When did collecting turn into a way of investing and making money?

[Ronnie73]

I collected some cards starting in 1981 when I was 8 years old. At the time, they had no cash value to me but they were nice to look at and yes, many of them went into the spokes of my bicycle. When my views changed to the possibility of making money on cards and them maybe being an investment was in 1985 when I bought my first price guide. The card that changed the way I looked at cards was the 1985 Topps #620 Dwight Gooden rookie card. It had a value of $8 and you could go buy a pack of cards for 35 cents and have a chance of pulling one out of the pack.

When did collecting and just enjoying the cards for what they were turn into something more and what card made it happen?

[drc]

The source of all evil is Dwight Gooden.

In 1965, Topps was making lots of money selling baseball cards and kids were spending lots of money buying them. Baseball cards was a big market, just not on the secondary market.

[Bilko G]

For me, living in Canada, it was the 1985/86 O-Pee-Chee Mario Lemieux RC. I got my first Hockey card price guide, i believe it was called the Charlton Hockey Card checklist and price guide somewhere shortly after 86 or maybe 87. The Lemieux RC booked for something like $6 and i thought it was really cool because i owned 4 copies of it.

[sbfinley]

To answer your question I would say that decade between 1983-1993 was the heyday in which card collecting merged with honest investing. It was during that time that mass-produced rookies were hoarded by people who started to notice what the cards their moms threw out were worth. It was also during that time that the T206 Wagner invaded the national conscience as the preeminent sports collectible.

On a personal note.

For years I bought cards that didn't fit into my collecting focus by telling my wife "it was a good price", "I can flip it for a good profit", or "It is a sound investment." Never have I ever sold a card for a reason other than funding something that did fit within my focus. For some reason I can't bring myself to part with cards easily. I'm too attached to them, with or without fitting within my collecting focus.

Precious metals are a different story. I have found that with a little searching I can find silver and palladium for under or close to spot price and I have no attachment to them so unloading is stress free. Also, splitting my disposable hobby income between cards and metals has made me more concise in my collecting habits and opens up more funds for my collecting focus when I sell.

[rainier2004]

Originally Posted by sbfinley

For years I bought cards that didn't fit into my collecting focus by telling my wife "it was a good price", "I can flip it for a good profit", or "It is a sound investment." Never have I ever sold a card for a reason other than funding something that did fit within my focus. For some reason I can't bring myself to part with cards easily. I'm too attached to them, with or without fitting within my collecting focus.

That sounds about right.
I feel as though I force myself to think of it as a business sometimes to rationalize my spending. Yesterday I bought an expensive card included with a lot. The card is arguably too "nice" for my current set, and figured to sell immediately to help pay for the rest of the purchase. In less than 4 hours the card found its permanent home on my display and now i have a payment plan for the card...its sweet though! Still not a business.

[bcbgcbrcb]

1981 Topps Fernando Valenzuela & Tim Raines rookie cards................

[Chris Counts]

The first cards I recall being hyped as money-making ventures were the 1954 Topps Aaron and the 1963 Topps Rose rookie. This was in about 1976 or 1977. I believe the Rose rookies were faked at about this time a well, a sure sign that money-making was becoming a bigger part of the hobby ...

[pitchernut]

3 to 4 years after ebay came online.

[CMIZ5290]

My biggest failure from an investment point was 1987 bellingham griffey rookies. I bought 15 or so back in the late 90's, all psa 10's, sgc 98's, and beckett 9.5's. The market value on them then was $2000-4000. Beckett 9.5's at the time were bringing the most because they were the new kids on the block and their prices were really ringing the bell. I still have 10 or so left and would kill just to get 30% of my investment!

[Exhibitman]

I attended my first show in 1976 and was setting up at shows by 1978. It became an investment around the time the first price guides came onto the market and took off when (1) the key 1950s rookies and desirable cards soared in price and (2) modern rookie cards became a craze. By 1980 the race for cardboard gold was on in full force. I recall buying a 1953 Topps Mays for $25 in 1976 and being able to flip it for $500 in 1980. 1981 marked the start of the multiple issuer modern cards and the Fleer error cards like the "Craig" Nettles soared in value. Then came the rookie card thing, which hit its stride with 1984 Donruss and Don Mattingly and peaked with the 1989 UD Ken Griffey Jr. I'd characterize that as more the penny stocks phase of things; lots of people made money on short term trades of rookies but anyone who held on to those cards thinking they had a nest egg were sorely disappointed [should have invested in a solid American company's stock, like Braniff Airways]. Since the hobby has spawned full time dealers, price guides and the National it has become an entrenched business. There was an [in]famous Sports Illustrated artice about Alan Rosen and another study by some economists that determined one of the best ROIs over a decade had been old baseball cards. People who are in the business of selling the general public stocks, bonds and other casino bets grudgingly will admit that baseball cards, art and other collectibles are "nontraditional investments" but will advise their marks, er, clients to allocate no more than 10% of their investment money in it. Ebay was another boon to it IMO as it adds liquidity to the market and eliminates middlemen. It is possible to engage in the equivalent of short term trading with Ebay: spot an undervalued or misrepresented item, snag it, flip it.

[Fred]

I think my first introduction to the rookie card craze was when I was happened to be in Tucson in 1984 and Scott Bradshaw (I think it was him) was ripping through huge amounts of 1984 cellos, wax or vending boxes trying to extract the Don Mattingly cards and selling them for a couple of bucks a piece. I was absolutely stunned that someone would pay a few bucks for a nobody because it was their first appearance on a baseball card. I never got into the rookie card thing but I do recall buying a lot of (100) 1984 Dan Marino rookies for about 39 cents each and then selling and trading them after they went ballistic.

The funny part was the when everyone was knocking themselves over the rookie cards the vintage stuff was still relatively cheap. I could never understand why someone would spend $35 on a bunch of "rookie" cards when they could have picked up a decent T205 of Matty for that price.

I've definitely bought more than I've sold but I regret selling a lot of the stuff that I did have just because I could make a bit of money off of what I paid for the cards. I've let a few really nice things go, for example a full run of 52T semi-highs (minus Mays) in at least ExMt+ condition.

[Leon]

I was late to the game only starting back collecting in 1996'ish from my early childhood (late '60s). That being said, 3 yrs later when I discovered Ebay, that is when I thought this (collecting and the money in it) could be big.

.
.

[ullmandds]

I agree with a lot of what's already been sain...but for me...I remember as a kid in the late 70's...the Aaron, Rose, Seaver, Ryan rookies being hyped. The price guides were present from the beginning for me...and the financial aspect of collecting was present from the get go for me in the hobby.

I never sold any of my cards until I sold most of my collection to buy a car in 1987...then when I returned to the hobby in 90' or so...the boom was in full swing...mainly for the new cards...esp Griffey rookies, Mattingly rookies...anything speculative was uber hot! Vintage could still be had at relatively reasonable prices comparatively.

[ScottFandango]

Blame it on the (regional) publication started in 1984 (due to Don Mattingly popularity i believe) ..

it was called Current Card Prices and it had those MAGICAL UP ARROWS..

the magical UP ARROW was a powerful drug!

I couldnt wait for the next monthly edition to see what the Mattingly 84 Donruss was up to!

im sure these ARROWS spurred on many collectors especially during the Mattingly 84 /Canseco 86 Donruss era....

i think this price guide also spiked the attendance of Baseball card shows which we all know were HUGE in the 80's....

[steve B]

I got into the hobby just about 2 years later. Went to my first show in 78. Setup at a show much later though.

And from what I recall this is a pretty concise view of how things went.

The 80's were amazing, and yes the returns for people who could buy and sell well were excellent. (Sadly I'm not one of them) But that was a unique situation. The days of 100%+ gains over a year or two are gone and won't be back. it was a perfect storm of enough availability to hype, a hobby that had been very small with few collectors and hardly any dealers. And prices that allowed many people to think completing sets would be possible if not always easy. Most adults with halfway decent jobs could afford a Goudey set in vg. Today the demand for the star cards has made a set a financial challenge while at the same time the internet has made it easier if you've got the money.

I think Ebay can be partly to blame for collecting of modern cards faltering. There was some stuff I knew was way overproduced, but felt demand would keep things propped up. (88 and 90 Donruss, and most other 86-93 sets) I did think a few of the sets from 94 and on would eventually be "good".
Then Ebay came along and we all found out just how overproduced all that stuff was. I'm still not quite off the bandwagon of some modern stuff having small enough press runs that it'll be ok eventually. But realistically That will be wrong too.

Steve B

Originally Posted by Exhibitman

I attended my first show in 1976 and was setting up at shows by 1978. It became an investment around the time the first price guides came onto the market and took off when (1) the key 1950s rookies and desirable cards soared in price and (2) modern rookie cards became a craze. By 1980 the race for cardboard gold was on in full force. I recall buying a 1953 Topps Mays for $25 in 1976 and being able to flip it for $500 in 1980. 1981 marked the start of the multiple issuer modern cards and the Fleer error cards like the "Craig" Nettles soared in value. Then came the rookie card thing, which hit its stride with 1984 Donruss and Don Mattingly and peaked with the 1989 UD Ken Griffey Jr. I'd characterize that as more the penny stocks phase of things; lots of people made money on short term trades of rookies but anyone who held on to those cards thinking they had a nest egg were sorely disappointed [should have invested in a solid American company's stock, like Braniff Airways]. Since the hobby has spawned full time dealers, price guides and the National it has become an entrenched business. There was an [in]famous Sports Illustrated artice about Alan Rosen and another study by some economists that determined one of the best ROIs over a decade had been old baseball cards. People who are in the business of selling the general public stocks, bonds and other casino bets grudgingly will admit that baseball cards, art and other collectibles are "nontraditional investments" but will advise their marks, er, clients to allocate no more than 10% of their investment money in it. Ebay was another boon to it IMO as it adds liquidity to the market and eliminates middlemen. It is possible to engage in the equivalent of short term trading with Ebay: spot an undervalued or misrepresented item, snag it, flip it.

[Exhibitman]

CCP! I was trying to remember the name. There was also CPU [Card Prices Update].

[CW]

Originally Posted by drc

The source of all evil is Dwight Gooden.

In 1965, Topps was making lots of money selling baseball cards and kids were spending lots of money buying them. Baseball cards was a big market, just not on the secondary market.

Ah yes, I remember that. Even prior to Gooden, we had the Darryl Strawberry and Don Mattingly from the '84 set, which were instantly worth $5-$7.50 right out of the pack.

[alanu]

When I was little I not so neatly pasted my 1968 football cards into a scrapbook sorted by team, including the little paper posters that came in the packs, so I don't think at that point I was concerned about making money on my cards.

About 1985 when I found my 1972 Topps baseball set and started collecting again, I realized that cards had really gotten to be worth something.

[Sterling Sports Auctions]

For some reason I seem to remember that the 87 Bo Jackson was the first card to command $1 fresh out of the pack and that the others obtained there higher value after they had at least a year in and the new years cards were out.

I was lucky enough to run a card store from 89-92, dream job that sadly had to come to an end. Thanks goodness I bought very few modern cards and occasionally would buy vintage when available, which was not often in MN.

Lee

[D. Bergin]

I think it was the Beckett that came out in 1981 when I was 10 years old.

1981 Cards were just out but they were already listed in the Price Guide. Pretty sure it was only Topps. Fleer and Donruss were not listed yet.

This was before Valenzuela and Raines became big. I looked in the guide and a brand new George Brett out of the pack was valued at $1.00.

I had been obsessed with baseball cards since I was 5-6 years old. But seeing that 1981 Topps George Brett in the Price Guide, days after opening up my first packs of cards for the year................is what really took it to another level for me.

Don't even know why I remember that.