How to invest in precious specimens
Four key elements determine the market value and thus the investment
value of precious collectibles. These are:
- quality
- rarity
- place of origin
- popularity
And what advice can we give you?
- make certain that your piece of art is of a certain quality and preserved before you purchase it, determine your investment limit
- buy the best specimens that you can afford in a given category
- distribute your financial risks by buying specimens from various periods and cultures
- do business with a leading auction house or a trader who is well informed about market
- buy with caution
- if possible, ask an expert for consultation
quality
Only a small percentage of pieces available on the market have the corresponding quality suitable for investors. In this case the formulation
"Buy the best you can afford" is true .
Very high quality specimens represent a substantially better profit that other objects of lower quality.
rarity
Many collectors think that the age is the most important factor of a precious coin or banknote. However, what is much more important is the rarity of such object, i.e. how many pieces of the given object there are.
popularity
Even if quality and rarity are of significant importance for the resulting value of coins, banknotes, stamps or medals, the item can still be of low value if there are no collectors or investors willing to buy it. Popularity is another important aspect that plays an important part as far as the market value is concerned.
place of origin
The resulting value of the object is also influenced by its origin or, in other words, the history of its owners. The better the history of the owners is known the higher the value of the piece.
The good mapping of the origin also reduces the probability that the piece is a forgery.