|
DOUBLE YOUR MONEY AND YOUR FUN WITH THESE EMERGING MARKETABLES
(MONEY Magazine) – Stocks and funds are two ways to double your money in five years. But you can also get a two-for-one payoff by investing in objects you can actually touch, from fine art to kitschy collectibles to dirt (raw land, actually). To come up with our list of six tangibles that could double in value over the next five to 10 years, we asked for the best ideas from 27 experts in everything from buffalo breeding to toy collecting. Remember: If stock picking is an art, investing in things you can hold (or behold) is a romance, often driven by pure desire. So keep these three rules in mind: Buy what you love. If it doesn't appreciate, you still own something you value. Go for the best quality you can afford. This is one situation where bargain hunting doesn't often yield the best results. Use reputable dealers and brokers. They are the best defense against frauds and mistakes. IT'S ALL IN THE WRIST These days, some contemporary watches in limited supply are showing potential for significant appreciation. For example, late this summer, renowned Swiss watchmaker Patek Philippe released a new limited-edition timepiece called the Pagoda. The company, which gets $13,800 for the 18K yellow-gold men's version, has already sold out its planned 2,750-piece production run. And Daniel Govberg, owner of Govberg Watches in Philadelphia, says that even before he had the watch in the store, people were calling and offering as much as $2,000 above the retail price. For that reason, he thinks the value of the Pagoda will double within five years, especially in the rarer rose-gold and platinum versions. Another promising model is the brawny, stainless-steel Rolex Daytona. Priced at $500 when it was introduced in the '70s, the Daytona now lists for $5,100, and current owners can sell their used watches through high-end jewelers for $8,000. With some retailers keeping two- to three-year waiting lists for new Daytonas, prices for secondhand models figure to keep appreciating briskly. LOOKIN' FINE IN YOUR 409 One key force in collecting is buyer nostalgia. That's evident in the ultimate adult toys--sports cars. Boomers with disposable income are collecting the cars they coveted in their youth. Lyndi McNulty, a car collector and appraiser in Westminster, Md., says she favors cars from the '60s because "that's what I remember, and they make me feel young." The ultimate collectible cars in this category come from Germany's Mercedes. That's because it is the most well known of the elite brands, yet in the '50s and '60s its models were nowhere near as ubiquitous in the U.S. as they are today. (The company sold 2,000 cars here in 1956, compared with 91,000 last year.) As a result, a 1960 300SL roadster that sold for $11,500 originally has appreciated to at least $80,000 for a car in good condition and as high as $200,000 for a pristine one with low mileage and all its original parts. Top car historians like Dennis Adler say 300SLs, the unusual gull wing and 190SL roadsters from 1955 to 1963 could double in value between now and 2007. American sports cars also hold cachet for collectors. A restored 1962 Chevrolet Impala two-door convertible with a 409-cubic-inch engine (original price: $3,000) sells for about $10,000 to $12,000 these days, $21,000 if it's mint. McNulty explains that the sporty two-door Impala will double in value as it entices all those former pimply faced teens who longed to drive a cool ragtop but had to settle for Dad's hand-me-down instead. IT'S A SMALL WORLD AFTER ALL By now you're probably aware of the brisk collector's market for original cartoon cels, the single-frame, full-color art from which cartoons were made. But Elyse Luray-Marx, the animation specialist for Christie's in New York City, sees opportunity for a double in the pencil sketches that movie studio artists drew of scenes before preparing finished cels. Reasons: The sketches are relatively undiscovered by collectors, and computer animation is making the old way of cartooning obsolete. Among Luray-Marx's prime choices are early Disney drawings, including Mickey Mouse sketches from short films made in the late '20s and '30s and Snow White sketches from the late '30s. Most now sell at auction for $1,000 to $5,000. Other possible twofers include Warner Bros. drawings of Bugs Bunny and friends from the '40s through the '60s, which can be bought today for $500 to $2,000. PUT THE WORLD IN YOUR POCKET Rare atlases, which you can buy from book and map dealers, have heretofore lacked a strong market among collectors in the U.S. That's about to change, suspects Paul Cohen of the Richard B. Arkway Gallery in New York City. He notes that a full-color 1595 world atlas was auctioned for $200,000 this year, up from $95,000 three years ago. In general, the best values lie in atlases in good condition, with all their maps intact and with their original binding. One that might be ripe for a double, says Cohen, is the 18th-century American Military Pocket Atlas. The nine-inch-by-six-inch leatherbound volume was given to British army officers during the Revolutionary War. Nicknamed the holster atlas because it could be tucked into a soldier's pocket or holster during combat, it features six foldout maps of the Americas that represent some of the finest cartography of the time. A nearly pristine, unrestored and complete copy is expected to sell at $16,000 this year, up 88% from $8,500 in 1990. Cohen thinks this or similar specimens could trade for $32,000 or more by 2002. GO WHERE THE SKIES ARE NOT CLOUDY ALL DAY Everybody wants to discover the next Telluride, the remote, once unknown Colorado town where a two-acre lot that went for $20,000 in the '70s now costs $200,000 or more. Well, the last best place may just be in the remote Rocky Mountains of northwest Montana and northern Idaho. Areas like Flathead Valley, Mont. and Sandpoint, in the northern panhandle of Idaho, offer golf courses, ski resorts, freshwater lakes and bountiful timberland. What's more, prices for prime acreage (lately in the $100,000 range for a 20-acre lot) haven't skyrocketed like those near Sun Valley and in southwest Montana, where land barons including Ted Turner and Tom Brokaw have ranches. Dale Crosby, a real estate broker with Glacier Better Homes & Gardens in Kalispell, Mont., sees double-digit growth in land values in each of the next three to 10 years because a national park and protected wilderness to the east and west keep this idyllic acreage in limited supply. TURN GREEN CERAMICS INTO GREENBACKS Korean art from the Koryo and Choson dynasties is finally gaining popularity on this side of the Pacific. One particularly strong category of late: exquisite 12th-century, greenish-blue glazed ceramics called celadons. Since Korean collectors are a driving force in the market for native art, this recessionary moment is a great time to pick up values here from Asian antique dealers and at auctions. The weak Korean won means that dollar-denominated auction prices seem especially steep to Korean buyers. In addition, analysts say that the struggling Korean economy may be poised for a rebound that could embolden native buyers to bid up prices. Already, select celadon pieces have started to attract brisk bidding at fine art auctions. At its September auction of Korean art in New York City, Sotheby's expects a prize double-gourd celadon pitcher to fetch $100,000, four times its price 10 years ago. Divide that 10-year gain in two, and you've got a double in five. |
|