Investing in rare books and manuscripts

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By Elliot Raphaelson
Posted on May 29, 2024

If you are a bibliophile, you may want to consider collecting rare books and manuscripts.

The markets for rare books and manuscripts are currently very active. For example, in 2022, book and paper auction sales totaled $1.06 billion, according to Rare Books Hub.

I’ll explain some issues to consider if you are interested in investing in rare books and papers.

One advantage of investing in this field is diversification. As you know, the values of equities, bonds and cryptocurrencies can be very volatile. Investment in books is likely to be more stable.

Where to start

A good first step is to visit a variety of antiquarian bookstores, book fairs, reputable dealers and experts in the field.

When you visit any of these, ask the person how he or she got into the business, what specific areas he/she is most interested in, and how he/she determines what segments of the market are likely to be the most promising in the future.

If you are interested in rare books as an investor, this is an area in which you should be taking a long-term approach.

If you are the type of investor who is fascinated with short-term trading, and buying and selling stocks with quick turnovers, rare books are not the type of investment you are likely to do well with.

Determining value

Experts in the field are likely to tell you that the most important factors determining value are the importance of the author, the rarity of the book (how many were originally printed), whether it is a first edition or inscribed, the book’s condition, provenance (i.e., its record of ownership), and whether the book is considered among the author’s best work.

Regarding condition, if the book is not in good condition, serious collectors will not be interested. The book will be more valuable if there is an undamaged dust jacket, there are no stains or signs of mildew, and the pages are not torn and do not seem worn.

Provenance is very important. This is defined as the recorded history of ownership and custody of the book. Naturally, if the owner of the book had a close relationship with the author, it is very important. The value will be much greater when provenance is authenticated.

Best sources and resources

You can become educated in this field by reading articles published by the Antiquarian Booksellers’ Association and the Antiquarian Booksellers’ Association of America. You can also contact them to determine if there are any upcoming seminars or talks, and ask to be placed on their mailing lists.

You can contact auction houses that specialize in this field, such as Bonhams and Christies, to get on their mailing lists for subsequent auctions. Other sources for online auctions are AbeBooks and Biblio. Contact them for information regarding upcoming auctions.

A safe way to purchase books is to use a dealer who has been in the field for many years and guarantees authenticity.

Other sources that may be cost-effective would be estate sales, community garage sales and thrift stores. You can contact local companies that conduct estate sales in your area to be placed on their mailing lists. In addition to finding possibly valuable books, you are likely to find quality furnishings and artworks at reasonable prices.

Not without risk

If you plan to buy rare books or manuscripts as investments, beware of these risks:

—The market for rare books is not very liquid.

—The rare books market is relatively small in comparison to other investments, whether you are buying or selling.

—The maintenance costs are high if you have a large collection. Preserving the good condition of books requires proper storage and maintenance. Obtain an estimate of costs before you acquire a large collection.

Bottom line: Investing in rare books can be a rewarding and exciting experience, especially if you are interested in literature and history.

There is potential for financial gains, but you must understand the financial risks, be willing to do the required research and develop proper relationships.

Elliot Raphaelson welcomes your questions and comments at raphelliot@gmail.com.