Cards = Investments

[EvilKing00]

no real value is true, as its not backed by gold (only thing that has value is cash). But forever, itmes that are limited and/or wanted with prices attached where the value that go up and down, like cards, stocks, cars, homes, etc hold a value to those who want it. If there is no demand for it there is no value.

[Nashvol]

If and when CD and savings rates increase, would folks collect less - thereby leaving us hobbiest/investors with a fistful of cards and memorabilia that fewer people are interested in?

[EvilKing00]

Originally Posted by Nashvol

If and when CD and savings rates increase, would folks collect less - thereby leaving us hobbiest/investors with a fistful of cards and memorabilia that fewer people are interested in?

rates should begin to move up over the next year or so - how high is really anyones guess. as for mortgage rates i think we hit the bottom 3.25%ish on a 30 year fixed, im not sure there will be a 2.99 on a 30 year but i guess its possable. A 5% interest rate from a 1 year CD is still a way off IMO.

But when that happens and it will, eventually, cards IMO will not only hold their value but should rise as well, rise along with the better economy. More money for people like us means more cards we can buy.

[pcoz]

Certainly cards are investments, as many have made a fortune off of them. Some have made a nice living being a dealer as well. Prewar cards aren't exactly cheap, so as much as I enjoy the cards I have, I wouldn't have put the money out with the intent to lose money over time. It just doesn't make any sense to direct financial resources away from your family with a blind eye on value, just because you like them. The investment in the cards and future value have to be considered. With a finite amount of cards from that era, I think most cards/pieces will continue to appreciate in the years to come.

[Ulidia]

Originally Posted by EvilKing00

no real value is true, as its not backed by gold (only thing that has value is cash).

Cash isn't backed by gold either. In particular, as the US continues to print more and more money, the real purchasing power of the $ falls (other western countries are also printing money in vast quantities to deflate their own debt burdens).

That's why assets, whether it be gold or real estate or memorabilia, can potentially act as a useful hedge against inflation. However, the speculative nature of baseball cards as an investment, or any similar collectible, would certainly put it in the high risk category.