Trading Cards: A Growing Asset Class in Diversified Investment Portfolios
In recent years, trading cards have emerged as a significant asset class within diversified investment portfolios alongside stocks, exchange-traded funds, and real estate. The industry has witnessed a remarkable surge, with authenticators like Gemrate reporting a 16% increase in graded cards in 2024.
Ryan Hoge, President of Professional Sports Authenticator (PSA), attributes this growth to the pandemic-induced boom in collecting and investing. "We anticipate a strong year in 2023," says Hoge. "Q4 2024 concluded on a positive note, with both units and new customers continuing to rise year-over-year."
PSA, which authenticates and grades trading cards, employs a combination of AI and human expertise to determine their value. By securely preserving and protecting cards, PSA enhances their liquidity and facilitates transactions on marketplaces like eBay.
The pandemic has fueled the trading card market, with PSA receiving a backlog of approximately 13 million cards. To accommodate this demand, the company has expanded its operations.
As the market has expanded, buying and selling services have also evolved. PSA's vault allows investors to store their cards securely, while its integration with eBay enables them to sell their assets promptly.
These options have positioned trading cards as a viable portfolio asset even for non-collectors. Hoge recommends focusing on rookie players, particularly in the NBA, as Fanatics acquires the trading card license for the league.
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