Collectors treat Pokemon cards as an asset class, citing scarcity and nostalgia

Key facts

• Rare Pokemon cards are being treated as an asset class by some investors.
• Scarcity, nostalgia, and increased disposable income among those who grew up with the cards are driving the market.
• Collectors are using financial backgrounds to analyze card valuations and market data.
• A Japanese edition Charmander bought for $59.26 in February 2024 sold for $750 in April 2024.
• The period between 2003 and 2007 is cited as a valuable vintage due to lower supply of new cards.
• The recent release of a 30th anniversary edition is expected to be a bullish catalyst for the market.

Pokemon cards are experiencing a resurgence, with coveted cards reaching high prices and emerging as an asset class for some investors. This trend is fueled by a combination of scarcity, nostalgia, and a generation that grew up with the game now having the financial means to invest in it.

Jenna Lofton, founder of Stockhitter.com, noted that these factors are common drivers of alternative asset booms. While she doesn't collect herself, her son's interest has made her knowledgeable about aspects like pull rates and grading scales, which are crucial for card valuation.

Brian Dwyer, President of REA, compared iconic Pokemon characters like Pikachu and Charizard to Hall of Fame athletes such as Babe Ruth and Mickey Mantle, highlighting their enduring appeal.

Collectors like Kian Golshan, a valuations analyst, are applying their finance backgrounds to assess the risk-reward profile of Pokemon cards. Golshan shared an example of buying a Japanese edition Charmander for $59.26 in February 2024 and selling it for $750 in April 2024, a 1,165% profit. He also pointed to the period between 2003 and 2007 as a particularly valuable vintage due to lower print runs and a preference for the art style from that era.

Jake Doll, another collector, uses market data from trading sites like TCGPlayer.com to inform his selling decisions. Despite a recent slowdown in the industry, Doll believes the release of a 30th anniversary edition will act as a significant bullish catalyst, with booster pack boxes already selling for hundreds of dollars.