30.01.2024
Anyone who trades rare collector’s items as investment objects has a reasonable expectation of being able to sell them after some time with a correspondingly lucrative return. While many people may be familiar with the process for traditional investments, for example, shares or ETFs, the situation is different with tangible assets, especially with the innovative model of selling fractional ownership via a digital platform such as Timeless.
This article is designed to help you better understand the dynamics of the collectible market. We’ll take you on the journey of our assets, from acquisition to exit, and explain how our team of experts goes about it. You will find out how the exit process works at Timeless and what criteria are used to buy and sell assets.
Rolex Daytona Ref. 116506 Platinum
The market value is 10,9% above the drop price.
At Timeless, we give private investors access to a wide range of rare collectibles, opening up new potential for their investment strategy. But that’s just the start of the exciting part: Our ultimate ambition is to maximise the return on the sale of our assets to help our investors grow financially.
At Timeless Investments, we are more than just intermediaries; we actively participate and hold fractions in the majority of the assets we offer. This demonstrates our deep confidence in the investment assets we select and our commitment to strive for profitable and timely returns, just like our investors.
When carefully selecting our assets, the factors relating to the potential of the sale are therefore taken into account from the outset.
As a private investor without in-depth knowledge of the collectors’ market, you are quickly faced with the question: Which collectibles are actually suitable as an investment? What is currently popular among collectors? And which rarities are particularly valuable?
At Timeless Investments, the well-considered selection of assets is at the centre of what we do. Our passion and expertise in the field of collectibles form the basis for our success and, thus, for our subsequent exit. Using advanced, data-based processes, our highly qualified analysts carefully identify unique collectibles that not only have a high rarity value but also a significant potential for value appreciation.
Each asset is verified by our team of passionate collectible experts to ensure the highest quality and authenticity. After all, it’s not that easy: reliably recognising forgeries requires in-depth knowledge of the niche and a trained eye when comparing different collectibles.
Our team of experts consists of specialists who are each responsible for one or more asset classes. They themselves have a great passion for their specialist area, can draw on many years of experience, and are personally dedicated to observing and analysing market trends.
In addition, we rely on external experts from the industry who act as appraisers (for example during regular inventories), who once again check and guarantee the authenticity and condition of our assets.
Before each asset is purchased, a detailed analysis of current market data, a forecast of future value development and a risk assessment are carried out.
“By evaluating reports from leading institutions in the investment and collector sector, analysing current auction results from renowned auction houses such as Sotheby’s, Christie’s and Phillipps, and maintaining close contact with our global dealer network, we always have our finger on the pulse.”
– Nils Johannsen, Investment Strategy Manager at Timeless Investments.
This comprehensive knowledge of the market enables our team to proactively recognise and seize opportunities to maximise the returns for our investors.
Realised increase in value of the specimen fractionalised by Timeless in the period between drop and exit of the asset. This is not an indication of future performance.
When it comes to trading rare collector’s items as an investment, the challenge lies not only in acquiring them but also in selling them at a profit. A strong network is crucial to finding the right buyer and realising the best possible return. In short, the right network is the key to success in the world of exclusive collectibles and investments. At Timeless, we have been able to build up a renowned international network of sellers and buyers over the last 3 years, which opens the door to further exits in the near future.
We generally assume a holding period of between 12 and 36 months for our assets, which is based on average values and typical developments in the collectibles market. However, there are some differences between the asset classes: In the case of whisky, a longer period of up to 7 years can typically be anticipated in order to achieve a lucrative return. Nevertheless, by strategically capitalising on opportunities, impressive results can also be realised in much shorter time frames, as illustrated by our recent whisky exits.
Realised increase in value of the specimen fractionalised by Timeless in the period between drop and exit of the asset. This is not an indication of future performance.
In this article you can find out all the details about our whisky exits.
Another example of the Timeless team’s strategic approach is the remarkable exit of a Cartier Arrondie that was realised in just a few days. Our experts proactively seized an exceptional opportunity in the watch market, recognising the potential of Cartier watches early on, supported by data from the Knight Frank Wealth Report (2023 Q2), which documented a price increase of approximately +12% for the brand over the last 12 months. Thanks to our close connections in the dealer network, we acquired a Cartier watch at a very favourable price, with the aim of capitalising on the current trend as quickly as possible.
Within just a few days, instead of the usual 12-36 months, we were able to sell the watch with an exceptional return of +20%*, resulting in an exit share price of €60 for our investors. This successful transaction underlines our ability not only to recognise market opportunities but also to capitalise on them efficiently and profitably for our investors.
Our analysts are in constant dialogue with our global network of dealers, auction houses, and private collectors in order to weigh up the optimal sales options. As soon as we receive an offer that matches our valuation of the asset, we actively involve our fraction holders in the process. The offer is presented to them, and they can vote on whether to accept or reject it. We only present our investors with offers that reflect our data-based assessment of the optimal time to sell. Nevertheless, we attach great importance to the engagement of our community and respond to their wishes. The vote is democratic; if the majority (over 50%) decides in favour of exiting the asset, we start the sales process. The next step is to pay out the fraction holders in accordance with their fractions.
Once the sale has been finalised, we are delighted to share the exit with the rest of our community and celebrate a new success in the world of rare collectibles together.
Would you also like to be part of this exciting investment journey? Then make your first investment now or add more collectible gems with profit potential to your existing portfolio.
*Realised increase in value of the specimen fractionated by Timeless in the period between drop and exit of the asset (Cartier Tank Arrondie, 21.09.2023 – 04.10.2023). This is not an indicator for the future.
