The advent of online trading has transformed idiosyncratic hobbies into potential money-spinners, and shrewd collectors are cashing in, writes Caroline Madden
Pottermania was whipped into a frenzy last week with the release of the seventh and final book in the JK Rowling series. While Potter fanatics stayed up all night engrossed in Harry Potter and the Deathly Hallows,shrewd collectors were already trying to cash in on this latest piece of Potterabilia, in the knowledge that first editions of Harry Potter and the Philosopher's Stone(the first book in the series) have fetched astronomical sums.
A complete set of seven books is already being auctioned on AbeBooks.com for $2,181.80 (€1,583.92), but this asking price will pale into insignificance should one of the 1,600 hardback copies signed by Rowling come into circulation.
This phenomenon of cashing in on collectibles is not unique to Harry Potter books.
Golf fans are already riding on the coat-tails of Padraig Harrington, who won the British Open last weekend. Harrington had barely lifted the Claret Jug when collectors had begun auctioning off memorabilia on eBay, with everything from golf programmes signed by Harrington to autographed gloves up for grabs.
It is likely that this memorabilia will appreciate in value, particularly if Harrington's achievement is not repeated for some time. The only other time an Irishman won a golf "major" was 60 years ago, when Fred Daly was victorious in the British Open at Hoylake, and collectors can now expect to pay up to €900 for his Open programme from 1947.
Everything has a value in the world of golf memorabilia, advises the Irish Golfing Archive website, whether it be a photograph, marker, badge or scorecard.
People have long enjoyed collecting the most bizarre memorabilia, from Belleek pottery to Beanie Babies, and from Star Wars figurines to music boxes. However, the advent of online trading has transformed these idiosyncratic hobbies into potential money-spinners.
John McElligot, managing director of eBay Ireland, explains that eBay tends to drive down the price of items in plentiful supply, but for items with a scarcity value, it has a tendency to drive up the price.
As the Harry Potter phenomenon has illustrated, rare books can fetch incredible prices.
Fonsey Mealy of Mealy's auction house, which runs several book sales a year, says that even illustrated leaflets containing poetry can fetch as much as €9,000. However, Des Kenny, who runs an online bookshop specialising in rare and antiquarian books, says collectors must take a keen interest in their subject if they are to be successful. "You must get genuinely interested in what you're doing, you must get a feel for the subject," he says.
Collectors who are simply buying rare books as an investment, rather than out of interest, will struggle to assess the value of their purchases.
Mealy's joined forces with James Adam's auctioneers last year to hold an historical auction to coincide with the 90th anniversary of the 1916 Rising, selling manuscripts and artifacts relating to the Rising and the War of Independence. The auction was such a success that it was held again this year. Some 600 lots were auctioned, ranging from €50 to several hundred thousand euro.
These items are historically important as well as being collectable, says Ciarán O'Boyle, of Adam's auction house.
Some of the buyers were believed to be speculating that the value of their purchases would appreciate hugely as the 100th anniversary of the Rising approaches, although O'Boyle points out that there is risk involved in this kind of speculation.
Vintage and classic cars also garner quite a devoted following in Ireland. From an investment point of view, rare cars offer the greatest scope for profit, for example, old Ferraris, Masseratis and Aston Martins which were hugely expensive in their day and therefore not available to the mass market.
Of course, the downside of buying a rare car is that it can be impossible to source parts, and the buyer may have to get them custom-made at considerable expense.
Robin McCullough of the Irish Veteran, Vintage and Classic Cars association believes that the true enthusiast buys their car not as an investment but to use it for their enjoyment. He points out that collectors who buy cars as an investment tend to keep them stowed away in a garage.
Aspiring collectors searching for something slightly more accessible should consider more mainstream pursuits such as coin collecting (numismatics) or stamp collecting (philately), although prices can still reach dizzying heights at the top end.
The Central Bank issues limited-edition coin sets every year that are snapped up by collectors around the world, and even some relatively recent sets have appreciated in value quite significantly. In 1986, a coin set issued to mark the introduction of the 20p sold for £4 at the time. A set in pristine condition now sells for about €700, says Veronica McCallian of the Central Bank.
According to Michael Kenn chairman of the Irish Numismatics Society, coin collecting is arguably the world's oldest hobby.
Although most coin collectors are not attracted from an investment aspect, he says there are some successful coin investors.
He says rarity is the key when it comes to coin collecting. For example, a 1968 Irish penny in perfect condition is only worth about 25 cent because millions were produced. But the same coin from 1938 could be worth €20,000, as only a mere handful have turned up. The 1943 florin or two-shilling piece is also rare, and can fetch up to €20,000.
So even if you don't become an enthused numismatist, it might be worth searching down the back of your sofa for coins from a bygone era. You might just be sitting on a goldmine.
