"Alternative" Investments

NoviceInvestor1

droopsnoot wrote: »

I'm sceptical of stuff like this when it's sold as an investment. For example I have some rare records which are worth quite a bit more than I paid for them, but none of them are records that were originally sold as "numbered limited editions" or any kind of collectors edition, they just happened to be sold in very small numbers, or have a misprint or mispressing or whatever. I like the idea of a nice Rolex, and in fact was talking to someone in the pub the other night who seems to do rather well out of trading old watches, but I think I'd need to know a lot more than I do before sticking money in, and I'm not sure that a shop who happen to sell these things is the best place to get the advice from.

Hi droopsnoot, have a look at the cost of Stainless Steel Rolex Daytonas on Watchfinder. Current RRP is £7950, although you will find some places charging 500 above list for them. 20 year old ones are for sale at £7750 or so, which I find remarkable.

RRP in US Dollars:

1996 - $5100
2005 - $6975
2008 - $9200
2010 - $10400
2012 - $12000

There is money to be made in the right watches, but I guess that is like saying there is money to be made in the right shares - finding the right ones isn't easy and it is subject to change!

The forums over at watchuseek are a great resource for info.

Porcupine

Seems to me there are several types here:

Things you can enjoy while not affecting their value (eg fine art, jewellery, watches)

Things you can consume if their value tanks (eg drink the wine, drive the exhibition-quality car on your daily commute)

Things that are basically worthless otherwise (post a letter with the stamps, give the toy to a child)


It would seem to make more sense to invest in things higher up the scale, though maybe 'consumable' things are rarer as a result.

(what price a 1960s packet of pork scratchings? Must be super-rare)

Steve_Foster

My local auctions sell stamps with book prices in the hundreds. Most go for around £5

Borrowedtune

Porcupine wrote: »

It would seem to make more sense to invest in things higher up the scale, though maybe 'consumable' things are rarer as a result.

Agreed.


Back to whisky, there's an interesting international dimension that's at play here too, especially in Asia. (I suspect the same goes for fine wines.)


http://www.heraldscotland.com/business/opinion/taiwan-is-a-happy-hunting-ground-for-scotch-whisky-producers.25837690

jennyjenssen1990

Hey, I have invested my savings in bonds and shares, alternately I would love to invest in gold. Personally investments done with gold are safe and are for life long.

droopsnoot

JohnRo wrote: »

I bought a few motorsport and racing division 1:18 Autoart cars as a semi-investment about 10 years ago, never opened and stuck on a shelf out of the sunlight, they're selling for approx three to four times what I paid for them, last time I looked.

Good point, and if you're into that kind of thing they're just nice to look at as well. Models in general seem to have gone up in price in any case - a mate of mine was buying CMC models, which all seem to retail now at much more than he was paying only a couple of years ago. He was buying because he wanted to, though, not as investments, so I don't know whether the specific models he has have gone up or down.

redbuzzard

I'd steer clear of anything sold as collectable, or made for that purpose. Think Franklin Mint! That would include new commemorative stamps.

Quite accidentally I seem to have a few bottles of whisky that are currently offered for several times what they cost me, but I don't infer that I could easily sell mine at those prices, and of course I didn't buy them in investment quantities, which might be even less liquid (sorry).

Things such as classic cars, wine, stamps, paintings, furniture etc. are inherently difficult to establish a firm value for, except at the point when they change hands. A bond or fund investment, or direct property, that generates a reasonably predictable level of income or profit, has an obvious basis for valuation. I'm not brave enough to hold meaningful amounts of anything whose value depends essentially on sentiment.

"Commodities" are slightly different, in that (a) they are fungible, (b) you can look up the value every day, and (c) usually, people have no option but to buy them . Your copper or wheat futures are exactly the same as, and interchangeable with, everybody else's so the market price is your value.

A historic car on the other hand is more or less unique. Because a Ferrari 250GTO has sold for $50m it doesn't mean yours is worth that, without similar history and impeccable provenance. It might even turn out to be a fake (it has happened, as with paintings - Independent).

There are even fake authenticators, as well as the fakes themselves. It's wise to assume anything that can be faked, will have been.

I'm no expert at all on alternative investments, and these are just the reasons why!

Coveredinbees!!!!

Two stroke motorbikes are on the up, you can't buy them anymore.

SailorSam

redbuzzard wrote: »

There are even fake authenticators, as well as the fakes themselves. It's wise to assume assume that can be faked, will have been.

I remember seeing a programme on Tv about a painter i can't remember his name now but he was so good he faked all the famous artists. Then even after he was caught his fakes became collectible.

redbuzzard

SailorSam wrote: »

I remember seeing a programme on Tv about a painter i can't remember his name now but he was so good he faked all the famous artists. Then even after he was caught his fakes became collectible.

Probably Tom Keating, if it was a few years ago.

Longer than I thought, actually - he died in 1984!

Tom Keating (Wikipedia)