Looking to Build a Solid Collection of "Investment Grade" Cards

[oldjudge]

If you are determined to invest in cards, let me give you a different take. Look at what other people are buying now, and stay away from these items. Chances are this is a hot area in the hobby and it may lose favor in the near future. Instead, study the card market and see what is genuinely rare, but possible out of favor. Ask yourself why it is out of favor. Was it once popular, now not so much, and maybe popular again in the future, or is it a rare card that is visually not appealing and thus may never be popular (strip cards for example)? As strictly an investor you have one advantage over collectors, you never "need" a card. You should only invest in cards that you think are mispriced relative to scarcity and condition. Finally, one big caveat, I am not in favor of "investing" in cards. They are not liquid and transactions costs can be very high. Invest in stocks, bonds, commodities--collect cards.

[Bocabirdman]

Originally Posted by oldjudge

If you are determined to invest in cards, let me give you a different take. Look at what other people are buying now, and stay away from these items. Chances are this is a hot area in the hobby and it may lose favor in the near future. Instead, study the card market and see what is genuinely rare, but possible out of favor. Ask yourself why it is out of favor. Was it once popular, now not so much, and maybe popular again in the future, or is it a rare card that is visually not appealing and thus may never be popular (strip cards for example)? As strictly an investor you have one advantage over collectors, you never "need" a card. You should only invest in cards that you think are mispriced relative to scarcity and condition. Finally, one big caveat, I am not in favor of "investing" in cards. They are not liquid and transactions costs can be very high. Invest in stocks, bonds, commodities--collect cards.

...and after about a decade you will be well-versed enough to make a well-informed investment and savy enough not to.

[terjung]

Originally Posted by Bocabirdman

...and after about a decade you will be well-versed enough to make a well-informed investment and savy enough not to.

So true!

[drc]

An example of what you can do is look at some more obscure, undervalued, limited in number Babe Ruth cards, but ones that you like-- then get a high grade example. There may be some obscure, rare issues that you can get for a good price, and those maybe more likely to go up in value that the more popular issues.

Duly note, I said pick a card that you like. I'm not suggesting you pick a butt-ugly card because it's obscure.

And it's safe to say Babe Ruth is going to popular with baseball card collectors 10, 20 and 50 years from now.

[Big Ben]

Originally Posted by oldjudge

If you are determined to invest in cards, let me give you a different take. Look at what other people are buying now, and stay away from these items. Chances are this is a hot area in the hobby and it may lose favor in the near future. Instead, study the card market and see what is genuinely rare, but possible out of favor. Ask yourself why it is out of favor. Was it once popular, now not so much, and maybe popular again in the future, or is it a rare card that is visually not appealing and thus may never be popular (strip cards for example)? As strictly an investor you have one advantage over collectors, you never "need" a card. You should only invest in cards that you think are mispriced relative to scarcity and condition. Finally, one big caveat, I am not in favor of "investing" in cards. They are not liquid and transactions costs can be very high. Invest in stocks, bonds, commodities--collect cards.

Great post! I very much agree. Invest in stocks, bonds, commodities and when it comes to cards, be contrarian collector.