Investors with an interest in modern art have been buying works by new artists, holding them for a while, and then selling at a profit. Buyers were speculating in modern paintings, glass and pottery sculptures. But the market has dropped. A painting by Hugh Scott-Davis that cost $25,000 in a gallery in 2013, sold in a private sale in 2014 for $100,000, and then sold again at auction in September 2016 for just $24,000 plus the premium ($30,000). The owner (who had purchased the work for $100,000) said he knew he would lose money, but the 76% loss was to avoid an even greater loss later. It also meant he would no longer need to pay insurance and storage, plus he would gain a tax loss. (Prices from artnews.com, 2016-09-20 and Bloomberg.com, 2016-09-19).

The collectibles market is a risky spot to invest too. Beanie Babies, Royal Doulton figurines, Christmas plates, Hummel figures, and even 18th-century Chippendale desks have had major drops in price in the last 15 years. Buy what you like or need to use to furnish your house. Enjoy the decorative and use value, plus the excitement and pleasure of collecting as your rewards.