CASH COW CARD: Ultra-rare Pokemon card could catch INSANE price in auction

Pokémon, Trading Cards, and Historic Memorabilia: An Emerging Asset Class

Key Concepts:

• Alternative Assets: Investments outside of traditional categories like stocks and bonds (e.g., Pokémon cards, trading cards, sports memorabilia).
• TCG (Trading Card Game): Card games like Pokémon and Magic: The Gathering where players collect, trade, and play with cards.
• Grading: The process of professionally assessing the condition of a collectible card, assigning a numerical grade (e.g., a “10” indicates near-perfect condition).
• Buyer’s Premium: An additional fee added to the final bid price in an auction.
• Store of Value: An asset that maintains its value over time, often used as a hedge against inflation.
• Honus Wagner Card: A famously rare and valuable baseball card from 1909-1911.

I. The Explosive Growth of the Collectibles Market

The discussion centers around the rapidly expanding market for collectibles, particularly trading cards, and its performance as an investment asset. Ken Golden, host of Netflix’s King of Collectibles, highlights that Pokémon, as an asset class, has outperformed the stock market by over 3000% in the last 20 years. This growth is attributed to several factors, including increased interest in collectibles as an alternative asset, the rise of professional grading companies, and the accessibility of buying and selling through platforms like eBay. The grading process, with cards receiving grades like a “10” for near-perfect condition, allows for standardized valuation and facilitates trading similar to stocks or commodities.

II. Current Auctions and High-Value Items

Several specific auctions are discussed, showcasing the current market values of rare collectibles:

• Logan Paul’s Pokémon Card: An ultra-rare Pokémon card, previously owned by Logan Paul, is currently being auctioned with a leading bid of $4.8 million (as of late the previous night), bringing the total with buyer’s premium to $5.95 million. Bidding is expected to potentially reach $10-50 million with 33 days remaining.
• Shohei Ohtani Home Run Ball: The ball from Shohei Ohtani’s historic three-home-run, ten-strikeout game is up for auction at Golden.com, currently at $200,000, with expectations of exceeding $500,000, potentially reaching $1 million. Last year, a similar ball from Ohtani sold for $4.4 million.
• 1909-1911 Honus Wagner Baseball Card: A previously unknown example of the extremely rare Honus Wagner card is being auctioned. This card is unique in that every previous sale has resulted in a profit for the seller, demonstrating its consistent value appreciation.

III. The Broader Collectibles Landscape & Global Trends

The conversation expands beyond Pokémon to encompass other collectible categories:

• Magic: The Gathering (MTG): MTG cards are highlighted as a significant collectible market, particularly popular internationally. A bartender was cited as an example of someone who funded their education by selling MTG cards.
• Sports Cards: While popular in the U.S., sports cards are less dominant globally compared to Trading Card Games (TCGs).
• Franchise Strength: Pokémon is described as the biggest franchise in history, exceeding Disney, Marvel, and Star Wars in popularity and consistently outperforming the stock market over the past decade. It’s a worldwide phenomenon.
• Historical Value & Longevity: Ken Golden emphasizes that, over the past 120 years, there is no collectible that has consistently decreased in value.

IV. Investment Strategies and Risk Mitigation

The discussion touches on the importance of careful investment in the collectibles market:

• Fad Awareness: Jackie acknowledges that fads exist and prices fluctuate, referencing past trends like Beanie Babies.
• Long-Term Perspective: The Honus Wagner card is presented as an example of an asset that consistently appreciates in value over time.
• Auction Timing: Bidders are advised to wait until the final minutes of an auction to place their bids, potentially extending the bidding period and securing a better price.
• Secure Storage: While some collectors display their items, many opt for secure storage, such as bank vaults, to protect their investments.

V. The Honus Wagner Card: A Unique Case Study

The Honus Wagner card is presented as a particularly compelling example of a valuable collectible. Its rarity, historical significance, and consistent appreciation in value make it a unique asset. The card’s history is filled with misinformation, adding to its mystique. The fact that no previous owner has ever lost money on a resale is highlighted as a testament to its enduring value. Ken Golden recounts the story of discovering a previously unknown example of the card during filming for King of Collectibles Season Three.

Notable Quotes:

• “Pokémon as an asset class has outperformed the stock market by upwards of 3000% in the last 20 years.” – Ken Golden
• “It’s the only type of asset I find where not a single owner has ever not made money on the sale of the card.” – Ken Golden (referring to the Honus Wagner card)
• “If you’re really serious you’re going to wait to extend the bidding for the last few minutes of an auction.” – Ken Golden

Conclusion:

The conversation paints a picture of a dynamic and rapidly growing collectibles market, driven by factors like increased investor interest, professional grading, and the accessibility of online platforms. While acknowledging the inherent risks associated with any investment, the examples presented – particularly the Honus Wagner card – demonstrate the potential for significant returns and the enduring value of rare and historically significant collectibles. The market’s global reach and the strength of franchises like Pokémon suggest continued growth and opportunity for investors willing to navigate this emerging asset class.