Sports trading cards have made headlines in recent weeks, selling for huge sums. Rare card expert Eric Bitz of BuyNiceCards is going to share some insights for those considering jumping into the market.
If you’ve been following financial news closely over the past few months, you may have seen some headlines about sports trading cards. While trading cards may not seem a natural fit for financial news, they are becoming increasingly popular investment vehicles. Trading card whiz Eric Bitz is going to share some insights.
“Trading cards offer a way to diversify your investment portfolio,” Eric Bitz says, “and diversification can reduce risk. Besides stocks, bonds, real estate, precious metals, and the like, rare collectibles, including trading cards and stamps, may offer an excellent way to build wealth.”
As with any investment, there are some risks that investors must be aware of. When it comes to trading cards, counterfeits have emerged as a major concern. Anyone investing in rare collectibles should make sure that they are authentic.
“Authenticity may well be the most important single factor,” Eric Bitz says, “make sure you get professional opinions, know what to look for, work with certified dealers. There are a lot of fakes out there, and they aren’t even worth the paper they’re printed on.”
Before purchasing any cards, investors should verify that they are authentic. And if the price seems too good to be true, it might be because it’s a scam.
“The limited availability of certain sports cards helps explain their value,” Eric Bitz of BuyNiceCards points out. “There may only be a dozen good copies of this card or perhaps three copies of that card. Rarity often equates to increased value.”
Meanwhile, the supplies of certain things often increase at a regular rate. For example, the money supply, or total amount of a given currency available, often increases year over year. There will probably be more dollars available world-wide in 2030 than there were dollars in 2020. As supply increases, value often drops.
Supply and demand have a huge impact on prices. If there are only 3 copies of a given card and 10,000 people would like to have that card, demand far outstrips supply. This tends to push prices up.
“Another big factor with trading cards is that they’re tangible. You can hold them in your hand,” Eric Bitz states. “It’s fine to invest in stocks, but often it’s difficult to wrap your mind around an abstract concept like a tiny share of a company. With cards, you can see and feel it, and some people prefer that.
Ultimately, psychology plays a big role in determining the value of something. The psychology of large numbers of people and the managers at large institutions, such as an investment firm, can have a huge impact on markets.