Collectibles are rare objects manufactured or handcrafted with a uniqueness that some individuals appreciate and desire. Collectibles include fine art, classic automobiles, rare stamps, old coins, etc.
Collectibles as an investment have experienced growth in the wake of adverse markets in the early 21st century. As investors began to believe that traditional asset classes would not deliver risk-adjusted returns at the levels observed in the 1990s, the search for collectible assets increased.
What are the Essential Features of Collectibles?
Investing in Art items has traditionally been the realm of high-net-worth individuals. It has long consisted of building a collection and bequeathing it through an estate or selling it. However, a boost to investing in Art items has come into the mainstream with the launch of the Fine Art Fund. This fund requires a minimum investment of USD 250,000 and a ten-year maturity. Some other funds invest in other antique and precious collectibles like fine wines.