The Beatles Memorabilia Memorabilia Market Update

Market Update:
The Beatles Memorabilia
Autographs •
Personal memorabilia
•
Handwritten lyrics
20 March 2012
Background:
Recommendation:
We will never see the like of the Beatles again. Producing mass hysteria wherever they went, the Fab Four were pioneers of pop music.
STRONG BUY
Synonymous with the 60s, they developed from rockers in the early
part of the decade to boundary-pushing experimentalists and back
again. Each album is a sign of the times.
Today, the names and faces of John, Paul, George and Ringo are
instantly recognisable the world over and their music is as loved as
ever.
What’s new?
John Lennon’s handwritten lyrics to A Day in The Life made $1.2m
at Sotheby’s in June 2010, an increase of 71.4% on their $700,000
high-end estimate.
Key changes:
•
14.33% pa
The Beatles signed photos 2000-2011
•
$1.2m
Paid in 2010 for Lennon’s handwritten
lyrics to ‘A Day in the Life’
•
New Beatles Museum
Argentinian museum set to bring the
Beatles to South America
Performance of The Beatles signed
photos between 2000-2011
Lennon’s porcelain toilet from his house in Berkshire, UK, sold for
£9,500 ($14,780) at a UK auction in August 2010, 850% up on its
£1,000 pre-sale high estimate.
A jacket worn by Lennon for a Life magazine photo shoot in 1966
sold for $240,000 at a US auction in December 2010, 20% above its
$200,000 valuation.
Source: PFC40 Autograph Index
Mike Mitchell’s candid photographs of the Beatles, unseen since
1964, sold for $362,000 at Christie’s New York in July 2011.
A letter written by Paul McCartney in 1960 to a prospective drummer sold for £34,850 ($55,570) in November 2011, 287.2% above its
£9,000 high estimate.
Lennon’s “Bed Peace” artwork from his and Yoko Ono’s 1969 antiwar “Bed-In” brought £97,250 ($154,000) at Christie’s in November
2011.
The Paul Fraser Collectibles View:
We continue to be highly impressed by the strong global sales of
Page 1 • The Beatles Memorabilia Market Update • 20 March 2012
Adrian Roose (Analyst)
+ 44 (0) 117 933 9503
[email protected]
www.paulfrasercollectibles.com
Market Update:
Beatles memorabilia.
The recent auction results are on the back of a sustained period of rising prices for Fab Four collectibles. In 2006 a copy of the US release
Meet the Beatles, signed by all four members, sold for $115,000 – making it the world’s most expensive Beatles signed album.
The value of signed photos containing all four Beatles signatures has
soared from £5,500 ($8,770) in 2000 to £24,000 ($38,270) today, according to the PFC 40 Autograph Index – a rise of 14.33% pa.
These figures indicate that high demand for Beatles memorabilia is not
a new occurrence. Allied with major celebrations in 2012, which we
anticipate will raise enthusiasm for Beatles memorabilia still higher, we
rate Beatles memorabilia as a STRONG BUY.
Demographics behind the market:
The Beatles have achieved 30 top 10s in the UK and sold 248.8m certified records around the world, more than any other group or artist.
Uncertified sales are estimated at above 1bn.
In the week following the launch of Beatles tracks on iTunes in November 2010, more than 450,000 Fab Four albums and 2m songs were
downloaded.
Liverpool attracts almost 1 million Beatles tourists each year.
The Beatles Story museum in Liverpool contains a large amount of Beatles memorabilia and is hugely popular – attracting a large number of
visitors each year. It noted a 60% rise in Chinese visitors in 2010.
The Beatles Autographs
on Postcard Photograph
FOR SALE: £9,950
There are also Beatles museums in Hamburg, Germany (where the
Beatles had a residency in their early years), and Buenos Aires. The
Argentinian museum opened in 2011, and contains more than 8,000
artefacts, demonstrating the global interest in the Fab Four.
Market Performance Catalyst:
2012 will mark the 50th anniversary of the formation of the Beatles’
most familiar line-up, with Ringo on drums. A year of events will include the August 18 celebration of Ringo’s debut in 1962, while the
next night will mark the anniversary of the Beatles’ first appearance
at The Cavern. The Royal Liverpool Philharmonic Orchestra will also
be performing Beatles songs across two nights.
A large number of bands will descend on Liverpool for an extra- special staging of the annual International Beatles Week, while a Love
Me Do Weekend will occur in the city in October to celebrate the 50th
Page 2 • The Beatles Memorabilia Market Update • 20 March 2012
For further reports in this series please email
[email protected]
www.paulfrasercollectibles.com
Market Update:
anniversary of the band’s first single.
18 June 2012 also marks Paul McCartney’s 70th birthday. Rumours
suggest that he may quit touring when he reaches the milestone. The
birthday will receive considerable media attention.
The 50th anniversary of the Beatles’ first number one, Please Please
Me, on 22 February 2013, will also receive significant coverage.
Films and documentaries are continually being released regarding the
Beatles, most recently 2011’s George Harrison: Living In The Material
World. November 2012 will see the debut in Liverpool of a new one
man play regarding Beatles manager Brian Epstein.
These factors will all help boost the profile of the Beatles and their
memorabilia still further.
Summary:
Demand for Beatles memorabilia remains strong. We have seen:
•
•
Signed photos up 14.33% pa since 2000
John Lennon’s handwritten lyrics to A Day in The Life sell
for $1.2m in 2010
$1.2m
Paid for Lennon’s handwritten
lyrics to ‘A Day In The Life’ in 2010
Interest in the Beatles and demand for their memorabilia shows no
sign of abating. We anticipate prices will continue to rise both over
the short and long-term, and recommend that buyers enter the market now to take advantage of future price rises.
Key reasons to invest:
• The current low interest environment represents a real
opportunity to build a valuable collection for long term value
• Many alternative investments are classified as ‘wasting assets’
and do not come into inheritance or Capital Gains Tax
calculations
• Unique collectibles have historically been considered ‘safe
havens’ and have a low correlation with traditional financial
investments
• World record prices are being achieved despite the recession
• There are estimated to be 200m serious collectors worldwide underpinning prices
• The population of the BRIC countries is expected to double
Page 3 • The Beatles Memorabilia Market Update • 20 March 2012
www.paulfrasercollectibles.com
Market Update:
in the next 40 years, adding significantly to the number of
collectors
• The Baby Boomer generation is making its way through the
system and is now responsible for 80% of the world’s wealth
• Baby Boomers are living longer than previous generations,
with a higher level of disposable income, and with time on
their hands to pursue collecting in a serious way
• Many Institutional Funds have been created in collectibles
with many more waiting in the wings. These funds will add
significantly to the pressure on prices and to a shortage of
unique pieces on the market
• Collectibles as part of your overall portfolio give you greater
control over allocating and preserving your wealth, and the
ability to manage the process yourself, giving you confidence
where it has been lost in the bigger financial product areas
KEY FACTS:
•
14.33% pa growth of Beatles
signed photos between 2000-11
•
Growing middle class worldwide with disposable income
•
Musical legacy
•
Global Icons
About Paul Fraser Collectibles:
Paul Fraser Collectibles is recognised as one of the world’s leading
boutique providers of investment grade collectibles.
Our company specialises in historical manuscripts, autographs, memorabilia, rare coins, postage stamps, art, first edition books, classic
cars, fine wine and military medals.
We also offer a unique, free worldwide news service with subscribers
in 212 countries, including a loyal following of Financial Advisers and
Wealth Managers.
Paul Fraser Collectibles also boasts an expert panel, with more than
250 years’ experience and $750m of sales to its name.
Our current inventory includes Beatles autographs, Henry VIII signed
documents and an original Declaration of Independence.
Many items qualify for our unique 120% guarantee.
For full details on our services, and for other free reports in this
series, please contact us at:
[email protected]
+44 (0) 117 933 9503
This document is non-independent investment research and a marketing communication.
Page 4 • The Beatles Memorabilia Market Update • 20 March 2012
For further reports in this series please email
www.paulfrasercollectibles.com
[email protected]