%), stamps (22%), antiques (16%), automobiles (15%) and wine (12%).
Lewis says not all antiques are equal. “Antiques are really bringing a whole lot less money than they used to. Formal French and English are almost hard to give away. Things that used to bring thousands and thousands of dollars might sell but for two or three hundred dollars, where before they might have sold for $15,000,” he advises.
He says there is no sure-fire way to predict what buyers 20 or 30 years down the road are going to want to put their money in to, and suggests buyers always keep an eye out for quality merchandise over sentimental favorites.
Not that there isn’t a value to that Snoopy stuffed toy from 1972 you’ve saved in the attic for years, though you might want to check your comic books.