With the stock market bouncing around like an old-school Wham-O Super Ball, alternative assets are in the spotlight as investors look into the far corners — including collectibles — for different ways to make a buck.
Collectibles are, by definition, “alternative investments,” as is any asset that isn’t stocks, bonds or cash. Although not a reliable route for building long-term wealth, diving into collectibles can be fun and may offer a distraction from the current market turmoil. Just remember to do your due diligence and consider consulting with a financial advisor before making any major financial decisions about your portfolio.
Feeling unsettled by the current economic environment? Here are five other things you can do to survive a stock market correction.
The $500 billion collectibles market has a little something for everyone — from sneakers to rare wines to luxury handbags, fine art, classic Star Wars action figures and on and on. Here are four ways to play the trends in 2025.
1. Dabble in precious metals with coins
Coins are a classic collector favorite that straddle the collectible-investment line. In 2025 — thanks to a volatile stock market and record-high precious metal prices — coin values are on the rise.
Gold bullion coins (and their silver bullion counterparts) are often the entrée into this category. Official coins struck by sovereign mints (in the U.S., Great Britain, Austria, Mexico and elsewhere around the globe) are legal tender with the weight and purity of the metal guaranteed by law.
Design, condition and mintage (how many were struck) are key factors in these coins’ value. But scarcity is what separates the mass-produced collectible coins, where the value is closely tied to the metal content, from the rare coins that fetch huge fortunes.
For those interested mainly in the investment and hedging elements of owning precious metals, there are more practical ways to get exposure in your portfolio, including gold ETFs and mining stocks and gold IRAs.
2. Ride on the coattails of this year’s blockbusters
2025 has a stacked lineup of major movie releases, including reboots of “Superman” and “Tron,” a new “Captain America,” and sequels to fan favorites like “Wicked,” “Avatar,” “Jurassic Park,” “Mortal Kombat” and “SpongeBob SquarePants.”
Related memorabilia and merchandise related to these brands will fuel collector interest, and there will be plenty of new caped, scaled, plastic doodads hitting the market.
The films will also likely fuel an uptick in interest in older collectibles tied to the original releases. Now’s a good time to dig out your old toy box and dust off that vintage SpongeBob Funko Pop and “Masters of the Universe” He-Man action figures (coming to theaters in 2026!) and see what they’re worth.
A lot of factors go into determining the current and future value of these collectibles, including rarity, condition (wear and tear on the item and the state of the original packaging), variants (different versions produced) and the nostalgia factor, according to The Intelligent Collector.
Need an advisor?
Need expert guidance when it comes to managing your investments or planning for retirement?
Bankrate’s AdvisorMatch can connect you to a CFP® professional to help you achieve your financial goals.
3. Play your trading cards right
Magic: the Gathering (the OG of trading card games), Pokémon and Yu-Gi-Oh! are the most popular franchises in this $20 billion-plus collectibles category. The large player bases and established market for resale continue to fuel demand.
The secondary market for trading cards is enormous and growing, but it can be a very volatile category due to the glut of cards (with new ones rolling off the presses in record numbers), changing collector tastes and the fickle influence of celebrity collectors.
New releases and limited-time promotional releases are where you’ll find collectors looking to turn a quick profit within six to 24 months. Just like day trading stocks, the pursuit of a higher payoff involves taking more risk than if you’re looking to build a collection of cards to hold onto.
On the connoisseur side, classic cards — first edition sets, trophy cards and special cards — with nostalgic appeal often attract collectors willing to pay a premium to own a relic from their youth. (Think: First edition Pokémon 1999 English Base Set featuring Pikachu, Charizard and Mewtwo.) Like so many collectible categories, market value depends on rarity (the size of the print run), cultural significance and collector demand.
But there’s also money to be made if you have less rare vintage cards (so-called medium value cards) in your collection. For example, cards from the 2000s that sold for a few hundred dollars 10 years ago are now selling for thousands, according to The Intelligent Collector.
4. Buy a fraction of a masterpiece
Spending weekends digging through your parent’s attic or scouring eBay for treasures isn’t your thing? Prefer not to do Ph.D.-level research to learn the ins and outs of K-Pop collectibles? Then leave it to the experts.
Companies like Masterworks and Yieldstreet allow investors to buy a fraction of ownership of collectible artwork, fine wine and pricey spirits. Like blue chip stocks — well-known companies with long-term track records of success — items that fall under these widely recognized collectible categories have an established record of growth.
Although the items are curated by knowledgeable pros (which you pay for in investment fees and by giving up a cut when the item is sold), there’s no guarantee on future returns. Plus, look closely at the terms and what options are available to sell your shares. For example, Masterworks holds art for three to 10 years, though you may be able to sell shares in an internal market before the artwork is liquidated.
Adopt a ‘passion before profit’ approach
One of the first rules for those getting into collectibles is to invest in what you love. This ensures that even if potential profits don’t materialize, you get a guaranteed return on your investment in terms of enjoyment.
Just know that for every story about big scores (like the $15 million Van Gogh that turned up at a garage sale), there are countless once-coveted collectibles — think Beanie Babies, Hummel figurines, Hot Wheels and Thomas Kinkade prints — that end up filling landfills, not wallets.
Bottom line
While the collectibles market can be fun to cash in on and the potential for gains is there, just like with any alternative asset, it’s important to do your research before making a big investment. Consider working with a financial advisor, who can help you devise a financial plan that makes sense for your individual needs, risk tolerance and time horizon.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.
Read the full article here
