Just recently, news reports about a signed Luka Doncic NBA rookie card broke the internet as it sold for a whopping $4.6 million US dollars. That’s a ton of zeros for a single piece of cardboard with a basketball player’s photo and signature! At this point, you’re probably scratching your head; thinking who in their right mind would pay millions of dollars for a single basketball card?
The answer to that question would be: collectors and investors.
Gone are the days when betting was the only way to make money out of sports. For the past few years, many have considered sporting memorabilia as an investment with extremely impressive returns.
Sports items like trading cards, signed baseballs, game-worn jerseys, and other items that may be considered rare are some examples of these relics that collectors are in the hunt for. What once was a fun hobby of trading back in the 80s, now is a massive global market where collectors and investors alike buy and sell sports memorabilia either for profit or personal acquisition.
Collectibles vs. Memorabilia
Although many collectors use the term collectibles and memorabilia interchangeably, there’s a slight difference between the two. Sports memorabilia are items that have been authenticated by a reputable authentication service like PSA, JSA, and Beckett’s BGS grade. These authenticators help ensure the quality, genuineness, and condition of any sports item, so buyers are assured that they are getting their money’s worth out of their purchase.
Because there’s a huge amount of money involved in sports memorabilia, it’s become a highly lucrative business for a lot of people, whether they’re huge sports enthusiasts or not. In fact, it’s gotten to a point where dealers have pursued a particular niche. For instance, Thiago de Mattos specializes in acquiring and selling signed game-worn football (soccer) jerseys for serious collectors.
Why Should You Invest In Sporting Memorabilia
Back in the day, kids who were highly involved in collecting sports cards, know the basic principle of investing: buying low and selling high. The same applies with collecting sports memorabilia today. But instead of transacting with a few bucks, the sports collecting scene today has grown into a more serious industry where a single item could initially cost from a few thousand to several million dollars.
For people who have a background in investments, they may see the opportunity in this industry and actively participate. But for those first-time investors who wants to know more, here are three reasons you should highly consider investing in sporting memorabilia:
1. Highly Profitable Investment
Of course, if you’re considering to invest in something, you first need to know whether or not there’s enough room for profit. In the case of sports memorabilia, that room can be as big and beautiful as the Hyatt Regency’s hotel lobby.
It’s so lucrative that an investment in sports cards alone could yield more profits than placing your money on the stock market. That is if you play your cards right (no pun intended).
Here’s a quick example:
- The Topps Mickey Mantle card from 1952 which was sold for USD $2.8 million at an auction in 2018, is now valued at USD $5.2 million.
- Back in March 2016, the 1996-96 Topps Chrome Kobe Bryant NBA card sold for USD $58,100 on eBay. 5 years later in (March 6, 2021), A copy of that same card sold for USD $1,795,800 at the Goldin Auctions.
- As mentioned earlier, Luka Doncic 1:1 rookie card originally was sold at an auction for USD $799,500 at the Goldin Auctions. Two weeks later, a serious collector bought it for USD $4.6 million.
These examples are just coming from trading sports cards. There are countless more sporting memorabilia out there which you can hunt for and buy at a reasonable price to sell them later on for a profit.
2. The Hunt Can Be Exhilarating
Looking at the numbers above, you can already tell how exciting the hunt for rare sports items can be. And it is!
The main reason there’s an enormous market for sports collectibles is simply because the demand far outweighs the supply. Since the market is growing exponentially year after year, there surely will be a demand for these items.
As an investor, your primary responsibility is finding the right item. Make sure you’re buying authentic collectibles that have either been authenticated or will pass authentication.
3. It’s Going To Get Bigger In The Years To Come
Lastly, investing in sports memorabilia can be future-proof. The market for sports cards alone has significantly increased over the years because of the growing popularity of sports and athletes. With that said, you can expect to see a continuous growth in sports memorabilia as an investment.
As individuals become more and more interested in collecting items such as sports memorabilia, there will be a great demand for them. And when there is demand, there’s usually a decent amount of profit one can make. Putting your money on sporting memorabilia can be a highly profitable endeavor. If you’re thinking of investing in sports collectibles, make sure you take the necessary precautions when purchasing.