Listen and subscribe to Sports Report Apple Podcasts,,,, Spotifyor find your favorite podcasts anywhere.
Stocks, exchange-traded funds, and real estate are some common assets that make up a diversified investment portfolio. Now, investors appear to be adding trading cards to that portfolio.
According to Gemrate, the four major transaction card authenticators are grading more than 20 million cards in 2024, a 16% increase from the previous year.
In a recent episode of Yahoo Finance’s Sports Coverage podcast, Ryan Hoge, president of Top Trading Card Professional Sports Authenticator (PSA), explained how the industry that has grown rapidly during the pandemic has now become a significant part of some investors’ liquid holdings.
"I think we're in for another year, see the video above or listen)," Hoge said. The fourth quarter of 2024 ended on a strong note. We're seeing continued growth in units, new customers compared to previous year. We think these trends will continue as more people start collecting or return to collecting. "
This embedded content is not available in your region.
PSA is a company that authenticates trade cards and scores them based on their rarity and condition. Its process combines artificial intelligence and human authentication to let collectors and investors alike know how much individual trading cards are worth.
The company "protects and keeps the card in a secure holder and adds additional liquidity based on the scarcity of the card," Hoge explained. "Obviously, the higher the tier, the less rare it is, the more valuable it is generally, so in It’s easier for people to trade on marketplaces like eBay.”
The trading card market has boomed during the pandemic. Hoge has said that PSA acquired about 13 million trading cards as part of its backlog, forcing the company to expand to meet growing demand.
As the trading card market grows, so do the buying and selling services. Today, potential collectors and investors don't need to find space in their homes to store cards while they wait for values to rise. For example, PSA has a vault that allows investors to store cards with the company. It also integrates with eBay (eBay) to allow collectors to easily sell their stock as the price of a specific card increases.
“Let’s say a player stands out and has a great game and you want to list (their card),” Hoge explained. “You can list it that night and it will sell immediately and then we actually take care of all the satisfaction and Process. So it’s a way to do more frictionless selling and you can time the market.”
Options like this make trading cards a valuable portfolio asset, even for those who aren't big collectors.
Hogg said those looking to get into the market should keep an eye on rookie players, especially for the NBA as enthusiasts take over the Basketball Association's trading card license.
"A lot of people, they want to speculate on rookie players - maybe they're going to have a great season coming up," Hogg said. "So they load up and then when they start to get hot, they want to put in those (cards) Make some profits."
every Thursday, sports report Let Joe Pompliano guide you with the latest sports business news so you can play the financial game for financial gain. You can find it in our Video Center or watch your Preferred streaming services.
