It was a bit of a gamble, spending $100,000 for three packs of cards. But it paid off: two of them combined were worth more than what he paid.
“One could argue the Pokemon cards and trading cards are a better place to store your value than something like the U.S. dollar, just given the scarce properties of the cards,” said the Edmonton resident in an interview.
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What are alternative investments?
Alternative investments—assets other than stocks and bonds—may bring to mind hedge funds or real estate. But for millennials and generation Z, indulging in niche collectibles such as limited-edition shoes, handbags or trading cards is another way non-traditional investing has taken shape.
The popularity of trading cards grew during the pandemic when people were looking to invest time and money in hobbies, said Patrick O’Neill, senior vice-president of sales and business development at NFP Canada. That interest drove up prices, and people who owned cards and memorabilia saw the value of their possessions surge.
“It was going up a lot faster than inflation or investments in the stock market—very comparable to art, sculptures, fine wine or expensive jewelry,” O’Neill recollected.
He said the shift in price and value attracted younger generations to invest in memorabilia.
“For the young people, it’s teaching them life lessons at a very early age—even investment,” he said.
Why Canadians see value in alternative assets
O’Neill, who is in his 60s, has been collecting hockey and game cards for five decades. For him, it was about nostalgia when he first stepped into the space.
