Posted By:
Bruce DorskindInvesting In Baseball Cards
We have been active as serious collectors of rare high condition baseball cards for three decades. We have found that baseball cards, much like other collectibles, are good investments when three criteria are met:
(1)One acquires the item in an “investment grade condition”
(2)One is willing to hold the item for a reasonable period of time-probably two-three years
(3)One acquires items for which there is an established market
Many years ago, we built a modest pattern coin collection. Whilst all the coins we acquired were investment grade condition, and we owned the collection for more than four years, the market for US patterns is relatively thin. A $100,000 investment realized about $87,000 (after selling fees).
We track the market performance of all the $1000+ cards that we acquire. Generally, they have appreciated, but the baseball card market, like other collectible markets can be quite fickle. Several years ago we sold a large group of PSA 8 1915 Cracker Jacks and PSA 8 1941 Playballs (there were more than 100 cards involved, and only 20 were Hall of Famers (with no big name Cracker Jacks). We owned the cards on average for 30+ months. Yet, in the end with selling fees, we barely covered our original purchase price.
Generally, we agree with most of the comments. Baseball cards can be a good investment. Generally, they are not liquid, and on a macro basis it only makes sense to invest in relatively rare, high grade cards. If one is going to be a true investor, than one should be willing to take advantage of an opportunity. If a card that one has acquired for $5000 suddenly is “hot” and someone offers $50,000 sell it. The market is very, very thin. This point can not be overstated.
We believe that many items which realize prices which are significantly greater than the “current market value” have been driven by one or two non-investor collectors. With some notable exceptions, it is rare that the same card realizes a record price the second and third time it is sold.
If one is going to be a true investor, then one must always be willing to strip away the collector mentality and sell at the right price.
Our hope is to build the country’s foremost ultra high grade type collection, and some day donate the collection to several different museums including the Museum of the City of New York, The Negro League Museum, The New York Historical Society and perhaps, if they are interested, Cooperstown.
Bruce Dorskind
America’s Toughest Want List