Archived posting to the Leica Users Group, 2001/05/26
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]in my opinion, you should do it because you love it. it's like collecting cars or coins. while apparently rising prices may at first blush appear to be indicative of an "investment opportunity," consider that camera trading takes place under the following (interrelated) conditions: 1) wide bid-ask spreads - the price you'll receive for your equipemnt will be much lower than what you would pay for it. in the capital markets, you're typically talking a bid-ask spread of a few percent, and often far less than that. 2) cameras are not fungible instruments, age and condition differ markedly. in the capital markets, you buy or sell standard assets. 3) low transaction volume. you may get a good price, but not necessarily when you need it. in the capital markets, exchanges or market-makers stand ready to make bids or offers on securities. 4) small number of transactors, contributing to the above. 5) prices and other information are not disseminated in a complete, accurate or timely manner. 6) cameras has a high cost of carry, in that they must be given space, proper storage conditions or maintenance to best hold their value. 7) cameras provide no dividends or interest. (unless joy of ownership is counted! :-) ) your only potential profit is capital gains. one thing my camera buying has in common with financial investment is what warren buffet said: "the ideal holding period is forever!" - -rei