An increase in value of any collection is not guaranteed for a variety of reason
ID: 3318321 • Letter: A
Question
An increase in value of any collection is not guaranteed for a variety of reasons. If you are a collector, please use your own collection to answer the following questions. If you are not a collector, research to find a collection for your answers. a. What are some of the factors that could cause the value of your collection to drop in the future? b. What questions should an investor ask before investing in anything? c. If no new memorabilia can be created with an autograph, how does the idea of scarcity increase the value of an item?
Explanation / Answer
Elvis memorabilia has increased by 10–30% each year on average in the past. Charlie thinks that the items will continue to increase at the following rates:
Item Current Value Expected increase
Key to Graceland and picture $750 10 – 15% increase
Christmas CD $150 10%
TCB necklace $10,000 30%
Mint-condition 1st Album $12,000 20%
Signed 45 rpm records $750 10%
Signed poster $3,500 15%
What you are looking for:
1. How much will items appreciate over time?
Answer
Key to Graceland and picture will appreciate to $825 – $862.5
Christmas CD will appreciate to minimum $165 maximum
TCB Necklace will appreciate to $13,000
Mint condition First Album will appreciate to $14,400
Signed 45rpm will appreciate to $825
Signed poster will appreciate to $4025
2. What factors affect appreciation?
Answer
This is due to the increasing demand of the product at the time festival season. Due to increasing demand and less supply prices will escalate till demand of the products sustain.
3. Is investing in Elvis memorabilia a good investment?
Answer
Since it was seen in past that the prices continue to escalate by 10% - 30% on an average every year so investing in Elvis memorabilia is a not a bad option to invest as the product is in constant appreciation.
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