Personal finance tips and advice on money and investing to increase your financial intelligence and welfare

Can Collections Become a Fruitful Financial Investment?

There are many people who collect objects to secure some kind of financial gain at a later time. This has grown in popularity as some of the toys we saw back in the 1980s are selling for great amounts of money. People are still collecting toys, dolls, cards, and much more in the hopes that someday they will be worth more than what he or she paid for it. What are some of the best items you can collect for a higher return-on-investment?

sport cards collection

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1. Action Figures – Although it may seem childish, brand name action figures actually have a decent resell value. Normally, these toys increase in value after two years or so. However, some have been known to increase in a shorter amount of time. Collecting action figures can be a bit risky. If the entertainment venue that they are linked to fails, like a movie or game, then collectors are less inclined to purchase them from you.

2. Sports Cards – Although sports cards have lost some of their popularity, there are many cards and sets that still raise in value. The value of these cards usually depends on the skill of the ball player. As time progresses and the player shows exceptional talent, the rookie card will gain value exponentially. However, for mediocre and average players, the cards don’t see much of an increase.

3. Card Games – Popular card games can be a decent investment. Games such as Magic: the Gathering, Spellfire, and others have earlier cards that are worth quite a bit to collectors. For instance, the Black Lotus card from M:TG can sell for more than a thousand dollars as long as it’s in mint condition. The problem with investing in game cards is the fact that the game itself has to become a popular sensation in order to make any real money with it. If the game loses popularity, the value of the cards can be reduced to nil.

4. Coins – Collecting coins is usually more of a hobby as opposed to an investment. While some mint coins can increase in value, it takes a great deal of time and care to ensure that they do. The best results are those relating to mint coins that have never been touched or are extremely rare. Again, you will need to have a collector to sell the coins to in order for them to be worth any real amount of money.

In reality, collecting objects in order to sell at a future date can tie up your funds for months, years, and even decades. Although the ROI might be exceptionally high in some cases, the time-frame involved doesn’t make this method practical. What many people don’t realize is that in order to make money by selling these items, they need to find a collector willing to pay what they are asking. Remember, an item is only worth as much as someone is willing to pay for it.

About the Author: Ken Myers as an Expert Advisor on multiple household help issues to many Organizations and groups, and is a mentor for other “Mom-preneurs” seeking guidance.  He is a regular contributor of “www.gonannies.com”.  You can get in touch with him at kmyers.ceo@gmail.com.