A set of basketball cards featuring Kevin Durant. Photo by: Matthew McGuire
A set of basketball cards featuring Kevin Durant. Photo by: Matthew McGuire

Any type of investment involves a certain amount of risk. I’ve reported on Bitcoin in the past, and now I am seeing a large amount of attention being drawn to the sports card market.

Before I get into the increase in demand for sports cards, I have been following Bitcoin closely for the past few months and have seen a recent dip in prices. The price for Bitcoin did recover slightly today, but a reoccurring trend I have seen is a dip in prices from January to April each year to allow investors to collect on their gains to help pay for taxes and other resources. One piece of advice I have for any investment is to always stay within your comfort zone and do not spend more than you have to lose, as well as buy during a dip in prices if you see long-term growth potential.

Sports cards are similar to Bitcoin in many ways. Both are commodities that cannot be bought and sold without using cash as a form of currency. There are individuals that mine other forms of digital currency, but currently, the most common way to buy Bitcoin is through a third-party, such as Gemini. I would love to see more financial institutions integrate sports cards into their portfolios.

Gary Vaynerchuk accurately predicted that the sports card market would see extreme growth for the next 24-36 months in a Web article written 2 years ago. In addition, I have also noticed even more investors moving into collecting sports cards over these past two years. That being said, Gary Vee drew an interesting comparison of the 2008 stock market crash and the major dip in the sports card market. I would also note that the stimulus checks of 2020 also added a large amount of fuel to the fire burning within the sports card market. The stimulus that the federal government is adding to the economy could be one major difference with the incoming of Biden in comparison to Obama. It appears that Gary Vee is still hot on sports cards in early 2021.

Investment portfolios are the best off when properly diversified across different areas. The stock market has recently seen record highs, and that level of productivity is excellent, but managing resources in case it cools off is always a smart investment strategy.

Currently, I have close to 250 basketball cards that have been sent off to Beckett for grading purposes. These cards will be returned to me in the near future, and I plan to sell a majority of them. There is a set of Michael Jordan cards I am planning to keep until the 2021-2022 season when the NBA releases the top 75 players of all time for the 75th anniversary.

Overall, I find that sports cards can be exciting and fun. My father and I were able to reconnect with some nostalgia during 2020, and have a bet to see if I can double an investment. We will see what happens, but I am enjoying the journey and loving the ride.

Watch the following YouTube video by Sports Card Investor to learn more about trends within the hobby.