Authored by Sep 9, 2012-
Fad collectibles will always be a topic for a good laugh years down the road. The iconic fad was the pet rock – not to worry there are more recent examples like Beanie Babies, along with Pokémon cards, Pogs, Tamagotchi and Webkinz which were all quite expensive for just a simple toy. Not many people can see when there is a new thing coming along that will catch the public’s attention, but when they do, they make millions fast. Then, the fad dies off very quickly as the necessity of the product is slim to none, and something else trendier will come out to compete. Most of these items are not worth much at all, even assuming them to be in mint condition. It is these “it” toys though that remind us of our childhoods, but why don’t these items keep their worth if they are as good as the memories they produced? You may want to think of this phenomenon as a monetary depreciation based on collector’s fads and supply and demand- mixed into one. When an item that holds the highest trendy value, it is usually overly priced and exclusive to who has the income to purchase them. Therefore, others will want to purchase the item to keep up with the Joneses’.
In order to prevent you from wasting your money on something that will not hold its value, try to look into the history of the item and ask yourself obvious questions. Is this $5 pack of Pokémon Trading Cards going to resale for $50 in 10 year, probably not? Instead invest your money in timeless collectibles like designer china dolls, tea sets, model trains or cars; all of these are significantly more likely to have some type of resale value in the future. At estate sales you can find some of these items that you will hold onto for a long time, and watch the price and demand climb. You can also find rare collectibles that may catch your eye that you can begin investing in; the opportunities are endless! Avoiding fads can save you A LOT of money in the long run, and even make you some!