From childhood toys to investment gems, Pokémon cards have outperformed Meta and the S&P 500 over 20 years.

Author: David Unyime Nkanta

Compiled by: Deep Tide TechFlow

The Pokémon Trading Card Game is very popular around the world, especially in Japan. These cards are quite valuable, especially the rare ones. (Image source: Twitter / FADA Pack Magic @FadaPackMagic)

Pokémon trading cards have transitioned from amusement park swap items to one of the hottest alternative investments in the world.

According to data analyzed by the company Card Ladder, the value of the Pokémon card market has increased by 3,821% since 2004, far exceeding the S&P 500 index's increase of 483% and Meta Platforms' increase of 1,844%.

From hobby to high-yield asset

The Pokémon trading cards were launched by Nintendo in 1996 and have since become a popular investment item for cross-platform trading, including eBay, TCGplayer, and international expos. During the pandemic, this market experienced explosive growth as economic stimulus policies and lockdown measures prompted collectors to turn to alternative assets.

For some people, this investment has brought life-changing returns. Lucas Shaw, a 27-year-old account manager from Ohio, stated that he used the profits from selling trading cards to pay for his wedding ring and celebration expenses.

Similarly, 32-year-old Oklahoma City advertising manager Justin Wilson estimates that the total value of his collection of 500 cards and 100 sealed items is about $100,000. He considers Pokémon cards to be part of his investment portfolio, alongside his Roth IRA and brokerage account.

The appeal of Pokémon cards lies not only in financial gains but also in emotional resonance. “You gotta catch 'em all,” Wilson said, quoting the classic slogan of the Pokémon series. For many, these cards represent both a nostalgic connection to childhood and a symbol of speculative opportunity.

What is the value of rare Pokémon cards based on?

Classic Pokeball toy, paired with Pokémon cards. Zapdos, Ninetales, and a Trainer card are clearly visible.

Image source: Thimo Pedersen/Unsplash

Unlike stocks, Pokémon cards do not generate dividends; their value depends on rarity, condition, and cultural significance. Cards rated as perfect PSA 10 by the Professional Sports Authenticator (PSA) often sell for astronomical prices.

The most dramatic example occurred in 2022 when internet celebrity Logan Paul purchased a nearly perfect “Pikachu Illustrator” card for $5.3 million, setting a Guinness World Record and becoming the most expensive Pokémon card ever in a private sale. This event further ignited interest in the market while also highlighting the speculative potential of high-grade cards.

The risks of the Pokémon card market

Financial advisors warn that collectibles should not be viewed as core assets of an investment portfolio. Card prices are extremely volatile, influenced by speculation, media coverage, and collector sentiment. At the same time, counterfeit cards remain a potential threat, with related scams occurring from time to time.

Image source: Flickr/c0rnnibblets

Nevertheless, the resilience of the Pokémon brand provides a certain level of stability to the market. Pokémon spans multiple fields including video games, movies, and merchandise. Unlike sports trading cards, Pokémon characters are not affected by scandals, making Pokémon cards a safer investment choice in the eyes of some collectors.

The Future of Collectible Investment

The rapid rise of Pokémon cards reflects a broader shift in people's perception of value. In the context of regulatory scrutiny facing digital assets like Bitcoin and market adjustments in tech stocks, tangible collectibles provide a nostalgic and potentially profitable haven.

Although it remains uncertain whether its value can be sustained, the 3,821% growth over the past 20 years has established Pokémon trading cards as the most vivid example of how a childhood hobby can transform into a multi-million dollar investment.