Taking My Hacks
Four Collector Tips for Buying in a Blazing Market
I think all hobbyists can agree that what we have witnessed during the past several months is unprecedented. The trading card market hasn’t merely been hot, it has been white hot. More new participants are entering the fold and more price records are being set. For anyone who has been active in our industry during this time, which includes anyone reading this editorial, all of this was the latest from Captain Obvious.
That said, how do buyers navigate a market when everything seems to be on fire?
There is no doubt that it’s an exciting time to take part in the trading card market. It’s easy, however, to either get caught up in the frenzy or, conversely, to become overly conservative or shut down entirely as a buyer. Collectors must try to balance the fear of missing out with the fear of getting stung. I don’t claim to have all the answers, but here are four tips for those wanting to stay active when prices are surging.
1) Find Pockets of Opportunity – I just wrote that everything “seems” to be on fire. A lot of cards are scorching hot, but not everything is ablaze. Just like any other market, there will be a hyper focus on certain segments, but some others might be getting overlooked. If you look hard enough, you just might find your diamond in the rough... a card or entire set that hasn’t had its day in the sun yet. Continue to explore within the card market, and for those willing to expand their horizons, venture outside into other collectible areas you might find interesting. Great attributes, such as quality or rarity, are universal. Keep up the hunt if you feel like you’ve been priced out in a certain area. You never know what you might find. Financial gain aside... you might just fall in love with something new as a collector.
2) Don’t Veer too Far from the Tracks – Of course, after telling you to explore areas that others may not be considering right now, I would also caution you to not journey down an esoteric rabbit hole either. There is a reason that certain cards are extremely popular. There is also a reason that other cards struggle for mainstream acceptance. Do as much research as you can and ask yourself if the cards you are pondering check enough of the relevant boxes to warrant consideration. There does come a point when a collectible represents too much of a longshot if financial gain is your focus.
3) Don’t Be Limited by Your Own Preconceived Notions – So, what exactly do I mean by this? We all base what is reasonable or desirable on what we have come to know through our own experiences. Much of this knowledge is very valuable, but it can be restrictive as well. In some cases, it takes a little time for a card to be appreciated and to appreciate monetarily. A great example of this would be the 1916 Sporting News (M101-5 or M101-4) Babe Ruth card. If you go back 20 years or more, the card was often an afterthought. The card had value, but it didn’t carry anywhere near the cache it does today. The market evolves, as does collector sentiment. Try to evolve with it as best you can and stay open-minded.
4) Stay Focused on What You Like – It’s very easy to get caught up in a trend, and of any sort. You see this happen in many aspects of life. It’s herd mentality. All markets go up and down at different times, so if you are going to be active, buy what makes you happy. In the end, whether a card goes up or down in value, or simply stays the same, you will be happier in the long run if your interest in it goes beyond the return on your financial investment. There is also the kind of return that has to do with the enjoyment of owning something. It might be the connection to it from an emotional, sentimental or historical standpoint. Just because someone else likes something, or even if a lot of people do, it’s your money and your collection. Being true to yourself in this regard can make for a better overall hobby experience. Stay on target... stay on target. I’ve heard that line somewhere.
I hope you find these basic tips useful on some level. We could all use reminders from fellow collectors who, like you, are trying to navigate a changing market.
Never get cheated,
Joe Orlando
President & CEO
Collectors Universe, Inc.