Wall Street Journal on Comic Book "Investing"

[dupont2005]

The reason why it doesn't work when these types start putting money into comics, especially modern comics, is they don't read comics. They read in WSJ to buy #1's, they saw examples of five or six modern #1's that multiplied in price, and they start buying anything with a #1 on the cover by the crate. What do the publishers do? Hurry up and print more first issues. Create more characters, kill more characters off, resurrect more characters, and renumber the long running series. It's not about creating stories, it's about following this formula that the speculators are willing to invest in. Then all the sudden, when the publishers are following the formula, people who don't read comics are buying them up, and nobody wants to read them anymore because they are formulas and not stories, the speculators have nobody to sell to anymore. A handful of people make a mint, and many people lose the farm. Those of us who actually like reading comics will just have to avoid the cash grab garbage and continue on.

 

Also, even though the article mentioned that the Action that sold for over 2 million was a "near perfect example," they never quite illustrate how important grade is, how strict grading is, and how severely grade effects the value of these comics. Now these guys will all expect highest census value for a 9.8 on their raw 5.0 copies of everything. Like the old price guides, nobody wanted the value for Fn, they all wanted the value for Nm, no matter what the grade actually was.

[Icculus308win]

Another decent comic article by them overall.

 

Nice to see over the recent years, that the WSJ continues to analyze and talk about

our funny books being a viable blue chip investment.

The gift that hopefully keeps on giving through the economies.

[Aman619]

The reason why it doesn't work when these types start putting money into comics, especially modern comics, is they don't read comics. They read in WSJ to buy #1's, they saw examples of five or six modern #1's that multiplied in price, and they start buying anything with a #1 on the cover by the crate. What do the publishers do? Hurry up and print more first issues. Create more characters, kill more characters off, resurrect more characters, and renumber the long running series. It's not about creating stories, it's about following this formula that the speculators are willing to invest in. Then all the sudden, when the publishers are following the formula, people who don't read comics are buying them up, and nobody wants to read them anymore because they are formulas and not stories, the speculators have nobody to sell to anymore. A handful of people make a mint, and many people lose the farm. Those of us who actually like reading comics will just have to avoid the cash grab garbage and continue on.

 

Also, even though the article mentioned that the Action that sold for over 2 million was a "near perfect example," they never quite illustrate how important grade is, how strict grading is, and how severely grade effects the value of these comics. Now these guys will all expect highest census value for a 9.8 on their raw 5.0 copies of everything. Like the old price guides, nobody wanted the value for Fn, they all wanted the value for Nm, no matter what the grade actually was.

 

yes. the way the article is written, one gets the impression that the value of Action 1s jumped from 300K to 2 million in a few years, and not, as we well know, that a 6.0 sold for 300K followed by the highest graded copy yet to hit the market... and weeks after a Batman Tec 27 hit a million.

 

articles like this hurt the hobby not help it because they fail to speak to or explain the subtleties of the comics market. Like an article in WSJ saying that a certain penny stock went up 4000% one time, so BUY PENNY STOCKS! Any WSJ reader who is out calling dealers to buy comics after reading this article is not a broker i want to do business with.

[B3AST]

Was this a repeat from 1990??

I have déjà vu.

[Tuffy]

Now these guys will all expect highest census value for a 9.8 on their raw 5.0 copies of everything. Like the old price guides, nobody wanted the value for Fn, they all wanted the value for Nm, no matter what the grade actually was.

 

This is what I find amusing. Unless people can actually grade, everyone just looks at NM value and get's excited and decide it's worth NM. I came from sports cards, and the grading system wasn't like this...10.0s are handed out like candy in their grading world, so people with sports card knowledge think something that looks good is gem mint instead of NM when trying to deal comics and it just doesn't translate.

 

Did anyone see that comic book men episode where the lady came in with a bunch of key issues that her husband found in a dumpster(!). They were all in pretty bad condition, but she wanted them to pay her NM value for them because comicspriceguide.com said so. Oh people....

[jaxcomics]

Now these guys will all expect highest census value for a 9.8 on their raw 5.0 copies of everything. Like the old price guides, nobody wanted the value for Fn, they all wanted the value for Nm, no matter what the grade actually was.

 

This is what I find amusing. Unless people can actually grade, everyone just looks at NM value and get's excited and decide it's worth NM. I came from sports cards, and the grading system wasn't like this...10.0s are handed out like candy in their grading world, so people with sports card knowledge think something that looks good is gem mint instead of NM when trying to deal comics and it just doesn't translate.

 

Well, that's mostly the fault of PSA; while you see a lot more 10's in sports cards than in comics, based upon sheer volume and a much smaller qualified grading surface, Beckett has been far more selective in their grading. Beckett 10's do carry a significant premium compared to a Beckett 9.5 (which still carries more premium in most cases than a PSA 10), because their collective score system is actually pretty tough. While they were once the industry leader, PSA now reminds me more of a certain comic book grading company that starts with a P...

[delekkerste]

Next time, I want to see the WSJ interview the guy who paid $91,500 for the Avengers #4 9.6 Ohio pedigree in 2011 and resold it for $28,805 (less commissions) last night on ComicLink.

[lizards2]

Next time, I want to see the WSJ interview the guy who paid $91,500 for the Avengers #4 9.6 Ohio pedigree in 2011 and resold it for $28,805 (less commissions) last night on ComicLink.

Securing his losses :: Even the 28K seems ridiculous to me.

[mintcollector]

Next time, I want to see the WSJ interview the guy who paid $91,500 for the Avengers #4 9.6 Ohio pedigree in 2011 and resold it for $28,805 (less commissions) last night on ComicLink.

 

That is quite a hit. Glad I stick to my $2,000 per (over well-analyzed) book minimum.

 

As my signature line suggests, I really don't think there is a 'blue chip collectible.' There is however, a good time to buy and a good time to sell.

 

'mint'

 

 

[Sqeggs]

A followup article that's less dopey: WSJ article

[InvstmntComcSuply]

articles like this hurt the hobby not help it because they fail to speak to or explain the subtleties of the comics market.

 

There is no such thing as bad publicity.

 

It is a short article, I don't think those reading it are taking it as a treatise for investment advice.

 

[AmazingSaul]

The article basically tells you to buy keys. Which is true for the GA, SA, BA. For moderns it's a little harder. Other than walking dead 1, I don't know for sure what other issues would skyrocket in the future. But it is very possible.

[cloudofwit]

The article got off to a rocky start when the opening sentence informs readers that Superman debuted in 1939.

[mintcollector]

A followup article that's less dopey: WSJ article

 

This is a great article and a good read. Unfortunately, passion and logic rarely mix well, so individuals will be 'investing' in antiques and collectibles as long as they can continue to convince themselves they are investing.

 

Buying a rare coin or antique with a proven track record and having the contacts and understanding as to how the market works can be a form of investing. Buying cases of modern Lego sets or whatever is 'hot' right now is speculating...and a very risky venture to say the least.

 

In collectibles, a general rule to follow is this: The newer the item, the more speculative it is.

 

 

[ChrisInBaltimore]

My dad sent me the article that was actually in the paper with a note saying, "I Believe." I suppose all this time he didn't believe there was value in comics until, of course, the Wall Street Journal said there was.

 

One things that struck me about the Newspaper article was the way it priced the comics. It said WD #1 was only worth $700. I suppose that is raw...?

[thunsicker]

My dad sent me the article that was actually in the paper with a note saying, "I Believe." I suppose all this time he didn't believe there was value in comics until, of course, the Wall Street Journal said there was.

 

One things that struck me about the Newspaper article was the way it priced the comics. It said WD #1 was only worth $700. I suppose that is raw...?

 

Maybe despite the fact people are paying thousands for the highest grade Walking Dead #1's they are only really worth $700?