What is Sports Card Investing?
Many of us may have been exposed to this niche of investing in forms such as collecting Pokemon cards for instance. However, when you purchase a sports card you are betting that such a player will improve which will eventually make the piece of the sports car you bought even higher.
Getting Started!
Most often people get started as they already have extensive knowledge of a certain player or team. Betting on sports cards may allow them to have a side gig from the knowledge they already consume. You can access the market of sports cards from websites such as eBay or even meet up with other individuals and pay them for certain sports cards or trace your cards for theirs.
Exposed Risks and Upside
With sports cards, there are no fundamentals or financials behind it as opposed to buying stocks where there is a business model behind the company to generate revenue. Therefore, in this industry, it is only possible to gain capital on your investment by selling it. Hence you cannot rely on sports cards to generate consistent revenue as there are no dividends paid out rather you only make capital gains upon selling. In addition, your entire investment in a certain sports card can be wiped out if the player gets injured. This can cause the player to not play for many seasons hence promoting fear within the cardholders that the player may not return to this status when fully recovered.
Conclusion
In conclusion, sports card investing may just be another gig for the extravagant sports fan who has in-depth knowledge of their teams and favourite players. This may allow them to feel more connected to the team. However, this should not be approached as a get-rich-quick scheme as there are hundreds of factors that may impact your return on investment. Factors such as injuries or personal matters can not be predicted but will have a major impact. Sports cards can be considered a fun side gig for sports fans.
Written by Tejpal Gill