Hold the Nostalgia--Wealthiest Investors Put More Stock in Traditional Collectibles

Popular reality series such as “Antiques Road Show,” “Pawn Stars,” and “Storage Wars” perpetuate the irresistible fantasy that unearthed chotchkes found in basements or attics will turn out to be priceless (and pricey) treasures. But when it comes to collectibles, like the song says, the fundamental things apply as time goes by.

The prolonged economic downturn could be a boon for serious or budding collectors. Steve Ferber, co-owner of Lori Ferber Collectibles, told CNBC that large collections are being put on the market “as hard-core collectors retire or pass away, and the rocky economy has some people looking to sell mementos for extra cash.”

He was referring to political memorabilia, which could see its stock rise in an election year, but the wealthiest investors put their money in the classic, more traditional collectibles. Ultra High Net Worth households with a net worth between $5 million and $25 million (not including primary residence) devote 23 percent of their assets into collectibles, according to a fourth financial quarter wealth level study conducted by Millionaire Corner.

The most popular collectibles category at this wealth level is art (26 percent), followed by currency or coins (16 percent), automobiles (10 percent), and furniture (7 percent).

Not surprisingly, art is the biggest draw for the wealthiest of these investors. Almost half (49 percent) with a net worth between $15 million and $25 million invest in art. Baby boomers ages 55-64 are the most likely to invest in sports memorabilia (7 percent), and automobiles, which may be the first stages of a mid-life crisis. High net worth investors younger than 55 are the most likely to invest in toys (8 percent).

Millionaire households with a net worth between $1 million and $4.9 million (not including primary residence) earmark 18 percent of their assets to collectibles. Their sights are less focused on art (19 percent) than they are on currency or coins (23 percent). Automobiles (14 percent) and furniture (10 percent) also have more allure than they do in the wealthiest households.

At this wealth level, art is most appreciated by seniors (23 percent), while baby boomers are more likely to deal with currency or coins (27 percent). Again, Millionaire investors under the age of 55 are most likely to collect sports memorabilia.