Looking for Collectable Investments at Auction?

by Fred Fuld III

Whether you spell it collectable or collectible, there is a great fascination with collecting and some of those collections turn out to be great investments.

Investing in collectibles, such as artwork, rare coins, stamps, vintage cars, or sports memorabilia, can have both advantages and disadvantages. Let’s explore them:

Advantages of investing in collectibles:

  1. Potential for high returns: Some collectibles can appreciate significantly in value over time, especially if they are rare or in high demand. For example, certain pieces of art or rare coins have fetched enormous prices at auctions.
  2. Diversification: Collectibles can be an alternative investment that diversifies your portfolio beyond traditional assets like stocks and bonds. They may have a low correlation with the stock market, which can provide a hedge against market volatility.
  3. Tangible assets: Unlike stocks or other financial investments, collectibles are tangible assets that you can physically enjoy. Owning a valuable piece of art or a classic car can bring aesthetic pleasure and emotional satisfaction, in addition to potential financial gains.
  4. Privacy and autonomy: Collectibles can be stored privately, offering a level of anonymity and independence from financial institutions or regulatory bodies that govern traditional investments.

Disadvantages of investing in collectibles:

  1. Illiquid assets: Collectibles are often illiquid, meaning they can be difficult to sell quickly, especially at a fair price. Finding a buyer who is willing to pay the desired price may take time, which can limit your ability to access funds when needed.
  2. Lack of income generation: Unlike stocks or rental properties that can generate regular income through dividends or rent, most collectibles do not generate any ongoing income. Their value is primarily determined by the buying and selling market.
  3. Volatile market: The collectibles market can be highly volatile and subject to fluctuations in demand. The value of collectibles is often subjective and influenced by factors such as trends, popularity, and changing tastes. Market sentiment can greatly impact prices, making it challenging to predict or control investment outcomes.
  4. Expertise and authenticity risks: Investing in collectibles requires specialized knowledge to accurately assess the authenticity, condition, and value of items. Without proper expertise, there is a risk of purchasing counterfeit or overpriced collectibles, potentially leading to financial losses.

If you are a Disney (DIS) fan, Van Eaton Galleries will be auctioning The Joel Magee Disneyland Collection, the largest privately owned collection of Disney Parks memorabilia in the world. There are over 1500 Disneyland items on July 17, 2023 through the 19th. The auction offers everything from a Disneyland Security Officer badge to a One of a Kind Hitchhiking Ghosts Animatronic Display with an estimate of $100,000 to $200,000.

If that’s too rich for your blood, you can pick up Peter Pan’s Flight Original Attraction Vehicle with n estimate of $75,000 to $100,000.

The item with the lowest start price is a Disneyland Donald Duck Birthday Squeaker Hat with a starting bid of $20 and an estimate of $100 to $200.

For you music fans out there, you can get Tupac Shakur’s inscribed Gold, Ruby, and Diamond Crown Ring, designed and commissioned by him in 1996. The estimate is $200,000 to $300,000. It is being offered by Sotheby’s on July 18.

If you enjoyed watching M*A*S*H, Heritage Auctions is offering Alan Alda’s “Capt. Benjamin Franklin ‘Hawkeye’ Pierce” Screen Used Dog Tags and Boots from MAS*H. It is currently bid at $11,500 and closes on July 28.

It’s important to note that investing in collectibles carries inherent risks, and outcomes can vary significantly based on individual items, market conditions, and personal expertise. It’s advisable to research thoroughly, seek professional advice, and diversify your investment portfolio appropriately to manage risks effectively.

How You Ever Considered Investing in Rare Books?

Gregory Peck’s Leather-Bound ‘To Kill a Mockingbird’ Script Soars Past $84,000 at Heritage Auctions

Hollywood history, works of fine and decorative art, mementos from the Estate of Veronique and Gregory Peck realize $1.28 million

DALLAS, Texas (Feb. 24, 2023) — Gregory Peck’s personalized leather-bound To Kill a Mockingbird script sold Thursday for $84,375 as Heritage Auctions presented Property from The Estate of Veronique and Gregory Peck. As expected, the gilt-stamped, photo-filled, Horton Foote-penned adaptation of Harper Lee’s beloved novel was among the most sought-after and fought-over lots in an event that paid tribute to the careers and philanthropy of the Academy Award-winning actor and his philanthropist wife of nearly 50 years. Another highlight was a 35th-anniversary copy of the Pulitzer Prize-winning To Kill a Mockingbird inscribed by Lee to Veronique and Gregory, who won the Best Oscar as Alabama attorney Atticus Finch in 1963. Wrote Lee, “To Gregory and Veronique: You have a unique place in my heart. Harper.” It sold Thursday for $35,000.

“Harper Lee once said the role of Atticus Finch gave Gregory Peck the chance to play himself, because he was that man,” Gregory and Veronique’s son Anthony said before the auction. Bidders responded appropriately.

The nearly sold-out auction, featuring some 250 lots, proved to be a blockbuster event, realizing a total of $1,279,367 and attracting more than 1,100 bidders worldwide — and lasting more than six hours. Collectors were rewarded with numerous scripts spanning Peck’s acclaimed film career, awards, landmark costumes, beloved and important works of fine and decorative art and myriad mementos the couple accrued during their illustrious and remarkable lives.

“It is a true testament to Veronique and Gregory Peck’s legacy that collectors from around the world so eagerly participated in this auction of iconic Hollywood history,” says Carolyn Mani, West Coast Director of Trust and Estates. “And even now, the couple remains philanthropic and kind, as a portion of the proceeds from this auction will benefit Chef José Andrés’ nonprofit World Central Kitchen. We thank the Peck family for allowing Heritage to participate in such an extraordinary event.”

The auction began with a parade of pieces from the Pecks’ estimable collection of fine art acquired during their world travels. Raoul Dufy’s Chevaux et turfistes à Epsom toplined the offerings, realizing $93,750. Then it moved into the stuff of which Golden Age Hollywood was made — including a silver box gifted to the Pecks upon their 25th anniversary by their best friends, among them the Frank and Barbara Sinatra, Johnny and Joanna Carson, Billy and Audrey Wilder, Cary Grant, Walter and Carol Matthau, Rod and Alana Stewart and many others. Its lid is engraved with Veronique and Gregory’s name and the date Dec. 31, 1980; the box itself is engraved with the signatures of their dearest friends. And it sold Thursday for $20,000. Here, too, was the poker table the Sinatras gifted to the Pecks, who hosted the likes of Frank Sinatra, Angie Dickinson, Jack Lemmon and countless other bold-faced names around the wooden octagon. One lucky bidder anted up $21,250 for the pleasure and privilege of shuffling up and dealing at this famous felt.

Among the most coveted items in the auction was the Golden Globe Award presented to Peck as the “World Film Favorite of 1954,” a year during which he starred in Man with a Million, Night People and The Purple Plain. The award realized $30,000. A second Golden Globe, for Best Performance by an Actor in a Supporting Role, awarded Peck for his final on-screen performance in the 1998 television mini-series Moby Dick, sold toward auction’s end for $22,500.

The auction featured personalized, customized book-bound scripts for each of Peck’s films, among them 1953’s Roman Holiday, the very film during which Gregory met Veronique. This script, with 16 production stills and portraits contained within, sold for $25,000. Peck’s leather-bound script for Alfred Hitchcock’s Spellbound was inscribed by the legendary producer David O. Selznick, who wrote inside, “For Greg — with gratitude for his superb work in this, our first association. May we have many, many more together! D.O 1945.” A bidding war drove its final price to $17,500.

So it would go, time and again, whenever one of the leather-bound, gilt-stamped scripts from Peck’s private library appeared. Gentleman’s Agreement, in which Peck was Oscar-nominated as a reporter exposing anti-Semitism in America, opened live bidding at $5,250, then sold for $15,000. His Captain Horatio Hornblower, signed and inscribed by director Raoul Walsh, opened at $1,550, only to realize $8,750. The Man in the Gray Flannel Suit opened live bidding at $1,300, then sold for $10,000. Peck’s first Moby Dick, from 1956, opened at $4,000 and sold for $15,000. The script from his first turn in Cape Fear started live bidding at $5,000; it wound up selling for $17,500. One of the auction’s surprise shootouts occurred over Peck’s 1960 passport, which opened live bidding at $875. But this extraordinary document was not to be denied its duel in the sun; after all, it told the story of Peck’s international travels in the 1960s and contains two extraordinarily rare “Eldred Gregory Peck” signatures, one on Peck’s passport photo. By the time the bidding ended, some several minutes later, the passport realized $21,875.

That was but the beginning of several more heated back-and-forths between bidders, who fought over Peck’s Hollywood Walk of Fame Commemorative Star Plaque (which realized $17,500) and the script for The Guns of Navarone, which opened at $2,600 and sold for $20,625. Heated bidding wasn’t limited to Hollywood history, either, as a Charles II Large Acanthus Leaf Silver Tankard made in London in 1670 sold for $30,000.

Investing in Old Collectable Baseball Cards: How to Get a Share for Free

by Fred Fuld III

Did you collect baseball cards or other sports cards when you were a kid? Did you save your collection?

Hopefully you did, and hopefully your collection is in good condition, because you could be sitting on a lot of money.

If your mother threw away your collection after you moved out, not to worry. You can still build your collection again, albeit at a much higher price.

Some investors are even looking at sports cards and other memorabilia as long term investments and short term trading vehicles.

This is done through shares in these cards, just like shares of stock, through a company called Collectable, and the shares are registered with the SEC.

The company offers IPOs (Initial Public Offerings) in shares of rare sports cards. After 90 days, the shares start trading like regular stocks.

Collectible has already had substantial buyout offers on some of its cards. Just one example from a few months ago. Collectable received an offer to buy out the Wilt Chamberlain 1954 High School Full Uniform for $632,000. The uniform was IPOed on Collectable on December 10, 2020, for $316,000. The asset had been trading on Collectable’s secondary market at $442,400.

As another example, back inn April, Collectable received an offer to acquire a 1979 Wayne Gretzky card for $225,000 which had its IPO in December at $67,000. Including Collectable’s equity interests in the offering and broker dealer transaction fees, the offer represented a 213.8% premium over the price investors paid on the IPO.

Collectable is now offering a free share of a collectable sports card or other memorabilia, just for signing up. They give you a free share and me a free share.

If you are interested, click HERE.

Just remember, I never recommend collectables as investments. Don’t forget to check out my article called Last month I bought a Racehorse, an NFT, and a Collectable Baseball Card: Are We In a Bubble?

 

 

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Last month I bought a Racehorse, an NFT, and a Collectable Baseball Card: Are We In a Bubble?

by Fred Fuld III

During the last month, I bought a racehorse, an NFT, and a collectable baseball card. I’m even considering buying modern art. All of these are generating extremely high prices, along with many other collectables, such as old hats.

So do these high prices predict an upcoming burst of a bubble, not just in the collectibles market but all financial assets?

Racehorses

Let’s talk about what I bought. First the racehorse. I actually didn’t buy the whole horse, I bought two one-thousanths of a horse. I guess that’s equal to one hoof. I can make a lot of money if the horse runs well.

NFTs

Second, the NFT, which stands for non-fungible token. I bought one, and I even created a couple of my own, which are listed for sale. When I have more time, I will write about the process. One thing I will mention to watch out for is the “gas tax”. If you don’t know what it is, hold off on doing any buying or selling and do some research.

If you want more background  information on NFTs, you can check out some previous articles here, here, here, and here.

Sports Cards

As for the baseball card, I own a Mickey Mantle, a Willie Mays, a Sandy Koufax, and even a 1914 Babe Ruth.

Of course, I don’t own the entire cards, I just own shares in the card.

As an example, the Babe Ruth card is worth $6 million. The Sandy Koufax is worth $380,000.

Weird Collectables

These are actually “mainstream” collectables, almost like coins, stamps, and autographs. But some people collect some pretty bizarre items.

I know one guy why collected the pill bottles of celebrities. He would buy from autograph hounds who would go through the trash cans of famous people looking for cancelled checks, old letters, receipts, and so forth that may have a signature, and when they would come across a pill bottle which had the celebrity’s name printed on the prescription sticker, they would sell those little containers to the pill bottle collector.

Even more weird, in a collectables magazine, I saw a Wanted ad placed by a guy who wanted to buy “old mens underwear”. Now, I’m not sure whether he wanted the underwear of old men or men’s underwear that was old.

Just because collectibles may have a limited supply or just because they are old doesn’t mean they will always go up. Just look at Beanie Babies and Cabbage Patch Kids.

Collectibles Recommendations

So do any of these collectables make good investments? My long term readers know that I never make investment recommendations. However, I will make collectibles recommendations.

  • Only buy what you like
  • Only buy what you would like to hold for a long time
  • Never buy a collectable with the anticipation of selling at a profit
  • Buy quality, not quantity

Happy collecting!

 

Note: Collectable and Collectible are used interchangeably. Numerous sources can’t agree on which is correct for items that people collect. 

Why Not Invest in Old Hats

by Fred Fuld III

Here’s a different type of collectable, hats.

And now you have your opportunity. Napoleon Bonaparte’s hat will be auctioned off by Bonhams with an estimate between $140,000 and $180,000. However, many believe it will sell for over $2 million, as one of his hats sold for $2.2 million at a previous auction seven years ago.

As a bonus, the hat has Napoleon’s DNA in it.

The auction will be held in London on October 27.

Think Baseball Card Shares are Strange? How About NFT Investing!

by Fred Fuld III

A few weeks ago, I published an article about investing in shares of baseball cards. Amazingly, some of these sports cards have had outrageously successful returns recently.

For example, shares of a Tiger Woods 1996 Sports Illustrated for Kids PSA 10 card was offered on February 28, 2021 on a IPO at $10 per share. On April 7, there was a buyout offer of $13.67 per share, a 36.7% increase in less than two months.

An even better example is the Wilt Chamberlain 1961 Fleer Rookie Card PSA 9 card which received a buyout offer of a 66.5% premium over the $10 IPO price!!!

So what is the next great investment sector? Maybe it is the NFTs. If you are not sure what an NFT is, it stands for non-fungible token. An NFT is is a unit of ownership of a unique, generally digital, item that is recorded on a blockchain. The item is not interchangeable, however the NFT is tradeable.

Here are some examples of what an NFT can represent. It can represent digital art. The artist Beeple created a digital artwork called Everydays: The First 5000 DaysThe NFT for the art was auctioned off at $69 million through Christie’s.

The CEO of Twitter, Jack Dorsey, sold an NFT of his first tweet for $2.9 million.

NFT’s can also represent music, items in games, and digital sport cards.

Probably the most unusual NFT is skin. The Croatian tennis star, Oleksandra Oliynykova, is offering an NFT for the lifetime rights to the upper part of her right arm.

Speaking of skin, even Playboy (PLBY) is getting into the NFT arena.

So far, there have been nine NFTs that have sold for over a million dollars. So what do you think? Worth investing in? Have anything you want to tokenize?

 

Disclosure: Author has a long option position in PLBY.