The Five Golden Rules of Investing in Collectibles

Mike Hall, chief executive of Stanley Gibbons writes on the Proactive Investors website,"Making money in collectibles is as easy as 1,2,3… well, actually, 1,2,3,4,5!"

He goes on to share his five "secrets to making money' from your stamp.coin, art, comic book or any other collection you might have.

#1 - Rarity

Hall recommends, "Only invest in collectibles where there are a small number of surviving examples or in unique pieces.Limited supply is the biggest factor in driving price increases. Simple fact is you only need two people bidding on a unique item at auction for the price to go up!"

#2 - Condition
"Aim to purchase the best quality examples of rare items in existence. At the least, focus on better than average quality examples.From my experience, premium quality examples regularly sell at auction way above estimates, thus increasing your chances of premium returns," Hall suggests.

#3 - Authenticity

"To enhance investment returns," Hall points out, "always seek to buy items with a well-documented history and provenance." In other words, get a certificates of authenticity for valuable items from the Philatelic Foundation.

#4 - Liquidity

According to Hall, "The important thing is to invest in areas where there are a healthy number of potentially interested collectors. This will help ensure you can exit quickly when the time comes to realise your investment returns."

#5 - Price

Buy low, sell sell high.

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