In today’s high-inflation market, investments like collectibles can give you high returns over time – often with lower volatility.
Take sports memorabilia, for instance…
For years, these collectibles have been a slow-and-steady business… But in the past two years, that’s drastically changed.
“All of a sudden, we’re cool,” said Ken Goldin, a sports card memorabilia trader and founder of Goldin Auctions.
The pandemic proved a boon for Goldin, with the first four months of 2020 providing more business than all of 2019.
And today, he’s on track for nearly $500 million in annual sales… or about one-quarter of all the sports-card trading done on auction site eBay over the same period.
As a whole, the sports memorabilia market generated a record $10 billion in sales in 2021 – an 85% jump from the $5.4 billion it generated in 2020.
And while conventional assets like stocks and bonds have suffered massive losses in the last few years, collectibles like contemporary art and fine watches are up.
Take a look…
Longtime readers know that we’ve been talking about trophy assets like collectibles for years… and we expect these assets to continue to outperform in 2023.
We call them “Maverick Investments.” And they’re our go-to investment in uncertain and volatile markets for three reasons:
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They’re real. The best Maverick Investments are tangible assets like art, real estate, and luxury cars… although a few intangible assets apply (like certain cryptos and music royalties).
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They’re rare. Maverick Investments are assets with a low supply that you can’t easily manufacture or mass-produce.
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They’re enduringly desirable. Maverick Investments have a history of high demand from ultra-wealthy investors over the long term.
With that in mind, it may seem like owning a Maverick Investment requires a wealthy lifestyle or a million-dollar bank account… but that couldn’t be further from the truth.
Owning a Maverick Investment doesn’t mean you need to buy a flashy sports car and keep it locked in a secured garage… and it doesn’t require spending tens of thousands of dollars or more all at once.
Instead, you can spend as little as $50 for fractional ownership and still enjoy the potential upside of owning the asset outright.
Today, I’ll explain how… but before we get to that, you need to understand how to identify the collectibles that are worth your time and money…
Three Criteria for Building Your Collection in 2023
When it comes to investing in the collectibles market, there are a variety of factors to consider… but here at Palm Beach Research Group, the three criteria below are our main focus.
First, we look at the rarity of the collectible… A high price alone doesn’t guarantee long-term appreciation. So we want something truly rare – a scarce or unique asset that investors and collectors will desire for decades or more.
Next, we look at the quality of the collectible… Collectibles can come in all sorts of conditions. But good quality means the collectible is in a class of its own compared to similar assets. In other words, “the best of the best.”
Finally, we look at valuation... which means looking for opportunities where the asking price is lower than current appraisals or past sales. This sets us up for future growth potential and also gives us a bargain.
Finding an ideal collectible investment often means screening through hundreds of opportunities… So by using the three criteria above, we can narrow that down to a handful of potential options.
Combine that insight with fractional investment platforms that do some of that legwork for you, and it’s never been easier to get started…
Fractional Investing Is Easier Than Ever
If you’re looking to add collectibles to your portfolio, Rally is one of our favorite fractional-investment platforms.
It has more than 400,000 users. And it allows investors to buy shares of collectibles ranging from classic cars, comic books, and even dinosaur skeletons.
Right now, there are 27 collectibles currently trading on Rally that have risen by triple-digits since they debuted…
And since we recommended using Rally in 2019, investors have had the chance to see returns of as much as 495% on a Star Wars comic book and 973% on a Super Mario Bros video game.
Considering the stock market volatility of the past few years, the consistency of Rally’s returns is incredible… and that’s just the cherry on top.
These assets aren’t bought and sold daily, so they don’t experience the kind of price swings you see with stocks… and while Rally generally looks to hold assets long term, it can receive offers from outside parties looking to purchase the assets outright.
When that happens, the company seeks shareholder input, and a third-party advisory board decides whether the offer is favorable… so there’s always a small chance for short-term profits.
Best of all, you can buy shares of some collectibles on Rally for as little as $50.
If you’re interested in learning more about the Rally platform – including setting up your own account right now – I recently put together a Trophy Millionaire Masterclass with all the details.
In the masterclass, I’ll show you how to find your own collectibles on these platforms. Palm Beach Letter subscribers can watch the course right here… And if you’re not already a subscriber, you can click here to learn more about becoming one today.
As a subscriber, you’ll not only receive access to the master course I mentioned above, but you’ll also get a special report from Daily editor Teeka Tiwari called…
The Trophy Millionaire Blueprint: How To Profit BIG From the World’s Most Valuable Assets.
It’s a strategy Teeka has used to outperform all his traditional investments combined over the last two years… and one you can start using today with a small $50 investment.
Click here to learn more.
Thanks to platforms like Rally, Maverick Investments and collectibles are more accessible than ever to Main Street Americans.
So if you want to beat record-high inflation and stock market volatility, consider adding some to your portfolio today… there’s no better time to get started, and we expect even greater returns from collectibles in 2023.
Good investing,
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Andrew Packer
Analyst, Palm Beach Daily