Sports Cards as Tangible Assets?

[silverflake]

Article from PSA graders. I often wondered if cards were somehow like art in times of crisis or as a way to accumulate tangibles. I still don't think I would do it but, interesting read. Obviously some folks are buying.

The Fed, Low Interest Rates and Soaring Card Values

FEBRUARY 22, 2017 4.5K VIEWS 3 MINUTE READ
Don’t look now, but rent, homes and the cost of living in general aren’t the only prices that have shot up recently; the value of trading cards and comics has skyrocketed in recent years, and it seems like every month auction records are shattered in the collectibles realm.

What led to this unprecedented increase in value? Why does it seem like every week Mickey Mantle’s iconic 1952 Topps card is setting a new record? How have certain comics become paperback mortgages?

We’ll direct your attention to the Federal Reserve.

The Cause

Enter the Fed and low interest rates.

The Federal Reserve has made it habit to keep interest rates artificially low, below that of inflation, hiking up rates only twice since the 2008 financial crisis — once in 2015 and again in late 2016. The central bank has shown steadfast reluctance to increase interest rates too quickly, an action they deem to have potentially unfavorable consequences. Rather, interest rates have been kept below that of inflation for the last decade. Now we’re seeing the effects spilling over into the collecting realm, hiking up the prices of tangible commodities. That means your cars, houses, coins, trading cards and comics, although many of which are innately rare and sought after, are enjoying astronomical jumps in value.

These low interest rates have incurred worry among wealthy investors in regards to the clout of the U.S. dollar. Hence the jump to tangible commodities, because paintings, cards, comics and other tangible assets — or collectibles — aren’t subject to inflation the way currency is. You can’t just flood the market with Renoirs, ’52 Mantles and vintage Superman comics. (Well, you can, but that’s an entirely separate conversation.) Thus, we’re seeing landmark dollars placed into a different sort of investment, a collectible one.

The Effect

To put the jump in prices into perspective, the aforementioned 1952 Topps Mantle is selling like gold-plated hotcakes at auction and typically averages around $500,000-plus in high grades, according to Professional Sports Authenticator’s Sports Market Report. (The company assigns a grade of 1-10 to trading cards and other collectibles, based on the condition of the items.)

To illustrate the meteoric rise in value for vintage cards, let’s look at the 1952 Topps Mantle in PSA 8.

This PSA 8 Mantle just broke the auction record for the grade, $600k, image via Heritage Auctions
This PSA 8 Mantle just broke the auction record for the grade, $600k, image via Heritage Auctions
Back in 2004, a 1952 Topps Mantle sold for just over $56,000. Four short years later, the value of PSA 8 Mantles nearly doubled, selling for around $112,000. In 2015, that value took another massive leap and the card fetched a staggering $525,800 at auction. That’s an 827% increase from its 2004 value, a mark more impressive than the performance of bullion over the same time frame. The above-pictured Mantle just broke the previous record for the grade, with a high of $600,000. Want more evidence of the card’s tremendous value jump? An example graded PSA 9 is worth as much as $1.7 million, according to PSA’s website. What’s more, there are currently three examples of the card in PSA 10. What will those go for in such a hot market?

$465k Wayne Gretzky rookie card, a new world record, image via Goldin Auctions
$465k Wayne Gretzky rookie card, a new world record, image via Goldin Auctions
This phenomenon isn’t exclusive to vintage baseball cards. Hockey cards, too, are jumping in value. Gretzky’s 1979 O-Pee-Chee rookie card, graded PSA 10, recently sold for $465k in August of 2016. In 2011, the very same card sold for a fraction of the price: $94k.

Another iconic card. Another leap in value. Another auction record.

Superman 1 sold on eBay in 2014 for $3.2m, another record, image via eBay
Superman 1 sold on eBay in 2014 for $3.2m, another record, image via eBay
Don’t forget about vintage comics, which are also enjoying the ride. In 2014, Superman #1 sold for $3.2m, a new record. Other comics are flying off the auction block. A high-grade example of Fun Comics #73 recently sold for over $100k. Early Batman Comics continue to leave their mark, especially since Detective #1 sold for over $1 million back in 2010. The list goes on.

The point of illustrating these crazy values? With droves of cheap money circulating throughout the U.S. economy comes a heightened demand, limiting the supply and catapulting the prices for hard assets.

Will the Current Trend Continue?

Will the status quo persist? Are these faux low rates here to stay? That remains to be seen. But in the meantime, rent continues to climb — at the time of this writing, February 2017, apartment rent is 1.8% higher than February of last year, college tuition has seen an approximate 5% hike over 10 years, and of course the value of our beloved trading cards and comics continues to soar.

[silverflake]

Sorry, the pics in the article didn't show up. Here's the link:

https://blog.collectors.com/2017/02/the ... b24-values

[smackvay]

I'm heavily invested in vintage psa graded sports cards. Just like anything else, make sure to buy small to start and learn as much as possible

Mike

[doug444]

Believe I'll stick with $5 gold commems of the past 20 years. Sold all my cards in Florida about 15 years ago, don't think ANY of them was worth more than 50c, LOL LOL.

[highroller4321]

I'm heavily invested in vintage psa graded sports cards. Just like anything else, make sure to buy small to start and learn as much as possible

Mike

Rookies or a wide variety of stuff? I would be curious to hear your strategy. If you are willing to share either post or PM me.

[smackvay]

I'm heavily invested in vintage psa graded sports cards. Just like anything else, make sure to buy small to start and learn as much as possible

Mike

Rookies or a wide variety of stuff? I would be curious to hear your strategy. If you are willing to share either post or PM me.

Centering is ALWAYS #1 on vintage cards
Star hof Rookies in top condition are #2
Non star rookies in top condition are #3

If you understand morgan dollars and grading you will understand cards
Feel free to shoot me any questions

Mike

[daviscfad]

So what is centering?

[Rodebaugh]

So what is centering?

That is the actual image printed on the card stock. Centered means even border boundaries around the image. I know this is important on the front of the card how important is it on the reverse?....or do these images normally align Mike?

[silverflake]

Interesting if you follow the link to the original article and read the comments below the article itself, the collectors are wondering where these top notch cards from the 50's, 60's and even the 70's are coming from since back then there was no way to store cards (in the array of holders that are now available). Is there a sinister reason (fakes) or are baby boomers pulling out their childhood memories to capitalize? Who knows.

Fascinating to me though because as much as I stack PM's, I am a sucker for a colorful sportscard. 53 Topps baseball are my all time favorite. My favorites from MY childhood are the 76 Topps and the 83 Topps.

Keep stacking regardless.

[smackvay]

So what is centering?

Centering is how the picture is centered on the actual card.
When I get to a computer I will post examples

[misteroman]

I put a post on BS about this exact thing thing.
I have been watching high grade A+ stars rookie cards going through the roof lately. Only thing I'm afraid is, is getting in at the peak.
Goes against everything a stacker knows but can't deny the $$$ people are making.

[smackvay]

this is a PSA 2 1951 bowman that is very off center that sold for $2835
http://www.ebay.com/itm/1951-Bowman-Mic ... Sw4GVYMu9q

this is a PSA 1 1951 bowman that is more centered than the 2 and sold for more $3659
http://www.ebay.com/itm/1951-Bowman-MIC ... Sw4shX6A3n

this is just one example. im not saying not to buy an off center card, i am saying if you do(if you deal with vintage cards you will own cards with centering issues) purchase cards with centering issues make sure that your buy price reflects this. When ebay has the 8-10% ebucks promotions sports cards ALWAYS qualify , so it would give you a good chance to buy a card for a grand and get $100 back in ebucks. If you guys want to do some research find a mickey mantle in a lower psa grade like a 1963 in a psa 5 and go to the completed listings and pay attention to how centering affects pricing. Sometimes, cards sell for stupid money and it doesnt make any sense as people do shill cards ALOT on ebay thru consignment people.

hope this helps.
Mike

p.s. for you guys wanting to get involved start buying low grade mantles as they can be had for $40-100 bucks every day of the week

[highroller4321]

You believe the low grade mantels will start going up in value?

[aloneibreak]

You believe the low grade mantels will start going up in value?

they will now that everyone reading this thread is bidding on them

[smackvay]

You believe the low grade mantels will start going up in value?

Yes and no
Do I think low grade mantles will go down. No
I just said that for you to learn how each year card is different and values are different on the cheap side.
I also do think they will go up about 5-10% each year.
The high grade cards have doubled in the last 24 months

Some of my mantles went from $500 cards to $1500 in the last 2 years
I try to buy at least one a month by watching auctions on eBay

Mike

[Know Common Cents]

My Brother ripped off (and sold) all my vintage BB and other sports cards back in the late 1970s while I was in college out of state. I've never forgiven him for that as I had many of the late 1950s and early 1960s cards.

Even then he made a tidy profit on my cards, so that's soured me on his actions for the rest of my life. The ones I'd saved then are those that are worth hundreds if not thousands now in this market.

I keep telling myself these are just pieces of cardboard. Like comic books, these are a paper product. They can be radically degraded by water, humidity or other environmental conditions.

I became a fan of precious metals in the 1980s thanks to the Hunt Brothers. Never looked back from there. I prefer silver over gold, but have some of both. I follow them religiously, but don't go nuts with every market swing.

Bring on the PMs and ditch the massively-overpriced cardboard baseball pictures. Just one old guy's opinion.

[hirbonzig]

Took the advice of a local card dealer in the early 1990's and sold all my modern stuff(after 1960) and bought mostly pre ww2 cards in exmt or better condition. Worked out very good for me. I have silver and gold also just incase the house of cards well....you know.

[DTEJD1997]

I thought the sports card market collapsed in the 90's when it was found out that the printers were not keeping accurate records of how many were produced. Turns out a lot of stuff was not as rare as previously thought.

I would also think that modern stuff would be susceptible to counterfeiting with these new fangled computers & printers & such.

I would stick with AG, AU & PB.

[Know Common Cents]

Just a thought. Hmmmm. Which would maintain its integrity in one of the Texas floods? Would that be a rare Mickey Mantle baseball card or a stack of silver bullion? This is a question that requires about a nanosecond to determine. Give me silver anytime. No question about it.