One risk of sports card investing is that athletes get hurt.
For example, if you were obsessed with Derrick Rose and put a ton of money into his rookie cards at the height of his career, that wouldn’t have been a good outcome given what happened to him with injuries.
There are some sports where athletes might be more at risk than others (like football) but there’s not really any sure way to predict this. It’s one of the risks that come with the territory.
Just like there’s fake art, there are fake cards, too.
You can educate yourself on how to tell whether a card is real or fake, and also lean more towards buying graded cards over time. Taking into account the seller’s reviews and feedback can also help.
“Shilling” is when sellers put in a fake, massively high bid on a card just so they can sell it at a higher price. If a card has a few sales where it “sold” for a much higher price than what you think it’s worth, it could be manipulation. Don’t forget, trading cards, just like sneakersm fine art, modern art, or any other collectible is an unregulated market and there is bound to be manipulation.
If you’re not transacting through a reputed website or trading card marketplace, PayPal goods and services can be a reliable way to send money to sellers or collect money from buyers.
It offers protection to both buyers and sellers to make sure that the transaction gets carried out properly. You can use this if you’re buying cards through places like Instagram or Facebook groups.
If you think about buying cards as a business, the same rules apply as any other investment!
By diversifying you can make sure that you’re not overexposed to any sport or player. Consider collecting different sets, different players, different leagues (if you really know multiple sports), different rookie cards, different grading card companies, etc based on where you think the risks are in your portfolio.