[Article] Sports cards - From Hobby to Investment

I was born in the 80s, and during the early 90s, sports cards were a significant part of my childhood. Friends would gather at the playground to discuss their favorite players and trade cards from freshly opened packs. It was a fun time to be a part of. Fast forward thirty years, and sports cards have evolved beyond a simple hobby; they have become a multi-billion-dollar global industry, with some high-net-worth individuals viewing them as a viable investment opportunity.

I recently acquired a 1998 Upper Deck Game Jersey Autograph card featuring Michael Jordan. This card is numbered to 23 and has received a gem mint 9.5 grade from Beckett. To someone unfamiliar with trading cards, this is simply a card with a small jersey piece and Michael Jordan's signature, encased in acrylic. However, in the sports card community, it's considered one of the holy grails due to its unique features. The red jersey is the first instance of a Chicago Bulls jersey being included on a trading card, a groundbreaking innovation at the time. The autograph is a clear blue and is hand-numbered to 23, matching the number of copies Jordan signed and coincidentally his jersey number. The 9.5 indicates the card's condition, with Gem Mint being a top-tier (though not the absolute highest) quality. And the price tag?

One hundred and fifty thousand United States dollars - as at May 2025.

The same card, in similar grade sold on 1 March 2012 for $11,500. 12x over a little more than 13 years with annualized ROI of 21.41%.

While this is a compelling example of why sports cards have become a viable investment, there are also many cases where card values have dropped, leading to losses of thousands of dollars for investors and holders. The pandemic sparked renewed interest in sports cards, with an unprecedented influx of collectors, investors, and speculators injecting millions of fresh capital into the industry, causing significant price spikes from early 2021 to mid-2022. Experienced players understood the situation and many capitalized during the bubble, fully aware that the growth was unsustainable. Indeed, once the hype subsided, prices quickly plummeted.

Prices remain notably higher than they were before the pandemic, and for about 18 months since late 2023, the hobby has been experiencing consistent growth overall. Speculation continues to be prevalent when a new rookie class enters the hobby, but the times of easy profits from others' greed and ignorance are over. Currently, the collectors' market is the strongest it has been in a long while, with many high-end cards being scooped up, likely as part of a collection consolidation effort.

Today's advanced tools and diverse services are vastly superior to those available five years ago. The introduction of sophisticated price charts, high-resolution images, AI grading, and vaulting services, among other features, has transformed what was once a simple hobby with a monthly printed price guide into a thriving ecosystem. Reputable online auction houses like Goldin, Fanatics Collect, Alt, and eBay have played a significant role in creating substantial liquidity in the market, addressing a challenge that niche collectibles have historically encountered. Much like real estate, each collectible is both similar and unique, and while there is plenty of comparative data available, price fluctuations are ultimately determined by the dynamics of a willing buyer and seller.

All the elements above are crucial parts of a healthy ecosystem, though they come with their own challenges. Scams and counterfeits continue to be persistent problems in the hobby. Despite the various safeguards and educational efforts aimed at addressing these issues, it ultimately boils down to the fundamental principle of buyer beware. The industry is likely several years away from becoming a sophisticated market where regulations might be implemented. Until that time, it depends entirely on your personal risk tolerance as to how much of your personal wealth you choose to invest in this alternative asset class.