Gary Vaynerchuk says he'd buy a baseball card before a share of Tesla

Key Concepts

• Emergence of New Collectibles: The traditional definition of collectibles is expanding to include items from popular culture, such as comic books, trading cards, and even gold chains from the hip-hop era.
• Valuation of Collectibles: The value of these new collectibles is driven by demand, expression, and social media influence, moving beyond traditional art valuation methods.
• Monetary and Sentimental Value: Collectibles offer both potential monetary returns and sentimental value, which can be more appealing to some than traditional stock investments.
• Fractionalization and Blockchain: Emerging technologies like blockchain are enabling fractional ownership of high-value collectibles, democratizing access and potentially increasing their overall market value.
• Corporate Integration of Collectibles: Fortune 500 companies are expected to leverage collectibles to drive consumer engagement and product sales, reminiscent of past marketing strategies.
• Community and Joy: Collectibles foster community and provide a source of joy and escapism in a complex world.

Summary

The Evolving Landscape of Collectibles

The discussion highlights a significant shift in what is considered a valuable collectible. While art and antiques have historically held this status, the market is now seeing items like Superman comic books and gold chains from the hip-hop era being auctioned at prestigious venues like Sotheby's. This trend, particularly evident among the speaker's generation (those turning 50), signifies a re-evaluation of cultural artifacts that were previously overlooked. The speaker contrasts this with the historical perception of items like late 1800s European clocks or 1950s trading cards, which were not considered collectibles at the time. The emergence of new collectibles is presented not as an anomaly but as a continuation of a long-standing human behavior.

Historical Precedents and Generational Shifts

The transcript draws parallels to the historical boom of contemporary art in the 1960s and 70s, which was initially met with skepticism but is now represented by highly valued artists like Jackson Pollock, Andy Warhol, and Basquiat. This historical context supports the argument that current trends in collecting comic books, trading cards, and sneakers are part of a "new game" with substantial real-world financial implications. The speaker, having recently turned 50, identifies with this generational shift in valuing these items.

Valuation Drivers: Demand, Expression, and Social Media

The valuation of contemporary collectibles is explored, acknowledging that it's less of a science and more of an art, similar to traditional art valuation. However, the primary drivers are identified as demand and personal expression. In a social media-driven world, individuals are motivated to showcase their possessions, making fashion and collectibles powerful tools for self-expression. The speaker emphasizes that the returns on these collectibles over the past half-century, and especially the last decade, are undeniable and are moving them beyond being perceived as "silly."

Collectibles vs. Traditional Investments

A personal perspective is shared, where owning a trading card or comic book that appreciates in value is considered more interesting than owning an equivalent value in stocks, such as 100 shares of Tesla. This preference stems from the added sentimental value that collectibles possess. While acknowledging the potential lack of liquidity compared to highly liquid stocks, the speaker posits that this is a fair trade-off for many.

The Future: Corporate Integration and Fractionalization

The transcript delves into the future of collectibles, predicting that Fortune 500 companies will increasingly integrate them into their business strategies to drive day-to-day sales. This is likened to the marketing tactics of the 1950s and 60s, where companies like Hershey's used collectibles (e.g., Pokemon) to boost engagement. The speaker anticipates that companies like Kellogg's, Hostess, Pepsi, and Coca-Cola will "wake up to this trend."

Furthermore, the discussion highlights the transformative potential of fractionalization and blockchain technology in the collectibles market. This allows for the securitization of high-value items, enabling multiple investors to own shares of a single collectible. The example of a $9 million comic book potentially being worth $17 million through fractional ownership is presented, where individuals who cannot afford the full price can invest smaller amounts (e.g., $100,000 or even $1). This technology is seen as a significant advancement beyond mere speculation, with examples like the Mickey Mantle card and video games like Fortnite (valued at over $40,000) emerging as new frontiers.

The Overarching Collectible Insurgence

The speaker strongly believes that the audience is underestimating the "overarching collectible insurgence" that is underway. This trend is expected to be amplified by Fortune 500 companies using collectibles to sell everyday products, much like in 1965. The underlying appeal is attributed to a general human desire for joy and community, especially in the current global climate. Events like Comic-Con are cited as evidence of the growing community and cultural significance surrounding these items. The "Revenge of the Nerds" phenomenon is presented as a reality that is "here, it's happening now."

Conclusion

The conversation concludes with a reflection on the missed opportunities of past generations who may have discarded valuable collectibles. The overarching takeaway is that collectibles are no longer a niche interest but a significant and growing market driven by cultural relevance, emotional connection, and technological innovation, with strong potential for both personal satisfaction and financial returns.