the watch of time

‘Atypical’ assets offer the diversifying collector or investor a panorama of options.

These assets juggle potential rewards, i.e. monetary / personal, and hassle factors, i.e. cost / space / time. Main pros and cons are a mix of the following:

• PROS = limited supply / tangible / tradable / brand strength & reputation / portability / customization
• CONS = storage space & costs / appraisals and insurance / condition & packaging / possible fakes & reputation / environmental or exposure issues / investment patience required

Here, thanks to articles from “Advisor’s Edge” magazine, are factors and statistics concerning a few better known asset types:

• STAMPS:
• Approximately 12% of collectors hold these assets strictly as investments
• PROS include that assets are tangible & stable, historically rich, and tradable
• CONS include potential fakes, transaction costs, insurance & storage costs, and inexpensive face value

• COINS & CURRENCY:
• BRIC nations (Brazil, Russia, India, China) are a growing force in collecting, especially India re gold coins
• PROS include the growing numbers of buyers with the supply of historic pieces dwindling, limited maintenance
• CONS include the need to check dealer reputation or second opinions, need for professional packaging

• BASEBALL CARDS:
• Nearly $1 billion/year industry, with nearly one million serious collectors
• PROS include availability of websites for buying and selling, modern cards could be ‘diamonds in the rough’
• CONS include the need to be in mint or near-mint condition, insurance, value hinges on athlete reputation, finds can reduce rarity, and no established benchmarks

Less common versions of ‘atypical’ assets will be profiled in Part 5.