So back in August 2020, I started the sports card investment journey on a platform called Rally Rd., which engages in crowd investing of collector items, such as high-end sports cars, sports memorabilia, rare books and comic books, fine jewelry, and more. My first investment on the Rally Rd. platform was in the 1986 Topps Jerry Rice rookie card graded by SGC as a Gem Mint 10. You can read about that in my original article here Going for the Goal with the 86 Topps Jerry Rice Rookie Card.
At the time of investment, the initial public offering (IPO) for the card was $23,000 and I invested the maximum allowed by the platform for a total of 20 shares in the card. At the time of the offering the IPO was significantly lower than previous sales of the same card in PSA 10 condition, with the average sale price of the card on eBay being a whopping $31,478 which was $8,478 more than the IPO price – granted PSA is the king of grades according to most collectors (still boggles my mind as to why I mean come on, FBI investigations, fraud, etc.), but the reason there was no recent sales data for an SGC card is because this is the only SGC Gem Mint 10 1986 Topps Jerry Rice in existence!
Now I was expecting to see a pretty decent return on the investment, considering the insane explosion of interest in sports card collecting during the pandemic quarantine, and the consistent increase in sales value over the last decade (2010 sales price of only $2,644). So, I put my money in and waited for the offering to close, meaning that all of the shares were purchased, after which the asset sits for a while until the next trading window.
The trading window for the ’86 Topps Jerry Rice opened on 15 December 2020 and I causally checked in to the trading activity a few times during the day. When I first checked in the card was up 5% and by the end of the trading window it has increased to a 25% gain – that’s right, a 25% return on investment in only four months, placing the asset value at $28,750 – I wish I would have been buying up more shares when the price was only up 5% rather than treating this as an experiment and just watching for the results. A mistake I will not be making on the next round of trading.
With the continued rise in sports card collecting and investing which has carried over into 2021 it will be interesting to see what happens during the next trading window scheduled for March of 2021 – needless to say, I will be an active trader in that window, likely purchasing more shares to increase my stake in an attempt to increase my return on investment. With a 25% unrealized return already (unrealized only because I haven’t actually cashed it out) I would be quite happy if the trend continues and the card reaches the $30,000 mark in the next round of trading.
In either event, this first investment on Rally Rd. has been a success. I would encourage anyone that is interested in investing in high dollar trading cards or comic books but doesn’t have the resources to drop thousands of dollars to wholly own the investment to look into the Rally Rd. platform.
*Disclaimer: Investing in trading cards, comic books, memorabilia, and any other item involves a substantial risk of loss and is not suitable for everyone. Cardboard Prospector does not provide financial advice, and none of our articles or opinions should be construed as financial or investment advice. We do not guarantee results from your decision making based on our opinions and content. You should always conduct your own research and due diligence prior to making any investment.