Playbook #061: Trading Cards
🖼️ The Big Picture
Trading cards have made an interesting comeback in the last few years, making them one of the more interesting “collectible” alternative investments that we’ve featured here in CAPITALIZE.
If you want the full macro picture of why cards have been rising in popularity since 2019, and the opportunity behind them, Gary Vaynerchuk has an excellent 2.5 hr YouTube video that’s a great place to start. He was ahead of the trend, and able to buy a lot of cards that have gone up in value.
Trading cards have gone through a fascinating life cycle starting as early as 1860 when they were inserted into cigarette packs and candy products. Topps, one of the leaders in the card printing space, started inserting baseball, football, and even TV-themed cards into bubble gum packs in the 1950s.
Sports cards really kicked off the modern-day “trading card” phenomenon in the 1980s, which is relevant today because toy franchises tend to loop every 25 - 30 years as parents have kids and want to introduce them to influential parts of their childhood. Dads who were big collectors as kids are now buying cards they always wanted, and sharing the fun with their kids.
We also have a generational rise in entrepreneurship, so similar to sneakers, a lot of people have gotten into trading cards to flip them (buy low, sell high.)
Culturally, the average 35 - 60-year-old is more casual, cares less about fancy stuff, and is more likely to want to display sports cards in their homes than expensive art.
Trading cards aren’t just about sports though. As you’ll see below, some Pokemon and Magic: The Gathering cards have fetched a pretty penny.
As with our other collectible issues, this is best suited to someone with a passion for trading cards. They’re speculative, don’t produce cash flow, have had a few bubbles, and may or may not produce a return for you. Some people have made significant amounts of money from their cards, and many haven’t been as fortunate… if this aligns with your Investor DNA, jump in, have fun, and see what you can do.