Posted By:
davidcyclebackI am leary about items that have seen a big boom in price lately. I'm not saying I wouldn't invest in them, but would think twice. Early baseball card prices have had a big boom-- though, in their defence, collecting cards is hardly a fad and the early cards are relatively rare.
I also look not only to the potential upside versus the potential downside. If your T206 Cobb drops to 70 percent in value, that's not so bad-- especially if you're a collector who loves the cards. If your current rookie superstar investment breaks a leg before arraignment, you're in trouble.
A major reason I picked a Ty Cobb signed baseball as an example for a collector is I don't see it falling dramatically in price. There will be lots of people wanting a Cobb signed baseball in five or seven years. I think collectors are less concerned about whether their collection will double in value, than if it will halve or fraction in value.