Are comic investments a better option than 401K's and Mutual Funds

[benz]

If comics are not investments,which seems to be the majority view here,why are people paying five and six figures for them? When you can't even read the ones that have been slabbed?

Speaking for myself,I wouldn't drop a few hundred,let alone a few thousand on a comic I didn't have a very high degree of confidence that I'd be able to at least get my money back on.I certainly aren't spending $10,000 on an Avengers 1 because I like the cover more than the $10 Avengers 129.

Just like I'm not going to buy Marvel over GM just because Marvel has a prettier stock certificate.

 

Comic books as an investment? Yes. but.....

 

My advice: fund that 401k!! put money in your Roth IRA every year - better yet, every month! Those ought to be the foundation. Don't invest more in comics than you can afford to lose.

 

For me, comic books ARE an investment, but not a particularly smart one. I look on it as a sort of "mad money" investment. I truly believe that by buying wisely and holding for a long time, that these books should grow in value. That being said, I am well aware that my books might not grow in value at all. I'm certainly not counting on their growth to fund my retirement or my kid's college educations. I have other investments for that.

 

I buy comic books because I've loved them for a long time and because they are valuable. And it's not just the art, the stories, and the lore of comic book history that fascinates me. It's also the way that they have increased in value over the years. It's fun to think about how you could have picked up an Amazing Fantasy #15 for a few bucks back in the 60s or 70s and now have something worth more than a house. That's cool. It's also cool to pick up a book and say "This is the 2nd highest graded of this book and it's worth over $500..." Many times I point out an auction to my husband. Something like "OMG! There's an eight-point-five Fantastic Four #1 on Ebay this weekend!!" Then I'll try to predict how much the book will sell for and maybe I daydream about being one of the bidders on that particular item. Generally my husband will politely gasp or say "Wow!" He doesn't really get it.

 

The fact that key and/or high-grade issues are recognised by the collecting world as having that kind of value adds to their mystique and prestige. The possibility that they may continue to grow in value adds to the excitement and fun of the hobby. I do look at my SA books and allow myself to hope that they will grow in value the same way that GA books grew in value between the 80s and now. However, if they don't, I haven't invested more than I can afford to lose. Besides, I'll continue to enjoy owning them. They will always have value to me.

 

This may seem odd, but the very fact that I'm at a point in life where I can afford to buy these rare, key books, reminds me of the financial success that I've attained over the years. Back when I was a struggling college student, I was certainly aware that there were books worth thousands of dollars out there in the world. I knew that I couldn't afford them, but even at that time, I thought "how cool it would be to be able to own comic books like that!" Now that I can, I'm lovin' it!

 

If this essay resonates with any of you, let me know.

 

All the best,

CycleGirl

 

 

didnt it cost like 12 cents for you to buy a NM Fantastic Four 1 before?

[Rodey]

Roth First, 401K too, other financial investments, hard assets, land, then comics.....

 

Yep. I would put gold in there too (though I guess that may be filed under "hard assets"). And before comics, natch.

 

Also, I may sound like a goofball, but I do believe that investing selectively in nanotechnology will pay microsoft/google-style dividends in the next two decades.

 

Nanotechnology. No kidding! My girlfriend's father is starting a company using this. He and a few others created a device that uses nanotech to detect for allergies.Instead of the sticking of 100 shots in the skin. Cool stuff. Who wants to invest?

[Dr_Neff]

a dollar saved is a dollar earned here are five surefire investments

 

1) flowers on your anniversary

2) a call to mom and dad around your birthday

3) a tip to the bouncer at the club

4) a revolver

5) dinner with your best friend

[the blob]

comics, depending on what you're buying, are probably not much of worse investment than art or antiques or whatever, depending on what you're buying. people certainly shell out big money for those and they have the same liquidity and upkeep problems. they're probably no worse than investing in random start-ups. if you think about what you're buying, they're probably no worse than keeping money under your mattress. but i have to say, I'm really happy I didn't have to liquidate $100K in comics to buy my new home because I have a job that expects me to show up.

 

while a Marvel Spotlight 5 in 9.8 for $3K seems nuts, so does $10-50 million+++ for a Picasso, yet that's what some of the good ones go for. And Picasso cranked out a ton of paintings and drawings over the course of his fairly long life and they were collectible early on, so it's not like many went into the trash. yes, yes, Picasso appeals to a broader market, you can't compare the two, blah blah. But the sales prices of both are based primarily on emotion, not scarcity. Seriously, I know several people who own picassos (not $50 million ones, but nowadays, who the heck knows what an ordinary one goes for), how rare can they be?

[codfish]

I would personally never get into the "investment" side of comics. To me they, and other collectibles/art, are just not liquid enough. I do not see a problem with making them part of a portfolio but you would have to do so VERY carefully. Me I just like collecting and reading them and them having a value outside of that is a perk.

[codfish]

while a Marvel Spotlight 5 in 9.8 for $3K seems nuts, so does $10-50 million+++ for a Picasso, yet that's what some of the good ones go for. And Picasso cranked out a ton of paintings and drawings over the course of his fairly long life and they were collectible early on, so it's not like many went into the trash. yes, yes, Picasso appeals to a broader market, you can't compare the two, blah blah. But the sales prices of both are based primarily on emotion, not scarcity. Seriously, I know several people who own picassos (not $50 million ones, but nowadays, who the heck knows what an ordinary one goes for), how rare can they be?

 

Well sure there are "lots" of Picasso works out there but like any high art piece there are only ONE of each piece. So if forty five people are fans of Picasso and they all like one piece in particular that is the ONLY copy that the 45 people are vying for. Marvel Spotlight #5's are not exactly unique even ultra high grade ones may be rare but there are likely more than just one, or going to be more, of them about than any one piece by Picasso. When talking scarcity paintings and drawings will almost always win out. You cannot use body of work you have to look at it from the perspective of per piece and there is only one of each high art piece.

 

That being said your claim that comics are no worse than high art as an investment itme is fair.

[Kevin76]

I wouldn't bet the farm on comics to solely pay for your retirement...Just something about manufactured product that seems to have a ceiling on it...who's going to pay 20K for a ASM #300? If I was going to invest in comics as solely as an investment, I'd go with ultra high golden age...mile high's and such.As far as the Picasso example above,that's what's great about artwork...It's 1-of-a-kind appeal..You can afford to be picky about a MS #5 in 9.8 by passing on it when offered simply cause the spine isn't as straight as you'd like it to be.

[Mr. Zipper]

I wouldn't bet the farm on comics to solely pay for your retirement...Just something about manufactured product that seems to have a ceiling on it...who's going to pay 20K for a ASM #300? If I was going to invest in comics as solely as an investment, I'd go with ultra high golden age...mile high's and such.As far as the Picasso example above,that's what's great about artwork...It's 1-of-a-kind appeal..You can afford to be picky about a MS #5 in 9.8 by passing on it when offered simply cause the spine isn't as straight as you'd like it to be.

 

Right. One can't really compare artwork to comic books - a mass produced pop culture item.

 

We can all be sure that one of a kind artwork is a time tested medium that will continue to command demand long after we are all dust.

 

I wouldn't want to bet my golden years that someone is going to pay 10% per annum return on my Hulk 181 in 30 years. Maybe someone will, but I wouldn't bet on it. For all we know, comics as a collected art form may go the way of picture postcards in a few generations.

[Monstro]

there is no need to get into all that. if you buy 5000 silver age comics in vf+ or better. in 15 years you will be able to turn those books over for a super nice profit.

what i wouldn't do is drop the same amount of money you spent on that 5000 comics into 5 to 10 super high cgc gradded comics that are hot today. that would be a mistake.

[Monstro]

i totally disagree. the further we get away from when comics were printed the more they are going to be worth.

[TiQuinn]

Comics are an investment, but a highly speculative one, subject to illiquidity, a tempermental marketplace, supply and demand, fraud, and changing opinions of what is considered collectible. Case in point: 15 years ago what was sold as a Near Mint book by many dealers could very well only pass as VF- to VF today, and possibly worse in some cases. Another example: The rise of 9.4, 9.6, and 9.8+ grading has probably devalued a lot of folks' modern collections.

 

In other words, they aren't necessarily a good investment.

[shadroch]

But,in most cases,a book bought as a NM 15 years ago,and now rating only a VF would still have appreciated to the point where you'd get a nice return upon selling it.

While I'll be the first to admit my Spidey 300s were a fluke,20 years ago,a wise investor could sock away all the Spidey 252s or SW8s for less than a buck.Even ten years ago they went for about $5.

You don't have to hit a HR on every purchase either. If 1 out of 3 hits,you are ahead of the game.

[Monstro]

When you say not necessarily a good investment. What are you talking about “good investment”. Are you telling me that if you purchased today a large selection of gold or silver books. Un-slabbed in a nice vf+ condition that in 15 years you wouldn’t be able to almost double your money?

[Monstro]

or are you talking about speculating on modern craap hopping one day to become rich

[TiQuinn]

But,in most cases,a book bought as a NM 15 years ago,and now rating only a VF would still have appreciated to the point where you'd get a nice return upon selling it.

While I'll be the first to admit my Spidey 300s were a fluke,20 years ago,a wise investor could sock away all the Spidey 252s or SW8s for less than a buck.Even ten years ago they went for about $5.

You don't have to hit a HR on every purchase either. If 1 out of 3 hits,you are ahead of the game.

 

That's true, however, they've taken an immediate haircut off value due to grading discrepencies, and now they've got to consider what their rate of return really was over those 15 years. Also, unless they were diligently recording all of their purchases and tracking its rise throughout the years, it's tough to say for certain how good of an investment it was. My bet would be that for every Spidey 252 they socked away, they've socked away a lot of books that aren't worth much at all.

[Mr. Zipper]

When you say not necessarily a good investment. What are you talking about “good investment”. Are you telling me that if you purchased today a large selection of gold or silver books. Un-slabbed in a nice vf+ condition that in 15 years you wouldn’t be able to almost double your money?

 

Past performance is no guarantee of future results.

 

Sure, if you buy at the top of a bubble, it's very possible that you wouldn't double your money in 15 years.

 

BTW, at a mediocre 5% annual return, you will double your money in 12 years. So, almost doubling in 15 years hardly seems like a good investment.

[Monstro]

well thats what i was trying to get at what type of investment are you talking

[Mr. Zipper]

My bet would be that for every Spidey 252 they socked away, they've socked away a lot of books that aren't worth much at all.

 

Righto.

 

It's like the people that hit a $5,000 scratch off card. They don't mention that they had $10,000 in losses before they hit a winner.

 

For every book that I bought at cover price that is worth the slabbing fee, I have 200 that aren't worth their weight in mulch.

[TiQuinn]

When you say not necessarily a good investment. What are you talking about “good investment”. Are you telling me that if you purchased today a large selection of gold or silver books. Un-slabbed in a nice vf+ condition that in 15 years you wouldn’t be able to almost double your money?

 

I don't know if they'd be able to double their money or not. But even if they do double their money, you're talking about roughly a 6% annual rate of return. That's just a little bit better than long term CDs, but with more risk involved. It also requires a hefty outlay of cash now to buy those books as well. The buy in to get those VF+ books can be prohibitive. Assuming you can't buy those, they're looking at Bronze age and later. That's why I don't think it's necessarily a good investment. If it takes you a long time to double your money, you could've invested the money elsewhere and gotten a better return.

 

Now, if you truly enjoy having those books, that's a different story. It's no longer "purely" investment.

[Monstro]

That's just a little bit better than long term CDs, but with more risk involved.

 

true, but there is also alot more fun involved