Militaria – The investment you never thought of
Militaria: The investment you never thought…
Most informed investors are aware of the fact that “collectibles” have always been a good hedge against inflation and have proven to be a good investment with respect to capital gains. When they think of collectibles, the usual antiques, stamps, coins, works of art, etc. easily come to mind. However, very few think of “militaria”.
What is the military? It’s not even on my Webster, so I’ll define it myself. It is basically any type of military or paramilitary collectible. This can range from weapons, uniforms, medals, badges, badges, field gear, etc. If it is of military origin and people collect it, it is militaria.
There is someone out there who collects anything you can think of. If you search hard enough, I’m sure you’ll find someone who collects and wants to buy Argentinian Army combat boots. However, I don’t think they are a very good investment…
The most popular areas or countries for collectors are the United States, Great Britain, France, Japan, and Germany. While interested collectors can be found in every country and time period, perhaps the most popular period is World War II. Since this article is about investing, I will focus on the area that has proven to be the best long-term investment. Fortunately, this is the area I have been collecting for over 35 years… the Germany of the Third Reich.
Even before the shooting ceased in Europe, soldiers were “liberating” memories of German prisoners and outside the battlefields. Before long, brisk commerce developed between the soldiers as they traded items back and forth, not really knowing what they had or what they were doing, and basing their exchanges on the purely personal appeal of an item. For quite a few years after the war, these memorabilia were sought after by some “hardcore” collectors. They appreciated the historical significance and artistic qualities of the relics. Yes, a “Nazi” officer’s dress uniform can look magnificent!
It was in the 1960s that the hobby really “took off”. What contributed most to its popularity was that it was during this time that reference material became available. Before that, very little information was available to collectors. Reference books meant that a piece could be identified exactly what it was. The “old German jacket” was now a Panzer captain’s parade tunic” and the “swastika pin” was now an NSDAP membership pin in gold.
Now that collectors had an idea of what they really had, they were able to start putting realistic values on their items. No one would trade an Iron Cross Second Class (millions were made) for a rare army general’s dress dagger anymore. The fans were organizing.
In the 1960s, there were quite a few “dealers” buying and selling German servicemen on a part-time or, in some cases, full-time basis. The interest was increasing as more and more people (mostly men) realized how fascinating this hobby was. As interest increased, demand increased, and as demand increased, prices increased. There was a steady rise in prices for the next 30 years.
A full history of the hobby is beyond the scope of this article, so I’ll skip ahead. It’s 2007 and the prices demanded by the German military have skyrocketed! I would estimate that in the last 5 years most of the German military have increased in value by 500% and in some cases even more. Still, collectors can’t see enough and prices keep going up and up with no end in sight. Some areas of the hobby have always been more popular than others. Among these are the daggers, of which there are more varieties and variations than you can imagine, and the SS. I know; the evil SS! Let’s face it, the bad guys are always more interesting than the good guys. After all, which would you rather have, the outfit Luke Skywalker wears or the one Darth Vader wears?
So what does this mean for you as a potential investor? It could mean big profits in the long run. A rare medal, dagger, or uniform bought for $5000 today could be worth $25,000 in a few years. That is, of course, if things continue as they are. Unlike the stock market, German militaria “never” goes down in value. I base it on many years in the hobby and personal experience. In the worst case, the increase will slow down for a while, but prices will always continue to rise.
I’m not suggesting you run out and buy some “Nazi stuff” at the local flea market. On the contrary, caution is needed in this, as in all investments. There are some pitfalls for the “newbie” in our hobby.
Unfortunately, as the values of collectibles have increased, so has the quantity and quality of counterfeit or reproduction items. Spending a lot of money on one of these as an investment could prove disastrous. Be careful! Here are some suggestions for an investor with limited knowledge of our hobby.
1. Buy quality. Do not buy parts that are in poor condition. And don’t buy low-quality parts. It would be better to buy a really good item than a bunch of junk.
2. Make your purchase through a reputable dealer. This will require some homework on your part, but it will pay off in the long run. The internet is full of dealers, some good and some not so good. Review them before dealing with them. Another place to find dealers is at “military shows” and gun shows. There are also several auctions on the Internet. Again, be careful who you deal with.
3. You may want to hire an experienced collector to act as a consultant. Make sure it’s someone who doesn’t have a financial interest in your potential purchase.
4. Be prepared to hold onto your investment for a while. Don’t expect to buy it one day and sell it the next for a profit.
I can’t guarantee that you’ll make a killing by investing in the Third Reich’s army… no one can. However, if you buy quality pieces at a fair price and put them away for a while, you’ll do very well!
This article was written to familiarize potential investors and collectors with the hobby of collecting German militaria. The author does not believe in or support the ideals represented by these collectibles.