Hi Friends,
Recently, we've seen a trend with a lot of interest in collectibles coming from some new buyers who would not usually purchase Baseball Cards and Pokémon Cards, so it led us to do a little bit of digging.
What we found was quite interesting, and definitely makes a lot of sense, given the current market conditions, and the trepidation over the ultimate level of tariffs that we will be seeing over the next several months.
Of course, Baseball Cards and other collectibles are a great investment, however, they are not a guaranteed way of increasing your wealth. This is important to put out there before we go further.
There are a lot of great reasons to buy and invest in collectibles:
* They are a great way to diversify your investments, to go along with any stocks, bonds, mutual funds, etc. that you may already own.
* They are a "reach out and touch" investment (a tangible item) - a great investment for people who want to invest in a physical item.
* Collectibles bring a lot of enjoyment outside of being just a potential investment.
It's important, though, to keep in mind that when you are looking to sell a collectible, there is the potential for you to sit with that item for a while before it sells. Of course, that depends on the item and the demand, but also, on the condition, and whether it has been authenticated and/or graded, if applicable.
Furthermore, you need to consider any potential tax implications based on how long you have held the collectible before selling, so it is important to check with your tax professional regarding any of those considerations.
Jumping back to where we began, several non-conventional buyers have began to jump into the market, turning collectibles into viable assets.
A recent article in the New York Post ("Tariffs are driving investors to Pokémon and Mickey Mantle as trading cards gain credibility as domestic assets"), says that "Collectibles have emerged as a legitimate asset class: a $600 billion+ global industry, with trading cards alone valued at more than $15 billion as of 2024.".
The article goes on to say, "As tariffs begin driving up the cost of imported goods, consumers are increasingly turning toward domestic assets already here — resale markets, collectibles and trading cards are seeing a surge in demand as investors seek out alternatives beyond the traditional mix of stocks and bonds".
This is certainly the case with what we are seeing, and upon speaking with some of our newer "non-conventional" buyers, this is exactly what they have told us about why they are jumping into what is a new class of assets for their portfolios, and diversifying their portfolios with rookie cards, autos, graded cards, and more.
The overall market will always re-invent itself, and morph, based on changing market conditions, and this is certainly what seems to be happening right now. Another exciting era in the hobby begins!
Thank you, and have a great week!
Rob
CardboardandCoins.com
CardboardandCoins.com - From Baseball Cards to Wheat Cents, and everything in-between.
#BaseballCards #Collectibles #Pokemon #Tariffs #Investments #Portfolios
Baseball Cards, Collectibles, Pokemon, Tariffs, Investments, Portfolios
