When investors ask me about putting their money into collectibles, I advise them that it's ideal to invest with a long term view. Why? Well, with collectible investments the effects of compounding can be exceptional...
Many years ago, I was asked to compile a definitive list of autograph values. This index became so successful that, to this day, it's listed by Bloomberg in their financial dealing rooms around the world.
 George Harrison: one of the market's |
That was in the days before I'd set up www.paulfrasercollectibles.com with the intention of giving investors free access to all the inside information in the collectibles markets.
Today, you can view my definitive autograph price list, the PFC40 Autograph Index, for free by following this link.
The Index has averaged a 15.86% per annum increase over the last 10 years.
That type of return turns £10,000 ($15,000) into £43,584 ($65,376) over 10 years.
Over 20 years, £10,000 ($15,000) grows to an investment fund totalling £189,963 ($284,944).
Of course, you may think this sounds too good to be true. If it's that easy, then why isn't everybody doing it?
The simple fact is that most people have neither the time nor access to the right kind of information.
As the list shows, the best performing autograph is that of Beatles legend George Harrison.
His signature has risen by 1,053.8% of the past decade. What's more, this is an indication of the price rises that you can expect over the mid-to-long term period following the death of a celebrity.
The death of a celebrity can significantly boost the value of their autographs, as George's autograph has shown. There are two simple reasons for this.
The first is rarity, which relates to the number of similar signings available.
Needless to say, the availability of signings by George Harrison, John Lennon, Marilyn Monroe, Elvis Presley or King Henry VIII is finite.
The second reason is demand. You can bet there'll be demand for George Harrison's - and also John Lennon's - autograph beyond the short-term.
And this demand is likely to grow as The Beatles' legacy and historical significance is continually reaffirmed.
Put simply: Lady Gaga is still alive and kicking, signing autographs, and whether her legacy survives into future decades is open to opinion.
Personally, I wouldn't pursue her autograph as an investment - at least not yet. She has yet to prove herself unlike, say, Madonna whose legacy is established.
George Harrison, on the other hand, is one of the market's most investible autographs for the reasons I've mentioned above. As I said earlier, it's all about the long term view: if Harrison's autograph has appreciated by 1,053.8% over the last 10 years, then what could it be worth in another 10?
 John Lennon's autograph has grown in value by 756.1% - so when one appears for sale it's an opportunity not to be missed |
So why am I mentioning all this now?
Well, as you'll no doubt be aware, today is the anniversary of John Lennon's death in New York back in 1980.
It's all over the newspapers and internet, as fans, journalists and commentators remember one of the 20th century's most important songwriters.
For collectors and alternative investors, this is great news.
Not only is Lennon's legacy historical significance being reaffirmed, but the ongoing interest Lennon confirms that his memorabilia isn't only something you can enjoy, but you can also profit from in it the long-term.
For evidence, just look at the markets. An iconic military jacket worn by Lennon sold for more than $300,000 in Beverly Hills a few days ago.
Elsewhere, an auction house offered Mark Chapman's signed Double Fantasy LP the night before the anniversary of Lennon's death estimated at $850,000.
Meanwhile, the baby boomers who are old enough to have witnessed John Lennon and the Beatles playing live are investing in their younger selves' passions. This is helping to fuel the collectors' markets, and ensure that there is growing long-term demand for collectible investments.
Whether you're a seasoned collector, seriously thinking about investing in collectibles, or merely want to open your eyes to investment opportunities you've possible never considered before... there are plenty of opportunities out there that you'd be wise not to miss out on.
All the best, until next week
Paul
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