Benefits of Collecting

Jun 16, 2023 | The Realest

music memorabilia & the Benefits of Collecting

Music memorabilia has captivated fans for decades with its profound cultural and historical significance. Surprisingly, this asset class often remains overlooked by investors, despite recent events that have showcased the tremendous potential within the collectibles industry.

In this post, we’ll explore the benefits of diving into the world of music memorabilia, whether you’re an enthusiastic novice or a seasoned investor. From its potential as an alternative investment and store of value, to its pivotal role in safeguarding an artist’s legacy, let’s uncover some of the treasures in this compelling realm.

MUSIC MEMORABILIA AS AN INVESTMENT

In recent years, there has been a noticeable increase in the interest surrounding music memorabilia.

This rise in popularity can be attributed, in part, to the consistent appreciation of value that music memorabilia has demonstrated over time. While traditional investments like stocks and real estate undoubtedly have their merits, collectibles, particularly in the realm of music, establish a profound connection to something deeply personal and meaningful for their owner. Not only do these treasures hold sentimental value, but they also have the potential to appreciate financially as time goes by. As a unique and finite asset, investing in music memorabilia can provide a hedge against inflation. As time progresses, the rarity of these coveted items only increases, making them increasingly sought after by collectors and enthusiasts alike.

Elvis Presley playing guitar in black and white photo

Elvis’ 1942 Martin D-18 guitar — which he owned from 1954 to 1956 was sold for $1.32 million in 2016. The guitar was played by Presley during his early career, and it is considered to be one of the most iconic instruments in rock and roll history.

Bob Dylan’s original lyrics for “Like a Rolling Stone” were sold for $2.045 million in 2014 . The lyrics were written in pencil on four sheets of notebook paper, and they are considered to be one of the most important pieces of music manuscript in history.

Album cover art for "Like A Rolling Stone" by Bob Dylan

MUSIC MEMORABILIA AS PARTICIPATION IN AN ARTIST’S LEGACY

One of the most remarkable aspects of collecting music memorabilia is the opportunity it provides to actively partake in an artist’s enduring legacy. By owning a piece of an artist’s history, you become part of their story and contribute to preserving their influence for generations to come.

Imagine showcasing an autographed poster from a legendary concert or owning a wardrobe item worn during an iconic performance. These artifacts not only evoke memories but also allow you to share in the magic that made an artist’s music resonate with millions.

Black and white photo of Michael Jackson mid-performance

Michael Jackson’s iconic crystal glove, represents Jackson’s indelible mark on music and pop culture.

Owning a signed item from The Beatles is owning a piece of rock and roll history and can be a very powerful and emotional experience.

As these artists continue to create music and solidify their legacies, the demand for items associated with them can soar, subsequently driving up their value in the secondary market.

If you’re a fan of a musician who has been steadily building a following over the years and is now starting to gain mainstream recognition. You might consider investing in items related to that musician now, while they’re still relatively under the radar, with the hope that their success will continue to grow ultimately leading to an increase in the value of those items over time.

Of course, there’s always an inherent degree of risk involved in any investment, and the music industry is no exception. There’s no guarantee that an artist will continue to be successful, and even if they do, there’s no certainty that the items you collect will increase in value. Building a diverse collection that includes items from a variety of artists and genres can help mitigate the risk of any one item or artist falling short of expectations.

Fortunately, the market for music memorabilia is experiencing rapid growth, presenting numerous promising opportunities.

So, if you’re a music enthusiast seeking a means to invest your funds or simply looking to express your love for your favorite artists, delving into the world of music memorabilia is a great option.

With so many benefits to offer, there is no reason not to kick start your collection today.

Close-up of vintage guitar wood grain and strings

WHY NOW IS THE TIME TO START YOUR COLLECTION

It is never too late to begin your journey. Remember, today’s legends were once emerging artists too. While some collectors may focus on rare or vintage items, there’s a particularly rewarding aspect to consider: investing in memorabilia from musicians who are still alive and steadily paving their way towards legendary status.

Rock and Roll never forgets

Jun 14, 2023 | Altan X The Realest

Rock and roll vintage poster with guitar and musical notes

This is the first edition of a multi-part blog series produced in partnership with Altan Insights on the key events and factors shaping the modern music memorabilia market. Altan Insights provides data and quantitative analysis to help collectors and businesses navigate the emerging collectible asset markets.

The music hasn’t stopped in rock and roll memorabilia markets

Sold "Hot For Teacher" electric guitar with distinctive dots

In fact, you could argue we’re in the middle of a pretty epic guitar solo. It might not be the kind that makes Wayne Campbell and Garth Algar drop to their knees and shout “we’re not worthy!”, but there’s still music being made.

Back in early May, Sotheby’s conducted the massive $3.9 million sale of Eddie Van Halen’s guitar from the Hot For Teacher music video. Trophy asset sales are not at all uncommon across categories in 2023, so while this was a standout result, it didn’t necessarily say a lot about the rest of the music memorabilia market.

May’s large Music Icons event at Julien’s Auctions, though, provided a broader indicator. While headline numbers were down, a look beneath the surface suggests that despite missing a few notes, the market is still humming.

The event generated $4.9 million in total sales volume. That’s a far cry from 2022’s $13.7 million. The gap, though, isn’t as large as it seems at face value. For example, the 2022 event featured the $4.7 million Smells Like Teen Spirit Kurt Cobain guitar, as well as a massive consignment of memorabilia from Rush’s Alex Lifeson (more than $3.5 million in sales). Backing those out reduces the total to $5.4 million. There are episodic events and outliers in almost any auction, so completely discounting those unique sales is perhaps not appropriate, but it still hints at normalized sales totals that are holding up better than they seem in 2023.

Notably, the 2023 Music Icons total was up 6% over 2021’s tally of $4.6 million. There aren’t many collecting categories where that would be the case, given how red hot speculation was in the spring of 2021.

Some of the sales highlights from the event:

Nearly $1.7 million in guitar sales alone, led by Kurt Cobain’s smashed guitar from Nirvana’s “Nevermind” era. The guitar was estimated to sell for between $60,000 and $80,000, but ultimately fetched $596,900.

$955k in John Lennon memorabilia sales, including $676k consigned directly from Julian Lennon. The lots included Beatles Gold Records, handwritten lyrics, sketches, instruments, animation cels and more.

$279k in Michael Jackson memorabilia, consisting primarily of stage-worn clothing.

Kurt Cobain’s heavily smashed guitar on display

What types of items comprise these music memorabilia sales? If you look at the top 100 sales, here’s the breakdown:

31 awards or gold records
31 instruments or pieces of musical equipment
18 artist-worn or owned pieces of clothing or accessories
6 handwritten lyrics, documents, or sketches

2 original records
2 concert or album posters
10 miscellaneous items (how does one categorize John Lennon’s Honda Monkey Bike?!)

When we analyze some of the specific sales in greater depth, we get a better sense of how the market is evolving over time. While this event had a lot of fresh-to-market material, we can still find trends. Let’s take some repeat sales for example. These are items that have sold at Julien’s previously and returned to auction this past weekend.

Ringo Starr's drumsticks signed and displayed on surface

Back in 2015, a pair of drumsticks custom-made for Ringo Starr and used by the legend sold for $3,250. Those sticks returned eight years later to a vastly higher price of $22,100 (against an estimate of $2,000 – $4,000).
From the OG teenage sensation (The Beatles) to a newer edition (One Direction), an acoustic guitar believed to be Niall Horan’s very first used in lessons last sold in 2015 for $6,875. It nearly doubled in value, reaching a $12,700 price at this weekend’s event.
Elvis Presley’s 14K gold Crucifix ring notched a price of $3,200 at last year’s event. Whether that sale was consummated or not is unclear, but the ring was up for grabs again this year, and this time the price was much steeper at $9,100.

There are also data points that don’t reflect a precise repeat sale, but still give us a feel for price action.

Back in 2016, when Abbey Road Studio Two was under construction, 210 bricks were removed, cleaned, restored, and placed in a presentation box. Number 15/210 sold back in 2020 for $3,520. At the recent sale, number 16/210 was up for bidding, and with an estimate of $300-400, it sold for $11,700.
Olivia Newton John cleaned up at the American Music Awards in the mid 1970s. Back in 2019, the 1974 and 1975 awards for “Favorite Pop Female Vocalist” sold for $10,240 and $8,960 respectively. This weekend, the 1974 and 1975 awards for “Favorite Country Female Vocalist” sold for $13,000 and $15,875.
An Eddie Van Halen signed and stage-played 2004 Charvel sold for $114,300. Stage-used and signed Charvels have more commonly occupied the $40-60k range in recent years, so it appears there was a post-Sotheby’s sale bump.

Music memorabilia is not an emerging category, but it does seem it’s now beginning to enjoy a more proportionate share of interest and demand than it had in years past.

You’ll notice, though, that – Niall excluded – much of the action is concentrated firmly in Boomer territory, with some movement across the border into Gen X. If you look at the taop 100 sales, the music of all the artists featured remains quite popular for the most part. But, the popularity of only two individuals amongst the top 100 sales actually originated after the turn of the millennium: Niall Horan and Amy Winehouse. That’s it.

Or look at the various awards sold. Just two of them date to award shows that took place after the year 2000: VMAs for the Beastie Boys in 2005 and for Moby and Gwen Stefani in 2001. “Ch-check It Out” and “South Side” are great songs respectively, but you might not expect them to motivate younger bidders.

The concentration in the music of older and middle-aged generations is of course logical given the stage of life those generations are in, but it will be incumbent upon auction houses and marketplaces to reach younger fans and consumers to forge more active markets for “active” artists.

If and when they do, Niall’s first acoustic guitar might be heading in only One Direction: up.

Authentication vs Grading

Jun 6, 2023 | The Realest

Bold graphic text "TITLES" over dynamic monochrome pattern

Michael Jackson in iconic pose with black glove and hat

Whether you’re a fan who’s exploring the realm of collectibles, or a seasoned collector, it is important to understand that when it comes to memorabilia, two crucial aspects are usually considered: Authentication and Grading. Understanding why both are important and how they are different is a fundamental skill.

AUTHENTICATION

Authentication is the process of verifying the authenticity or genuineness of an item. In the music collectibles market, where counterfeit items are known to circulate and proliferate, it is vital to authenticate every piece you consider adding to your collection. It involves examining various aspects of the item, such as its physical characteristics, materials used, signatures, markings, and any accompanying documentation or provenance. The goal of authentication is to determine whether the item is indeed what it claims to be. Experts or third-party authentication services are typically involved in this process, utilizing their knowledge, and access to reference materials and databases to make an informed judgment or in most cases, a guess. In response to the numerous cases of fraudulent behavior, new authentication standards have been introduced that combine various layers of technology and human observation to create authentication processes that are nearly impossible to replicate.

Elvis Presley in classic black and white portrait

GRADING

Grading focuses on assessing the condition or quality of an item. Grading is often associated with collectibles like trading cards, coins, stamps, or comic books, where there are often a high number of the same item produced and therefore the item’s physical state significantly impacts its value and desirability. Graders evaluate various factors such as the item’s overall condition, potential damage, wear and tear, completeness, and any flaws or imperfections to assign them a grade (based on a standardized scale) that reflects their condition. Grading allows collectors to understand the condition of their memorabilia and aids in determining its value and desirability. While traditional authentication validates the provenance of an item to a certain level, grading provides an objective assessment of an item’s physical state regardless of its history. Both processes can provide valuable information to collectors and potential buyers, helping them make informed decisions about the value and legitimacy of what they own or what they are looking to purchase.

It’s worth noting that different types of memorabilia may have specific authentication and grading procedures associated with them, and as a collector you should avoid basing your authentication solely on opinions or estimates, which can be subjective and lack the necessary expertise. By establishing the item’s provenance and verifying its connection to a specific artist or event, legitimate authentication offers peace of mind that you own a genuine piece of [music] history that will maintain value.

The Realest is the first dedicated marketplace and authentication standard for music memorabilia. Sourcing items directly from artists and powered by cutting edge authentication technology and blockchain-based provenance, The Realest is making it easier and safer for fans and collectors to own a real piece of music history. Find out more on TheRealest.com

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