Eyes on the Page

Collecting rare books is a highbrow passion that can also produce high-investment returns, writes Rupert Walker

Scarcity is a key factor that determines the value of any item that’s required for existence or desired for pleasure. Land and natural resources fall into the former category, and collectables such as classic cars and fine art into the latter. Rare books are certainly collected for pleasure, but they have an additional characteristic shared by postage stamps—as email is rendering traditional mail increasingly irrelevant, e-readers such as the Kindle are focusing our attention on the shift away from traditional media forms. “The book market is very strong today and was only marginally affected by the 2008 financial crisis. Rare books generally don’t fall in value and, if in top condition, they can average annual returns of 10 to 15 per cent over 10 to 15 years,” says Max Hasler, a book department executive at Dreweatts & Bloomsbury Auctions in London. “But you must buy the best copies—if they’re cheap, then there’s a good reason.” To begin with, the edition of the book must be rare. It should also be important, in excellent condition and possibly have an interesting provenance. Books from Napoleon’s library command a premium of 10 to 15 times, for instance, according to Cassandra Hatton, a senior specialist of fine books and manuscripts at Bonhams in New York. When a book has something special that sets it apart from other editions, it also adds to the value. For example, first editions of F Scott Fitzgerald’s The Great Gatsby without a dust jacket fetch anywhere from US$3,000