Collection Pieces

It is understood by collection pieces the objects such as: jewels, paintings, seal, stamps, coins furniture, etc. that a person buys with the object that as time passes it will cost more. The best investments are those that one does when buying things that you enjoy.

People that are experts on these concrete types of collections have a great advantage over those that lack of this knowledge.

The revaluation of collection pieces is very tied up with the inflation and with the scarcity or rareness of the objects with which you work.

The very high inflation of these past years made many people to use for the first time, collection pieces as a way of investment. During these periods, the financial publications established several indexes averages (very similar to those that appear on the charts of securities).

That would reflect the ups and downs of the prices on these pieces. A great number of investment managers formed several societies to invest in different types of objects. In a very few years these pieces acquired the character of a competent way of investment and, in the case of some of the investors, they replaced their shares and debentures as central elements within their financial plans.

However, in their enthusiasm for collection pieces, the investors forgot that collection pieces have a low liquidity market. Because each painting or jewel is unique and they have to be bought or sold as such, no one knows beforehand how easy or hard it will result to buy or to sell. Also, due to the characteristics of these collection pieces, it has been impossible to constitute a central market for them, in spite of the efforts of the auction houses and other. And something else: the collection pieces. On the contrary with what happens with shares and debentures, they are objects touched by the air of fashion and, as such, are subject to radical changes in their value and price.

When the Reagan Administration reduced the inflation, the prices of certain number of collection pieces, as also the interest of some of the investors on these pieces in general, diminished but then, in the nineties, it started to raise a gain.

This circumstances should alert that the investments in collection pieces, as also of basic products and options, requires a great degree of knowledge and expertise and maybe they should be left to professionals and experts.

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