Hobbies can give you good returns

When some hobbies become a passion, it can actually turn into an investment. Addressing a Moneylife Foundation workshop, Rajan Jayakar, a solicitor and renowned collector, advised collectors to follow their passion. He showed them the potential value of such a hobby in the long run. Jayakar is a huge collector of stamps, coins, books, Victorian furniture and Shammi Kapoor memorabilia.

Giving quick tips to starters on how to assign correct prices and  how to preserve the hard-earned collectibles, Jayakar said, “Follow your passion, because that eventually may lead to great investments.”

Passion for collection
The proclivity to collect something can strike one in childhood or old age. Jayakar started collecting cigarette packets when he was in school. The collection of items like art, paintings, sculptures, stamps, coins and notes may give one a good return in the long run. However, items such as cigarette packets, matchboxes and book-patches are often invaluable.

For beginners
When one begins collecting, it is better to start with a general collection. For example, if one is collecting stamps, one should collect as many stamps as possible. After awhile, the collection should be narrowed down to say, stamps which have a flower.

Later, one can focus on collecting stamps which only have a particular kind of flower. Gradually, one can narrow down the collection to flower stamps of a particular country. “It is the pleasure derived in accumulating these things that give the collector a high, not the market value of what they hold. So, every parent and teacher should encourage the child collector,” said Jayakar.

Role of parents
Parents should learn to recognise their child’s talent to be a good collector. They should introduce them to various societies that encourage collectors by arranging meetings and seminars. These societies help collectors get and share information specific to their collection. British Matchbox Label & Booklet Society, Numismatic Society of India, Philatelic Congress of India and Bombay Local History Society are some societies in India.

To become a special collector, one needs in-depth knowledge of the subject one is collecting. One also needs to know about other collectors who deal with the same subject and know about their level of collection.

It is important to choose one’s subject based on the availability of the matter. One must understand that things owned by museums and special collectors are not available easily.

Scan the dealer
There are many dealers who trade in stamps, sculptures, coins, etc. However, before buying an item from such dealers, one has to ensure that the particular item is really worth the price quoted. When buying antiques, one has to examine the item minutely. One should check if it is in good condition and if it is authenticated by an authorised agency.

Preserve your collectibles
Collectors should not compromise on the quality of their collectibles. They must ensure that it is in good condition. One must avoid collecting any item that is in less than good condition. However, this can be an exception for used or cancelled stamps.
Collectors are usually very possessive about their collection. It is best if people are allowed to see one’s collection from a distance rather than let them examine it. Coin collectors should use only clean water to rinse the coins and avoid using brasso as it reduces the original sharpness of the coin. Passionate collectors will keep hunting for rarities, categorise, catalogue and organise their collectibles and provide information to their audience regarding their subject.

Collectors must see if their collectibles have a market for easy purchase and sale. The collectibles should have a certificate of authenticity from a recognised authority. Collectors should also have the infrastructure to preserve the collectibles in the best condition.

Jayakar concluded, “If you are a passionate collector, you can never be one to treat your collection as an investment, because, the collector will find it impossible to quote a price for his collection or part with it for money. For an investor, the return brings happiness, but for a passionate collector, happiness is the return.”