Most collectors kicked off their hobby as children, spending their allowances on baseball cards or Pokémon cards, trading them with friends over recess, and hunting for deals at flea markets. For those who held onto their rarer cards and kept them in mint condition, it actually paid off. For example, the 1998 Charizard Holo card recently sold at an auction for $220,574.
This was largely due to a sudden rise in interest regarding collectibles, brought on by factors such as the pandemic. But while this surge boosted the value of these collections and brought new excitement to the hobby, it also highlighted some gaps in the market. Dan Houss, a long-time collector, noticed that the industry lacked a robust and reliable grading process, so he took action and joined one of the first card grading companies in the U.K.
Learn more about his experience and insights on rare collectibles and their increasing value.
The 2020 Collectibles Surge
Houss first noticed the growing popularity of collectibles back in 2019. While collectibles have always had a stable market, it was around this time that YouTube stars started making unboxing videos of old Pokémon and sports booster packs, sparking an initial wave of interest. The videos reignited the passion of long-time collectors and caught the attention of new ones. Online platforms like eBay, Amazon, Instagram, and Twitter noticed this trend and began catering to the collectibles market, making it easier for people to buy, sell, and trade their collectibles.
But then the COVID-19 pandemic hit, and the market exploded. As young adults moved back in with their parents or locked themselves in their homes with nothing to do, collectors around the world rediscovered their hidden treasures and wondered what they might be worth. In fact, eBay’s 2021 report revealed that four million more trading cards were sold in 2020 than in 2019, with some cards being sold for over $500,000.
Beyond the health crisis and endless boredom from lockdowns, the pandemic also brought a lot of economic uncertainty. Traditional investments like stocks, bonds, and real estate suddenly felt shaky as interest rates dropped and the market fluctuated. Some investors saw this instability and started looking for alternative ways to secure their finances.
Rare collectibles, such as vintage toys, classic cars, and trading cards, became viable investment opportunities. Their rarity and nostalgic value made them appealing to a broader audience, including seasoned investors looking for stable returns. In 2020, soccer memorabilia saw the most significant gains out of all sports cards, with a 1,586% increase. Today, the 1952 Mickey Mantle Baseball Card is the world’s most expensive sports card, having recently sold for $12.6 million.
The Collector’s Dilemma: Grading and Authenticity
But in order to cash in on this meteoric rise, collectors must get their assets verified and graded for authenticity and value. If proven authentic and in mint condition, a graded item becomes significantly more valuable.
However, the challenge is choosing the right grading company. Top-tier companies often charge hefty fees that can be hard to justify, while mid-tier companies might be more affordable but lack the credibility serious buyers look for. To make matters worse, most grading companies lack transparency in the grading process, leaving collectors frustrated and unsure why their precious cards were poorly graded.
This is where Dan Houss comes in. A lifelong collector himself, he noticed the lack of robust grading services in his country. To fix this, he learned the grading process and started working with authenticators. When collectibles took off in 2019, Houss built online communities to offer his grading services and share his insights with new collectors.
Now, he’s a director at GetGraded, one of the first card grading companies in the U.K. He brought his wealth of industry wisdom to the company and helped them develop transparent grading processes, putting the customer first and making collectibles a more consumer-friendly industry.
At GetGraded, Collectors can view a full grading scale online to better understand how their collectibles are graded. Each grading also comes with a full damage report. Offering 24/7 customer service online and same-day grading at physical locations, GetGraded has become one of the U.K.’s most reputable grading companies and is known for its high-quality standards.
The Rewarding Hobby of Collecting and the Importance of Grading
Trading cards are continuing to skyrocket in value, and they don’t seem to be slowing down any time soon. Thanks to this meteoric rise in popularity and investment potential, grading services are more important than ever. So, if you love hunting for valuable and unique items, or you already have some items you think you want to sell or trade, then collectibles might be a good hobby (and potentially a profitable one) for you.
