Why rare books, like Harry Potter first editions, are trending as investments

Rare books are having a moment in the spotlight. In the past year, major auction houses have seen record-breaking sales for first editions, landmark historical texts and medieval manuscripts, including the almost £2.25 million (HK$23.7 million) realised by Christie’s in July for the Clermont-Tonnerre Grail, one of the earliest documents narrating the legend of King Arthur and his search for the Holy Grail.

Collecting rare books isn’t exactly a modern pursuit – it can be traced back to the 15th century, when royalty, scholars and aristocracy began amassing classical works and illuminated manuscripts.

In modern times, the market has been primarily driven by wealthy educational institutions seeking to acquire prestigious titles and build auction-worthy catalogues. Now the industry is undergoing a shift as a new generation of collectors has come to the fore.

“What’s particularly noticeable is the number of younger collectors entering the market. A decade ago, rare books were often associated with older, established collectors. Today, we’re seeing buyers in their twenties and thirties who have grown up in a digital world and are discovering the appeal of owning something physical with history, craftsmanship and permanence,” explains Harrington.

Traditionally, first editions – the initial commercial printing of a title released by a publisher – are the most sought after. Their value is determined by several factors – in particular the item’s condition. For example, two copies of the same first edition can have vastly different values, depending on how well they have been maintained.

“Condition and quality can vary. If there’s something wrong with one page in that book, or if there’s been any restoration done, it will affect the price,” explains Lorence Johnston, founder of Lok Man Rare Books in Hong Kong.