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The Multi-Million Dollar Sport Card Investments - YouTube
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once a school yard crazed now six-figure
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investments retail traders have
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increasingly taken an interest in
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diversified assets as they try to find
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new unique ways to make money and no
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we're not talking about cryptocurrencies
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shoppers at a brookfield target were
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forced to run and hide after a fight
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this morning in the parking lot police
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say it all started with a disagreement
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over trading cards
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some of the most valued cards now fetch
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millions while others offer better
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returns than some major stock indices
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what's behind the card come back
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for decades stocks bonds and foreign
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exchange have been the predominant
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investment vehicle for investors largely
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because they have been the most
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transparent and liquid alternative
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assets such as real estate and venture
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capital can offer high yields and
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uncorrelated returns against the stock
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market but they're not as broadly
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accessible to the general public as
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they're more opaque and illiquid sports
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cards have been even less accepted as a
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mainstream investment vehicle despite
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the fact that they have proven time and
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time again to be a store of value and
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generate uncorrelated returns against
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the broader public markets since the
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financial crisis in 2008 there has been
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a steady rise in exotic investments
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those that break away from traditional
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assets and since the pandemic started
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they have literally exploded from nfts
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to sneakers investors are turning
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collectibles into cash i mean serious
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cash and the latest must have assets for
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investors is trading cards trading cards
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are currently trading hands for millions
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of dollars and could be worth much more
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those three inch pieces of cards that
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you may have collected as a child could
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be worth a small fortune so should you
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dig out your old trading cards or
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consider building a new collection let's
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find out welcome to financial interest
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where you will learn everything you need
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to know about money and investing please
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like and subscribe if you enjoy the
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video
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the original trade cards were
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advertising cards that were packaged
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with cigarettes for the purpose of
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stiffening the packaging people would
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often trade with each other to obtain a
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complete set hence the origin of the
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name and this is how the concept of
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collecting cards was born in the 1930s
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companies began to print biographies on
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baseball cards and they came with packs
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of bubblegum in 1952 tops began
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producing the trading cards as we know
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today the original set which contains
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the rookie card of mickey mantle is
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among the most valuable of all time
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in the 1980s sports cards started being
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viewed as valuable collectible items the
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monetary worth of early cards many of
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which have been tossed away by mothers
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of college kids or have been forgotten
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in the pockets of jeans and been washed
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away began to increase as trading cards
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collecting experience a surge in
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popularity companies produced more cards
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to meet the demand
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as people began to regret the loss of
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their now valuable childhood cards more
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people started saving their collections
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in the hope of seeing an increase in
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value the overproduction of cards paired
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with an interest in preserving them led
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to most cars from the 1980s and 1990s
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being pretty much worthless today
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companies learn from their mistakes and
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today they control the volume of cards
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produced to create a sense of scarcity
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and drive up the value
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the 1990s saw the introduction of
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something entirely new the trading card
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game in 1993 the wizard of the coast
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released the first and most enduring
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trading card game magic the gathering
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also born in the 90s was the beloved
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pokemon cards the popularity of pokemon
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cards has soared in recent years and
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they are currently the most in demand
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trading cards out there
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spending on sports cards began to
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increase again after the 2008 financial
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crisis as people looked for alternative
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places to invest their money the
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scarcity and popularity of a few trading
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cards is one thing but the sudden
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popularity of trading cards as an
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alternative investment is something else
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entirely like many things in our lives
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as of late the pandemic is to blame for
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the trading card renaissance it's a
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simple two-step cause and effect first
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of all the pandemic pressed pulls on
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live sports without access to live games
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fans restored to nostalgia instead
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raiding their basements for their long
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neglected cards and secondly the
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pandemic trapped everyone at home only
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to rely on streaming services for
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entertainment it was a convenient timing
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for nostalgic sports fans who had the
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last dance a documentary about michael
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jordan queued up on espn while starving
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for live sports the next thing you know
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sports fans launched an unprecedented
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interest in trading cards complete with
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celebrity endorsement and wall street
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money
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trading cards have the most value when
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they're officially graded or ranked on
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their condition with one being poor and
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10 being gem mint the most popular
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grading services are provided by beckett
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and psa during the lockdown there were
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millions of more submissions for grading
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services than usual the increased demand
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led psa to temporarily hike up its
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prices to keep things under control the
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huge interest in collecting pokemon
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cards has caused many stores to run out
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of them target and walmart have stopped
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carrying the cards for a while after a
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fight erupted in the parking lot over
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pokemon cards another driver of interest
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in collectibles is a live streaming of
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case breaking the trend sometimes
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involves celebrities live streaming the
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opening up of a box of cards the most
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famous one being logan paul's pokemon
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unboxing with two live streams totaling
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over 20 million views on youtube
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also growing in popularity is the
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emergence of trading card influencers
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youtubers such as leon hart pocarev and
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randolph pokemon are posting videos of
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them opening packs of pokemon cards and
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sharing their finds with their followers
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collectors seem to enjoy the thrill of
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seeing what an unopened pack of cards
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has inside
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celebrities are also in on the action
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eager to capitalize on the booming
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market
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high profile investors that include mark
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cuban actor mark wahlberg and athletes
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like kevin durant and dwyane wade have
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recently invested in golden auctions an
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existing online auction house
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specializing in trading cards and other
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sports memorabilia which recently raised
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40 million dollars
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when it comes to buying and selling
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trading cards ebay is the top
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destination
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their 2021 state of trading cards report
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gives us a good overview of the sector
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the sales of trading cards have
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increased by 142 percent in 2020. during
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a year when most people were confined to
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their homes more than 4 million trading
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cards were sold compared to 2019 pokemon
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cards saw a huge increase in sale
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increased by 574
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from 2019 to 2020.
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anyone who remembers collecting cards
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will also remember the highly desired
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charizard card
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back then owning the shiny card would
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have made you very popular at school
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owning one now could buy you a house
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today in 2020 an ultra rare mint
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condition charizard was sold for 350 000
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the seller bought the cart in 2009 for
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700
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that's an increase in value of nearly 50
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000
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in just over a decade
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dallas mavericks star luca doncic set a
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record in february last year
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but it wasn't for his moves on the court
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instead his autographed nba rookie
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trading card was sold for 4.6 million
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making it the most expensive basketball
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card ever sold
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just a month prior in 1952 mickey mental
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card became the highest selling sports
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cards ever at 5.2 million
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in april a tom brady rookie card sold
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for just over 2.25 million a record sale
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for an nfl trading card
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just weeks later an ultra rare rookie
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card of nba megastar lebron james sold
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for 5.2 million breaking luca's record
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and tying with mickey mento
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as of october a whopping 13 sports cards
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had been sold for over a million the
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current pack leader honest wagner card
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sold for 6.6 million many of these cards
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turned a multi-million dollar profit for
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the sellers who had purchased them
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several years ago
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the industry tracker market decipher
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estimates the collectible market will
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expand to 522 billion by 2028 from the
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370 billion today
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according to merit hummer a partner at
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bain capital ventures there are three
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main factors driving the interest in
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trading cards firstly we have
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significant excess capital from
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government stimulus programs some of
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which is deployed as an investment
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capital into collectibles and other
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asset classes
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secondly the pandemic induced boredom is
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driving people onto their phones for
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entertainment and lastly a search for
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yield is driving people to invest in
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more speculative asset classes that
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generate attractive investment returns
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the reason why trading cards are selling
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for such large sums of money is pretty
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straightforward it's simple supply and
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demand
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right now these collector items are in
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high demand but the supply is limited
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there may only be 100 or so of a
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particular card in the world and add the
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state of the card into the mix and
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finding one in min condition reduces
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that number even further
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[Music]
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tom brady might be one of the most
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valuable athletes of all time but that
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doesn't mean that every card of his
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would go for a top dollar
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a rookie brady card was sold for three
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million dollars in june 2021
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but you can also find a brady card on
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ebay selling for five dollars
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so what sets valuable cards apart from
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the rest
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there are five important factors to
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watch out for
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which are condition rarity rookie cards
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brand special features and eye appeal
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trading cards are graded according to a
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10 point scale mint condition cards with
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psa 9 or 10 will pull in the most cash
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but they will also cost you a pretty
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penny to grade them you can also buy an
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ungraded card you believe to be in mint
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condition and pay to get it graded by
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one of the authenticators which will
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likely increase its value
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if you have taken economics 101 you know
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the law of supply and demand if a sports
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card is popular and rare either because
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it's old or production was limited it
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will go for a top dollar on the other
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hand if the card was over manufactured
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it would probably not be worth as much
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no matter how popular the person on the
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card is
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rookie cards are the holy grail of
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sports cards collecting and have been
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for a long time
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just because a card says rookie on it
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doesn't mean it's a rookie card often a
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rookie card will be from a player's
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rookie season you will have to pay more
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for a player's rookie card though so
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another strategy for finding undervalued
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cards is to go for the players first or
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second season but not their rookie card
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the three big brands when it comes to
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trading cards are tops panini and upper
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deck tops has been around the longest
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and dominates the older classic sports
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as well as current basketball cards
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panini takes the cake in many other
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sports particularly football basketball
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and soccer
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while panini's baseball and hockey carts
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are unlicensed they can also bring in
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some serious though finally upper deck
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is the go-to for hockey cards
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some cards include bonus features like
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autographs or pieces of the game worn
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jersey these extras will often increase
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the value of the card other features
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that increase the eye appeal of the card
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from parallel colors that match the
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player's jersey to holograms can also
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improve value
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it's not just physical cards in february
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last year a highlight clip known as
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moment showing a lebron james dunk was
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sold for more than two hundred thousand
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dollars the sports car trading boom has
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officially extended to the virtual world
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even though the movements can be found
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online for free collectors are still
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lining up to shell out hundreds or even
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thousands of dollars for the bragging
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rights to officially own a unique
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limited run moment that has been
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licensed by dapper labs and the
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platform's partner the nba itself more
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than 280 million dollars has been spent
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on the nba's top shot platform since the
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launch online in october there are
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plenty of skeptics who believe the high
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prices and massive demand for top shot
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moments are bound to fall back to earth
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even mark cuban believes that prices
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will settle down for nfts like top shot
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moments over time but he is convinced
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that the interest in the blockchain
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technology behind them is legitimate and
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is not going anywhere
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[Music]
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investing in sports memorabilia is
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highly speculative which means that
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there is a substantial risk involved
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sports cards might be riding the wave of
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an upward trend but that wave could come
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crashing down that said that risk can
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also lead to mind-blowing rewards even
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in the millions there are generally
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three types of people who are interested
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in trading cards there are flippers who
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are in it for the money they might
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invest in an unopened pack of cards and
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then sell it online for a huge markup
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there are also investors who are
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interested in purchasing cards whose
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value will appreciate over time and
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finally there are collectors who simply
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love to collect trading cards and enjoy
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the nostalgia and the feeling of
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accomplishment that collecting brings
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so how do you get in on the action
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without risking it all
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first thing you have to decide is what
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are you looking to flip trading cards
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for a profit or invest in them as a
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long-term investment strategy for more
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on the difference between short-term
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trading and long-term investing check
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out our previous video both strategies
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have their pros and cons and the choice
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you'll make will determine what kind of
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cards you'll want to look for if you're
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looking for a long-term investment you
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should be going for the classic cards
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these blue chip cards are like blue chip
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stocks they're well established and have
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already shown to hold value over long
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periods of time such as your mint
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condition lebron james or bape roof when
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you invest in these kinds of cards
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you're taking on less risk but your
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profit margins are also likely to be
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smaller because you're already spending
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a hefty sum to purchase them in the
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first place
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that said they tend to go up in value
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over time sometimes even more than the s
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p 500 and they can help you diversify
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your portfolio and protect you against
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market volatility
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by the end of 2018 according to epstein
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white paper the sports memorabilia
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market was outperforming the s p 500 by
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232 percent and since then the out
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performance is over one thousand percent
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if you're after a quick buck you might
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be looking for a smaller initial
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investment but you'll be taking on more
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risk
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when you want to flip a card for a
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short-term return on investment you are
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looking mostly for up-and-coming cards
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you believe are currently undervalued
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and will skyrocket with time these are
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often first or second year cards of
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athletes that have a promising career
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but how do you find those undervalued
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cards to find cards that will go up in
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value you need to be able to predict two
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things
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firstly which player will actually have
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a successful career in their respective
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sport and secondly which cards and card
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sets from those players will go up in
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value
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being able to predict a player's market
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value mostly comes down to your
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knowledge of the sport and how closely
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you follow the player you probably can't
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become an expert on everything so it
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makes sense to focus on your favorite
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sport and players if you watch
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basketball born in baseball focus on nba
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cards keep in mind that the popularity
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of your chosen sport will impact the
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value of your cards the latest reports
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indicate that football and basketball
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cards are increasing in value while
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soccer and hockey cards are losing
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from there choose a handful of key
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players and follow them closely and
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analyze their statistics
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both team and individual accomplishments
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such as mvp and other major trophies
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championship wins world records and hall
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of fame inductions go a long way in
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increasing the value of the player's
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trading cards
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if you can successfully predict that an
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up and coming player is on track to
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receive some serious trophies and buy
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their best cards before that happens
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your chances of turning a big profit is
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pretty high
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this was the second video of our series
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called flippable side hustles where we
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analyzed the investment opportunity in
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the alternative investment space please
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let us know in the comments which other
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side hustle investment opportunities you
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would want us to cover next if you made
[957]
it this far i hope you enjoyed the video
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if so don't forget to give it a big
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thumbs up and subscribe if you already
[963]
have not done that i would love to hear
[964]
your feedback good or bad down in the
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comments below as well as any other
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suggestions you have for future videos
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i hope you learned something interesting
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today about money and investing and i'll
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see you next week
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