Fire Sale on Memories - Photp thanks to epic.aps.anl.gov
The article by Christopher Borrelli and Robert K. Elder that appeared in the Chicago Tribune on April the 13 is the best advertisement for being a member of the 31 Club that I can think of. It tells of people that accumulated collectibles and held them, hoping to capitalized on their appreciation in the future. However, as the economy declined, their need for money forced them to sell their treasures, as the Tribune stated “At a puny payoff.”
If these people had the knowledge that our members of the 31 Club have, they wouldn't have bought the low end of the collectible markets but only the rare and unusual pieces that would have rewarded them handsomely. This business is about knowing what will be sought after in the future. To appreciate, they must be items in limited supply. It is no surprise to me that comic books from the 80's and 90's don't bring much on the market today, but if the same person had purchased four or five comic books from the 30's to the 50's for the amount of money he paid for the later ones he would be dancing in the streets today.
In the article the writers mention Barbie dolls, Beanies and Action Figures. I feel sorry for the person that though these items would pay for their children's college or their retirement but if they had only researched these items they would have found that millions of each had been produced. That would have told them the story. Where were they going to find millions of collectors in the future to buy their common items at elevated prices. But you can bet that the collectors that bought 1959 Barbie dolls, Purple Elephant Peanut Beanies and the first Action Toys are still doing very well. This business isn't like the hunter that takes a shotgun to go hunting and sprays his shots but more like the one that takes a rifle so that he can focus on his target.
We want to focus on the rare and unusual so that even in a difficult market we will do well. When I first started buying Royal Doulton I had to have every piece that had that name on it but I soon learned it wasn't the quantity of the collection but the quality that counted.
I remember a story about a gentleman that visited the home of the best known Coca Cola collector in the world. Viewing the collection his question was “Is this all there is?” He was looking at pieces that, if sold, could purchase a house in most towns. I am sure that you are familiar with this gentleman because his ad is in all the trade papers. I would value his collection in the millions. That is where our focus must be in purchasing treasures for others to buy from us. True collectors will pay top dollar for the rare but have no interest in the common. Buying the pieces that the collector isn't interested in will only tie your money up and then you will become like the individuals that were written about in the Chicago Tribune.
I will finish the series about Art Glass in the next blog but I thought this was too important to wait until later to share with you.
Check out the new Paintings and new items in our Gallery and Marketplace here.
Posts
No comments:
Post a Comment