Waiting for in the mail this afternoon was a littler from AmbroseBauer Trains, "the nation's foremost marketplace of toy trains and toy train auctions." In this rather lengthy solicitation letter* Drew Bauer presented another take on what affects market value. He writes:
...Toy Trains do share with Financial Instruments [read: stocks] the fact that values of different Toy Trains do rise and fall depending on current market and demand conditions.Which makes sense. Even with the same field, the highly desirable items of one generation may not be the top collecting priority of the next. Going back to my post yesterday about Ken's Lionel 752E, the demand (and value) has dropped with the arrival of a quality reproduction that satisfies a certain market segment. As older collectors retire (or pass on), more 752Es are likely to resurface, driving down the price even more.
Because of changing demographics, an incredible amount of Toy Trains will come to market over the next several years. This large supply will have a negative effect on prices... since demand will not rise as quickly as supply.
The lesson's still the same. Invest in a collection for enjoyment. Invest in stocks for profit.
*Note to Mr. Bauer: four-page single-spaced letters need bullet points. Really.