6 Steps to Investing in a Trading Card Portfolio
Thursday, 11th October 2018
Last week I had the pleasure of speaking on the topic of the ROI of Art at the Barron’s 100 Summit in Palm Beach. In my presentation I discuss all of the important components that go into understanding what makes a work of art an asset.
Every tangible asset of value, whether it is a bottle of wine, a diamond ring or a work of art requires essential components that make it an asset. Even something as common as a baseball card can be a valuable asset if one buys with an eye for value.
– Anita Heriot, President, Pall Mall Art Advisors
By Brent HuigensBrent Huigens, CEO
PWCC. Leading the trading card marketplace.
In February 2018, a 2000 Tom Brady Rookie Card (PSA 10) sold for nearly $110,000 at auction reflecting an almost 300% return on investment in just two years, thereby solidifying it one of the world’s most valuable and appreciating trading cards. This card is not a statistical outlier, as trading cards are largely becoming viable alternative investments. For those interested in this promising market, consider six steps to getting started:
1. Establish a goal
As with any investment, begin with a goal. Determine how long investments will be held and the return desired. Consider whether this will be an actively managed portfolio, which may require more time for tracking demand and pricing trends, or one that can be left alone to appreciate.
2. Specialize in a sector
A trading card portfolio should revolve around a type of card – new or old, sports or non-sports, mainstream or esoteric card productions, or from a specific era within vintage or modern cards. Investors can still diversify within a narrowly defined “sector,” and advanced investors might maintain several portfolios, each with a unique focus.
3. Personalize to your interests
Consider gravitating toward a sector that resonates to you personally, as the in-depth research and analysis essential to portfolio construction may be more enjoyable. A passion for the investment could separate the most successful investors from the pack; they are often more willing to dig into the industry’s detail.
4. Pick a portfolio size
Whether available funds for this venture are $10,000 or $1 million, it is possible to create a well-diversified portfolio. Clearly, a smaller budget may mean targeting lower valued cards, but the ROI is as bright on both low and high value cards. Use historical sales tools to study the market, assess historical sales patterns, and build future portfolio goals.
5. Understand eye appeal
Evaluate the quality. Card values can be complex, relying on a combination of the card, its professional grade and the quality of a card within that grade, which can significantly impact market value.
6. Seek professional guidance
PWCC empowers trading card investors by providing real-time analytical tools and investment guidance that help develop an investors strategy and help pinpoint the right cards for a portfolio. Get in touch atwww.pwccmarketplace.com for a consultation.