The investors are coming…
That's the message to take from recent research by Millionaire Corner into alternative investment trends among the wealthy.
Some 20% of the millionaires the US publication canvassed stated that collectibles were their most popular form of alternative investment.
This places collectibles ahead of precious metals and university savings plans, and second only to real estate investment trusts (REITs) when it comes to alternative investments.
While the news that the world's top investors are realising the sector's potential is pleasing for those, like me, who have long been advocating high-end collectibles as investments, there's a more important point to make.
Because if you're thinking of investing in collectibles, these figures suggest that the sector is now offering greater profit opportunities than ever before.
Now is the time to act
An example:
There are an estimated 50m serious stamp collectors around the world.
Values in the rare stamp market have historically been strong: the 30 rarest Great Britain stamps, for example, have brought an average return of 9.5% pa over the past 50 years, according to the GB30 Rarities Index.
A growing number of investors entering the sector can only increase competition for the best examples, potentially pushing prices higher, and continuing, or even improving upon the returns seen in the past.
For those buying now, before a further swathe of investors realise the diversity benefits of the rare stamp market, or one of the several other buoyant collectibles sectors, the opportunities are tantalising.
And I haven't even mentioned how the growing middle classes of the BRIC nations could also sharpen demand for collectibles over the mid- to long-term - a 2007 McKinsey Global Institute report stated that India's middle class will grow from 5% of the population to 41% by 2025.
If you'd like to get ahead of the curve, why not talk to one of our expert advisers today?
There will be no obligation to buy, no sales patter - just good, straightforward advice.
+44 (0)117 933 9500 or info@paulfrasercollectibles.com.
Until next week
Paul
Paul Fraser
