Timecare: Why Alternative Commodities Are Helping Savers Beat the Banks

LONDON--(EON: Enhanced Online News)--Denise Troughton from Timecare® explains: “It’s little wonder people are looking for a better return on their investment than the few pennies a year they’ll get from a high street bank. Alternative commodities, such as art, fine wines, coins, stamps, rare books and pop culture memorabilia all have potential to appreciate in value over time.

“It’s little wonder people are looking for a better return on their investment than the few pennies a year they’ll get from a high street bank. Alternative commodities, such as art, fine wines, coins, stamps, rare books and pop culture memorabilia all have potential to appreciate in value over time.”

“One simple question will always apply no matter what the item – just how rare is it? Unique items, such as an original painting or first edition of a classic piece of literature, are sure to appreciate in value due to their limited availability. The second major factor, which is harder to judge, is that there will be a continued demand for an item over the long term.

“Always collect something you have an interest in – it will make your experience enriching both personally and financially. Having a complete understanding of how to assess value of an item is much easier if you have a wealth of background knowledge to draw upon. Knowing release dates and characteristic markings or abnormalities of a product will help you to get the most for your money.”

If you’re thinking about investing in collectables, here are some top tips from Timecare® on the various areas you might consider:

Coins

Coins can be worth much more than their face value, as was demonstrated recently when the Royal Mint misprinted a 20p piece. The error, which meant thousands of coins were issued without a date, meant that sellers were soon asking as much as £20,000 on eBay. Coins collected can be ancient gold, silver and bronze dating from as early as 650BC right through to new issues from the present day. A grading system is used, with top prices being paid for near-flawless coins which have never entered circulation.

Contemporary Art

While prices for unique works are beyond the reach of all but the super-rich, limited edition prints are financially and widely accessible making it possible to acquire pieces by major artists for reasonable prices. For example, Damien Hurst’s early prints can now fetch £15,000 or higher when sold – a substantial profit on the original price. In recent years, prints by Banksy and other urban artists have proven equally lucrative.

When it comes to collecting art, buying pieces you like and enjoy looking at is an important start – that way you’ll never regret your purchase and it will bring years of pleasure and enjoyment. If you’re collecting for investment, then familiarise yourself as much as possible with the background of artists you’re drawn to. Do they have a theme or thought process to their work? Has this evolved consistently over the years? Are they critically acclaimed and exhibited regularly? Artists with a degree of complexity and persistent ‘vision’ are generally more likely to gain steadily in appreciation and price.

Stamps

We’ve all heard of the famous ‘Penny Black’. Recently one of these rare stamps sold for £250,000 – making stamp collecting a lucrative investment. The rare stamp market has historically returned 10% per annum, and there are currently estimated to be over 48 million stamp collectors worldwide, making it a fertile market for buying and selling stamps.

Like the equity markets the rare stamp market even has its own index, the SG100 Index, which measures the performance of the 100 most popular and traded stamps across the world. One stamp trader, Stanley Gibbons, even promises investors guaranteed minimum returns which beat the current Bank of England base rate.

Rare Books

Rare books are not only wonderful to read and great to look at, they can also be a good investment. A mint copy of Ian Fleming's first James Bond novel, Casino Royale, now sells for approximately £25,000. The books worth the most are first editions and will come with their original dust jacket intact. First editions tend to be small print runs, perhaps just a few hundred copies, making them rarer and therefore more desirable.

You don’t need to spend thousands to kick start your collection however, as keeping a keen eye can unearth hidden gems. A book collector from Norfolk recently discovered a first edition copy of Harry Potter and the Philosopher’s Stone in a second-hand book store in Dereham priced at just 99p. He snapped it up and sold it at auction for several thousand pounds.

Pop Culture Memorabilia

It’s generally thought that the reason for the dramatic rise in pop memorabilia prices and poster prices is because many new collectors want items that remind them of their childhood, and would prefer to pay top money for an item that means something to them. As a result items like 18th century porcelain, religious paintings and other traditional antiques are failing to really achieve prices that reflect their value – simply because these items do not connect with today’s buyers.

Currently personal items, lyrics and instruments associated with the Beatles, Hendrix, Rolling Stones and Elvis are considered the creme de la creme of rock and pop collectables. Buyers are increasing in numbers, but supply of good material is drying up and prices are rising across the board. Provenance is essential – all auction houses check out the provenance of items and if it turns out that the piece is not as described you are entitled to get your money back.

Protect Your Investment

Whatever you choose to collect, a fundamental requirement of it providing future returns is ensuring it remains in excellent condition. A basic understanding of conservation principles combined with correct storage techniques will keep your collection preserved perfectly.

Denise Troughton from Timecare® explains: “Items deteriorate as a result of the quality of the materials used and because of environmental and chemical changes that take place in the materials over time and in changing environmental conditions. Similar to professional conservators, you should try to protect your personal collection from harmful external factors as best you can. In order to help preserve the items that you wish to keep it is essential that you use good quality storage materials.

“Always use acid free archival paper and boxes to wrap, cover and box your collection. Storage in archival products will help prevent damage and deterioration, slowing the aging process and adding years of life to the items you value. If an acidic product comes into contact with paper, photos, textiles or other similar items, the destructive acid can migrate, causing permanent damage and decay.”

Timecare® offers a wide variety of acid and lignin free storage and ringbinder boxes for long term storage of your heirlooms. These products are the same quality used in museums and archives and provide a storage solution, which protects against the harmful effects of light, moisture, temperature fluctuations, pests, pollution and handling.

For more information on the whole range of Timecare® products available, visit www.timecare.co.uk.

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