Why AREN'T collectibles a good investment?

Also, could you answer one or two of these?

What is "Market Price Risk?"
a. When prices can go up
b. When prices can go down
c. When prices can go up or down
d. When prices will remain unchanged
Choose the best answer.

Growth is...
a. the profit paid to a speculator when an investment is sold.
b. the profit paid to a broker when an investment is sold.
c. the profit paid to an investor when an investment is sold.
d. the profit paid to a market agent when an investment is sold.

Which is not example an of income paid an investor?
a. Dividends paid on stocks
b. Rent paid on real estate
c. Interest paid on bonds
d. Compound interest on a savings account


Thank you guys! You don't even have to answer, just give me some clues. I want to know, not just get the right answer.

What is "market price risk"
Well lets look... If prices stay the same then there is no risk.
If they go in one direction there isn't any unknown factors..
So when they can go up or down that is a risk since it can go either way. So it would be C.

Which is not example of income paid to investor?
Dividends are paid to stockholders quarterly or annually on top of what you have invested.
Rent is paid every month while you still own the equity in the home.
Compound interest is paid every month or so and is added into your savings account.
Interest paid on bonds only happens when you cash them, and will never occur again on the same bond. So it would be C since it's the only different one.

As for the middle question I would have to say A or D just by process of elimination.
Growth doesn't happen to investors when they sell since they no longer have the stock or bond so there can't be any growth, brokers do not have any stock or bond to have growth on since they just get paid a % or standard fee, so it can be either A or D since i don't know the difference of them.

Collectibles aren't a good investment since you do not get interest paid or dividends paid out. Like bonds you only get pay out when you sell them. There is not monthly or yearly income. Plus the values can go up or down making it risky.

"Collectibles" are very speculative investments. High risk could mean high rewards...or high loses!

So you can't say that collectibles are "good" or "bad" investments per se...but as a whole...they are risky.

And... c, a, b,...I think.

people could lose interest in any type of collectible at any time - with no one interested in buying that item any more, the people who them can't sell them, making them worthless - How about those people who paid $100's for "rare" beany babies, who can't sell them for a dollar anymore, or Pokemon cards or Magic cards - comic books are not as popular - hardly anyone under the age of 60 collects stamps anymore

The worst risk would be price drop. But stagnant price can also be a long term risk.

Whether speculator or investor, growth would be profit after expenses.

Rent typically has expenses against gross income to figure net income (or loss). On the other hand, if low interest on a the average savings account minus taxes does not keep up with inflation, is it even considered an investment?

Collectibles can be a good or bad investment. I t all depends on the price you paid and what someone else will buy it off yo for, now or in the future.
There is always one rule in invest,ments; whatever you buy make sure there is an active market i.e. That you can sell it to realise a profit.
You must also be able to calculate intrinsic worth and price. A gold coin might be sold at twice the gold value maybe because of good marketing or ignorance of the buyer. You should read about the market in tulip bulbs in Holland many years ago, when one tulip bulb sold for as much as a years earnings.

they are a very good investment.