Collectibles as an Investment: the Challenges for Private Investors

Rare collectibles have established themselves as a high-yield investment for decades, but access to them has long been denied to the general public. In this article, you will find out what challenges private investors have faced so far, what is important when investing in collectibles and how Timeless can help you with your investment strategy.

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Collectibles as a Proven HNWI Investment Strategy

Bill Gates, until recently the richest man in the world, owns a proud collection of first-class art and artefacts worth around USD 127 million. And he is not alone: for decades, extremely wealthy individuals have been focussing on alternative investments to diversify their portfolio and increase their wealth. The preference for collector’s items as an investment is therefore nothing new. Art, luxury watches or vintage cars not only offer aesthetic enrichment, but also considerable value retention and the potential for significant appreciation.Looking at the investment strategies of professional investors, especially ultra-high-net-worth individuals (UHNWI), the strategic addition of collectibles to their portfolio is clearly recognisable: On average, they invest 5% of their total assets in rare collectibles.

Some of the most prominent and wealthy personalities show a clear preference for luxury investments as part of their wealth management:

Although investments in high-quality and rare collector’s items offer enormous potential, they are also associated with high capital expenditure, which is why they were previously only reserved for this elite circle of extremely wealthy investors.

Fractional Ownership: Access to Rare Collectibles

Timeless makes collectible investments accessible, affordable and tradable. From as little as €50*, you can invest in a variety of carefully curated assets and participate in their performance.

But how does it actually work? 

With the help of blockchain technology, assets are divided into individual shares that can then be purchased and traded via the digital platform. The advantages of this are:

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In addition to the capital, the acquisition, storage, insurance and sale of the assets are complex and often represent a major challenge for private investors.

From Acquisition to Storage: What Matters When Investing in Collectibles

Authenticity and origin: The authenticity and origin of collector’s items are of crucial importance. In the case of works of art, for example, the provenance, i.e. the history of origin, as well as certificates of authenticity and proof play a role. In the case of vintage cars and watches, the originality of the parts and the history of the object are particularly important. In order to verify this, the appropriate knowledge is required. But this alone is not enough: only through many years of experience and the comparison of a large number of assets can forgeries be clearly recognised.

Market understanding: In addition to specific expertise, an in-depth understanding of the market requires continuous monitoring of trends and price developments, which is extremely time-consuming and only possible for a small number of people. Although passion is one of the things that makes these investments so exciting, personal preferences can influence the objective investment value. It is important to consider both emotional and rational investment reasons. 

Network: A reliable and trustworthy dealer network is essential. Some strictly limited-edition trainers, genuine blue-chip works of art or rare luxury watches are virtually impossible for the average consumer to get their hands on. Even if the necessary capacities are available, a broad network of contacts within the respective market is required. Some assets are reserved for certain collector circles from the outset and are therefore beyond the reach of many private investors. If the asset is traded as an investment object, there is a foreseeable expectation that it can be sold again at a profit. Here, too, the network plays a key role in finding the right buyer and maximising your own return.

Asset Sourcing at Timeless:

Timeless Investments’ team of experts is characterised by a group of highly qualified and passionate collectible analysts who dedicate their specific expertise to the developments in the respective asset classes.

Our top priority is to find the perfect time to buy and sell assets in order to achieve the best possible return for our investors. By combining quantitative analyses and many years of industry expertise, we can offer you the most sought-after and promising assets on the market.

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Condition and preservation: The condition of the collector’s item has a significant impact on its value. In the case of works of art, attention should be paid to damage, restoration and the quality of preservation. In the case of vintage cars and watches, original parts, functionality and general state of preservation are decisive. Vintage watches in particular can, for example, have a natural patina due to the ageing process, which is of extraordinary value to collectors and even increases their attractiveness compared to new or restored models.

Storage: Proper storage and care are crucial for preserving value. Works of art, for example, require climate-controlled and secure storage and vintage cars need regular maintenance and a suitable storage space. Wine must be stored at a certain temperature and humidity, as the storage conditions are decisive for its value. From whisky to luxury watches – each asset class has its own requirements.

Insurance: Adequate insurance to protect valuable items against damage, loss or theft is essential, but can be very expensive. 

Collectible Investments – Simple, Secure and Digital

At Timeless, we take care of the professional inspection, storage, maintenance and insurance of assets to protect their long-term value. Each asset is checked to ensure it is in perfect condition and stored according to its individual needs. In this way, we ensure that your investment is in good hands with us.

We have already made over 450 unique collectibles available on our platform and helped over 60,000 private investors to benefit from the same advantages that were primarily reserved for professional and institutional investors.

Successful exits: Discover here how our luxury watches, works of art, rare sneakers and trading cards have performed so far and the strong returns they have generated for our investors.

Discover the world of unique collector’s items as an investment now – easily and securely with Timeless.
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