Why you should invest in collectibles
10 Reasons you should consider investing in collectibles and Pokémon cards
Its important to invest some of our money into assets that appreciate over time and yield us larger benefits in the long-term. Whether that be stocks, index funds, real estate or… pokémon cards! Here I discuss 10 reasons why collectibles are a good investment, especially pokémon cards.
(I want to caveat this by saying this is not financial advice, simply my opinion. Investing in collectibles is risky and should not be done ahead of your needs)
Potential for high returns: Collecting cards can offer the potential for high returns on investment. Recent cards like the alternative art Umbreon have gone up by 157% in the last year. That’s a significant return compared to the classical stocks or bonds that people might invest in (this particular case is still a bad investment in my opinion, i’ll cover that in depth in next weeks newsletter). Certain rare or popular cards can increase significantly in value over time, however, most do not. It’s a risk, with many more variables, that can cause large rises and falls.
Tangible assets: Unlike stocks or other financial investments (like bitcoin), collecting cards provides investors with tangible assets that can be physically held and admired. Perhaps something that isn’t completely relevant for those who just want to invest, but I will say it is still quite nice to physically see your investment. I assume this is why people love collecting watches and paintings!
Diversification: If you’ve already got some basic investing in traditional assets done, and are still sitting on some cash - investing in collectible cards can be a way to diversify your investment portfolio beyond stocks, bonds, and real estate. Diversifying investments allows you better risk management, and puts you at less risk if one of your investments fails.
Pokémon is massive - pop culture relevance: Pokémon is nearly a $100 Billion business. I know kids now who still talk about pokémon, watch the anime, play the games and collect the cards. It is bigger than ever. Certain cards, such as those from popular sets or featuring famous athletes or pokémon, can hold cultural significance and maintain their relevance over time. Personally for me, if in the future I have significant funds to throw at something, it will be on cards - especially those that hold some nostalgic or emotional significance - and I know this holds true for others.
Online marketplaces: With the rise of online marketplaces, such as eBay or StockX, it is easier than ever to buy and sell collectible cards, making it a convenient and accessible investment option.
Low barrier to entry: Compared to other forms of investing, collecting cards has a relatively low barrier to entry. Watch a few YouTube videos, maybe open a few booster boxes and you will be up to speed pretty quickly. There are also plenty of opportunities to get into the market at a relatively low cost. Some of those can even yield the highest percentage return, as people flock to whats new and popular.
Community: Collecting cards can also provide access to a community of fellow collectors who share similar interests and passions. This is something you will rarely see in any other investment group. There’s only so much a group of people on discord can talk about bitcoin. I have personally had hundreds of personal conversations with people: buying, selling, trading etc. And have built a few relationships with some awesome people.
Flexibility: Collecting cards can be a flexible investment strategy, as collectors can choose to buy and sell cards as they see fit, based on their own financial goals and personal preferences. It is likely to be significantly easier and more convenient to sell a few cards on eBay or Facebook, compared to bonds or real estate for example.
Limited supply: This is tough to come by these days, but still holds through in the entirety of hobbies particularly those that are rare or have limited editions. Although we don’t know how much supply is out there or how much is produced, we can still see trends and speculate within reason. The older and rarer cards continue to hold value and increase due to their limited supply and continued demand.
Enjoyment and personal satisfaction: For many collectors, the enjoyment and personal satisfaction of owning a piece of history or a rare item is just as important as the potential for financial gain. Even though I started collecting cards again back in 2020 with the main goal to make money, I have quickly grown to enjoy cards and gain satisfaction from completing collection goals and acquiring rare cards.
