How to invest in collectibles

Published: Nov 6, 2012 9:30 a.m. ET




A vintage Harley. An 18-carat Patek Philippe watch. A guitar once owned by the legendary Les Paul.

Now that’s diversifying a portfolio.

With stocks and bonds prone to big swings lately, many investors are devoting a corner of their portfolio to art, antiques and other rarities. For these buyers, such items aren’t just a hedge against the shocks of the larger market—they also offer some relief from the head-spinning complexity of many more “regular” investments.

Investing in collectibles

So you want to invest in autographs or watches? How do you get started and how do you keep track? Charles Passy on Lunch Break delves into several collecting areas.

It’s “the purest form of market—simple supply and demand,” says Chris Ivy, a director with Heritage Auctions.

Granted, collecting things—be it European paintings from the 19th century or Japanese tin toys from the 1950s—is not new. Now, though, more people are buying with one eye on possible returns. In a study of collectors after the 2008 crash, 74% said investment potential was driving their buying decisions, says ACE Private Risk Services.

Oh, and one other thing: These investments can be a lot of fun.


Still, collecting poses any number of risks and challenges. For starters, the market may be much harder to track, and considerations like storage and insurance can play an important role. And, of course, there’s the question of what to buy.

With that in mind, we’ve developed a guide to a handful of investment categories. Consider it a starting point for building your own potential treasure trove.


Why they’re hot: Americans of the “Easy Rider” generation have a built-in fascination with bikes. Motorcycles are also a lot easier to store than cars, and from a restoration and maintenance perspective, they’re “less complicated to work on,” says Dan Tsuchiya, business-development director of eBay Inc.’s EBAY, -0.11%  eBay Motors.

1929 Brough Superior SS100 motorcycle.

What to keep in mind: First, collectors have to decide if they’re buying bikes they may also want to ride. Wear and tear can potentially lower a bike’s value, and your whole investment can get wiped out in a crash—literally.

As for what to buy, certain brands, especially in their early incarnations, remain benchmarks. “No bike more defines the class than the early Harleys and pre-war BMWs and Vincents,” says investment strategist and bike aficionado Keith Fitz-Gerald. Buffs note that the market is also embracing sport models from the ‘70s, ‘80s and even ‘90s, particularly as younger collectors come aboard.

Prices vary widely depending on the make, model and condition, or degree of restoration. For instance, has listings for Harleys ranging from $3,500 for a 1953 model to $45,000 for a 1948 one. Collectors say Motorcycle Classics magazine is also a good source for market and pricing info.

The big score: So much for those Harleys. One of the most expensive bikes ever to sell at auction was a 1929 Brough Superior model. The English-made motorcycle, which originally cost around $275, went for about $458,000 in 2010.

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