Collectables, NFTs, and High End Artwork
Collectables, NFTs, and High End Artwork
As countries around the world continue to debase/inflate their base currencies, you will see a rise in the cost of everything. Intelligent people, or the ones who understand what is happening will take their cash and buy assets that will appreciate in value and hold or gain in purchasing power.
Because, it is mainly the wealthy that understand how inflation robs anyone holding cash blind, they will shove their cash flows into these types of assets causing outsized returns compared to other areas. People can really see this in the data when they look at the stock market and real estate over the last 13 years. They both have more than doubled in just 5 years.. That is not because the companies are producing more and making more profits, or the quality of all the homes in the US has suddenly increased with improvements that were made. It’s because there is twice as much money floating around that has been printed and therefore everything the wealthy have put that money into has doubled in price…
Collectables, NFTs, and Artwork have all already seen a significant rise. Some examples of the highest sellers over the last year are:
- Baseball cards – Mickey Mantle Rookie Card, Beckett 10, sold for $5.2Million
- Pokemon cards – Charizard Holo, Beckett 10, sold for $55,000
- Watches – Rolex Pearlmaster Collection $87,000
- Crypto kitties – Dragon Crypto Kitty $170,000
- Crypto punks – #3100 sold for $7.58Million
- “Days” by Beeple, a Digital Artwork NFT sold for $69Million
- Pablo Picasso’s “Le Rêve” sold for $155 Million at auction this year
If you’re like me and owned collectable sports cards or trading cards as a kid, you can get a really good price for them right now. Unfortunately if they are not already graded it’s likely you won’t have them graded in time to make the most money you could have on them with this market likely peaking in the next 4-8 months.
With Crypto punks, crypto kitties, and other NFTs, I do believe this is a speculative bubble and prices will fall. When you have teenages buying them and flipping them to make $50,000 in a day… the top is almost in.
As for High end art, Ill be honest I am not as familiar with the subject, but i would suspect with it being in the same category the prices will peak soon as well.
All this to say, these assets are great hedges against inflation, and if you have passion for them you are well poised to be able to find the single cards, artworks, or NFTs that you can hold long term or flip today for significant upside gains in your portfolio.