From cars to cards, vintage collectibles have the potential to turn enormous profits. And vintage enamel signs are no different.
Only a decade or two ago, they were routinely sold for hundreds of dollars – now, a mint condition sign can sell for tens of thousands, or even more.
But despite record auction prices and soaring popularity buoyed by antique reality shows, are they a good investment for the future?
Lucrative potential
Few collectibles stand the test of time, but when they do, they can produce outrageous returns.
Vintage enamel signs were once one of the most commonplace advertising mediums in the world, yet recently a sign was auctioned for $US1.5 million.
Looking at historical prices, signs have been an extraordinarily profitable investment for lucky collectors and early investors. Returns on rare and good-condition signs have been exponential and show little sign of slowing.
The only question is how long this trend will continue.
Value retention
Vintage enamel signs have a few advantages as an investment collectible.
As works of art from a different era, they have a timeless aesthetic appeal that will retain both historic and artistic value.
Enamel signs are also incredibly durable, especially when properly maintained, ensuring that there’s little risk of degradation over time.
They also appeal to a diverse range of demographics. Sign collectors, brand-fans, historians, motoring enthusiasts – a broad audience can prop up demand and ensure that value is retained.
Risks and downsides
There are a few concerns when it comes to using a collectible as a long-term investment.
The first issue is that your returns are entirely based on the value of your signs appreciating. You don’t get any benefits for simply holding onto a sign (besides getting to enjoy its aesthetic charms, of course), so it’s a relatively risky endeavour. More traditional investments such as stocks can offer you an ongoing return in the meantime, such as dividends.
The other big concern is the potential volatility of their value.
Ultimately, your signs are worth what someone is willing to pay, and that can be affected by a huge variety of factors that are impossible to predict. Times and tastes change, and it’s not always clear whether a collectible is simply riding a wave of nostalgia, enjoying a short-lived boost from a popular tv show, or creating a lasting cultural impact.
There are no guarantees – the potential rewards are high, but the risks can be higher.
Overall
For most people, investing heavily in vintage enamel signs in the hope of shoring up your retirement isn’t the best option. Their value isn’t guaranteed in the long run and they can be tricky to sell in a pinch.
The potential returns are still there, however, so a small investment can be more than worthwhile down the line. Just don’t bet your life on it.