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Eddie
Papczun |
Collecting top quality historical documents can be one of
the most rewarding pursuits available, since it offers the unique opportunity
to own original pieces of history. As with any wise investment decision, knowledge
is the key to understanding. We fully appreciate investors' questions concerning
autographs as investments. How confident are you in the safety of the investment?
What about liquidity, in the event you must sell? What kind of track record does
it have? Historical documents, interestingly enough, are subject to the same evaluation
criteria as stocks and bonds: Affordability, Liquidity, Appreciation and
Pride of Ownership.
Affordability: The historical autograph market offers sound investment
opportunities at many different levels. Just as "blue-chip" stocks like
Microsoft and General Electric can be affordable if shares are purchased in limited
numbers, quality investment-grade historical documents are available in many price
ranges, within the reach of any level of investor. In the autograph market, the
"blue-chips" are items signed by historical figures such as Abraham
Lincoln, Robert E. Lee, Bobby Jones, Babe Ruth, and others who have left an indelible
mark on history. Depending on content, for instance, Lincoln autograph material
can be purchased for as little as $10,000 and as much as $1 million or more. Autographs
are affordable because they have been undervalued. When compared to the
art market, historical documents are still extremely reasonable, and worth every
penny.
Liquidity: Quality autograph material has always found an eager market,
particularly at public auction. Sotheby's and Christie's, for example, have been
selling historical documents for more than 100 years. There are also growing numbers
of autograph dealers in the United States who are actively searching out and paying
considerable sums for quality material for their clients spurred on by the ever-increasing
demand of collectors in the marketplace. In 1981, for example, there were approximately
2,000 serious collectors of autographs in the United States; by 1986, that number
had climbed to approximately 7,000; and it is estimated that by the end of 2000,
there will be more than 50,000 avid collectors of fine autograph material. While
the demand for quality historical documents climbs, the supply of existing material
remains a constant. Charles Hamilton, one of the autograph industry's early experts,
once remarked that autograph letters "are a sounder investment than gilt-edged
securities." When the stock market took the plunge in 1987, his theory was
borne out - the autograph market not only survived, but also climbed to new heights.
Appreciation: In any viable market, supply and demand are the key factors
in determining value. We have already seen a dramatic increase in demand for historical
documents, as mentioned before, and supply is, at best, limited. Humorist Will
Rogers once remarked that he was putting what little he had into ocean frontage
"for the simple reason that there was only so much of it and no more,
and that they weren't making any more." The same can be said for historical
autographs. Collectors and investors can only purchase what is available in the
public market at any given moment, and the supply of quality material is decreasing.
Not only are George Washington, Winston Churchill and their historical counterparts
not signing anymore, but the limited supply of their letters and documents that
once existed is being slowly eroded due to improper storage, fires, floods, etc.,
that leave fewer letters, documents, and other signed pieces in private hands
with each passing year. Market conditions such as these add up to great news for
collectors, however! Autograph values are destined to increase as demand surges
and supplies diminish. We believe today's prices for quality autograph material
will be perceived as incredible bargains by the turn of the century. More and
more, newspapers and magazines are featuring stories on the viability of autographs
as a sound investment. Even publications like The Wall Street Journal,
Money and Barron’s, known for their focus on the stock market,
have devoted positive news coverage and analysis to the subject of investing in
the autograph market.
Pride of Ownership: One of the caveats understood by investors in the stock
market has always been not to fall in love with a particular stock. Emotional
attachment to any particular holding is a thing to be avoided. This is certainly
not the case in the autograph market! Unlike impersonal stock certificates, there
is something magical about autographs. To own a letter of historical significance
is to own a moment in time - "a piece of history" - not to mention
a wise investment. Pride of ownership cannot be matched by most other investments.
What's more, while the government may tax stock dividends and interest earned
from bonds, it cannot lay claim to the priceless intangible "dividends"
that come from owning history. Thomas Jefferson, in a 1817 letter to John Adams
stated, "a morsel of genuine history is a thing so rare as to be always
valuable." Historical documents are those rare collectibles that mix
pride of ownership with great investment potential. Consider the fact that baseball
cards, coins and most other collectibles are all mass-produced for mass consumption
by society. In contrast, each and every autograph is a unique, one-of-a-kind original
- not massed-produced, but created by the very hand of its signer. This is what
pride of ownership is all about - the thrill of owning treasures that most people
do not even realize exist outside of museums. Finally, Golf Links to the Past
stands proudly behind every item offered for sale with a lifetime guarantee
of authenticity.
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