Conventional wisdom suggests that the most reliable investments involve the stock market, 401(k) savings, and homeownership. However, younger generations are increasingly promoting alternative investments such as collectibles as a guaranteed method to earn additional income.
Social media influencer and WWE performer Logan Paul recently stated that venturing beyond conventional investments can be worthwhile.
“When you’re young, you can allocate and invest your funds in ways that may hold more personal significance than in a traditional conservative setting such as the stock market,” he stated during Tuesday’s episode of Business’s “The Big Money Show.”
Paul has definitely embraced the alternative investment route: He recently listed a rare Pokémon card for auction that he acquired. The former WWE United States Champion previously wore the card—which he describes as “the rarest card in the world” and the “Holy Grail”—on a chain around his neck during matches. The card is a PSA-graded 10 Pikachu Illustrator, with only a few dozen copies in existence globally. However, Paul’s card stands alone as the sole copy to achieve a perfect 10/10 rating from Professional Sports Authenticator (PSA).
Paul indicated he intends to auction the card in early 2026 and projects it will fetch between $7 million and $12 million, potentially netting him approximately $2 million to $7 million in profit. He further contended that collectibles such as Pokémon cards have “outperformed” the stock market over the past two decades.
“If you possess the capital, don’t hesitate to take a gamble, particularly when you’re young,” Paul remarked.
Are collectibles really a good investment?
Per global wealth management firm , collectibles including wine, manuscripts, vintage automobiles, rare artwork, and others can generate a “” return for investors, though they typically don’t offer the same long-term appreciation as stock investments.
The AES report indicates that from 1900 to 2012, collectibles delivered a nominal annual return of 6.4% and a real return of 2.4%.
“While the return is respectable, it pales in comparison to the long-term benefits of equity market investment,” wrote AES CEO Sam Instone. Nevertheless, “that doesn’t mean these collectible items aren’t suitable for certain investors.”
Nevertheless, Gen Z men have developed an obsession with investing in these collectibles, with some claiming they will outperform stock and the S&P 500. They may have a valid argument: Pokémon cards have experienced the most significant long-term value growth across all card categories, surging 3,261% over the past two decades, according to data supplied to ‘s Preston Fore from Card Ladder. Even a one-year investment yields a 46% increase, surpassing Nvidia’s 35% rise and the S&P 500’s 17% year-to-date gain.
“The trading card hobby has entered a new era, driven by technology, innovation, community, and a great balance of modern creativity–with new sets, storylines and characters–alongside good old nostalgia,” stated Adam Ireland, VP and GM of global collectibles at , in a previous interview with . He additionally noted that eBay users conducted searches for “Pokemon” nearly 14,000 times per hour in 2024.
Other collectibles such as the Hermes Birkin bag have captured the interest of young investors, some of whom contend that purchasing one could be more lucrative than investing in gold. However, recent reports indicate these rare handbags no longer command the premiums they once did. The average resale premium for Birkin and Kelly bags—a measurement comparing auction prices to retail costs—has declined from 2.2 times original value in 2022 to 1.4 times as of November, according to Bernstein Research’s Secondhand Pricing Tracker. For context, a Birkin bag purchased for $10,000 and resold in 2022 would have yielded over $22,000, whereas a bag bought at the same retail price and resold today would only be worth $14,000.
Overall, while investing in collectibles may result in a substantial payout, they also represent a highly risky investment due to liquidity risks, concentration risks, maintenance costs and upkeep, bubble potential, and tax implications, per an by The Economic Times.
“It’s also true that some individuals earn regular income through buying and selling collectibles,” noted Consumers Credit Union. “Nevertheless, valuations are dictated by buyer preferences and the fluctuating popularity of specific items. While the stock market may experience a down year, it generally trends toward higher value over time.”