So the big question: are Pokémon cards a good investment?
Nope. Absolutely not. The reason for it is quite simple. Pokémon cards are what is known as a luxury good, meaning that its value rises with society’s leftover income rather than a necessity good. Worse yet, Pokémon cards have no inherent value to them. At their core, they are images placed on a piece of cardboard. If people suddenly stopped wanting to collect Pokémon cards, the card’s value would diminish. This is much more dangerous than a stock which has an exact value to it that can rise or fall. Society sets the value of Pokémon cards making their value much less predictable.
I say this often, but NEVER make Pokémon cards you primary form of investment. If you don’t have other investment platforms, please for the love of all that is holy go talk to a financial advisor. You’re better off purchasing gold than Pokémon cards. If you want to invest in Pokémon cards, be prepared to not make your money back. Do it for fun, the nostalgia, or another factor. But please don’t do it just for the money. There are way better avenues to take.
If you still want to collect or invest in Pokémon cards, where should you begin?
It depends entirely on what you want to do. If you’re just looking to recollect and not resell down the road, you may likely take a different approach than someone hoping to make a profit. Same goes for people wanting to play competitively. Chiefly, you have to prioritize what matters to you. You may care about something that drives up a card’s value or you may not. More to come but for now we need to discuss what influences a card’s price.
Here are some fundamentals for a card’s price.
1) Condition. Condition is king when it comes to a card’s value. A card that has no wear and tear on it will always be worth more than a card that has significant creases or damage. You have to ask yourself whether or not you are okay with a certain level of damage on the card and how much is too much. Investors often look for flawless cards but they cost a premium in comparison to even a single print line.
2) First edition vs. unlimited cards. First edition implies the card was taken from the first ever print run while unlimited cards refer to any print runs after that point. Nintendo currently prints Pokémon cards but before them Pokémon cards were printed by a company called Wizards of the Coast (or WOTC for short). Wizards of the Coast was the only company to put first edition stamps on their cards. First edition cards are worth significantly more than an unlimited card. They are more rare, more collectible, and more desirable. These are mostly English prints, but a couple are unique to Japan or were spread across multiple languages.
3) Holographic (also known as holo or holofoil) cards: Holographic cards from Wizards of the Coast are generally worth more than their non-holographic counterparts. Same is true to Nintendo cards, but to a vastly smaller extent.
4) “Other” cards from WOTC: Certain cards have developed collectability over the years that were released in certain sets. These include Shining cards, Crystal cards, reverse ‘fireworks’ holo’s, promo’s, and so forth. Many of these cost a premium (although a lot of promos are dirt cheap) and can be desirable to some and not others.
5) “Other” Cards from Nintendo: Rainbow Rares, full arts, gold and silver backed cards, Gold Stars, and Promo’s, etc. These can also hold higher values. Gold Stars are some of the most expensive and sought after cards in the entire game.
6) Graded vs. ungraded cards: You can have your cards professionally graded and have them receive a grade based on their condition on a scale of 1-10 (one being the lowest grade and ten the highest). Graded cards are always worth more than their ungraded counterparts that in similar condition. More on this to follow.
7) Gradeability: This is more or less a made up term. Some cards are simply tough to get a perfect grade on. A prime example of this is Dark Magneton from Team Rocket. A first edition holo graded a ten in this set is worth $3000-4000, about three times as much as a graded ten first edition Dark Charizard holo from the same set.
8) Name value: Some cards cost a premium simply because they are well sought after. Charizard is a prime example of this. Charizard cards are some of the most expensive cards in every set and are one of the best at holding their value over time. There are other cards that follow this to a lesser extent like Mewtwo and Rayquaza.
9) Language: English cards tend to sell higher than other languages. However, a few sets were released only in Japanese. Some exclusive Japanese cards are notoriously expensive and even hold top spot for the most expensive cards of all time.
So let’s take an example (it wont cover all of these points but its a start): Say you’re wanting the English Kabutops card from the Fossil set. A graded ten holo in first edition runs between $300-$350. A graded nine drops it to $50. An unlimited graded nine drops it to $15. So with a situation like this, you have to ask yourself if the price, perfect grade or the first edition matters to you.
So what are some different kinds of Pokémon card product you can collect?
1) Graded cards . There are several professional card grading companies who will rate your card from 1-10 based on condition, give it a unique serial number, and encase it in protective plastic that is very difficult (but not impossible) to open. The two main graders are Beckett and PSA. PSA is more commonly used but both are widely accepted in the Pokémon card community. Personal recommendation is to use PSA for cheaper cards and Beckett if its a holy grail ticket item or if immaculate condition matters to you. As for how to get your cards graded, there are numerous Youtube videos you can watch.
Graded cards are perfect for collectors and investors because their grade is permanent, the card is much less likely to be damaged in the future, and prices are much easier to pinpoint. However, grading (especially at PSA) has become much more stringent over time. You are better off finding a newer serial number than an older one. A graded ten from ten years ago could easily pass as a graded eight today. As of March 2020, PSA’s first two digits on their serial numbers is 45. Ideally, a graded card with its first digit being a 4 is a safe bet to be up to date.
Grades are listed by their grading company followed by its grade. An example would be PSA 8. Here is a brief breakdown of possible grades and how its associated with a card’s condition (I will use PSA as the default grading company. You can also get half point grades but for the most part I will not include them):
PSA 10: Also called Gem Mint (or GM). Absolutely zero flaws on the card. As pristine of a card you could ever get. Occasionally people will call a PSA 10 card Mint, which is technically incorrect. Obtaining a PSA 10 grade is very difficult. It has a 5-10% chance of happening from a Wizards of the Coast card pulled directly from a pack.
PSA 9: Also called Mint (or M). One or two of the tiniest nicks, print lines, or off centering make the card barely less than perfect.
PSA 7 & 8: Also called Near Mint (or NM). These will have a couple more minor imperfections. Could see some holofoil scratches and a little whitening on the card’s back.
PSA 5 & 6: Also called lightly played or excellent (or LP). There will be some whitening and small dents on the back. Could see scratch wear and the beginnings of the corners giving out.
PSA 3 & 4: Also called moderately played or very good (or MP). Card could have some bends that don’t extend across the full card. Plenty of whitening on the back and surface scratches.
PSA 1.5 & 2 Also called heavily played, good, and fair (or HP). Creases can cover the entire card and it looks bad but still holds its shape.
PSA 1: Also called damaged. Card looks completely destroyed. Parts of it could be disintegrating.
Authentic: Some cards may have something that blocks them for receiving an official grade such as an autograph or name written on the back.
Flaws: Your card could have a grade and have something written underneath it like off center (OC). There are other issues your card could have.
The best place to find PSA cards is Ebay. You can also try Facebook but be aware of scammers. Most other sites have a very limited selection of graded cards.
Pro’s: Cards are protected, easy to pinpoint pricing, hold value longer, and increase in value if previously ungraded.
Con’s: Expensive, cannot be put in binders, grading standards have increased, harder to showcase in large numbers.
2) Ungraded cards. These can be single cards or full binders and lots. Ungraded cards can either be a holy grail pick up or you can be completely scammed. Without a professional grade, people can only make a best guess as to the condition of an ungraded card which can vastly skew its price.
Ungraded cards are much cheaper than graded ones. These are great for binder collectors or people who aren’t looking to resell down the road. They are also best for people who do not care about having cards in mint condition and are okay with some level of damage on their cards. You may also win the lottery and find cards in Gem Mint condition at a cheaper price and choose to grade them.
A big disclaimer is that people selling ungraded cards will base its condition of off what was stated earlier under graded cards. ALWAYS make sure you have enough photos for pricier cards to make your own inference as to a card’s grade. If you cannot receive necessary photos, you may be getting scammed.
Best places to buy ungraded cards are websites like tcgplayer.com and even reddit has a subreddit called r/pkmntcgtrades. I do not recommend Ebay for purchasing ungraded cards but you can try your luck with lots.
Pro’s: Cheaper than graded cards, easier to find, great for binders, good for people who don’t want to resell down the road.
Con’s: Risk future damage, difficult to make an exact price point, tougher to resell, generally less desirable.
3) Sealed product: Sealed product is exactly that – unopened Pokémon cards. These can be anything from a single pack to a blister pack, tin, or booster box.
Sealed product, especially from the Wizards of the Coast era, is expensive. You have a very small chance of making your money back opening a pack. Sealed product can be kept to open at a later date or kept as an investment opportunity to sell down the road. You could also love the artwork and the thought of having a premium card in your hands. And don’t forget the nostalgia rush should you choose to open it.
However, there is a massive caveat to sealed product: Many sets can be weighed. What this means is that packs can be identified without opening them to determine whether they carry a holographic or not. Packs without a holographic are called light and with a holographic is called heavy.
It is very easy for someone to lie and say that a pack is unweighed (meaning it could or could not have a holographic) when in fact it is. One of the few times I recommend larger Pokémon card vendors such as TCA Gaming and Z&G Emporium is for sealed product. Those guys sell at a premium (up to 100% more) based on their name recognition. You basically pay a premium to ensure you are not getting ripped off.
Newer sets from Nintendo are near impossible to weigh and are much cheaper. You wont have to worry about paying in bundles for sets like Sword and Shield, Unbroken Bonds, and Hidden Fates. They can be a great launching point to restart a collection on a budget and you can feel good about opening the packs too.
Recommendation is local grocery outlets and card stores for newer sets and large vendors for older ones. You can try your luck on Ebay but don’t be surprised if you get scammed. If you want to avoid getting ripped off from sealed product, you can buy a booster box but its not a foolproof plan. Additionally, vintage booster boxes are incredibly expensive and will likely be in the four figures.
Pro’s: Nostalgia rush, can receive an abundance of cards, can open or keep sealed, possible gold mine inside, great starting point for beginners with newer sets.
Con’s: Vintage packs can be weighed, can be expensive, very difficult to get your money back if you open a vintage pack.
So how do you determine a collection’s value?
Tcgplayer.com is a must for finding the value of ungraded cards. You can look up the exact card and even find the exact condition you are looking for and it will show you current prices. It is tedious work for large quantities but its a very reliable source.
In addition, Ebay recently sold listings is a great place to look up prices for recently sold graded cards and sealed product. Just keep in mind their quantities may be much lower and possibly not very recent pending on what you are looking for.
Some common practices:
You can never ask for too many photos if purchasing. Don’t be ridiculous about it, but be confident the condition matches the price.
Wait for the deal to come to you. A lot of product on Ebay is disgustingly overpriced. Unless you need a specific card, it’s okay to let some cards pass because someone is asking too much for them.
Monitor the market. Not all cards are rising in value. Just ask people right now with Sword and Shield cards now and again in six months. Even vintage cards sometimes fall in value.
TLDR: You have to decide what factors are important to you in collecting Pokémon cards and go off of what you are willing to pay. Determine what kind of product you want and begin your search. Use Ebay sold prices and tcgplayer.com to evaluate current prices. Be smart, be methodical, and most importantly, have fun!