Investing in the Unconventional: Trading Cards Take Center Stage
As investors diversify their portfolios, a new asset class is gaining traction: trading cards. The market has seen a significant surge, with over 20 million cards authenticated by the four major trading card authenticators in 2024, a 16% increase from the previous year.
A Growing Industry
The pandemic sparked a trading card boom, with companies like Professional Sports Authenticator (PSA) struggling to keep up with demand. PSA’s president, Ryan Hoge, attributes the growth to the increasing popularity of collecting and investing in rare cards. “We’re in for another strong year,” Hoge predicts. “Q4 2024 ended on a very strong note, with continued growth in units and new customers.”
The Authentication Process
PSA’s authentication process combines artificial intelligence and human expertise to determine a card’s rarity and condition. This grading system adds liquidity to the market, making it easier for collectors and investors to buy and sell cards on platforms like eBay. The higher the grade, the more valuable the card, and the easier it is to transact.
Storing and Selling with Ease
Gone are the days of storing trading cards in attics or basements. Companies like PSA offer secure vaults for investors to store their cards, allowing them to focus on growing their portfolios. Integrated services with eBay enable collectors to list and sell their cards quickly, taking advantage of market fluctuations.
Timing the Market
With PSA’s services, investors can capitalize on a player’s sudden popularity. “Let’s say a player has a great game, and you want to get their card listed,” Hoge explains. “You can have it listed that night, it’ll sell immediately, and then we take care of all the fulfillment and processing.” This friction-free selling experience allows investors to time the market and maximize their returns.
Rookie Players: A Hot Commodity
For those looking to enter the market, Hoge recommends keeping an eye on rookie players, particularly in the NBA. As Fanatics takes over the trading card license, the potential for growth is vast. “A lot of people want to speculate on a rookie player — maybe they’re going to have a great upcoming season,” Hoge says. “So they load up, and then when they start to get hot, they want to take some profits on these cards.”
Stay Ahead of the Game
As the trading card market continues to evolve, investors would do well to stay informed. By understanding the authentication process, storage options, and market trends, investors can make informed decisions and diversify their portfolios with this unique asset class.
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