THE world record for a first edition of William Shakespeare’s collected plays could be smashed in July when a copy goes under the hammer at Sotheby’s in London.
It is one of only about 250 surviving copies of the First Folio of plays published in 1623, seven years after the Bard’s death.
The volume, in pristine condition, is thought to have cost about 20 shillings (roughly £120 in today’s money) when new. But Sotheby’s expects the leather-bound tome, described as “the most important book in English literature”, to fetch between £2.5m and £3.5m on July 13. The current record auction price of £3m was set in 2001 at Christie’s in New York.
The sale comes at a time when dealers and auctioneers are reporting a growing interest in books as an investment. Once a niche for devoted collectors and the very wealthy, ordinary investors are now getting in on the act. Although rare gems like Shakespeare’s work fetch huge sums, you don’t need millions to get involved. Book lovers can pick up modern first editions for tens or hundreds of pounds.
This week’s Antiquarian Book Fair at London’s Olympia exhibition hall is a good place for potential investors to start their search. The fair, which runs from Thursday to Sunday, will be opened by Bob Geldof. However, this year’s real star will be a copy of Christopher Columbus’s account of his first voyage to the Americas, printed in 1493, which has a £500,000 price tag.
Buying and selling rare books has never been easier. Most specialist booksellers and auction houses now have their own internet sites which let you browse through their stock.
Rare books also appear frequently on Ebay and similar internet auction sites. But investing in books is not for the faint-hearted. Even by the standards of alternative investments, such as art, stamps, wine or coins, it is unusual and high-risk.
If you are a book lover, buying and selling rare and valuable books can be extremely rewarding. But, as with other collectibles, advisers do not recommend it simply as an investment.
Prices can be highly volatile, soaring on the back of a trend, only to slump again when collectors move on to something new.
“After it was announced that CS Lewis’s The Lion, the Witch and the Wardrobe was to be made into a film copies of the first edition were fetching £8,000 at auction,” said Roddy Newlands of Bloomsbury Auctions. “But it did not last and they have since halved in value to about £4,000.”
The internet has also introduced new dangers for the unwary, by making it easier for unscrupulous individuals and criminal gangs to sell fakes, often for large sums of money.
Writing on her own website JK Rowling, author of the Harry Potter books, said: “I have advised Ebay repeatedly, through my legal representative, that many of my signatures on their site appear to be fake.”
A spokesman for Ebay said it was working with Rowling’s agents to identify and remove fake items. It added that it relied on its users to help police the site and report their suspicions.
But Neil Blair of Christopher Little, the literary agency that acts for Rowling, said that fakes are still being sold to unsuspecting Potter fans and said that buyers should not be taken in by certificates of authenticity.
Established booksellers and auction houses take steps to ensure that books and signatures are what they claim to be. Investors and collectors who buy through a member of the Antiquarian Booksellers Association (ABA) are protected by a voluntary code of practice. Should a book or signature turn out not to be authentic, the dealer is required to provide a full refund.
But the cost of buying and selling via established dealers puts off some potential investors. Booksellers generally take a commission by offering a lower price to sellers than buyers. The margin between the two will vary depending on the saleability of the book, but can be as high as 40%.
Auction houses are also costly. Christie’s charges sellers commission of 15% on the first £3,000 of the hammer price — the price at which an item actually sells — and 10% on sales between £3,000 and £59,999.
Buyers face even steeper charges. Those making a purchase from a Christie’s auction in London must pay a 20% premium on the first £100,000 of the hammer price, and 12% thereafter.
It is always sensible to take specialist advice before buying. Members of the ABA are not allowed, under its code of practice, to promote books as investments. They introduced the rule after a number of scams in the 1980s left investors with heavy losses.
But its members are still prepared to examine books and advise customers on whether they are a good or bad buy. Booksellers will generally charge 5% to 10% commission for the service.
A “first edition, first state” copy of a book — the first print run of a published book — usually has most value. There is no standard way to help identify such books, because different publishers use different systems. Some have “First Edition” on the copyright page. Others use a number system. The website bookaway.com has a useful guide on what to look for.
Recently published first editions can be picked up in bookstores and on the internet. But simply buying a book is no guarantee of future riches.
“You can’t just walk into a shop and buy every first edition and expect them all to increase in value,” said Margaret Ford, head of the Christie’s books department. “Most will not increase in price in our lifetime, and even then it will depend on the reputation of the author.”
The rarer a book is, the greater the chance it will be collectible and valuable.
A first edition of Rowling’s first book, Harry Potter and the Philosopher’s Stone, fetched £20,000, which is incredible for a novel published in
1997. What made the difference, other than Rowling’s popularity, is that it had a print run of only 500 copies. An 18th or 19th century Bible, in contrast, is old but rarely worth much because so many were produced.
Condition is another crucial factor. The closer a book is to new the better. If the original edition came with one, a dust jacket adds a lot of value.
“A copy of the Hound of the Baskervilles by Arthur Conan Doyle could fetch £75,000 with a dust jacket,” said Adrian Harrington, a rare-book dealer. “Without, it would sell for between £3,000 and £5,000.”
An author’s signature will generally double the value of a book and a personal note from the author will make it even more collectible.
A copy of Black Beauty by Anna Sewell comes up for auction at Christie’s on Tuesday. It is expected to sell for £5,000 to £8,000 because it includes a dedication to the author’s mother. An ordinary first edition in good condition would achieve about £2,000.
Book-world fashions also have a big impact on price. At the moment, modern first editions from the last century are most popular with collectors.
Among 20th century authors, Harrington picks out Graham Greene, Ian Fleming and Patrick O’Brian as highly collectible and therefore likely to hold their value.
Children’s fantasy authors are also in fashion. One name that is being talked about as a star of the future is Steve Augarde.
A signed, inscribed copy of his first book, The Various, was on sale yesterday for £100 on Firsts-in-print.co.uk, an online bookseller that specialises in contemporary first editions.
But Ford said investors can get a better deal by seeking out books that are currently being overlooked. She believes unfashionable 19th century photography books would be worth adding to a collection.
It is important to ensure your books stay in good condition by keeping them in the right way. Books need to be protected against damp, dryness and excessive sunlight. Shelving books carefully so that they don’t get damaged is also essential.
You also need to check that your home insurance will protect your collection against fire and theft.
