The trend for collecting Formula 1 memorabilia has accelerated in recent years, but what’s driving the market and what should you focus on? We look at the best items to buy both from a collecting, and investment viewpoint.
In an era of low interest rates, and money printing, after filling up their pension pots and ISA’s, investors look for alternative homes for their wealth. Enter the era of the super-collector. From fine wines laid down in vineyards around the world, to rare whiskies, watches, rums, and antiques.
Stretch that concept just a little further and it’s easy to understand the boom in rare sports memorabilia that sees no sign of abating. Whether it’s a worn Manchester United shirt, an old England trophy or a Niki Lauda helmet, anything is fair game, with the highest prices reserved for the most sought after items.
The rarest Formula 1 items are of course the cars themselves, with Sotheby’s selling Lewis Hamilton’s winning McLaren from the 2010 Turkish Grand Prix for £4.8m ($6.1m). This was second only to Schumacher’s 2001 Ferrari which sold in 2017 for an astonishing £5.5m (£7m). The market is, “hot, but driven”, as Peter Haynes, of RM Sotheby’s said, “by which of the drivers has had their fingerprints on that item.”
That statement really defines the true essence of F1 Memorabilia collecting. It’s the connection which is most important for collectors. We all have our favourite driver or moment in history, maybe Verstappen breaking the record for the most consecutive race wins in Monza is yours.
If you follow and witness these momentous events, having something that makes a connection is a magical thing. It can be a helmet, a suit or simply an autograph grabbed in person trackside, where the provenance is 100% guaranteed – your little bit of sporting history encapsulated in a single item.
If you prefer to follow from the comfort of your own home then there are other ways to get involved. Maybe spending millions on a track car is out of reach, but it could see you shopping online or at auction for your own bit of memorabilia.
Of course, that rare piece of Formula 1 memorabilia is only worth as much as anyone else is prepared to pay, but there has been an increase in the selling prices of the best pieces in recent years, with signed shirts from the biggest stars going for thousands of pounds.
Signed and framed Verstappen, Schumacher and Hamilton shirts go for between £2,000 and £4,000 depending on the driver and the occasion, and race-worn helmets can go for considerably more. Our advice is to always buy the best, as it’s those items which are not only going to retain their value but increase in price in the future.
We spoke with Peter Johnson at the online sports memorabilia company, Firma Stella. “Not everyone can afford the most expensive items, so if you are a fan, and want to get on the ladder, start small” he said. “There are signed photographs of Valtteri Bottas or Jacky Ickx that can be picked up for under £100. Then if you’re feeling a little more adventurous you can collect signed caps, suits, and shirts further down the line.
“Most collectors know how to pound-cost-average, learning to spread their buys out over an extended period. It’s quite common with financial assets and means you don’t have to time the market. Dipping in when you can afford it means you can build up a great collection without breaking the bank. You can then trade out of the less important items, by selling them on to buy what you really want.
“Also, there are items coming onto the market all the time, so sensibly investing over a longer period means you have the opportunity to time your buys. A word of advice though – be careful shopping at the cheaper online auctions. There are fakes around, so make sure you can establish provenance, either through signing proof, or a numbered certificate of origin.”
Whatever you choose to do, when a market is rising, the best items always float to the top. So buy the best if you want to protect your investment. Rare items pop up occasionally, you see them on Antiques Roadshow, found at car boot sales or in parent’s or grandparents’ lofts, but as these are million to one shots, don’t bank on stumbling across that lost Fangio trophy any time soon..!
