In light of the stock market’s travails, collectibles would have been a smarter place to put money the past couple of years, right?
Wrong. The broad index of 30 collectible categories tracked by AuctionBytes.com dropped 33 percent in value over the past two years, a plummet larger than that of the Standard & Poor’s 500.
No one’s putting kids through college on Beanie Babies profits.
“I just turned down the opportunity at $1 apiece to buy 200 Beanie Babies that had original price tags of $4.95 on them,” said Harry Rinker (www.harryrinker.com), author of “The Official Rinker Price Guide to Collectibles.” “Some very special Beanie Babies reached $1,000 at the market peak, but for those you’re lucky to get $400 now.”
The more recent bobblehead doll craze began in 1999 with a Willie Mays doll giveaway to San Francisco Giants fans. The Minnesota Twins gave out four different dolls, and other teams followed. You show up early on the designated day to claim your doll.
“The bobblehead of Randy Johnson of the Arizona Diamondbacks in his `away’ jersey now goes for $450 to $500 on the secondary market,” said Jason Ray, owner of trading site BobbleHeadDolls.com, noting that only 200 of those particular “away” jersey dolls were made. “However, bobbleheads became so popular that many are now being sold in stores and the craze has died down a bit.”
Any bobblehead given away at the ballpark is worth at least $20, and some are worth more depending on the player and number manufactured, said Ray. Only ballpark giveaways and older dolls from the 1960s generally have significant value.
The economy has taken its toll on the more traditional collectibles this year, underscoring the adage that you should buy what you like. Only “fools” purchase antiques and collectibles as investments, Rinker contends, and they’d be better off in more liquid choices such as stocks.
“Weakness of the stock market and economy have tremendous effect because people don’t have as much discretionary income,” acknowledged David Steiner, president of the AuctionBytes.com guide to online auctions and collectibles. “However, true collectors invest long-term, knowing that when the threat of war ends or the stock market improves, people will return to buying.”
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A flood of reproductions can dilute the market. Two years ago, there were 248 lava lamps on eBay at an average selling price of $41.55, and now there are 2,100 averaging $23.42. This trend also hurt limited edition plates and figurines. G.I. Joe figures remain stalwart, their average selling price of $24.42 two years ago slipping only slightly to $23.42.
Collectibles from the late 1970s and early 1980s are in demand, especially disco-related pieces. As each generation passes, interest in some items wanes, with Howdy Doody and the Lone Ranger meaning nothing to young people.
“Smart collectors watch for people selling off collections when they need money and consider a weak economy a buying opportunity,” explained Steiner. Greater Internet visibility has dramatically affected prices.
“Several years ago, I was looking for a scarf from the New York World’s Fair of 1939-40 and saw one for $125 at a dealer’s shop,” recalled Terry Kovel (www.kovels.com), co-author of “Kovels’ Antiques & Collectibles Price List.” “I was back at his shop last year and he had a similar scarf for $25.”
Online auction sites encouraged people to dig out old World’s Fair items to sell, making them plentiful and less valuable.
The Internet and books about collecting have made people more knowledgeable about quality. Don’t accept everything you read as truth and do study your interest area.
“Quality furniture and antique vases can command thousands of dollars, and other strong sellers are the best paper dolls and best labels from cans,” said Kovel. “Toy cars, airplanes and games from the 1920s through 1940s are going up in price, with earlier toys from the 19th Century out of reach.”
In a down economy, collectors seek brand names. “Collectors prefer Tiffany, Waterford and Wedgewood because they have a viable track record and we don’t see speculation in new stuff anymore,” said Rinker. Items are considered speculative during their first 30 years because it takes that long to develop a viable secondary market. One of the most stable areas is colonial revival furniture from the 1920s and 1930s, said Rinker.
Wine collectors have seen prices slide. The 1997 vintage Screaming Eagle, a quality California cabernet, has declined from $1,500 to $800. Fine French wine prices hold up better.