b'By Jim Olson,WesternTradingPost.comR ecently I was asked into the home of a collector to assess their collection. These folks wanted to liquidate their items by sending them to auction. They had been collecting for years. They believed in the philosophy of putting their extra money into collectibles as an investment. They were now at a point in their lives where they wanted to sell the collection, buy an RV and travel. It was great hearing about the enjoyment they had had over the years searching out and buying items for their collection. They were excited when they were relating the different stories of procurement at auctions,Remember, just because it was a deal does not mean it was a good buy. yard sales, flea markets, and craft fairs. There is cheap and there is inexpensive.Unfortunately, the house was full of Bradford Exchange and Franklin MintOne of the first rules of buying as an investment isdont buy junk! Know type items, including hundreds of plates. They were especially excited aboutthe market on things you collect. If you collect coins, know what they are their Native American collection, which consisted of tourist type Navajoworth and which ones are practically worthless. If you collect stamps, know Kachinas, low-end split stitch baskets (along with import baskets) andthe market. If buying art is your thing, most knowledgeable collectors will dozens of signed prints by artists most people had never heard of. Thereadvise you to stay away from prints (with very few exceptions). were also knock-off bronzes and mass-produced statues made of pewter.If buying Native American arts and crafts, know that even though it I do not judge anybody, and this kind of stuff is fine to buy if you wantmay be Native American made that does not necessarily mean it is a items that do not cost much to decorate your home with, however, thesecollectible. Learn the difference between quality, handmade items and types of collectibles are rarely a wise investment. They are decorativecrafts which are hastily put together. Quality is quality, no matter who items and home decor is rarely collectible or valuable later on. made it. Sure, buy certain items because you like them, that is perfectly okay, but do not think you are buying them as an investment. There is a I did not have the heart to tell them that in my opinion, they had notdifference between collecting just because in item pleases you and actually collected well. There was very little monetary value in the collectionmaking a potential investment.as far as an investment goes and the tens of thousands of dollars they thought they would get at an auction was actually just a couple thousandAnother thing to realize is what you paid for an item does not usually dollars worth (at best) of yard sale or flea market items. I politely declinedmatter when it comes to re-selling. Remember the markets can and will the consignment. change. Know the current market. This little exchange got me to thinkinghence this months article. OTHER BASIC THINGS TO REMEMBER WHEN COLLECTING FOR INVESTMENT:I am a big proponent of collecting. I have Start small and collect what you like, but remember, quality is important.always said it is nice to be surrounded by Things made to be collectiblerarely are. This includes pretty much all your savings account while enjoying it inkinds of commemorative or mass-produced items.your home, instead of having it all locked Mass-produced items do not necessarily just come from large away in a bank somewhere. However,companies. Check out most any gift shop for examples of crafts that are when collecting as an investment, we needcollectively mass-produced by groups of people.to get educated on what we are doing! You If your collectible says Made in China or Made in Taiwan on itwould not (or should not) invest in theits not a collectible. It is a decor item or a cheap knock-off. stock market, not having a clue as to how There is a difference between collectibles and decor. Decor is rarely the stock market works. You should notcollectible, but collectibles can sometimes make great decor. invest in real estate blindly Things that have survived a long period of time and remain in good or buy it just because it iscondition are often sought after.cheap. As a matter of fact, While the condition is a big factor in value, restoration is generallya wise investor does notnot desirable. invest in anything without Rarity (or uniqueness) is usually a factor. Things, whereby only a few having a good generalhave survived the test of time, or items that stand apart, are generally knowledge of what he orsought after. If there are dozens of them that all look alike, be careful. she is investing inand Beware of fads in the market.preferably also getting some advice from an expert in In another article previously published in this column, we talked about the the field.basics of collecting. It was mentioned there that there are many reasons to collect besides the monitory ones and that is true. There are many reasons An educated collectorto collect. However, when collecting as an investment, you should study would not buy collectibles for investments that were made in China forthe market. Know the article you are dealing in like Warren Buffet does a corporate giant or buy crafts from road-side vendors near points ofthe stock market. Otherwise, it will be hit or miss whether you actually interest for the tourists or buy spurs made in Japan from a western store.wind up with a good investment or not. 38 March 2020'