Reasons to collect range from financial investment to personal achievement, but most of us form a personal attachment to our collection in some way over time. We often invest more time, energy and money than any “sane” person would. We educate ourselves to be knowledgeable. We bask in the glory of prize acquisitions. It becomes personal. We know that ultimately we do it for ourselves, to meet our own needs, and we fully realize that others may not share that same interest – or at least not to the degree of our own. And yet we WANT to share.
“Overall, just 35% of investors who inherited a collection had an interest in it. Objects, it seems, are easier to transfer than passion.” (UBS Market Watch 4Q 2017)
Many of us make peace with the idea that it doesn’t really matter whether our children take up the collecting mantle or relegate our collection to the garbage heap. We received satisfaction out of it over the years and that is enough. But does it need to end there? Are there things we can do that at least ensure our children can profit from or at least recapture a decent monetary share of the investment? Or in rare instances, can it perhaps even result in generational collecting?
It is the unfortunate truth that most of the wonderful collectibles that end up at auction or even lost to the garbage dump do so because we keep so much of the information that gives context (and value) to items in our hearts and heads rather than recording it in an accessible way. It becomes too onerous for our children to spend the time and emotional energy finding out which items have value, which were meaningful to us personally, and which were simply objects.
That is why a systematic way of detailing and sharing information before we are gone – and that value is lost forever – is so important.
Collections can range from a few simple low-value items to a serious array of invaluable treasures. The size of the overall collectibles market is growing rapidly: “Collectibles market size was estimated at $458.2 billion in 2022 and is expected to cross $1 Tillion [sic] by 2033” (marketdecipher.com) However, it is crucial to recognize that this growth is not uniform across all areas of collecting.
1) Your collection has been your passion. Don’t expect your children to love what you love
Even when our children are close to us and value our life’s lessons (neither of which is as common as it should be), the reality is that they live in different times than we did whilst collecting and may not have the bandwidth or appreciation for the kind of attention we devoted to our collection.
“Few collectors are motivated by profit. Instead, they are driven to collect by passion for their hobby. In fact, 62% of collectors have never sold an object in their collection, generally because they have such strong emotional ties to it.” (UBS Market Watch 4Q 2017)
2) Value is not a bad place to start
Often we get so caught up in the enjoyment of collecting that the money invested becomes less relevant to us. We tend to think we can get out what we put in, and then some with appreciation and market frenzy. However, the reality is that many collectibles are not really scarce at all. Many limited-edition items today are created specifically to generate interest in collectors without any real likelihood that they will be worth anything close to what was paid (or possibly anything at all) in the future.
Times and markets change, and what was once a hot commodity may be completely out of vogue. Valuations written on stickers 5 or 10 years ago are not “baseline” values for pricing today. Even the physical space required for collections may not be available for retaining the collection. On top of all that, inherited collectibles usually incur a tax obligation after the sale – with capital gains on collectibles being taxed at 28% – which can significantly cut the realized gain and add an often unwanted headache for inheritors.
Big dollar items can certainly be an attention-getter for our children, but collectors need to be cautious and communicate more than just a single value amount. It can quickly turn into frustration and disappointment for inheritors if that amount turns out to be incorrect, illiquid, or burdensome just to realize a fraction of the stated amount.
Still, it is important to be able to spark interest by communicating clearly and accurately the value of items that might otherwise be mistaken for disposable junk.
3) Anecdotal History
Another important aspect of information to capture is meaningful stories about our connection to certain collectibles. This is especially true if there is a long family history, and the item has been passed-down through generations. It also helps when children need to pare down the size of a collection, and to keep just the most meaningful items. Documented (and verifiable) history of important items becomes part of the provenance which can also increase its overall value.
4) Sharing
If we wait until we are gone before our children are introduced to our collection, then the experience is likely to be one associated with loss rather than with joyful memories. Sharing our collection with our children as we build a collection allows us not only to engender a possible interest in them, but to accurately gauge the best recipients of the inheritance – ideally those who will appreciate it the most or at least be able to recapture the most value.
It also opens the door for two-way communications. You may be surprised that your children and even grandchildren are avid collectors of something. There is joy in learning about their collection interests.
More broadly, social media and market platforms have opened up the landscape for generating increased interest.
“The collectibles market is experiencing significant growth driven by several key factors. Firstly, the increasing accessibility of online platforms has widened the reach of collectors, enabling them to easily buy, sell, and showcase items. Secondly, the emotional and nostalgic value attached to collectibles resonates with a broader audience, fostering demand.” (marketdecipher.com)
However, it is important to note that a great deal of the postings on social media and even marketplace platforms have information that is incorrect or possibly downright fraudulent. It is always wise to get several appraisals and verifications of collections before sharing information obtained from internet sources.
5) Digital Medium
Today’s world is one of digital and virtual realities alongside the physical. Information is great, but if it requires a trip to the library (do they still have those?) or a significant effort in unearthing data then it is likely to go undiscovered and unexplored. Providing a digital record of a collection, along with fast and complete search capabilities, images and attractive digital displays is an important element in fostering interest in the physical.
Photos on a phone are a fine beginning, but quickly can get lost amid the tens of thousands of family pictures. Files stored on a local computer can easily be overlooked or inaccessible when the information is needed most. Spreadsheets can capture detailed information but are unlikely to inspire any real interest in potential inheritors.
One complete solution is the free cloud-based service called Nichibles which provides a way to share your collection with anyone you choose, without them even needing to have an account. The collector-card style interactive displays grab attention and promote immediate interest in the finer details of each collectible. Searches are fast and powerful, and tools are available to help market collectibles on marketplace platforms.
Conclusion
Ultimately, each collector and collector’s family have a unique dynamic. There is unlikely to be a one-size-fits-all solution. However, by taking some steps to share our passion for collecting with our children we just might capture their attention and – who knows? – perhaps even perhaps inspire a new generation of collectors.