1. Do your research
The memorabilia market is vast and fragmented. Because memorabilia is not traded on an organised, formal exchange, the biggest risk is the knowledge gap. The largest markets are sport and entertainment, and the most popular trading is done through auction houses, specialty dealers and internet outlets like eBay.
“A wise investor,” says Kenneth Yung, director of Asian operations for Heritage Auctions, “needs to have patience. The accumulation of knowledge and experience, like capital appreciation, takes time.” New collectors, Yung suggests, should make full use of the internet.
Heritage Auctions, with more than half of its US$815 million in total sales transactions online in 2017, is not only the world’s largest auctioneer of collectibles, but also provides a range of educational resources. The company’s website provides access to their auction archives—a record of more than 2.5 million lots across all collectible categories sold over the past decade, complete with HD images, thorough catalogue descriptions and sales results, so potential buyers can easily research pricing trends.
However, the quest for profit, Yung insists, should not outweigh the joy of collecting. “Collectors should enjoy their purchases,” he says. “If price is your only concern, then you miss the point.”
(Related: 50 Of The Biggest Art Collectors In Asia)