Trading Cards: Emerging as a Liquid Asset in Diverse Investment Portfolios
Amidst traditional assets such as stocks and real estate, trading cards are gaining traction as an essential component of diversified investment portfolios. According to Gemrate, over 20 million cards were graded by the four major authenticators in 2024, indicating a 16% surge from the previous year.
Ryan Hoge, President of Professional Sports Authenticator (PSA), highlights the remarkable growth of the sector during the pandemic, which has established it as a cornerstone of liquid assets. PSA provides authentication and grading services, utilizing a blend of artificial intelligence and human expertise to determine trading card value. Their tamper-proof holders and liquidity enhancements boost the ease of transactions on platforms like eBay.
The burgeoning trading card market has witnessed a surge in demand, prompting PSA to scale up its operations to process a backlog reaching 13 million cards at one point in time. As the market continues to expand, new services have emerged, enabling collectors and investors to store and trade cards seamlessly. PSA's vault service and integration with eBay allow for efficient storage and timely sales.
For those exploring the trading card market, Hoge advises monitoring rookie players, particularly in the NBA under Fanatics' new license. By anticipating a player's potential breakout season, investors can acquire cards early and capitalize on their subsequent value appreciation.
Trading cards have evolved into a viable investment option, even for non-collectors, providing opportunities for portfolio diversification and potential financial gains.