Investment potential- which cards will do best?

[Bicem]

Cards that I felt were under-valued or should be worth more.

[Peter_Spaeth]

Originally Posted by Bicem

Cards that I felt were under-valued or should be worth more.

I would just stick with cards you KNOW are going to go up.

[drc]

A key is buying cards that won't go down. Be wary of cards that are in today, but ignored in the future. I think a lot of Topps (ala 1960s, 1970s) went down simply because they are so dang plentiful-- not that people don't still like them.

One thing that makes me wary of T206s and Goudeys as investment are their abundance. Their prices are propped up by demand not rarity. However, I agree T206s are great cards, my favorite ever set. So there's good reason for their long lasting popularity.

Picking investments by what is popular today (especially when that what is abundant!!!) is not a theory I subscribe to.

Having said that, I doubt market for T206s will collapse. They will be avidly collected for many years. And it's not as if they abundant in the 1985 Topps sense. They're just abundant for Pre-WWI cards.

[Oklahawg]

Originally Posted by drc

A key is buying cards that won't go down. Be wary of cards that are in today, but ignored in the future. I think a lot of Topps (ala 1960s, 1970s) went down simply because they are so dang plentiful-- not that people don't still like them.

One thing that makes me wary of T206s and Goudeys as investment are their abundance. Their prices are propped up by demand not rarity. However, I agree T206s are great cards, my favorite ever set. So there's good reason for their long lasting popularity.

Picking investments by what is popular today (especially when that what is abundant!!!) is not a theory I subscribe to.

Having said that, I doubt market for T206s will collapse. They will be avidly collected for many years. And it's not as if they abundant in the 1985 Topps sense. They're just abundant for Pre-WWI cards.

Scarcity should be the #1 guide, right? Pre-WW2 cards aren't being found still, are they? I haven't "found" cards on the street (garage sale, junk sale, whatever) in 30 years of looking. The "finds" are folks with a Beckett guide from the grocery store hawking 87 Donruss rated rookies and 89 Score boxed sets.

The problem with T206, for example, is the number of buyers - just how many new buyers are hitting the market? At some point there will be relative saturation, and it'll take some time for interest to ramp back up.

[E93]

Originally Posted by Bicem

Cards that I felt were under-valued or should be worth more.

Profound insights from Jeff P. Thanks Jeff.
JimB

[E93]

Originally Posted by Bicem

Cards that I felt were under-valued or should be worth more.

Profound insights from Jeff P. Thanks Jeff.
JimB

[Bicem]

thanks Jim, the Dalai has nothing on me!

[E93]

I prostrate at your feet.... three times.
JimB

[Tsaiko]

Right, all I'm saying is, it is capital gains.

And, as I understand it, if your income tax bracket is below 28 percent, you'll pay at your income tax rate rather than a higher capital gains rate.

To the OP: Collect because you love the hobby, invest if you want to turn a profit. Psychologically, at least to me, it's two different worlds. That's not to say that collectibles can't be a part of a total portfolio, but I would think a smaller part than stocks, bonds and real estate.

If you do "invest" in cards long term, don't forget possible deductibles, like grading, insurance, building that display case, discussing collectibles with your CPA or tax attorney, etc.

Personally, I won't pay a penny of tax on collectibles, since they will be TOD to my heirs, who can sell them for their value at my death, also without paying taxes. Death, the best way to beat the IRS

[FrankWakefield]

Alright, I think that 28% or your tax rate if less deal is correct. It is for collectables. IRS won't accept cards as an investment. So I think what I had about ordinary income is incorrect and overstated.

It reminds me of Tulipmania.

[ChiefBenderForever]

Jackie Robinson and Pete Rose will only go up, ESP Pete Rose.