What makes collecting and investing great?
Rise of Collectibles as Investments:
There is an increasing trend of people investing in collectibles, including trading cards. Certain cards from popular games have gained significant value over time.
TCG collecting
On this website we focus on the following TCG collectibles.
Pokémon, Dragon Ball Z and One Piece. These are my personal favourites and the ones I collect.
It started for me with boardgames and early video games. Then I got interested in TCG, first in Magic.
But Pokémon took over fast and my focus was on those cards. For me it was never about the game and mechanics of the cards but purely collecting.
Some cards were very rare to find and this is what also the interesting part of it.
The value over time of the certain cards/sets is unique for different reasons. More on this below.
Historical Investing Success Stories:
In specific instances rare trading cards have appreciated dramatically in value. For example like the Black Lotus card from Magic: The Gathering or the Charizard card from Pokémon.
Historical Card Prices
We all know for Pokémon the most iconic character is Charizard. Base set (1st Edition) is the most expensive Pokémon card. The Base Set especially have been historically highly sought after and have high prices. Other vintage sets are also quite valuable like Jungle, Fossil and Team Rocket.
More modern cards/sets are less valuable but definitely can contain high value cards. Like Full Art cards, limited editions or secret rares.
Factors Influencing Card Values:
The factors that contribute to the value of trading cards, such as card rarity, condition, edition, and demand within the gaming community.
What are some of the factors influencing the card value?
– Rarity
– Edition
– Condition
Investment vs. Speculation:
Differentiate between investing and speculation in trading cards. The importance of researching the market, understanding trends, and making informed decisions.
After a new set release the prices drop the first months. There can always be a reprint of a set which can influence the price of cards. Most out of print sets have gained more than 100% increase in value on average in the last 10 years. This is the price of a booster box, not individual cards.
However, as mentioned earlier if there is a reprint, these prices can drop fast and significant.
Past performance are no guarantee for future results.
Long-Term vs. Short-Term Investment:
Explore the pros and cons of both long-term and short-term investment strategies. Long-term investment may involve holding onto cards for years, while short-term strategies might involve buying and selling in response to market trends.
As mentioned in the previous section, the overall trend is up with collecting rare cards or out of print sets. Most sets have around 10-15 high value cards (above $10 on release). These prices fluctuate early on and go down at first because more people are pulling the new cards.
After 6 months/1 year the prices tend to stabilize and increase in value over time.
Diversification of Portfolio:
How trading cards can add diversity to an investment portfolio. Like any investment, diversification can help manage risk.
In my opinion collecting cards is a great addition as an investment.
I like diversification, it can help to manage risk. Not every asset has the same down- and uptrends.
Some assets are less volatile and less affected by macro trends.
Nostalgia and Emotional Value:
Nostalgia plays a role in the popularity of trading cards. Many investors are drawn to cards from their childhood games or favourite franchises.
Of course I was drawn to card games early on in life. This is what makes me want to collect even to this day. I like the combination of a hobby and investing.
Market Research and Due Diligence:
The importance of thorough research before making investment decisions. Resources for tracking card prices, market trends, and potential future releases.
Before investing it’s always a good idea to research the market. What are the market trends? What is the historic trend of the price of a certain card? Any potential future releases/reprints?
Potential Risks:
The potential risks of investing in trading cards, including market volatility, potential changes in game popularity, and the challenge of predicting future trends accurately.
As in previous sections there are many factors that can influence the price of a card.
Sometimes it’s better to cut the investment and take a loss. Perhaps use that money to reinvest in a more resilient card/item.
Storage and Preservation:
The significance of proper storage and preservation to maintain the value of trading cards. Factors like card condition and authenticity are crucial for long-term value.
There are many ways of protection your cards. I have some listed below.
Card sleeves
Toploaders
Binders
Card Case
Acryl Case (standard with card grading)
Community and Networking:
Being part of the trading card game community can provide insights, tips, and potential trading or selling opportunities.
Trading Card Games have huge communities and they keep growing. Many events are organized, these are great for sharing stories, trade cards, buy cards or just play the game.
Please check out my blogs, I will go more in depth in everything Pokémon and more TCG!
