Saturday, November 9, 2013

Investing in Trinkets

"I sold my beanie baby for 200 dollars"

Searching through past ebay sales I found a rare beanie go for typically on the high end for 200 dollars.  I'm not going to debate the Present Value and Calculated interest rate.  However please consider the sunk costs of keeping it for that long, possibility of losing it, storage costs, high transaction costs to sell, inflation, and the fact that this is not typical only 1 out of 100 of your prized Beanie Babies sell at this price.




Silver coin - Around 1943 nickels were made out of silver.  Today (2013) a 1943 nickel can be had for 8 dollars.  See table below a nickel investment for 70 years yield an annual interest rate of 8%.  Please keep in mind inflation.


Magic of Compounding FV Calculator
Initial APY Years Yearly Add FV
$0.05 8% 70 $0 $8
Inflation PV (3%)

$1




In short, sell your crap and put it in a different investment vehicle.

Other wonderful reading: http://20somethingfinance.com/the-junk-wax-era-sports-card-investment-bubble-and-crash/

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