In past blogs, I have talked a lot about baseball card collecting as a hobby for example my post about starting a baseball card collection. We all know how exciting it can be to start a collection and grow it over the years. However, not everyone views baseball card collecting as a hobby. Some see their card collections as investments that will one day earn them a substantial amount of money. They choose the cards they purchase carefully. In fact, collecting cards for investment purposes is similar to playing the stock market.
- Know the Next Big Thing- We have all heard the success stories of individuals who bought stock in Microsoft or Apple back when almost nobody knew who they were. If you’re collecting cards as an investment, you’re always on the lookout for the next big thing flying under the radar. Recently, I blogged about some rookie cards I believe could be valuable down the road. They may not earn you as much as buying Microsoft stock 20 years ago, but you could earn a pretty penny if you get lucky. According to our own Worthologist Howard Lau, “The current market can be good for investors if they can pick the right players. For example, Jay Bruce & Josh Hamilton would have been a good investment had they been purchased back in 2005.”
- Buy At the Right Time- Just like playing the stock market, collecting baseball cards for investment purposes requires you buy at the right time. You don’t want to get caught up in the hype surrounding a baseball card only to find the card drop in value after the trend is over. Instead, you want to be the person who buys the card when it’s low in value so you can sell it once the frenzy hits. Which brings me to my next point:
- Sell High- Baseball cards are similar to stocks in the way they rise and fall in value. A lot of times, companies will release gimmicky error cards when they publish their new sets. Some of these cards become very hot for a short period of time, selling for large sums of money. However, a year later most of these cards won’t be worth the cardboard they’re printed on. If you see what you believe to be a short term trend, you should sell the card at its peak to get maximum value for it. Always be careful, because the bottom can fall out very fast, and the card will plunge in value. The rule is simple- buy low and sell high.
If you are collecting cards as an investment, you need to know how to store them properly. Read my post about storing baseball cards.