Collectible Investments for the High Net Worth Investor

Edited by

  • Stephen Satchell, Consultant to financial institutions and Reader in Financial Econometrics at Trinity College, Cambridge, Stephen Satchell is Editor-in-Chief of the Journal of Asset Management and Derivatives, Use, Trading, and Regulation. He has edited or authored over 20 books on finance.

Many high net worth individuals are interested in diversifying their portfolios and investing in collectibles. A collectible is any physical asset that appreciates in value over time because it is rare or desired by many. Stamps, coins, fine art, antiques, books, and wine are examples of collectibles. Where does the financial advisor or investment manager for these high net worth individuals go to learn about these investments? There is no comprehensive resource from the financial standpoint--until now. Dr Stephen Satchell of Trinity College, Cambridge, has developed a book in which experts in various types of collectibles analyze the financial aspects of investing in these collectibles. Chapters address issues such as: liquidity challenges, tax ramifications, appreciation timelines, the challenge of forecasting and measuring appreciation, and the psychological component of collecting and the role of emotion in collectible investing.
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Wealth Managers and Financial Advisors in Private Bank, Money Management Firms, and Wealth Management Firms, Portfolio Managers and Investment Officers in Money Managemnt Firms, Private Banks, and Wealth Management Firms


Book information

  • Published: June 2009
  • ISBN: 978-0-12-374522-4


“As both a dealer and collector, I must say that Collectible Investing for the High Net Worth Investor is one of the most exciting works I have encountered. The editors’ great contribution is to have assembled an impressive panel of experts with one foot each in the parallel worlds of finance and collecting. As a result, this volume is the first I have encountered that offers analytic rigor while remaining grounded in the realities of the market for collectibles, whether they be art, maps, stamps, wine or other valuables.” --Michael Buehler, President, Boston Rare Maps Incorporated "This is an extraordinary book. It brings together a dozen of the most analytically sophisticated minds in investment finance, and turns their considerable expertise to bringing great clarity to the intrinsically qualitative world of collectibles as investments. We are indeed fortunate to have a wealth of rigorous analytical thinking brought to bear on what financial professionals often dismiss as mere hobbies." --Dan diBartolomeo, President, Northfield Information, a market leader in providing investment professionals with analytical and operating efficiency tools to enhance individual portfolio and firm-wide performance “Almost every collector thinks, at least occasionally, about the investment aspect of their collection. The contributors to this book really open the reader's eyes to the breadth of issues -- from the psychological to the financial -- involved in collectibles as investments. Despite the wide variety of collectibles -- from wine to fine art to antiquarian maps -- common themes come out strongly from the writers who explore the investment aspects of each collection type.” --Jeremy Pool, Publisher, Antique Map Price Record "At last a scholarly book that accompanies the thriving market for collectibles. From theoretical articles on topics such as collecting and behavioral finance to empirical analyses of investments in stamps, books, art, wine, maps and classic cars, this book represents the essence of research on collectible investment. A must for every collector and interested economist." --Karl Storchmann, Managing Editor, Journal of Wine Economics and Associate Professor of Economics, Whitman College, WA

Table of Contents

TABLE OF CONTENTSIntroduction by Stephen SatchellPart 1: General Themes1. General Principles in Collectible Investing, Collectibles and Asset AllocationDaryl Roxburgh and Stephen Satchell2. Why Collectors Collect: The Neuropsychology of the CollectorShirley Mueller3. Collecting and Behavioral FinanceDavid Johnstone 4. Collecting as Luxury Consumption: Effects on Individuals and HouseholdsRussell W. BelkPart 2: Major Collectibles Related to Investing5. An Overview of the Art MarketJeffery Horvitz6. Art as a Financial InvestmentRachel A. J. Campbell7. Art Investing and Wealth AccumulationOliver Williams and Anders Petterson 8. Wine: An Alternative Investment, Introduction to “Bordeaux Wine Vintage Quality and the Weather” by Orley Ashenfelter, David Ashmore, and Robert LaLondeAlan Brown9. Bordeaux Wine Vintage Quality and the WeatherOrley Ashenfelter, David Ashmore, and Robert LaLonde10. Collecting and Investing in Stamps Stephen Satchell and John F. Aulds11. Investing in Rare BooksAndrew T. Rudd12. Maps as CollectiblesAdam J. Apt