2023 Collectibles Market Speculation
With the economy having a ton of question marks heading into 2023 and as inflation concerns continue to be raised— are alternative assets the way to park your money safely?
And more importantly, do collectibles fit into the traditional “alternative assets” category?
Alternative assets in a traditional portfolio typically include real estate, hedge funds, venture capital, private equity, etc— but with the convergence of technology and innovation, we have new players in the alternative asset game.
With the maturation of apps and platforms that allow for fractionalized ownership of high-end art, cars, and real estate— collectibles fit nicely into that.
We have already seen apps like Rally, Collectable, and ALT come to fruition to allow retail investors to diversify their collectible investing.
So in a 2023 world, you can have a very real, managed and balanced portfolio of collectible assets.
These assets are of course very subjective and niche— but as fine art, collectible cars, jewelry, and luxury bags have proven— people buy, invest, collect, and ultimately pay for what they love.
As generations change, our speculation is the market will shift or evolve, and a new generation’s fine art may be authenticated collectibles.
With innovating authenticity guarantees, collectors are now fortunate to get a multitude fo collectibles “graded.”
What is grading?
Grading is the verification or authenticity guarantee of a certain item or signature and allows the end collector to ensure he or she is receiving the collectible the seller is selling.
Certain high-end auction houses have collaborated, partnered or even acquired multiple grading services and allow buyers an sellers to have a quick, and safe experience.
With the convergence of technology and innovation comes the opportunity for retail investors to get their hands on pieces of high-end collectibles that they previously would have had to been an accredited investor to have access to.
High-end collectors and investors now have the opportunity to buy/sell/trade and, maybe most importantly to the newer generation, display or share their collections with a simple press of a button.
Where are the opportunities?
We live in a world where brand and IP (intellectual property) matter.
So brands and companies that have strong IP, are always my go-to selections when speculating.
One of the avenues we will be exploring this year will be graded video games from the early/late 90’s— catering to the 90’s kids that are coming into money the next 10, 15, 20+ years and will have discretional income to invest/spend.
Our bet is that those investors and collectors who may have purchase or invested into fine art/jewlery will now value the art/aesthetics of sports cards/collectibles that remind them of their childhood, WITH VALUABLE IP.
Another exciting area is individual artists and their 3D art and corresponding “figure art” collectibles.
Many artists are adamant that their vinyl and resin figures are not toys, and instead valued art collectibles.
And I agree.
We have seen the maturation of social media where people place value on a digital presence, collectibles that are unique or out-of-reach for most, and also what people see in their homes.
As the likes of Funko POP vinyl figures have taken over the younger generation toy market— we have also seen older collectors buying their favorite artists limited figure drops.
Kaws, Ermsy, Ron English, Alex Pardee are some of the household names leading the charge with so many other brands and companies like KidRobot and SuperPlastic investing in the space and collaborating with artists to produce their limited pieces of art.
As access to individuals continues to increase and we are able to see what they place value on through the things they collect, combined with the way we consume media (single-framed shots of individuals where the art are the items on the shelves behind them)— we only see vinyl/resin art figures as a great opportunity to invest in unique, affordable art pieces.
Only time will tell what hold value and what is a trend, but either way— collecting and learning about these industries brings back all the nostalgic feels and makes the time feel worthwhile.
As always, play with money you can afford to lose with speculative plays, and have fun with it.
Let me know your thoughts!