Tips of the Trade: Vol. 5

SPECULATING VS INVESTING VS COLLECTING

SPECULATING

Buying certain cards or players in the hopes of making financial gains, but with the risk of a loss. This term is mostly thrown around when people buy young upcoming players or new sets that just came out. It can be very volatile, but perceived as very exciting as well. You can make big gains, but you can also suffer big losses. Speculating in sports cards can also be perceived as a form of gambling.

INVESTING

Similar to speculating as the goal is still making financial gains, but with the risk of a loss. This term is loosely used when people are buying former players whose career is already over or have already passed away. Usually less volatile, so more likely to make small gains and/or suffer small losses. One can argue that sports cards are not an investment and this is the base of many heated debate in the hobby.

COLLECTING

Buying certain cards or players without consideration for financial gains or risk of a loss. This term is arguably one of the most controversial term in the hobby. Some people believe it should be reserved to people who are more knowledgeable or have more experience. Some people call themselves true collectors, which puts them a notch above a regular collector, because they would never sell any of their items. In the end, collecting should be fun and maybe anyone who has ever taken an interest in sports cards is a card collector.

CONCLUSION

It is easy to label people. This person is an investor, this person is collector or this person likes to speculate. But the bottom line is that these labels are hard to define and do intertwine with each other in many ways. You can speculate on rookie cards, invest in hall of famers and collect players from your favorite team. The most important thing is to have fun doing what you like.

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