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  • Why are the world's greatest financial minds investing in collectibles?
  • Post author
    Paul Fraser
  • aretheWhyworld's

Why are the world's greatest financial minds investing in collectibles?

Are you happy with the returns your investments provide you?

Here's one man who isn't. And he's done something about it.

Hedge-fund manager Adam Sender. In 2007, he sold a small portion (around 40 pieces) of his contemporary art collection for $25m - in the process recouping the money he had spent on amassing the entirety.

"Who makes that kind of money in the stock market?" he told Bloomberg at the time.

"In the hedge-fund business these days, you're having a great year if you make 20 percent."

Now he plans to sell several more pieces in May, with Richard Prince's Untitled (Cowboy) among the star lots at up to $1.5m.

How did he do it?

"I was trying to buy the very best work," he explains, a mantra that holds true for an investment-minded collector.

Perhaps he took his lead from his former boss at SAC Capital Advisors, Steven Cohen.

Cohen has bought more than $700m in art to date, including Picasso's La Reve, which he picked up for $155m in 2012.

And it's not just the art market that has the world's top financial minds investing.

Take Pimco's Bill Gross. How does he like to spend some of his estimated $2.3bn net worth?  Rare stamps. Gross is only the third man in history to acquire a complete set of 19th century US stamps. And after seeing his collection of British stamps make $9.1m at auction in 2007, Gross famously told the New York Times:

"Four times profit, it's better than the stock market"

Gross was entitled to brag, he'd spent the previous seven years accumulating the collection, at a cost of just $2.5m.

My point is this. You'll probably have read about the diversification benefits of tangible assets such as rare collectibles.

But what is often not mentioned is that top-grade collectibles are not simply a method of spreading your exposure to risk, they also have considerable money-making potential - with figures that would look downright crazy in more mainstream areas such as stocks or property.

The world's greatest business minds are enjoying the growth potential of the collectibles market.

You can join them.

There are opportunities for you to invest across the range of collectibles sectors, from autographs to whisky.

To learn more, give me a call today on +44 (0)117 933 9500.

Or email info@paulfrasercollectibles.com.

Together we will decide the best course of action for you.

Thanks for reading,

Paul

PS - To give you an idea of which collectibles you could invest in, click here.

  • Post author
    Paul Fraser
  • aretheWhyworld's