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THE BERNARDS-RIDGE CONNECTION
APRIL/MAY 2016
We Buy Collectibles “Spot It” and send your answer with your name, town & phone number to: spotthefake@theconnectionsnj.com Subject Line: FAKE Somewhere in the magazine is a theconnectionsnj.com The economy and particularly investments have been a hot button topic for quite some time now. What’s undeniable about the cur- rent state of affairs is the rise in what is known as ‘passion investments’ – art, Americana, vintage cars, tees, comics figures, you name it. Items that hold cultural and most importantly, nostalgic, are the new and rising target of dis- crepancy spending. And this spending is driv- ing these objects to hold value as investments. Traditional forms of investment are not as fast paced, or quickly changing, as passion invest- ments, but the opportunity for gain is unmatched. Driven by surging demand, and a supply that is, due in part thanks to technolo- gies and platforms on the web; shrinking, those with vintage items of all sorts can expect a hefty return on their items, provided they are in the appropriate condition. With smaller returns on traditional investments came a rise in passion investments. People started looking for more than a simple value in return for their investments; they wanted a connection, one of nostalgic passion, to the investments. The nostalgic principle plays an important part in the gains to be made here – old items are just plain hard to preserve, espe- cially in a condition a collector would find appropriate. Larger passion investments are vintage cars and art, but newer pockets are emerging due to a surge in superhero movie and a focus on pockets of niche interest. With movies and TV shows constantly coming out, superhero items are hot. From action figures, to vintage tees, and of course the comics themselves, investors and collectors watch the market fluctuate as new titles are announced in comic, TV, and movie format. The same is true of music. Vintage vinyl and tour shirts can be hot ticket items, and a whole separate arti- cle could be written simply about vintage sports nostalgia investments. New technologies on the web connect people to the items they want faster and more effi- ciently than ever before, effectively shrinking the market. While supply stayed the same, and in some cases, dwindled, the demand rose, or at least became more concentrated. Now micro markets revolve simply around the statuses of each niche – filling needs for col- lectors, investors, and enthusiasts, and ven- dors. These further drive interest and ease in finding what items are available, and which ones simply are not. What separates these forms of investments from others that are bubbles? Not much – except that now each is extremely niche and connected globally in an instant, which in turn reduces the risk of a bubble occurring in these niche passion mar- kets. While every niche is different, certain niches show absolutely no signs of slowing down anytime soon. Superheroes in particular seem to be dominating portions of American culture. A 9.2/10 Hulk #1 comic sold for over $320,000 back in 2014! These characters have since then dominated the small screen and are slated to stay current for the time coming in movie format. It’s hard to expect that the source material of these major block- buster movies and hit television shows will not continue to rise in value, let alone hold it. While there’s no guarantee about investing Americana passion investments, there’s no denying the opportunity, and that’s what makes this new emerging form of market so interesting. It is driven not just by material demand but also by an emotional one. While this argument may be made intrinsically of any form of investment, it is more artificial and in your face with passion investments. This drives people to hold onto their invest- ments and cherish them. They spend more income on displaying and restoring their investments. Products with a stronger emo- tional connection to their users are more suc- cessful than those that are not. The same should be true of passion investments. So what happens when people are more con- nected to their investments? They tend to hold onto them, and for the market of pas- sion investments, this is a good thing. New niches of passion investments are rising and falling every few years. One of foremost examples of peaked passion investments may be Beanie Babies. While the horror stories are out there, so are the gems – the stories of vintage autographs, cars, and comics being found and valued at outrageous amounts! One can speculate, predict, and only guess as to which niches will rise and fall. But it’s the specific niche-based nostalgic factor that makes passion investments an interesting form of investment. Those involved tend to accumulate a more direct and informed pool of knowledge about their investments than others in different investment markets. This makes items of high value remain high value. Something investors like to hear. No one can really tell you the definitive nature and timeline of passion investments. But one way or another, they are hot right now, and tap into a different and deeper desire than simple monetary return. PASSION INVESTMENTS By: Harrison Morris & Allen Baus C OLLECTIBLE C ORNER www.theconnectionsnj.com