Collectible (redirected from Collector item)
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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
collectibles in addition to securities
as a hedge
. 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
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.
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.