As a result of the sanitary crisis, not only are more and more people getting into board games, but collectible cards, Pokemon, Magic, have become more valuable. Where does this renewed interest come from?
A way to invest money
Another reason for this trend is the unstable economy, which was in complete freefall at the start of the pandemic and showed signs of a shaky recovery in 2021. With eroded confidence in financial systems, many people are turning to alternative means such as cryptocurrency or collectibles to invest their savings. A less expensive way to have fun with cards can be to play online scratch cards The value of these virtual cards does not fluctuate and they can even earn you money! Besides, there is no risk of cornering or damaging them like Pokemon cards! To date, there are between 25 and 30 billion Pokémon cards worldwide, either jealously guarded, lost or for sale. And they are no longer just cards to play and collect: they are now part of a real business as well as some sport cards.
A new concept has emerged recently called fractional ownership. This is where multiple people buy partial shares in ultra-rare collectibles. Apps like Otis and Rally (among many others) have been created, allowing anybody to take part in alternative investments. The collectible card market makes up a large portion of these so-called alternative investments. While alternative investing is new and exciting, there is one aspect that cannot be forgotten—taxes! Collectible or not, if we take part in the sale of a collectible card and make a profit, we are responsible for paying a Capital Gains tax. Don’t worry though. As long as you file your tax return online using a reputable tax program, then you will be able to upload any documents or supporting information surrounding any collectible card sale you might have made.
An activity that makes people feel good
Many believe that the cause of the resurgence in popularity for cards is the coronavirus pandemic, which has kept many people isolated at home with plenty of time to indulge in a new hobby. Team Whistle, a sports broadcasting company, conducted a study that found 77% of millennials and Generation Z felt the desire to engage with “a comfortable activity that would offer them a break from the news,” with 73% reporting spending money on a hobby “in the past month.”
“The pandemic has caused many people to reevaluate their interests,” says Justin Goodman, a vintage baseball card enthusiast who hosts the collector-centric podcast The Monster. “Collecting cards has brought happiness and comfort to people in a time characterized by a lot of uncertainty and fear. The Internet gave people a forum to talk, when the rest of the world was locked up. It was the way to live vicariously.” In addition, card collections tap into nostalgia because they recall childhood or adolescence, times of joy and lightheartednes.
Which future for collectible cards?
The value of collectible cards will increase over time. Their value depends on factors such as condition, rarity and age. First edition collectible cards are the most sought after for collectors, although to sell for close to thousands of dollars, they must be officially graded in perfect condition. Collectible cards eventually go out of print, making them harder to obtain commercially. If reprinted, the new set of cards will not be the 1st edition and therefore less valuable. Maybe it’s time to look in your drawers to see if you still have any collectible cards from your teenage years !