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10 Risky Investments

9

Collectibles

While an old car can provide a fun hobby and good memories, it may be difficult to find someone who wants to buy when you're ready to sell.
While an old car can provide a fun hobby and good memories, it may be difficult to find someone who wants to buy when you're ready to sell.
ŠiStockphoto.com/Thinkstock

You have this car, and it's a dream car. Your uncle bought it new in 1955 and never drove it. It's carefully covered and stored in a garage. It has never touched a road and never made a memory. You're storing it in hopes of a big payoff that may never come.

The same goes for that old armoire, the costume jewelry from the 1930s and that oil painting behind the couch (unless, of course, it really is a Michelangelo).

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With collector's items, you're gambling that you'll find a market when you're ready to sell. Granted, some talented collectors with a great sense for reading the shifting tastes of the public make very good money selling these items. But they need to ensure that there's a powerful demand for the item to cover storage costs, insurance, dealer markups and maintenance.

For example, cars from the 1950s were in vogue 10 years ago, when the generation that grew up coveting those cars finally had the money to buy them. "These were the people who had discretionary income," Grable says. "Baby Boomers want '60s muscle cars. That's what makes it risky -- the tastes change."

Collect for the love, not for the money. And get that car out of the garage and drive it!

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