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| Passion Investments: Collectibles |
Child's Play
Catherine Curan
01/01/2006
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Dumb Money
Yet comics still represent a risky investment. They are fragile and require
careful, often costly, storage. CGC has undoubtedly helped standardize the
market, but some veteran collectors say the ascendance of grading has had
negative consequences. Underwood dislikes the intense focus on condition at the
expense of content, which he considers the inherent reason for comics’ value. He
also fears that too many novice investors may be misled by high grades for books
that are not rare, and therefore, make poor investments. “This obsession with
the number leads to [what stock brokers call] dumb money. And if dumb money
suddenly feels it’s made a mistake, that could lead to a ripple among the really
rare stuff.”
As with any passion investment, savvy players should follow two rules: learn as
much as possible about the market and purchase what you like. Information is
widely available on the Web; Heritage has an online archive of more than 100,000
auctioned items and their prices, accessible for free after registering on its
website. Auctions and comic conventions are good places to listen for market
buzz and make contacts, as well as view comics in person. Buying CGC-graded
books makes a good entry strategy while you spend time learning how to
distinguish unrestored comics from restored books, and while you build
relationships with reputable dealers.
A few thousand dollars is enough to begin creating a collection, and, despite
the dramatic price increases, optimists still see room for growth. But newcomers
should be aware that even with several million dollars in capital, they will not
be able to readily scoop up the rarest books in high grades. Many of these
already belong to collectors, such as Schmell, who enjoy owning them.
In the end, it may be best to approach vintage comics with the eyes of a child,
focusing on fun first, financial returns second. When Schmell is asked if he
ever actually reads comic books, he responds with mild outrage. “Are you kidding
me? I still read a comic at least every night.”
Catherine Curan is a New York–based freelance writer who covers business,
culture and style.
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