How to Invest: Are Books a Good Investment?

When you think of investing what is the first thing that comes to mind? If you are like most people then the first thing that comes to mind is probably the stock market, and the numerous apps designed to make investing quick and easy, but the question is, can you invest in anything that is not a stock or share? Well, the simple answer is yes, there are loads of different things that you can invest in. In this article, we will be discussing how to start investing and we'll be looking at a few good investment options with a special focus on books and how they can make for a great investment. We will be covering a some top tips and tricks to help you expand your investment portfolio and make the most out of your investments.

So, whether you already have a huge collection of books and want to root out those hidden gems or you are interested in becoming a serious investor we have the tips and tricks to help you get the most out of your books.

If you are still unsure about taking the leap into the world of literary investment, we have conveyed with our book-collecting experts to come up with a list of top tips and tricks to get you started.

So, grab a cup of coffee, and let’s get started.

What is Investing?

If you are new to this and you are still unsure of exactly what investing actually is, then to put it simply, investing is putting your money into something i.e. buying items, stocks & shares, or digital currency, with the hopes that it will; go up in value allowing you to sell it on for a profit. As we will touch on later, investing is never totally safe and there is always a chance that you could lose money with an investment, so it always pays to do adequate research first.

What are the Best Things to Invest in?

We could be here for hours talking about everything that you can invest in, but we are going to keep it short and sweet, so we are going to highlight a few of the best things to invest in.

Bear in mind, that all of the things on this list come with their own risks and their own rewards, so you should always be cautious when choosing what to invest in.

Fine Art

When you think of investing in fine art, you probably think of the films where some super-wealthy suit travels to Paris to buy a famous, long-lost painting worth millions, only to have it stolen by the mysterious modern-day Robin Hood figure. But buying art as an investment doesn’t mean you have to spend millions or chase criminals down the Seine in a speed boat, it is an investment opportunity that you can take at your own pace with a budget you feel comfortable with. All it requires is a little knowledge of the art and the artist.

Coins

Collecting and investing in coins is another way to build up your investments without breaking the bank first. We’re not talking about crypto-currency here, we’re talking about real, physical coins like old coins from around the world or even ancient currencies. The coin market is not famous for having a quick turnover rate, which means you are likely going to need to build up a collection over time before you can start seeing any significant returns.

Stamps

Since the very first stamp, the penny black back in 1840s England, stamps have been a persistent favourite for investors. The value of stamps only ever really goes up thanks to the finite supply of examples rare enough to collect and, of course, the avid stamp-collecting community, who effectively control the price of new stamps based on demand.

Vintage Cars

Cars are a slightly trickier investment, especially for those who are just getting into it. In most cases, cars will start losing value as soon as they leave the dealers, but in the case of some classic cars, their value will increase as they get older and rarer. There are a few things to consider when investing in cars: they can be expensive so having the initial capital is important, knowing what to look for and knowing how to fix it is incredibly useful, and finally is space, owning or having access to space where you can safely store your investment is crucial.

Stocks and Shares

Stocks and shares are a popular investment, and there’s a good reason for it – buying and selling stocks and shares is probably the quickest and easiest way to invest. If you look in the right place you can easily find plenty of apps and websites that make investing in stocks easy and often don’t require large financial commitments so you can start investing in a matter of minutes. A word of caution using investing apps and websites however, the simplicity and accessibility of these apps can make it easy to go over budget.

Property

Buying property as an investment is likely going to be a safe option but comes with its own unique drawbacks. If you are looking at purchasing property, especially in the UK with the current financial climate, you are most likely going to need a substantial amount of capital to get you started. The good news is once you have renting properties under your belt, their value is only likely to go up and you will be getting a steady stream of income from your renters. You just need to be prepared for the occasional 3am call about a broken boiler.

Wine

If you can restrain yourself from drinking it, wine can be a great investment opportunity. Again, doing the research and knowing what you are buying is essential because you won’t be able to just walk into Tesco, pick up a bottle of Jam Shed, and expect it to go up in value. As a general rule, there are two types of wine to invest in: ‘old world’ wine which comes from the traditional winegrowing areas around Europe and the Middle East, and ‘new world’ wine which hails from pretty much everywhere else i.e. United States, Australia, and New Zealand. The best Old World investment wines tend to be from Southern France and Italy, and the best New World Wines most often come from the vineyards of Australia and California. Another thing to take into consideration when collecting wine is the storage, for a wine to become finer with age it needs to be stored in just the right conditions for the right amount of time otherwise it could spoil and lose its value.

Gold

For thousands of years, gold has been one of, if not, THE most coveted metal in the world, recognised for its value as a decorative material, currency, and a symbol of status. The gold market is still popular among investors today and could be an investment option for you. If you are considering investing in gold, there are three key ways for you to go about it: buy physical gold bullion, purchase shares from a mutual, or ETF (exchange-traded fund).

Books

Next, we have books, while books could be classed as collectibles, there is enough diversity in reading material to give them their own category. If investing in books takes your fancy, then the first step to take is to choose what kind of books you would like to invest in, and much like every other item on this list, the more you know about your chosen subject the easier your investing will be. Books popular with investors include but are not limited to comic books, signed books, first editions, journals, and manuscripts.

Collectibles

Collectibles are a diverse category and can mean many things including toys, antiques, and trading cards, to name a few. Collectibles can be a tricky investment and require you to know your stuff to be successful. If you have ever watched an episode of Flog It, you will know that you can’t just buy any old box of antiques and turn a profit. Much like investing in books, focussing on one particular type of collectible could make it easier for you to become an expert and identify the best investments.

How to Invest in Books

Like any kind of investing, there are some rules to follow. Much like if you were investing in stocks and shares, investing books takes time and it's not something that will earn you millions overnight. But don’t be deterred, investing in books can be a lucrative business, you just need to know what you are doing. This is where we come in, being one of the UK’s largest book dealers, we know a thing or two about investing in books and we want to pass that knowledge on to you.

So, let’s take a look at some simple rules that you should follow to start your journey as a book collector/investor.

Collect What You Enjoy

This might be the most important rule to consider before you start, think about the books you enjoy reading, and the kind of titles that are of lasting interest to you. Focussing on the genres, styles, subjects, and authors that you like will make the whole investing process a lot easier for you in the long run, and more fun.

Become Knowledgeable

The more you know about the books you are buying the better. If you become an expert in your chosen area you achieve two things: firstly, you will be able to make much more educated decisions on your investment because you will have a better idea of what your books will be worth, and secondly becoming an expert in your field will contribute to your reputation as a trusted collector giving you more control over the market value of your investments.

Do Your Research

Like with any investment, it’s important to do your research before you buy. Keeping up to date with the market trends will help you make the most out of your investments when the time comes to buy or sell. Three great ways to stay up to date are: Keep an eye on dealers and collectors in your field. Monitor activity at auction houses i.e. follow auctions or subscribe to catalogues. Build relationships with the other collectors, dealers, and auctioneers.

Why Should You Invest in Books?

It’s all very well discussing how to invest in books, but the key question is why should you invest in books? Whether you decide to invest in books for your love of literature or just the financial benefits, your reasons for investing are your own. Whatever your reason for choosing to invest in literature, let’s take a look at some of the pros and cons of investing in books to give you a better idea of whether it's the right option for you.

Pros of Investing in Books:

Low Risk

Unlike investing in stocks and shares, there’s a relatively small amount of risk when you invest in books. This is because the right books are not likely to go down in value after they have been purchased provided their condition is maintained.

Opportunity to Learn

Becoming a book investor will put you on a fast track to becoming an expert in your chosen area. You will discover more about your field than you ever have and perhaps more than anyone else has done before you.

Diverse Market

The book market is diverse, with near-limitless options for new investors to explore. This presents two opportunities, firstly it means that it can be easier for you to carve out your own investment opportunity and become a leading authority in it, and it means that it is unlikely that the demand for books will ever die out. With the rise of the digital age, collectible books are becoming even rarer, which means that they have the potential to become even more valuable.

Cons of Investing in Books:

Long-term Investments

If you are looking to make a quick buck, then investing in books might not be the way forward for you. Unless you manage to get lucky and find a high-value book for an absolute bargain, the best way to get any substantial payoffs from investing in books is by committing enough time and effort to build up a solid foundation of literature and a decent reputation as a reliable investor.

Quantity Investments

Not only will it take time to find success investing as a book collector, but it may also require a small financial investment as well. It may seem like common sense but the more books you invest in the the greater your profits can be; this is especially true when considering that it's common that books can be worth more if they are part of a collection.

Heavily Condition Reliant

Condition is very important when it comes to determining the value of books, so if you wish to maintain their quality for any length of time, you need to make sure that you are able to store them in the correct conditions to minimise the risk of things like mould or sun damage.

Which Books Should You Invest In?

Now we come to the fun bit, which books should you invest in? We could sit here for hours and list off the whole bunch of titles that might make a good investment, but instead, to save you some time, and your sanity, we have created a list of some things to look out for when looking for books to invest in.

It’s important to remember that no investment is ever going to be a guaranteed success, there is always going to be the risk that it won’t pay off, but with that in mind, we have tried to include some tips and tricks to ensure your book investment is as safe (and profitable) as possible.

Books that are Good Investments

Unique Books

As with most collecting and investing, rarity is everything. Books that are unique or very few in number tend to have a much higher value and are often more sought after. Unique books could include copies in a limited print run, rare or unique cover art, hand-written annotations, and limited edition inserts like maps or artwork.

Early or First Editions

First-edition books are a big green flag for investors because they tend to be rarer and, therefore, more sought after. Not all first editions are valuable so you will need to assess each book on a case-by-case basis. First printings can also provide a significant value boost to a book, especially if a book is a first printing of a first edition, then, you could be looking at a serious value increase over time.

Signed Books

Signed copies of books are always something to look out for as a signature can significantly improve the value of a book. Validation and proof of authenticity are important when it comes to holding the value of a signed book, proof of authenticity could include receipts or tickets of attendance to signings, photographs of the signing, or you can get the signature appraised.

Manuscripts

When it comes to rare books, manuscripts are about as rare as they get, because there is usually only ever one manuscript for a book. If you can get a hold of the original manuscripts written by the original author, then you could be looking at an excellent investment, and the more popular the printed book is the better the investment opportunity will be.

Other Factors that Affect the Value of Books

Global Affairs

It's always a good idea to keep an eye on the news, just in case there is any mention of something connected to your investments. All sorts of things may impact the value of your books including the death of an author, the success of a sequel, a shift in political affairs, lost book discoveries, etc.

Film and TV Adaptations

It’s quite common to see a spike in the value of books, especially early editions after it has been adapted into film or TV. The reason for this is simply the book has become more popular, so more people want a copy of the original to read. Some examples of where film adaptations created a spike in book sales are Harry Potter, Little Women, and The Hunger Games.

Reputation of Collector

When it comes to becoming a book investor, your reputation precedes you. Having a reputation as a trusted book collector/investor, having proven that you are knowledgeable in your field and that you deal with quality books, means that prospective buyers may be willing to pay more for the books that you sell.

Books that Are Part of a Collection

There are a lot of books out there that hold a respectable value on their own, but more often than not, books will be worth more if they are part of a collection. Whether they are printed and bound as a collection, or they are part of a collection that the collector has curated, each book can still be worth more if sold as part of a collective.

Previous Owners

The ownership history of a book can have a significant impact on its value. An example of this may be when an author keeps a copy of their book, in these cases, this could enhance its value because of its direct association with the person of significance. Other previous owners that may increase the value of a book could include:

• Public figures
• Actors
• Musicians
• Authors
• Collectors
• Historical figures

Condition

Condition is everything when it comes to the value of books. When investing in books it's very important to keep an eye on condition, always check for any signs of aging or wear & tear before you buy. Once you have your collection, you need to be able to store it in the right conditions to reduce the risk of damage.

So that brings our summary of how to invest in books to a close. Whether you are new to investing or you are looking to expand your existing portfolio, we hope that the tools and tips we have discussed in this article can help you start to develop a successful book collection.

Don’t forget that not every book has to be a first edition Harry Potter and the Philosopher’s Stone signed by J.K. Rowling to be worth anything, you can still make a quick buck selling all your other old or unwanted books using the WeBuyBooks app.

If you enjoyed reading this article and found it useful, check out our blog for more tips on how to make money.