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2012: a year of economic hardship? Here’s some good news instead…

You don’t need me to tell you that 2011 was a gruelling year for the economy.

And analysts are already comparing 2012 to the dire economic landscapes of the 1970s or even the early-1930s.

That’s the bad news you’ll read in most other news sources.

But, here at Paul Fraser Collectibles, we’re in the lucky position of being able to bring you some good news. Believe it or not, there was plenty of it in 2011.

Examples include…

Wine

Acker Merrall & Condit’s November fine wine sale in Hong Kong saw 145 new World auction record – including a rare Jeroboam of 1999 DRC Romanee Conti which sold for $75,077.

Sports memorabilia

The trunks Muhammad Ali wore in his defeat to Joe Frazier at the Fight of the Century in 1971 sold for $173,102 at SCP Auctions in November. (After that fight, Ali never wore red shorts again…)

What’s it like to sell a World Record priced pair of Ali shorts during a period of economic turmoil? We asked SCP’s founder David Kohler: you can read our exclusive interview with him here.

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While mainstream investments endure a ‘Fight of the Century’, this World Record pair of Muhammad Ali shorts sold for $173,102 last year

Comic books

The first-ever comic book to feature Superman sold for a World Record $2.16m price on November 30. This is even more impressive considering its value has risen by 20.99% per annum since 1997.

Positive global outlook

Meanwhile, while Europe’s leaders disagree over the eurozone, collectors (and ‘alternative investors’) around the world are forming an ever-stronger community.

For instance, India’s leading contemporary artists gained 97% of their sales from the US and UK collectors.

This was during the first half of 2011 – and these trends are set to continue in 2012.

So, what can we learn from all this?

Well, I think that top US auctioneer Philip Weiss put it best in our recent interview with him.

“On high-end, good, rare items, I found people [are] spending more money,” he told us.

“Because I think they’re finding a better place to put their money: into high-end rarities or collectibles. Rather than putting them in the bank, where they get one quarter or three quarters of a percent interest.”

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This work by Indian artist Mehta, from 1998 called Untitled (Kali), sold for more than $1m at auction in 2011 – and the winning collector bid by mobile phone

‘Collectible assets’ are the way forward

Nobody recommends you put all your money into collectibles like fine wines, autographs, memorabilia or classic cars.

But – as the above examples show you – they can be great ways to diversify your portfolio.

Put it this way: if you’ve already considered investing in collectibles, then you’re already one step towards avoiding the ‘doom and gloom’ that’s expected to cloud 2012.

This is just some of the good news we’ll have to bring you in 2012. For more good news, watch this space or check our daily news reports at www.paulfrasercollectibles.com.

 

For more information on the above, read our newsletter

Alternative Investment News – December 2011

By Alex

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About paulfrasercollectibles

Expert opinion, news, views and interviews allowing you to collect and invest with confidence.

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