A. Hi Jonathan, there are a lot of reasons why you shouldn't buy memorabilia, whether it be sports-related or not, as an investment.
First, the driving factor in whether a collectible is valuable or not is how rare it is. And, when it comes to sports collectibles, the odds are against you. Collectibles that are rare, such as old baseball cards, are already very expensive, which means you'll need a lot of capital to invest in them if you're hoping to sell it later for a profit.
Conversely, collectibles that aren't extremely rare, such as relatively recently signed baseballs, can lose their value as the supply of autographed items continues to increase.
Second, the amount of fake collectible merchandise — especially in the world of sports — has skyrocketed over the past decade, which has made it very difficult to prove that an item you decide to purchase is authentic. Making a mistake and buying a fake collectible will leave you taking a major loss when you decide to sell.
In addition to the rarity, you'll have to consider the condition of the items you're looking to purchase. If you're interested in buying a large collection, for example, properly housing and safeguarding your investment can be an expensive endeavor — not to mention the insurance you'll have to get to cover it, which can be hard to find and cost a lot.
Finally, if you're collecting items that you enjoy, which is the case for many sports memorabilia investors, you may find it harder than you'd think to part with them down the line. If there's a particular sport or team that you're particularly enthusiastic about, buy items simply for the enjoyment of doing so as a hobby.
Then, at some point, if you decide to sell some of your collectibles later on in life, you'll be able to enjoy the profit.
That being said, I strongly recommend not buying collectibles solely as an investment. Good luck!
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