Wednesday

Official Sports Card Bubble of 2020

It is official, people have gone off the deep end due to the COVID19 pandemic. Baseball cards and sports cards in general have reached bubble valuations in the past 9 months. Just comparing PSA prices realized in February 2020 to December 2020 shows how high prices have gone up and how fast.

There are sellers running out of low grade stock and selling high grade cards at 5x to 20x the price they were 9 months ago, especially in basketball cards. However some cards seem to appreciating at a more sustainable pace than others, like in baseball. For instance a Jackie Robinson 1954 PSA 7 averaged $$700-$900 and a PSA 5 averaged $200-$300 in February to early March 2020.

As of today, December 22, 2020 the average price is between $1100-$1500 and $400-$600.
The truly centered and unaltered cards fetching the highest premiums from savvy new collectors. Overpriced cards changing hands often in high volume is common this year.
As with all bubbles though, they deflate. Some quickly and some slowly. It is my opinion and simple market physics that the cards that jumped prices the highest the quickest will fall the most just as quickly, while the sustained rise in prices of some cards such as higher grade 5.5+ of iconic early Jackie Robinson, early Mickey Mantle, Willie Mays, Hank Aaron, Sandy Koufax, and Ted Williams may not deflate much at all.

As with any trading, do your due diligence. Population count vs. popularity trends vs. Actual rarity tend to get collectors in a price traps. Liken prices to stocks but different. Know that what caused this dynamic will eventually ease so recognize when to buy and sell. Like stocks, the sports cards market has its seasonal ebbs and flows. Buy low and sell high. Treasure the rare gems that strike your fancy and keep the hobby sustainable because in the end someone will have a better one or someone got it cheaper.

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