Are key comics good investments?

[JazzMan]

It's been done before, but I took my own sampling.

 

I took a sampling of some key issues I have and some not so keys. A few early Spider-Man, TOS 39, Avengers 1, Hulk 181 and a couple of other bronze/copper age keys. The total investment was $10,342 and have kept them for about 5 years which practically eliminates the recession effects.

 

Current market value is $16,495. That's a 59% increase in potential valuation (not including fees and other associated costs).

 

If I had invested $10,342 in an S&P 500 tracking stock like SPY I could have bought 94 shares of stock which would be valued today at $19,887 or a 92% increase in liquid valuation.

 

My conclusion is that although it's more fun to collect investment comics, your money should be in the market.

[Doktor]

I don't want to get into an argument on this, but in the past 5 years, the market has been wildly artificially inflated by a massive influx of physical currency that we're presently trying to inflate our way out of a serious coming currency deflation.

 

So while I agree in principle that the market is 99 times out of 100 the place to go compared to comics over the long term or short term, using this current market to prove that kinda has a lot of "buts" and overall prefacing.

 

Awesome comparison though! Real books vs real market trends over the same period. Very interesting.

[revat]

as always, especially for long term, you should do your research and diversify

[miraclemet]

The last 5 years has enjoyed a lot of popular heat that cant be replicated (the Marvel Boom was great, but it cant happen twice)

 

Take a look at the same books from 2000-2005, 2005-2010 and did the books do as well as in the most recent 5 years?

 

 

[Noodlez]

[lhcomics]

I like a mix of the market and comics. Several times I've wanted to take a large sum out of the market and buy a big key but always talk myself out of it.

[Jeffreykli]

The last 5 years has enjoyed a lot of popular heat that cant be replicated (the Marvel Boom was great, but it cant happen twice)

 

Take a look at the same books from 2000-2005, 2005-2010 and did the books do as well as in the most recent 5 years?

 

 

Interesting thought; assuming we're reaching the top of the boom, then is now the time to sell?

 

On a somewhat related note, given the current run-up of comic values, at what point does the value of one's comic collection no longer make sense to hold? For example, if you have a nice collection that's 50% of your total net worth, wouldn't it make sense to sell and diversify your assets? Thoughts on max percentages that one's holdings should be comics?

[thunsicker]

I don't look at as what percentage of my investments should be in comics, I look at it as a hobby and I allow myself 5% of my take home for my hobby. (Compared to 15% of income into 401k.). I suppose if the value of my collection ever started to approach 25% of my net worth I'd seriously need to look into selling off some comics.

[shadroch]

Buying key books at market value isn't a good investment. Buying them at 30% off market value is. Had you bought them at 30% off, you'd have doubled your money.

My comics are a portion of my retirement plan, not THE plan.

[ChrisInBaltimore]

Ignoring your thread topic entirely, I dig the avatar (thumbs u I've been reading his autobiography the past week and listening to as much BB King as I can.

 

Have you ever listened to Buddy Guy? I really hadn't until I started watching a bunch of BB King concerts one night and Buddy Guy kept popping up. I'm really enjoying him too.

[Hamlet]

I don't want to get into an argument on this, but in the past 5 years, the market has been wildly artificially inflated by a massive influx of physical currency that we're presently trying to inflate our way out of a serious coming currency deflation.

 

So while I agree in principle that the market is 99 times out of 100 the place to go compared to comics over the long term or short term, using this current market to prove that kinda has a lot of "buts" and overall prefacing.

 

Awesome comparison though! Real books vs real market trends over the same period. Very interesting.

 

Even if we accept your premise, wouldn't that "massive influx of physical currency" also be inflating the values of comics as well as stocks?

[ThothAmon]

My two cents. I often look at ebay sales data for books I purchased off the racks in the late 1970's early 80's. I then plug it into a compounding return rate calculator. The results are staggering. For instance an Xmen 142 purchased in 1981 for 40 cents is now worth $218 in CGC 9.8 according to GPA. Less grading, ebay and Paypal fees of approx $50 the annual return on my 40 cent investment is 19.6 percent. Less of a key is Amazing Spiderman 200. Again in 9.8 the compounded return on the .75 purchase is over 13 percent a year. Even an ungraded Spawn 1 from 1992 with a sales price of $16 has returned close to 10 percent for the 23 years since publication (obviously your time in selling is not taken into account). Can the bubble burst? Most definitely, but if it happens most of your other investments will also probably plummet at the same time. Invest or speculate in things you understand and have a passion for and in the long run you will be ahead.

[oakman29]

Sure your comics are investments,if you buy a book for several thousands of dollars how can you look at it any other way?

With that in mind,it's my hobby,not my retirement portfolio. I can't put a price on the years of enjoyment I've had, nor the people and friends I've met here. I'm sure one day I'll sell or give to my kids,,and I hope that it nets more than what I paid for them. If not,I'm okay with that too. It's been a great ride,and comics molded my life. How can that not be a good thing?

 

 

Diversify!

[Doktor]

I don't want to get into an argument on this, but in the past 5 years, the market has been wildly artificially inflated by a massive influx of physical currency that we're presently trying to inflate our way out of a serious coming currency deflation.

 

So while I agree in principle that the market is 99 times out of 100 the place to go compared to comics over the long term or short term, using this current market to prove that kinda has a lot of "buts" and overall prefacing.

 

Awesome comparison though! Real books vs real market trends over the same period. Very interesting.

 

Even if we accept your premise, wouldn't that "massive influx of physical currency" also be inflating the values of comics as well as stocks?

 

Fair question. It depends on which portion you're talking about. The massive physical currency influx that got dropped into the market with nothing to back it up with (even future production) or the policies of inflating our way out of a currency deflation? I think they both would have an impact, but I don't know how much or little either have (I don't know if anyone could honestly answer that with any degree of certainty since what we've been doing with our markets & currency is something nobody has ever actually done in practice in history & we've been just kinda crossing our fingers & hoping the theories are correct)

 

Regardless though, it would certainly have an impact that would contribute in part to the inflation of comic prices, but since literally ALL of that money was pumped into the market (on one level or another), and only a portion of that left the market to then be re-invested into comics, it would only be inflated by a fraction of the amount that the market has been. Only way it would be an equal impact would be if 50% of the market moved into comics, and I think we can all agree that that didn't happen. Or if the money that left the market for commodities did so with something relatively close to uniformity.

 

Honestly, I'd fathom an educated guess that movie-hype and a similar-but-with-a-lot-of-significant-differences return of an 80's/90's speculator market have more of an impact on comic inflation than economic policies.

[Broke as a Joke]

Sell Sell Sell

 

Thy end is nigh

[BarryAllen]

I think we all know that any collectible has an inherent risk above traditional investments like a 401k or your basic stocks, bonds, etc. People that "invest" in comics should be prepared to lose the majority of what they paid at any given time as it is still, at its core, a hobby. They only have value if people continue to perceive them as valuable. At some point in the future, comics will hold no large scale value (could be 5 years, could be 50 years :shrug: who knows when), but it will happen as all things go out of fashion at some point. My guess is we will begin to see market-wide deflation when the Baby Boomers move into full retirement fixed income mode (~10-15 years from now).

 

That said, I collect what I enjoy and I am prepared to take that risk because I don't factor any of their value into my future finances. If it works out, icing on the cake. If not, I had the pleasure of owning a few small pieces of history that bring me joy everyday.

 

I have five things in life right now that bring me consistent lasting happiness (in this order): my adorable son, my beautiful wife, my loyal dog, closest friends and my comics.

 

Owning comics beats a kick in the junk!

[kav]

Sure your comics are investments,if you buy a book for several thousands of dollars how can you look at it any other way?

With that in mind,it's my hobby,not my retirement portfolio. I can't put a price on the years of enjoyment I've had, nor the people and friends I've met here. I'm sure one day I'll sell or give to my kids,,and I hope that it nets more than what I paid for them. If not,I'm okay with that too. It's been a great ride,and comics molded my life. How can that not be a good thing?

 

 

Diversify!

Except Caps-Caps are solid.

[JazzMan]

Ignoring your thread topic entirely, I dig the avatar (thumbs u I've been reading his autobiography the past week and listening to as much BB King as I can.

 

Have you ever listened to Buddy Guy? I really hadn't until I started watching a bunch of BB King concerts one night and Buddy Guy kept popping up. I'm really enjoying him too.

 

(thumbs u

 

I actually do listen to Buddy Guy - I had him on the radio just the other day. Although I'm the JazzMan, I love the blues.

[oakman29]

Sure your comics are investments,if you buy a book for several thousands of dollars how can you look at it any other way?

With that in mind,it's my hobby,not my retirement portfolio. I can't put a price on the years of enjoyment I've had, nor the people and friends I've met here. I'm sure one day I'll sell or give to my kids,,and I hope that it nets more than what I paid for them. If not,I'm okay with that too. It's been a great ride,and comics molded my life. How can that not be a good thing?

 

 

Diversify!

Except Caps-Caps are solid.

Caps are like gold.

[Junkdrawer]

I think keys are comparable to blue chip stock. Not a lot of movement, but safer to sit on. Working capital is my best friend and I'm all about the quick flip, short deal, rinse repeat. Sure I could have sat chill with some monster keys, but what a squeeze my life would be in. I think its just as nice that I can say I had this or that as much as saying I have this or that.