Collecting for fun – Investing for profit.
We at The Pawn Company are always happy to look at any items of value that our customers may have, regardless of whether we ultimately make a loan on the item or purchase it. Advice that we give to customers every day is that it never hurts to show an item to several people before making a decision about what to do with that item. One thing to keep in mind is that not all things that are collectible are necessarily a good place to invest your money for future gains.
A classic example of this is the Beanie Baby craze of the mid to late 1990s. Many, many people got caught up in the frenzy of collecting these items and for a time, there were people who made a lot of money finding and “flipping” the toys for good profits. Ultimately, the entity who made the most money from the craze was TY, the company who manufactured the Beanie Babies. When the fad was over there were millions of these toys that could be, and still are, found in flea markets and resale shops around the country. Somewhat ironically, a few of them have remained collectible and and are still being bought and sold but for the most part the millions of Beanie Babies out “in the wild” are not worth much unless someone needs them for their collection. TY continues to produce the toys.
Avon bottles, collector’s plates, sports cards and coins produced by non-governmental mints are other examples of items that are widely collected for fun but are not something that should be thought of as a nest egg or retirement fund. Our advice is always to collect what you like and what gives you pleasure and leave it at that. If you wish to invest in these items be aware that like any other investment, there is always the chance that your ultimate returns will not meet your hopes.
A special note about the coins which are advertised and sold on television: 95 percent of these coins are not backed by any government and have no value beyond their appearance. Most of the ones which are advertised as GOLD are in fact plated with a microscopic amount of gold over the top of silver, copper or some other lesser metal. Unless you really like these coins and want to look at them, and some are quite attractive, we would advise you to steer clear of them. Government backed coins and or precious metals purchased from a reputable dealer are a much safer investment for your dollar.
In summary, collect what you enjoy or what you would like to pass on to future generations of your family. When it comes to investing, do your homework and spend your money carefully.
– The Pawn Company Insider