Collecting can be a fun and rewarding hobby, but it can also be a bit confusing when it comes to valuing your collection, particularly if you’re a beginner or new to collecting. “Valuing” your pieces is what takes collecting from a lifestyle pursuit to a monetary one

Investing in collectables may be a new venture for many of us, particularly for women from underserved communities. However, it can prove to be lucrative with the right strategy. Whether you collect designer bags, jewellery or art, it’s important to understand how to value your items to ensure you’re getting the most out of your collection. In this article, we’ll go over some things to focus on when you’re building out your collection.

Can I sell my Art or Books or Trainers for more money?

Short answer? It depends

Here is some guidance based on the item you are collecting:

• Jewellery: According to a report by Knight Frank, the average annual return for jewellery as an investment was 0.4% between 2004 and 2019. However, rare and exceptional pieces of jewellery can yield much higher returns, with some pieces selling for millions of dollars.
• Watches: The average annual return for watches as an investment was 5.2% between 2005 and 2020, according to the Knight Frank Luxury Investment Index. Again, rare and unique pieces can significantly increase in value over time, with some vintage watches selling for millions at auction.
• Books: The value of rare books can increase significantly over time. According to a report by Stanley Gibbons, rare books showed an average annual return of 7.6% between 2006 and 2016. 
• Art: According to the Knight Frank Luxury Investment Index, the average annual return for art as an investment was 6% between 2005 and 2020. However, as with other collectibles, the value of artwork can vary greatly depending on factors such as the artist, medium, provenance, condition, and rarity.
• Designer Bags: According to a report by Art Market Research, the value of Hermès Birkin bags has increased by 500% over the past 35 years. However, this is unique to the Birkin and many bags will experience declines and achieve only modest resale prices.
• Trainers: StockX suggests the average return on investment for the top 50 sneakers of 2020 was 31.3%. 

Ultimately, while most new investors won’t achieve financial freedom for a 2 year old bag collection, remember “time in the market is more important than timing the market”. So if you start strategically today? Who knows where you’ll end up in 10 years. 

Collectibles are a natural place to start for many new investors that can open the door to a diversified investment portfolio while introducing good financial habits such as patience and doing your own fundamental research.

What Jewellery Makes the Most Money?

Jewellery is another collectible that can hold significant value. When it comes to valuing jewellery, there are several factors to consider:

Materials 

The materials used to make the piece of jewellery can greatly impact its value. Precious metals like gold and platinum and precious gemstones like diamonds, rubies, and sapphires can increase the value of a piece of jewellery.

Maker

The reputation of the jeweller who created the piece can also impact its value. Jewellery made by well-known and respected designers like Cartier or Tiffany & Co. will typically have a higher value than pieces made by lesser-known designers.

Condition

The condition of the jewellery is an important factor to consider. Jewellery that is in excellent condition, without any damage or repairs, will typically have a higher value than those that have been repaired or have signs of wear and tear.

Age

The age of the piece of jewellery can also impact its value. Vintage and antique pieces can be highly sought after and have a higher value than newer pieces.

Authenticity

The authenticity of the piece is crucial to determining its value. Pieces that can be authenticated as having been made by a specific designer or during a specific time period will typically have a higher value than those with uncertain or unknown origins.

To determine the value of a piece of jewellery, you can consult professional appraisers who specialise in jewellery or consult price guides specific to jewellery.

Watches are a collectible that can hold significant value, particularly if they are vintage or rare. When it comes to valuing watches, there are several factors to consider:

Brand

The reputation of the brand can impact the value of the watch. Watches made by well-known and respected brands like Rolex or Patek Philippe will typically have a higher value than those made by lesser-known brands.

Model

The specific model of the watch can also impact its value. Certain models from popular brands can be highly sought after and have a higher value than others.

Condition 

The condition of the watch is an important factor to consider. Watches that are in excellent condition, without any damage or repairs, will typically have a higher value than those that have been repaired or have signs of wear and tear.

Age

The age of the watch can also impact its value. Vintage and antique watches can be highly sought after and have a higher value than newer watches.

Authenticity

The authenticity of the watch is crucial to determining its value. Watches that can be authenticated as being made by a specific brand or during a specific time period will typically have a higher value than those with uncertain or unknown origins.

To determine the value of a watch, you can consult professional appraisers who specialise in watches or consult price guides specific to watches.

Are Book Collections Worth it?

Books are a collectible that can hold significant value, particularly if they are rare or first editions. When it comes to valuing books, there are several factors to consider:

Author

The reputation and fame of the author can impact the value of the book. Works by well-known authors like William Shakespeare or Jane Austen will typically have a higher value than those by lesser-known authors.

Edition

The specific edition of the book can also impact its value. First editions, limited editions, and signed editions can be highly sought after and have a higher value than later editions.

Condition

The condition of the book is an important factor to consider. Books that are in excellent condition, without any damage or repairs, will typically have a higher value than those that have been repaired or have signs of wear and tear.

Age

The age of the book can also impact its value. Antique and rare books can be highly sought after and have a higher value than newer books.

Subject

The subject of the book can also impact its value. Books on popular or particularly niche content (ironic, we know) have additional value for their scarcity and high demand.

Which Handbags are Collectable?

Designer bags are one of the most popular collectables, and their value can vary greatly depending on factors like the brand, condition, rarity, and age. When valuing a designer bag, it’s important to consider all of these factors.

Brand

Designer bags from well-known luxury brands like Chanel, Hermes, and Louis Vuitton will typically have a higher value than bags from lesser-known brands.

Condition

The condition of the bag is also an important factor to consider. Bags that are in pristine condition will typically have a higher value than those that show signs of wear and tear.

Rarity

The rarer the bag, the higher its value. Limited edition bags or those that are no longer produced will typically have a higher value than those that are widely available.

Age

Older bags may be worth more due to their rarity or historical significance.

To determine the value of a designer bag, you can consult online marketplaces or professional appraisers who specialise in designer handbags.

Is Collecting Art a Good Investment?

Art collecting is a complex process because of the subjectiveness included in valuing your collection. The value of a piece of art can depend on a wide range of factors, including the artist, medium, provenance, condition, and rarity. Some of these are detailed below, but for this asset, we say if it has value to you, sometimes that’s all you can expect.

Artist

The reputation and fame of the artist can impact the value of the artwork. Works by well-known artists like Pablo Picasso or Vincent Van Gogh will typically have a higher value than those by lesser-known artists.

Medium

The medium used to create the artwork can also impact its value. Works created using rare or expensive materials may have a higher value than those created with more common materials.

Provenance

The history of the artwork’s ownership and exhibition can also impact its value. Works that have been owned by famous collectors or have been exhibited in prestigious galleries or museums may have a higher value than those without such a history.

Condition 

The condition of the artwork is also an important factor to consider. Works that are in excellent condition will typically have a higher value than those that are damaged or have been restored.

Rarity

The rarity of the artwork is also a significant factor in determining its value. Works that are one-of-a-kind or are part of a limited edition will typically have a higher value than those that are widely available.

To determine the value of an artwork you’ve bought, you can consult professional appraisers who specialise in art or consult art price guides. We love MasterWorks for how they’ve democratised investing in art. 

In conclusion, valuing collectibles is complex and multi-factored. If you were already loyal to buying these things though, by considering some of them, you can translate your knowledge and passion into profit by honing in on said factors!

Good luck!