The world of investment has long been dominated by familiar avenues: stocks, 401(k) plans, and real estate. Yet, a growing number of younger investors are exploring less conventional paths, with collectibles emerging as a surprising contender. This shift was recently highlighted by influencer and WWE wrestler Logan Paul, who advocated for these alternative investments during an appearance on Fox Business’s “The Big Money Show” on Tuesday. Paul, known for his ventures outside mainstream entertainment, positioned such assets as potentially more meaningful for younger generations than traditional conservative environments like the stock market.
Paul himself is no stranger to this philosophy, having invested heavily in rare collectibles. He plans to auction a PSA-graded 10 Pikachu Illustrator Pokémon card in early 2026, which he acquired in 2022 for $5.3 million. This card, which Paul famously wore around his neck during competitions, is considered exceptionally rare, with only a few dozen copies existing globally. His particular card is unique, being the only one to receive a perfect 10/10 grade from the Professional Sports Authenticator (PSA). Paul projects the card could fetch between $7 million and $12 million, potentially yielding a profit of $2 million to $7 million. He argues that collectibles like Pokémon cards have demonstrably outperformed the stock market over the past two decades, urging young people not to shy away from calculated risks.
While Paul’s enthusiasm for collectibles is pronounced, financial experts offer a more nuanced perspective. Global wealth management firm AES, for instance, acknowledges that items such as fine wine, antique manuscripts, vintage cars, and rare art can generate “reasonable” returns. However, an AES report indicated that between 1900 and 2012, collectibles yielded a nominal annual return of 6.4% and a real return of 2.4%. This performance, according to AES CEO Sam Instone, is “far lower than the long-term rewards of investing in the equity market,” though he concedes these items might still appeal to certain investors.
Despite this caution, a significant trend among Gen Z men shows an increasing fascination with collectible investments, some even positing they could surpass the performance of established market leaders like Nvidia stock and the S&P 500. This perspective gains some traction when examining the performance of specific collectible categories. Data from Card Ladder, provided to Fortune’s Preston Fore, reveals that Pokémon cards have seen an astounding 3,261% increase in value over the last 20 years, marking the largest long-term gain among all card categories. Even a one-year investment in Pokémon cards shows a 46% increase, outperforming Nvidia’s 35% jump and the S&P 500’s 17% year-to-date rise. Adam Ireland, VP and GM of global collectibles at eBay, attributes this resurgence to a blend of technology, community, modern creativity with new sets, and a powerful sense of nostalgia, noting that “Pokemon” was searched nearly 14,000 times per hour on eBay in 2024.
However, not all alternative investments maintain their luster indefinitely. The Hermes Birkin bag, once touted by some young investors as a more valuable asset than gold, has recently shown a decline in its investment appeal. Bernstein Research’s Secondhand Pricing Tracker indicates that the average resale premium for Birkin and Kelly bags has fallen from 2.2 times their original value in 2022 to 1.4 times as of November. This means a Birkin bag purchased for $10,000 that would have resold for over $22,000 in 2022 would now fetch only about $14,000.
Investing in collectibles, while potentially lucrative, carries inherent risks that differ significantly from traditional financial markets. These include liquidity risks, concentration risks, the costs associated with upkeep, the potential for market bubbles, and complex tax implications, as highlighted by an analysis from The Economic Times. While some individuals do generate consistent income by trading collectibles, Consumers Credit Union points out that such fortunes are often dictated by the fluctuating whims of buyers and the shifting popularity of specific items. Unlike the stock market, which historically trends towards higher value over time despite occasional downturns, the long-term trajectory of many collectibles remains less predictable.
