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Collectables made into investments

Collectables can be items in limited supply that are wanted for various reasons, including an increase in value. A collectable can be seen as an inflation hedge in a financial sense. Their value will increase as they become scarcer, damaged or destroyed over time. There is one drawback to investing, especially in obscure collectables. Fraud is also possible.

From the 1960s to the early 1990s, the major years of production for contemporary collectables were the 1960s and 1970s. Some people bought collectables for personal enjoyment, while others purchased them to invest. Many of these pieces have been the subject to speculation. Duplicates are very common because so many people bought these pieces for investment. Even though many collectibles were labeled "limited editions", there was a large number of actual items. There is little demand for many of the items made during this period and their market value is often very low.

Early manufactured collectables were offered as incentives along with other products such as cigarettes cards and packs of cigarettes. Popular products developed secondary markets and often became the subject for "collectable crazes". Many collectible items were eventually sold separately instead of being used to market other products.

Manufacturers may create a whole collection of one collectable in order to encourage collecting. One example is a set of Beanie Babies or sports cards featuring players. Enthusiasts often attempt to collect all the variations.

Collector editions are another way to support collectables. They are typically limited edition and include additional content that can prove valuable to collectors. This is most common in videogames.

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