Trading Cards: An Emerging Asset Class for Value Portfolios
Trading cards have emerged as a compelling addition to diversified investment portfolios, alongside stocks, ETFs, and real estate. In 2024, major authenticators witnessed a 16% increase in graded cards, reflecting the growing demand.
PSA, the leading authenticator, has witnessed exponential growth during and post-pandemic. Its unique process combines AI and human expertise to determine the worth of individual cards, increasing liquidity and preserving their value.
The surge in the trading card market has spurred the development of convenient services. PSA's vault allows investors to store their cards while benefiting from eBay's (EBAY) integration for seamless selling. This reduces friction and enables investors to capitalize on market fluctuations efficiently.
For investors seeking entry into the market, rookie NBA players become a focus, particularly with Fanatics acquiring the association's trading card license. Insightful analysis suggests the potential for significant returns by timing card sales based on player performance.
As a value portfolio asset, trading cards offer liquidity, rarity-based scarcity, and the convenience of digital management. Investors seeking diversification should consider this emerging asset class, especially the promising options presented by rookie players.