From vintage toys to handbags, books, and wine, we examine which collectibles are worth investing in and could earn you a small fortune
Two of the newest collectible investments that are profitable for astute collectors are Jellycat toys and Pokemon cards.
As some limited editions of the adorable toy are selling for over 2,000 on eBay, you may have heard about the Jellycat craze. This fits into a larger pattern where adults purchase toys for themselves and share their collections on social media.
A carefully chosen collection of rare Pokemon cards brought £360,000 at Sotheby's last September, demonstrating the continued high demand for these cards.
Luxury goods like handbags or fine wine, or collectibles like vintage toys, can be added to an investment portfolio to diversify it, add some fun, and hopefully yield a healthy return.
Collectibles are especially appealing to younger generations. According to a study conducted by the saving and investing app Moneybox, 15% of people aged 25 to 34 and 25% of people aged 18 to 24 have already made collectibles investments.
This is equivalent to roughly 10% of people over the age of 55.
The founder of strategic sales at Barnebys, a global auction aggregator, Pontus Silfverstolpe, tells BFIA: "The younger generation of collectors is fascinating. Millennials and Generation Z, the newest collectors, are driving up demand for and prices for vintage Lego and Pokemon cards.
According to the Knight Frank Luxury Investment Index, handbags were the best-performing luxury asset class last year, with prices rising 2.8%, making them the luxury items that older investors might be more accustomed to collecting. Jewelry (up 2point 3 percent) and coins (up 2point 1 percent) came next.
We examine which investments in collectibles are worthwhile as well as how to begin purchasing collectibles.
Why make an investment in collectibles?
You can increase the diversification of your investment portfolio by including collectibles of some kind in addition to funds and shares.
Because they are tangible, collectibles are immune to inflation, interest rate fluctuations, and other variables that could affect the value of your cash, stock, or bond holdings.
Collectibles may be resilient during challenging times because of the weak correlation between their value and the overall stock market. Therefore, you may find that they provide you with a healthy return as long as the value of your collectible keeps up with inflation.
There is no assurance that this will occur, just like with any investment, and for many people, their investment is typically attached to their passion.
How to pick investments that can be collected.
Investing in a subject you are passionate about allows you to combine your expertise and passion with the goal of earning a profit.
Maximilien Aguttes of the French auction house Aguttes tells BFIA: "I believe you should begin your collection with collectibles or specialties that you truly enjoy. You should also be able to spot beautiful and rare items, anticipate rising demand, and identify low prices." You will most likely lose money if you don't begin with passion and in-depth knowledge.
He continues, saying: "We always advise you to purchase items that you will like for your living room because this is the first ROI you will undoubtedly receive.
In addition to a variety of online marketplaces, traditional auction houses also offer collectibles for sale or purchase.
Global head of research at Knight Frank Liam Bailey claims that the emergence of online marketplaces has drastically changed the luxury market.
He remarks: "It has helped transparency in well-established industries, such as the art world, and given new buyers the confidence to enter the market. At the same time, the internet has promoted the inclusion of NFTs, rare sneakers, and Pokemon cards in the definition of luxury collectibles.
Social media has exacerbated these patterns, increasing demand while also making investment competition more fierce.
You can purchase these six collectibles, which might be good investments.
1. Cards for Pokemon
At auction, Pokemon cards still fetch high prices. A rare Pikachu Illustrator card that was valued between £150,000 and £300,000 was put up for auction by Aguttes last October.
At Sotheby's in New York, a bunch of Pokmon cards brought £360,000 a month ago.
According to Aguttes, American social media influencer Logan Paul bought the priciest Pokemon card ever in 2023. The cost? An amazing £5,275,000.
Along with Barbie dolls and Star Wars figures, the market for collectible toys is booming, and this is reflected in the popularity of Pokemon cards.
Barnebys' Silfverstolpe cites Verified Market Research data from 2023 that indicates the toy collectibles market is worth £19.2 billion. It projects that the industry will be valued at £45.2 billion.
"We saw a huge increase in interest in analogue collectible categories like toys during COVID," he says. Both the scope of interest and the price picture have significantly expanded since then.
A generation born in the 1970s and 1980s has begun collecting vintage items from their youth, which is not surprising given that the entire auction industry thrives on nostalgia.
2. Toys made by Jellycat
Another collectible toy whose prices are beginning to rise is the jellycat. The adorable plush toys include boiled eggs, avocados, penguin bag charms, and personalized bunnies.
Moneybox's head of personal finance, Brian Byrnes, remarks: "Jellycats have become a popular choice for kids and adults who are whimsical thanks to amazing public relations, connections to the Royal Family, and, more recently, permanent residences with Selfridges.
"The proper amount of scarcity has been created by releasing them in limited edition runs, which has piqued the interest of both collectors and opportunists who believe that the values will eventually increase.
There are currently a number of Jellycats listed on eBay for over 2,000, while other animals like bees, mice, and dogs are for about 1,000.
Byrnes issues a warning, though: "Like Beanie Babies before them, there is no assurance that you will get a significant return on your investment when the hype subsides, even though some of the most sought-after Jellycats are selling for far more than their retail price.
Byrnes advises limiting your investment to 510% of your total portfolio if you enjoy Jellycats and are considering purchasing some as collectibles in an attempt to turn a profit. "In this manner, you can earn some money if it goes well, but your financial goals won't be severely damaged if it doesn't.
3. Bags
Purchasing luxury goods can be profitable. Last year, handbags were the luxury asset that performed the best, according to the Knight Frank index.
While whisky saw a 9 percent loss and art saw an 18 point 3 percent loss, handbags saw a 2 point 8 percent return. The handbag industry has grown 34% in the last five years.
"The Herms Birkin in black Togo leather, the ultimate classic handbag, is now more valuable than ever when sold on the secondary market," claims Sebastian Duthy of Art Market Research.
When it comes to fashion as a collectible investment, it's also important to mention trainers, which have done well in recent years and might appeal to younger investors.
Some trainers have become extremely valuable assets due to the large community surrounding them. A large number of these expensive shoes are exclusive to particular markets or are linked to famous people.
Since their release, even shoes without limited edition releases have gained in value. For example, the 1985 Nike Air Jordan I, which originally sold for £65 in the US, is now worth over £30,000.
4. Books in their first edition
First-edition books have the potential to appreciate in value over time. A first-edition copy of Harry Potter and the Philosophers Stone by J. K. Last November, Rowling, which was first published in 1997, brought in £36,000.
Homeprotect Insurance states that Jane Austen's Pride and Prejudice is the most valuable book, with first editions from 1813 valued at 139,356.
At the same time, J.R. R. "R." The average listing value for Tolkien, which was published in 1937, is 27,174.
According to Homeprotect's chief customer officer, David Joyson, the sharp rise in values "may inspire a lot of us to dig through our garages, attics, and storage units for hidden treasures that may be worth far more than expected."
"Do your research to ensure you aren't throwing away a small fortune before you give away or donate your old children's books as they are a highly collectible and often overlooked and underestimated item of value," he continues.
Buying first-edition books and novels could prove to be a wise investment if you're considering making a purchase.
5. Excellent wines
As they say, good wines hold up well over time, both in terms of quality and cost. Because fine wines must be stored carefully and securely to preserve their quality, collecting them can be rather costly at first.
But because they can be opened for enjoyment or sold for a profit, they can become priceless collectibles in the future.
Due to its exceptional quality and limited supply, the Screaming Eagle Cabernet Sauvignon 1992 is among the most costly wines in the world today. Five years after its release, a bottle of the wine sold for £500,000 at auction (399.740).
The fine wine industry had a 9point 1 percent negative return last year, according to Knight Frank's index. In the Knight Franks report, Tom Burchfield of Liv-ex, the international fine wine exchange, stated that "a correction was needed" and that the "fine wine market enjoyed a bull run inspired by low interest rates during Covid."
"Many traditional fine wine collectors now have enough in their cellars, the Chinese market has not returned in force, and the next generation is not yet picking up the slack," he continued.
Nonetheless, high-quality wine and champagne are still in demand for large parties, so if you're passionate about wine and have a positive outlook on the market, it might be a good investment for you.
6. Vinyl records
. You may listen to Spotify or Apple Music while driving or on your way to work, but vinyl records are becoming more popular and can be quite valuable. You might have thousands of pounds if you collect old vinyl records that are in good shape.
The value of an original copy of The Beatles' White Album can reach £10,000. It is worthwhile to check out albums that are in excellent shape, have the original Apple logo, and have low serial numbers.
Due to its rarity, the Blackpool band Complex's rock album sold for £10,000, according to music technology company A2DR.
In the meantime, a new generation of record collectors is being produced by the popularity of exclusive vinyl songs and artwork among Beyonce and Taylor Swift fans.
Learn more about the vinyl records that can sell for up to £10,000.
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