Collectibles

Art, wine, watches, cars and trading cards can gain value, but they pay no income and come with big costs. Here is how collectibles work as investments and what to watch for.

Passion assets

Collectibles are physical items valued for rarity, condition and demand from other collectors. Prices are set by what the next buyer will pay, so tastes and fashions matter a lot. A few items soar; most do little. Because collectibles produce no earnings or dividends, all of your return depends on selling for more than you paid, after costs.

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