Collecting toys as a means of investment does not translate to toying around with your financial future. Betting on collectibles can actually give you gains. Of course, investing in toys presents its own risks as well.
For some, toys are a source of happiness that can even be transformed into huge amounts of money. In 2012, Barclays Wealth and Investment Management revealed that 21 percent of wealthy investors would put their money on toys in case the usual kind of investments, such as the stock market, fails.
Investing in toys needs timing
“I’ve been at plenty of auctions where you just stand there with your mouth open while two men battle over a toy,” recalls Henry Kovel, the author of Kovels’ Antiques and Collectibles Price Guide. Kovel adds in a report by CNBC that hardcore toy investors don’t think twice about spending lots of money for something they want.
Joyce Grant, the founder of the online vintage toy store, TimeWarpToys.com, supports Kovel’s statement. She believes that price tags are no issue for those whose nostalgic senses are touched by a collectible. “When people want to relive their childhood, they will pay almost anything,” said Grant in a report by The Wall Street Journal, adding that toy auctions get “crazy.”
To actually make a profit from investing in toys, Kovel compared toy investments with the stock market. He says a sense of good timing is the most important characteristic to have in order to succeed. “You have to time it right. It takes a lot of research and time,” explained Kovel.
View it as an enjoyable investment
Business owner Richard Claus began collecting toy boats that date back to the beginning of the 20th century. His hobby turned into a profitable business in 2012. That year, he sold a toy boat for $247,250 from its original price of $103,500 in 2007. Though Claus’ earning seems like a clean-cut profit, the Pennsylvanian business owner said that half of the boats in his collection sold for prices less than what he had bought them for.
“I’m not convinced that, as an investment, it’s a particularly good idea,” Claus told CNBC.
Financial planner Clark Randall agrees. For him, toys aren’t necessarily the investment of choice when you want to get enough money for retirement. “If you’re investing a small part of [your portfolio] in a collectible and it gives you joy, that’s great. But I wouldn’t count on that kind of investment funding your retirement,” said Randall, who also owns the firm, Financial Enlightenment.
Another risk of investing in toys is the fluctuating value that mostly depends on impulse buying from collectors. Altfest Personal Wealth Management CEO Lewis Altfest is certain that though there is actual money to be made in buying and selling toys, such investments are not good additions to portfolios.
“Don’t look at it as an investment, look at it as a way of enjoying something you love,” said Altfest.
Savills IM refinances two Italian assets with one of the first green loans in Italy
One of the first green loans in Italy will refinance the retail park in Fidenza (Parma) and the U4 office...
4 tips to market your small business locally
Whether you’ve recently started a small business or have pivoted your sales tactics for your company because of COVID-19, you’re...
Bitcoin revolution by integration with PayPal
The integration of Bitcoin with PayPal is probably one of the most important news for the entire crypto industry in...
A system of Environmental Sustainability Certification to be created in Italy
The first goal of the experimental program is to create a system of "Environmental Sustainability Certification" that allows a project...
Why your business needs professional language translation services?
Digital marketers may spend months creating a campaign for a product launch in a foreign market, but if it’s not...
Africa6 days ago
Fruitbox Africa: Frankfurt investor and Siemens to create jobs in Ethiopia
Africa4 days ago
Why countries in southern Africa could become leaders in the cannabis sector
Featured5 days ago
How the coronavirus pandemic impacted the German Fintech sector
Featured5 days ago
Why is the stock market up?