Never mind the stock market – try the signature market. The value of autographs of the rich and famous has surged over the past decade, leaving equities trailing in the dust

According to Paul Fraser Collectibles, a firm tracking the market and acting in sales of such exotica, its PFC40 autograph index that tracks 40 of the most famous celebrity signatures has shown a rise of over 750 per cent between 2000 and 2022, chalking up an annual compound rise of almost 32 per cent

Meanwhile, in the past ten years to April 2023, the MSCI World Equity Index, which tracks large- and mid-cap companies across 23 developed market countries, had an annualised return of 9.29%. So when it comes to signatures versus stocks, it appears that the scribbles by famous people can be a nice little earner. Autographs have also comfortably outperformed property and even gold

How It Works

The  autograph market focuses on the trade of investment-grade memorabilia including  photos, documents, letter and books signed by historical figures, politicians,  classical and contemporary musicians, movie stars, sports and literary figures  and space explorers, among others. Items are available for purchase and resale  at auction houses, both brick-and-mortar and online, and through autograph  dealers

Who’s Investing?

Until  recent decades, the autograph market was dominated by hobbyists and historians  with limited means who collected for enjoyment’s sake. Today it has evolved into  a legitimate alternative investment strategy for an estimated 3 million collectors worldwide, a figure that’s expected to double over the next 20 years. The Covid-19 pandemic played a significant role in this rise, according to Bobby Livingston, vice president of RR Auction, an auction house based in Boston, who said many customers were introduced to the collectible market after having more disposable income and spare time to pursue hobbies.

“People who started collecting during the pandemic are continuing to,” said Livingston. In August, his auction house saw David Bowie and Marilyn Monroe autographs sell for over four times their estimates, at $2,000 and $32,000 respectively

What They’re Making

According to  Paul Fraser, autograph collection has a tremendous growth market fueled by  supply shortages and increased demand, especially in the case of the finest rare  and unique autographed memorabilia, which Fraser says have historically produced  annual returns up to 35%

The PFC report highlights some astonishing figures. For example, Neil Armstrong, the first man to walk on the moon in 1969,stopped signing autographs in 1994. In 2000 his autograph was worth £550. Ten years later it was £5500, a rise of 900 per cent.  A photo with the signatures of the Beatles fetched £22,500

But that’s a mere pittance compared to what is considered the most valuable signature sold – George Washington’s personally signed copy of the Constitution and Bill of Rights. That sold for a record $9.83 million at a Christie’s auction in 2012 having previously been bought by H. Richard Dietrich Jr., a Pennsylvania collector for $27,000 in a 1964 auction!

For other valuable autographs find out more here

“The collectibles markets are booming with world record prices being set virtually every day. Much of this attention is on top-quality autographs, and historical signed documents, which have become favoured assets for investors seeking diversification from mainstream markets”, according to PFC

How to Get Started

If your capital is is limited you can always start by sending photos to your favourite celebrities by mail to have  them signed. Celebrity mailing addresses are available at websites like  Startiger.com, and Stefan’s Autographs. If  your resources exceed the price of a stamp, start browsing reputable online  auctions and catalogues, study whose signatures are selling for what and  compare the prices against valuation books. Many experts advise against buying  from members of exclusive autograph societies who sell at fixed prices since items from these sellers tend to be overvalued

When choosing which  celebrities to invest in, autographs from dead people may be the best way to  ensure safety as their reputations are already cemented and supply of their  merchandise will only continue to decrease. The rarer the items, from  one-of-a-kind to five-of-a-kind collectibles, fetch the best result

When you’re ready to make a purchase, visit an auction or a dealer like Paul  Fraser Collectibles or Stanley Gibbons, where you can browse by category. Right now  on the Fraser site, a Marilyn Monroe Autographed Magazine Cut-Out is for sale for £9,950

Caveat Emptor

Millions of pounds in fraudulent memorabilia is sold each year. Don’t  necessarily trust an autograph’s certificate of authenticity. They can be, and are, easily forged. Go to an expert third party such as Paul Fraser (again!)  or PSA to have the signature authenticated

You should also be  aware of memorabilia signed with autopens, by proxy and with preprinted  signatures. While not technically fakes, these autographs are far less valuable

Good hunting!