Collectible


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Collectible

An asset of limited quantity and the perception of high value. Many collectibles are antiques. For example, a Babe Ruth baseball card is a collectible. Perhaps the main market for collectibles exists among persons who simply like collectibles; that is, a person who enjoys baseball is more likely to be a buyer of collectible baseball cards. However, because collectibles tend to maintain their value, investors may buy collectibles in addition to securities as a hedge against inflation. The problem with collectibles as an investment is the potential lack of liquidity: an investor may not be able to find an avid baseball card collector to whom to sell his/her collectibles.

collectible

An asset of limited supply that is sought for a variety of reasons including, it is hoped, an increase in value. Stamps, antiques, coins, and works of art are among the many things usually classified as collectibles. Collectibles are often regarded by investors as hedges against inflation, since their value tends to appreciate most when general prices are rising. The collectibles market represents a very tricky investment for inexperienced investors.

Collectible.

When you invest in objects rather than in capital assets such as stocks or bonds, you are putting your money into collectibles. Collectibles can run the gamut from fine art, antique furniture, stamps, and coins to baseball cards and Barbie dolls.

Their common drawback, as an investment, is their lack of liquidity. If you need to sell your collectibles, you may not be able to find a buyer who is willing to pay what you believe your investment is worth. In fact, you may not be able to find a buyer at all.

On the other hand, collectibles can provide a sizable return on your investment if you have the right thing for sale at the right time.

References in periodicals archive ?
Typically, the donor recoups the investment in the collectible and claims a deduction for the difference between the sale price and the fair market value.
"The Disney love collectible which we have here is a limited edition (10,000 pieces) a prelaunch coin, which is scheduled to be launched on January 1.
Caption: Diecast collectibles, like this 1966 Pontiac GTO, can make good gifts.
When a collectible is sold, how is the transaction taxed?
Collectors of all types will be pleasantly surprised at the wide variety of manufacturer's lines and products offered at Beacon's Glow Collectibles.
Trabue provides the following five tips on how to properly value your collectibles before a loss.
As is the case with all assets, short-term capital gains on the sale of collectibles are taxed at ordinary rates.
That said, if passion investments continue to be a part of HNWIs' portfolios, then it is likely that the collectibles markets will continue to grow in line with the global population growth of HNWIs.
Malcolm Ediker, Gifts and Collectibles buyer at H.Samuel says,
But collectibles -- a term that covers just about any kind of artefact that people hang onto, from stamps to old cars -- are moving into the investment mainstream.
If an individual exchanges a collectible he holds as an investment for (1) another collectible of a different kind or class, or (2) other property that is not a collectible, he will recognize a taxable gain (or loss) to the extent that the sum of the fair market value of the property and money (if any) received in the transaction is greater (or less) than his tax basis in the collectible he transferred.
As fans of the popular Antiques Roadshow television program know, collectible items are sometimes worth much more than their owners expect--or could afford to replace, if their treasures get lost, stolen, or damaged.