This week, Collectors Café, a company for which my company WebiMax handles the digital marketing, unveiled the original signed Jackie Robinson contracts for both the Brooklyn Dodgers and Montreal Royals. These contracts were authenticated by several experts and have been appraised at an estimated value of more than $36 million.
While collecting may be a passion for some, rare and valuable items can also yield astonishing returns, and may be a particularly good option when things get rough in the securities market. In 2010, The Wall Street Journal analyzed the past five year’s ROI of 30 of the most sought-after sport trading cards and measured that against the return of 30 companies that made up theDow Jones Industrial Average at that time. What they found was that the cards outperformed the Dow Jones with an average return of 12.4% to the DJIA’s 7.9%.
But investors need to be careful. While securities markets may sometimes seem rife with fraud, the collectibles market can suffer similar problems, but without the same regulatory oversight.