One big question that arises often in the fossil industry (and fossil shark teeth in particular) is "Are fossils a good investment?". This is something we haven't directly addressed in a blog or article before and now is a great time to go ahead and answer.
Of course fossil shark teeth have value and sometimes very large value - that we know as we've been selling them for almost 30 years now. We've seen the market through highs and lows and have a fantastic grasp on overall values and trends. But let's start this by saying the most obvious thing - these amazing fossilized shark teeth should first and foremost be purchased for your enjoyment and the prehistorical wonder. These fossils are millions of years old and no two teeth are the same. Shark tooth collections often have no size limits like traditional collectables will. Why just have one megalodon tooth when the next one you see will be completely different? Different shape, size, color, location, weight, width, serrations, etc. etc. etc. Every single tooth is unique and wonderful in its own way and if you already have 100 megs then tooth number 101 may be completely different and equally amazing!
So, buying for your own personal reasons is the most important thing but what about fossils as a store of value or investment? We'll just go back to 1995 as that's about when we got into this and look at a 30 year trend. Having your money in the stock market over this time frame would have returned an average of roughly 9-10% per year. Let's face it, very few investments are going to beat that compounded return and I can't think of too many collectables out there that can make that claim. While stocks are safe they are certainly far from "sexy". You get no joy from owning a digital asset on a monthly statement. Collectables including fossil shark teeth give you the pleasure of owning, holding, and viewing. We don't know any fossil collectors who don't look at their collections all the time. They share them with friends and family, photograph them to share online, and genuinely have love and passion for their collections. We don't often see somebody just "get tired" of their collection and offer it up for sale - usually these are only sold off when a person is no longer young enough to enjoy them or have a major life event.
Since we started the business in 1997 the price of fossil shark teeth has increased considerably. Our best guess is that, on average, fossil shark teeth have increased in value at a rate of very roughly 5.5% per year compounded. There's a lot that goes into this number and we're just talking about the price of teeth in general based on retail sales. While not the 9-10% that stocks have returned, that's a really solid number and actually surprised us when we were compiling the figures. We've seen fossil shark tooth prices hold strong (and even increase) during recessions like the housing market bubble in 2006. Covid in particular was a very strange event where stocks plummeted before regaining and posting new gains. However the collectables market in general absolutely thrived and prices on many things (including fossil shark teeth) nearly doubled over the course of a year. This was a bizarre phenomenon where we struggled to obtain enough inventory and keep up with the rising costs of buying. Since this "market boom" there has been no downward pressure on prices and values/prices continue to grow to the time of this writing. We have also noted that values on higher end (more perfect) fossil shark teeth seem to increase more rapidly and at a larger rate than average quality. This is something we've seen across all collectables as the higher end pieces are usually more in demand with customers who are less impacted by economic downturns.
In summary fossils (fossil shark teeth in particular) have proven to be a great long term investment that you can hold, touch, and share. They've been surprisingly recession-proof and consistent over the course of our career. What will happen in the future is completely unknown but if something massive happens and the value of everything (stocks, crypto, money, collectables, etc. ) goes to zero.......it would sure be a lot cooler having a nice big meg to look at than nothing :)
Disclaimer
This article is not intended as or is a substitute for professional financial advice. We are not financial professionals and the information provided is not intended as any investment advice or recommendation. Please consult your financial planner, accountant, or tax attorney for advice regarding your personal situation.
Steven A Alter
Steve's Fossil Shark Teeth, Inc.
Steve's Fossil Shark Teeth, Inc.