The Value of Collectibles… in a Recession

Now that the economy is showing signs of stability and the dawn of a recovery is visible on the horizon, I’d like to think out loud about what the recession has meant to the value of collectibles… and to Painted Ponies collectible figurines, in particular.

No question, there is a connection between a troubled economy and the collectibles industry, and a recession like the one we’ve been experiencing has taken a toll on the value of many collectibles. But there are many ways to look at the meaning of the term “value” in a collectible context.

Many items that are referred to as “collectibles” are novelty items or sentimental ornaments that were purchased on a whim, or because they evoked a childhood memory, or for whatever reasons. And they may have been held onto over the years because there is an emotional attachment, or because it would be embarassing if the person who gave it to you noticed it no longer adorned your mantle. But they aren’t what you would call “genuine collectibles,” which is to say things that were thoughtfully acquired … things that are unique and have been displayed proudly … things that exhibit an excellence of craftsmanship which sets them apart from the run-of-the-mill schlock of the day … things that, during better days, might have been resold with a better return on the initial investment than a bank CD or the stock market … things that will still be collected when the recession ends (and make no mistake about it, it will end). Painted Ponies figurines, especially those with a low edition number that are autographed by the artist and have been retired, can be seen in this light.

And to many people, they still are seen this way. Giftbeat is a monthly publication that tracks the trends and sales in the gift and collectible industry. It polls retail stores across the country to see what’s hot and what’s not. According to the July 2009 issue of Giftbeat, Trail of Painted Ponies collectible figurines were the best-selling animal-themed collectible in America.

Clearly, Painted Ponies fill a collecting niche. While there is no doubt that money is tight and there is a decreased demand for non-essential items, it is equally clear that many of the reasons people have collected Painted Ponies in the past remain important. Collecting Painted Ponies is a passion, an activity and a distraction that takes them to a better place. Painted Ponies are fun indicators of a quality of life that “hard times” cannot take away. For as many people as there are who may want to “cash out” and sell their Ponies, there are just as many who see this as an opportunity to pick up hard-to-find Ponies.

There is a slim volume on my bookshelf that I picked up at a used bookstore several years ago. Its title is “Collecting Today for Tomorrow.” It was written by a nostalgia buff and trivia expert and it presents an entertaining and informative roundup of those radio premiums of yesteryear - Captain Midnight glow-in-the-dark and see-around-the corner rings, Hopalong Cassidy jack-knives, Dick Tracy de-coders. The last two paragraphs in the book read this way :

“The world of collecting lies open, just waiting for new adherents to pass through its portal. Do not enter, however, if your main concern is future financial gain. By the time you accrue your fortune through memorabilia, - if you, in fact, ever do - you will probably be too old to enjoy the fruits of the financial gains that you’ve made. Enter the world of collecting for the pleasure that owning beautiful, rare, nostalgic, or novelty items will give you in the here and now and over the years to come. Memorabilia collecting is to the middle class person what collecting old masters is to the wealthy. It is an opportunity to appreciate owning works of art. Possible future gains are only hoped for. Never, but never, pay more for anything than that thing is worth to you at the time that you buy it. That way, you will never have occasion for second thoughts, and your enjoyment will be unencumbered by such considerations as the landlord knocking on the door demanding the rent. If you were to let things go that far, it’s just possible that even the Lone Ranger might not be able to rescue you.”

The moral to the book is that quality collectibles have a record of bouncing back, even if their “value” sometimes takes a temporary hit.