Cards = Investments

[GregMitch34]

About two years ago, after not doing anything about collecting for about ten years, I sold all the cards that weren't beauties or that I cared about (and almost all my 1950s cards) art a decent price, and certainly at a profit from what I spent a decade or more earlier, and created a kitty--in a separate bank account linked to pay pal. Since then I have just gone up and down on that account without spending a penny elsewhere. It feels like free money, although I do have to sell some nice cards (but never nicest) to stay above the zero mark.

I recommend this approach--if you can limits purchases to that one account--because you don't fret about spending other money and it can just be fun. And your collection gets nicer and nicer as you sell off cards you like less and ones you truly treasure or are great investments.

[dodgerfanjohn]

Well, some first post here...kind jumping in head first...but I do believe I have a few things to add.

1.) "Investment" is dependant on an increased interest level at whatever point you choose to sell in the future. This is not only NOT guaranteed(or even necessarily likely), but after you factor in the selling costs listed earlier in the thread, it just becomes that more difficult.

2.) Those of us who bought vintage cards in the 80's or earlier...yeah those cards blew up in value since then. And its directly related to #1 above...the card collecting community blew up in size as well. I can definitively state that going forward, there will never be another increase in the size of the collector base as was experienced from ~1980-1995...short of the hobby contracting to miniscule size and then expanding again. Basically what I am trying to say is that the 300% increase in card prices, just isn't going to happen again(exception: You are Nostradamus and can predict which "rookies" will be future hall of famers and buy those cards at $0.10 or whatever. exception 2: there are small sets that have devoted followers and theres ability to corner the market).

3.) Current investments...in my 457 plan theres a "stable value fund" that is not invested in the stock market. It keeps going down little by little, but has consistently turned 3-4.5% over the past ten years, the past two years being no exception(Possibly 2.8% this year, can't remember at the moment). I assume anyone in an IRA can invest in such a fund. At the moment, and for the past few years also, bond funds(and this is a tricky one so make sure to research) have been doing 4-6% over the past 5 years or so. Point being that there are "safe" investments doing better than a CD.

4.) My assumption always has been that those really making money on baseball cards are buying them at the dealers price level. IE, the exact same thing that goes on for the television show "Pawn Stars"...you get people that are desperate for immediate cash or who dont want to deal with selling the stuff themselves, and offer them 25-75% on the dollar depending on what the item is.

[edhans]

I bought stock in dictionaries and spell-check software. Haven't done very well.

An early nominee for best post of the year.