Are Collectibles a Good Investment?

I remember a little elderly lady coming into the Antique Shoppe a few weeks back asking if we bought antiques and collectibles.  (Due to the economy lately, we have approximately four to eight people, sometimes more coming into the shop asking if we would buy their antiques). First, let me clarify the definition of antiques. According to the U.S. Customs Service, an item has to be 100 years old to be classified an antique. An antique is a collectible old item that is valued because of its age. Now, before I get millions of responses because of my definition, there are numerous definitions for antiques. I tried to simplify it.

Back to the little elderly lady: She had some figurines (Josef’s originals), some beautiful costume jewelry that was her grandmothers, a few hand embroidered pillow cases, and some small wooden pieces, that neither of us knew what they were.  I always ask people, do you know how much you want for your items?  Of course, she proudly said, “Yes, I do. I would like $25.00 for everything because they are very old and antiques.”  She was right.  They were very old.  The jewelry was definitely antiques, the figurines were not, but highly collectible. And in my heart, I could not pay her the $25.00 because I knew the value of everything was at least 5 times what she was asking. We settled on a price we both agreed upon and she was happy, as I was happy. But, within a few hours, here comes another lady.  I would say in the early 30s, carrying a box. She proceeds to tell me her grandmother just left here and she has some highly collectible items for sale. (By now this is the fourth person in selling today and I am just about done with buying for the day!)

This lady proceeds to tell me how she and her mother bought precious moments and Bradford exchange plates and dolls. She quickly states she looked all the items up on eBay and they are worth at least $3000 for everything. She was willing to give me a deal, and sell everything to me for $2800. Now of course, I do not want to offend anyone, so I agree to look at her items. Did I mention that the dates on the precious moments were from 1980s and 1990s? And the plates were from 1990s and there were a few dolls from 2000? I know as I am talking to this lady that they probably paid top dollar for the precious moments because they were from a pharmacy. Unfortunately for this lady, I did not buy her “antiques” because they just are not valuable to anyone unless they collect these items.

Often, people see the words “Bradford Exchange,” “Collectible plates,” etc. and make a purchase.  In a few years, they decide to sell.  Please keep in mind they are only valuable to a person who is interested in collecting these items.  We have had hundreds of “collectible plates” come in and out of our shop.  I have seen people pay $40-60 for a plate. And I have seen them sold at flea markets, yard sales and even our shop for $5-10. A collectible is only valuable to the person collecting it. Now, there are collectibles that are highly collectible, meaning several people collect that item. Then the item becomes more valuable because it is in demand by several people. Example: Coca-Cola items, old marbles, certain knick-knacks, advertising items, trade cards, sports memorabilia and so on.

So my advice on "are collectibles a good investment?" is to check out the collectible first. Do research on the items. And whatever you do, do not rely on eBay as your guide. Keep in mind that items sold on eBay are purchased by people all over the world. Some items are more valuable in different countries, different parts of the United States and are more valuable to bidding collectors. And what is collectible to you, may not be collectible to the general population. Research, research, research before you start investing in something you may later want to resell.

Denise is owner of Olde Knitting Mill Antiques, 20 E. Bridge St. Spring City, PA