This guest post came through our Article Submission Program. Thoughts and opinions are those of the author.
In this article, we discuss why the sports card market has not diminished during the recent pandemic and, in some cases, thrived.
Disclaimer – I’m not an economist, nor I’m qualified to provide any investment advice. The following write up is solely my observation and opinion on the above subject matter.
So now that’s out of the way, here’s a recap – Invest in sports cards now!
So why the optimism amongst the uncertainties that’s going on in the world? Indeed, the pandemic and how it affects the world and its economies is nothing to belittle about. The people of the world today have either gone through or learned from the history of how we, as people of the world, survive and persevere through adversities such as economic recessions, wars, and pandemics, to name a few. Yes not everyone comes out unscathed, but if you are here reading this article, you are probably one of the many who are hunkering down at home with your families, having set aside your resources for such a rainy day, waiting out for the worse to blow over, and cherry-picking great deals that are out there.
If we dive into world history during times of depression, sports have always been the outlet that brings people together. Hence this is the general spirit of why we have the Olympics in the first place. People turn to sports not just as a form of entertainment, but it creates a strong feel-good factor which can’t be compared if you spent the time to watch the latest movie or buy the latest gadget. People always turn to sports when times are not great. Hence its why governments, not just in the United States but globally, are trying to get their sporting events back on track. The Tokyo Olympics are out, but individual government realizes that people need sports as something they can rally on and feel good at times like today.
As such, sports cards as a hobby could be the first to rebound when sports get back underway, whether it’s happening in a controlled environment (no fans) or a private island. Nevertheless, having access to live televised sporting events, if the NBA gets back on track and both MLB and NFL kick off (albeit some delays in the season), is exactly the fuel the hobby needs to jump-start and as investors its something that you need to be ready for. Of course, while I’m writing this, there are already people ahead of the game where you can see prices of Lebron James and Giannis Antetokounmpo have already started to curved backup and, in some cases, moving to heights beyond pre-pandemic prices. Luka Doncic and Zion Williamson cards took a small dive, but the decrease has slowed down, and we are starting to see the curve swing back up.
Another factor why sports card values haven’t seen a dramatic decline (I’m referring to 40-60% slide) when compared to 2008 is because people – both collectors and investors have been savvier when it comes to spending money on the hobby in recent years. The concept of disposable income when we start buying cards now has a reinforced meaning where we, as investors and collectors, have better holding power than before. Hence you see less influx of collections and a large volume of cards into the market, which freefalls prices. Of course, its unfortunate for some that are truly affected where they need to move some cards to raise cash for necessities, but from my observation, the frequency is considerably lower, and the only medium to lower-end cards appear in fire sales and auctions. Higher-end cards are either taken off listings or prices maintained high as its owners are just sitting and waiting for the market to rebound. So if you’re waiting for the situation to get worse to cherry-pick more deals, you may find yourself on an escalating price war instead as investors start to flood back into the hobby.
I, of course, think it’s arrogant for people whom of better financial stature during this trying times to be saying things like “Bring them on, I’ll buy all of them if prices tank.” As a community of investors, we are in the business of making money, and regardless of your financial situation, we need to continue to invest wisely, professionally and not expressively taking advantage of people’s lesser situation.
A great look into history and a few reasons why the sports card market has not crashed. Do you have any ideas on why the market has continued to hold firm with only minor dips?
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