"All Of A Sudden, We're Cool" Says Collectibles Market Veteran
It's not surprising nontraditional assets have soared in value over the last few years as money flocks into nostalgic items such as sports cards, Pokemon cards and even rare video games.
We covered an article from the Daily Mail last year that detailed how blue chip sports cards have outperformed blue chip stocks over the last decade. Data from PWCC, which manages the largest trading card auction venue in the world, showed the index of the top-performing 500 cards had a return on investment of 216% since 2008 compared to 135% for the S&P 500.
"The market's just on fire," PWCC director of business development Jesse Craig told the DailyMail.com. "We're very fortunate to be in the business that we're in right now during a pandemic and still be thriving."
The Chernin Group is hoping to capitalize on this trend as it announced earlier this week that it has invested approximately $40 million in Goldin Auctions, which is the leading marketplace for collectibles and trading cards.
Goldin Auctions will use the funds to invest in technology, operations and audience development as the collectibles market now does more than $10 billion in transactions annually.
Goldin Auctions founder Ken Goldin will remain with the company in the new position of Executive Chairman and Founder. Ross Hoffman, who previously held senior positions at Twitter and Google, will take over as the new CEO of Goldin Auctions. Hoffman and Goldin will run the day-to-day operations of the business together.
"The collectibles industry has come a long way over the last 40 years and its popularity today is the result of enthusiastic, passionate and knowledgeable collectors," Goldin said. "With the help and expertise of our new partners, we plan to always prioritize our consignors and buyers by providing them the safest and easiest way to trade these amazing and valuable assets. As a result, we're confident that we'll help oversee the continued growth and expansion of the industry as a whole."
Goldin Auctions, which was founded in 2012, did more than $100 million in sales last year compared to $800,000 in its first year. Goldin Auctions' total sales have now surpassed $300 million following a record sports collectibles auction last month where 1,000 items grossed $33 million.
Other investors in the funding round include Mark Wahlberg, Mark Cuban, Kevin Durant, YouTube co-founder Chad Hurley, Zillow co-founder Spencer Rascoff and former Twitter CEO Dick Costolo.
With business booming and a list of notable investors coming on board, Goldin summed up the current environment best in a recent interview.
"We have something the hobby has never had before," Goldin said. "All of a sudden, we're cool. We're part of pop culture."
As for how younger investors want to invest, Goldin Auctions' new CEO believes they want to venture into nontraditional assets.
"The younger generation doesn't want to invest like the previous one," Hoffman said. "They don't want to just diversify across mutual funds. They are looking for alternate investments they can touch, feel and understand."
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Christie's to accept cryptocurrency. With an auction for a piece of artwork by digital artist Mike Winkelmann set to take place from February 25 to March 11, auction house Christie's announced it will accept ethereum as payment for the principal price, although the premium will have to be paid in dollars. "We're at this precipice where crypto is going to be such a more established and mainstream mode of conducting business," Christie's specialist Noah Davis said. "With this [sale], I think it's the perfect way to dip our toes in and give this a shot." The opening bid is set to $100 to prove "a Christie’s auction can be accessible," according to Davis.
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