A collectible market index is a tool used by collectors and investors to track values of collectibles against collectors market from a specific date, calculated in form of Index.
This kind of approach was adopted in the multiple indices produced by Salomon Brothers,[1] and the Market Bradex of The Bradford Exchange.
They can make a significant difference to whether an investment is worthwhile even if the market index shows a rising trend.
[3] A collectible market index can be constructed by combining the indices of a number of individual items.
The volatility of the individual prices is assumed to follow a diffusion process with a log-normal distribution.