Cards Collecting as an Investment
March 13, 2019
Collecting has the potential to bridge entertainment and profit, bringing systematic income to knowledgeable investors. The collection must feed itself. It is the first or minimal level of investment with the meaning that the purchase of new decks should be made through the sale of others. The simple but effective start-up investment strategies include:
- Buying trendy decks (popular themes) on occasion at reasonable prices to sell them with profit;
- Buying the whole collection and selecting decks to sell immediately, keeping other decks till the appropriate moment;
- Selling and buying, considering long-term deals;
- Using swapping to fill the gaps in your collection.
Regarding collecting as an investment, take into consideration risks that are inevitable:
- A wrong choice of art style and theme of a deck that will go out of fashion.
- Self-published decks may go into mass production.
- A mass publisher may republish a deck.
- Essential fluctuations in prices.
The investment risks are inevitable, but you can mitigate them (and in this way increase the rate of return from your investment), forming properly your investment portfolio (just like investors operating in the stock exchange market). You can see decks in your collection from the point of view of its investment profile. For example, a solid deck created in the 90s by a gifted artist promises a slow but permanent growth in price. On the contrary, the price of some contemporary trendy deck might have rapid growth. But the trend is mutable, and this investment is much riskier. There are many intermediate solutions between the two above mentioned extremal ones. You can choose appropriate decks to diversify your investment portfolio, balancing between related risks and rates of return.