How to Properly Invest in Trading Cards for Profit

Are you a sports card enthusiast who is passionate about how to turn sports card investing hobby into a profitable yet satisfactory business?

Think of it in this way: if you work with passion, it can give you more than your pension.

Trading card investing has become more than just a hobby now. To my surprise, there were the number of people who have made a career out of investing into it. This shows that collecting sports cards has surpassed from just a childhood hobby to being a lucrative investment opportunity.

Now, You might be wondering, “Not everything is for everyone.” Should I even try to make it a part-time job?

Well, you’ll find the answer yourself once you understand how to make a profitable business out of it. So stay tuned! And let’s begin our journey to understand how to properly invest in trading cards for profit.

Understanding the Basics of Trading Card Investing

What are Trading Cards?

Trading cards are sports souvenirs in the form of cardboard cards or plastic cards that feature players from different sports. They are bought, collected, showcased as a collection, and sold for profits. These cards are valued on the basis of their condition, demand, collectability, rarity, and player’s face value.

Why Investing in Trading Cards Will Always Be Profitable?

As a way to show their passion for the game/favorite player, people enjoy collecting trading cards. They feel as though they own something that resonates with them: their favorite player’s journey, just like they do with other memorabilia like jerseys or shoes.

And when it comes to emotions, people are ready to pay any amount of money. This emotional connection often drives demand, and as demand increases, so does the value of the cards. Additionally, unlike stocks or cryptocurrencies, sports cards are physical items. This means they offer people the security of holding a tangible asset, making them appealing even during economic uncertainty.

Popular rookie cards like Ja Morant’s 2019 Optic GOLD Rookies are priced for millions of dollars on eBay.

Key Factors that Influence the Trading Card Market

• Popularity of the Franchise
  Cards tied to globally recognized franchises like Pokémon or the NBA are more likely to increase in value over time due to sustained demand.
• Card Rarity and Condition
  Limited print runs and pristine condition (graded as “Gem Mint”) significantly affect a card’s worth. A card becomes rarer if it includes an autograph or a piece of memorabilia like jersey patches from the player directly.
• Grading and Authentication
  Professional grading by companies like PSA or Beckett assigns a numeric score to cards based on their condition, boosting credibility and market value. The value of the card is also based on how many of those same print cards have gotten that high rating.

How to Buy the Right Trading Card for Investment?

Through several years of experience, I have understood that investing in trading cards is not only about which card to invest in. Rather, it is more about how much to invest in which type of card.

For example, investing $1,000 in a rookie card of a future prospect may not yield you the profit you want, but investing in a rookie of a well-established player like LeBron or Stephen Curry may.

How to Know the Right Amount to Invest in a Card?

The easiest way to find the right amount of money to invest in a card is to find out how much it is selling for minus (-) the profit you would expect. Simple math: Cost Price = Selling Price – the Profit.

The selling costs for trading cards are not static. Card values fluctuate daily for newer cards and weekly or even monthly for older cards. This is why it is important to keep yourself updated with the latest prices, especially when it comes to unestablished players.

Keep in mind, historical prices are irrelevant in this game, as a card worth $200 in the 1990s may not retain the same value today.

How to Use eBay to Find Trading Card Prices?

eBay has been the most trusted and go-to platform for a lot of card collectors to sell and buy trading cards. It single-handedly has the widest amount of options for you to invest in. That said, a lot of collectors do use it to find the correct prices for their sports cards.

For example, if you are curious to find the price of your Anthony Edwards Panini CLEARLY Donruss-Rated Rookie card.

1. Go on eBay.
2. Check matches for your card; type your card name in the search box.

3. On the left side of the tab, filter the card specifications, such as “Grade“ and “Professional Grader” to match your card specifications.

4. Once done, go to “sold items” under the “show only” filter.

5. Look for the most recently sold card by checking the date of sale on the top of each listing. You can also sort the search result by sorting it as “Time: newly listed.”

6. The recently purchased card value will give you the ballpark amount you can spend on that card.

How to Avoid a Loss-Making Deal on eBay?

As an investor, you will need to acquire the skills of “how to avoid investing in a loss-making deal” through experience over time. However, there are some tricks you can follow as a beginner to superficially avoid investing in such cards if you are planning to purchase them from eBay.

1. Go on eBay.
2. Type in your card keyword to find the card that you are planning to purchase.
3. Go to sold items and find the latest and first sold card values.

4. You can check that by reading the sale date available on top of every listing.

5. Note the sale value and the sale date for both cards.

6. Now, we want to find the monthly appreciation of the card’s value between the latest and the first sale’s time.

For example, in the above case,

1. The difference between the sale value of both cards is $41 minus $36 = $6.
2. Also, the time elapsed is 2 months.
3. Now, the value appreciation can be found by finding 6 as a percentage of 36, which is 16.66%.
4. So, the average appreciation is 8.88% per month.

This way, you can find if the card that you are planning to invest in has a positive or a negative rate of appreciation and hence avoid investing in cards with depreciating values.

How to Estimate Card Value Range on eBay?

You can also look for similar card listings on eBay to find the minimum and maximum values people are selling the same card for.

• In the card listing page, scroll down to find “Explore related items” to find similar card listings.

• Try to find cards with a minimum and maximum sale value that will help you determine a range for your card purchase.

How to Diversify Your Trading Card Investment?

Trading card investment is just as similar to any other investment. It requires you to divide your investment in different sectors to gain the maximum amount of profit. Spreading your investment across various categories, such as sports, gaming, and vintage trading cards, can help you mitigate risk near to zero.

It ensures that you are not overly dependent on one market segment and helps you identify the best sector of growth where you can plan to invest more in the future. Since we are focusing on basketball trading cards specifically, we need to identify segments within NBA trading cards that offer consistent value appreciation, such as iconic cards or players with a strong fan base.

Adjust your allocation based on expertise:

1. Shift allocations to 70% in iconic players like LeBron James, Michael Jordan, and Kobe Bryant.
2. Short Print (SP) and Super Short Print (SSP) cards can be focused by allocating 25% of your budget.
3. The rest of the 5% can be invested in collecting rookie cards of future prospects.

When and How to Sell Trading Cards for Maximum Profit

Timing the Market

It takes years for investors and collectors to understand when is the right time to buy and sell a card. But if you think of it, it’s not that hard. Following the basics and doing it for the long term can make you a pro in anything.

The more time you spent searching, the quicker you’ll recognize valuable cards. The same goes for their value. Determining the value of a card involves time-consuming research and consistent practice.

Timing is everything in trading card sales. Missing the ideal window to sell could result in lost profit.

Here’s what you need to know about when to sell your card:

Selling on Price Spikes:

Trading cards often rise up in value during a player’s peak moments, such as playoffs, championships, or breaking records. For instance, in 2022, Victor Wembanyama’s rookie card saw a massive surge in price after he won the LNB All-Star Game MVP.

Keeping up with the market price:

There are various tools in the market that help you track market trends of your favorite cards regularly. Additionally, their are tools like Market Movers that allow you to set price alerts. So, you’ll get notified when a card exceeds or drops below a specific value, helping you to act quickly. Example: If a card sells for $515 and your alert is set at $500, you’ll be notified to list your card before the value drops.

Pro Tip: If you are selling your card on platforms like eBay, after a high-priced sale, you can list your card slightly below the last selling price to attract losing bidders and move your card quickly.

Mistakes to Avoid While Selling Your Card

1. Selling on Online Platforms:

• If using eBay, listing your rare cards in auctions can make your card go undervalued because of the slow market. Rather, use the “Buy it now” option to sell your cards at a firm price with sufficient profit.

• One of the most overlooked aspects of selling is accounting for fees and taxes. These hidden costs can drastically impact your profit. For instance, sellers can expect up to 20% in fees, including final value fees, PayPal fees, and potential sales tax on eBay. So, list your card considering all these aspects beforehand.

Pro tip: Selling at card shows can eliminate platform fees and provide direct buyer interaction.

• Poorly written titles or incorrect card attributes can significantly reduce your card’s visibility to the viewers. This can lead to your card not selling for months, which is a big problem, especially for flipper card collectors. Make sure your card is well described to the buyers like:

Example of a well-written title: 2023 Victor Wembanyama PSA 10 Prizm FOTL Exclusive Green Shimmer Rookie Card 3/3

2. Selling on Auctions

• Avoid selling your highly liquid cards or cards under $100 at small auction houses. Less rare or generic cards usually go unnoticed and often end up selling for less than usual. That said, auction houses are better for high-end or rare cards.
• Beware of the auction timings and set your reminders in advance to not miss your profit target.

Storing Cards Properly to Maintain their Value

Use protective sleeves, top loaders, and storage boxes to shield cards from dust, moisture, and physical damage. You can also use “Cardboard storage boxes” for storing large card collections. Remember, keeping your cards in temperature-controlled environment is ideal for their preservation.

Best Tips to Remember While Investing

• Avoid overhyped cards. There are some cards that gain sudden popularity due to the increased social media buzz of the player for some time. But while they might seem like quick wins, they can lose value just as quickly if demand wanes.

• Be flexible yet firm with your pricing. Research comparable card prices and be prepared to negotiate to reach a mutually beneficial deal.

• Avoid emotional purchases. Use research and patience to ensure you’re getting cards at fair market value.

• Verify seller reputations and request authentication for high-value cards, especially on platforms like eBay. You can check their overall ratings and even verify their physical address on Google. Counterfeit cards can be damn convincing, so always exercise caution.

• Regularly organize and appraise your collection. Misplaced or damaged cards lose value, so treat your portfolio like a business asset.

• Joining forums or social media groups allows for direct purchases, often at competitive prices.

• Remember, purchasing the card in person is always better than purchasing cards looking at some photos. Visit your nearest local card shops first to check if they have your desired card.

• Establish a clear budget to avoid overextending financially. Start small and gradually increase your investment as you gain market knowledge.

• Beware. Cards with blemishes or ink spots do not typically hold added value, despite various claims.

What does the future hold for trading card investments?

The trading card market has seen some significant shifts since the time of the pandemic. During the pandemic, people started exploring multiple hobbies that could be pursued from home. The boom wasn’t just limited to physical cards either; it extended to digital assets like NFTs (non-fungible tokens), which have changed the landscape of collecting and investing.

These non-tangible assets have made trading card investments more accessible to a global audience, drawing in both seasoned collectors and new investors looking for diversification.

The rise of blockchain technology and NFTs has led to collectors now facing a big decision: stick with collecting the physical cards or dive into the innovation of digital assets. Either way, the market is expected to grow, so exploring other options for once might not be a bad idea at all.

FAQs:

Conclusion

Turning your card collecting hobby into a full-fledged career is not going to be easy. It is going to take you the same amount of effort as any other business or job would. So, you have to be serious to survive in this market and to gain profits out of it.