Kobe and Jordan Card Sold for $13M: Are Collectibles the New Big Investment?

The Rise of Collectible Cards as Alternative Investments

In the world of alternative investments, Kevin O’Leary has found a new passion that goes beyond traditional assets like cryptocurrency or real estate. He’s investing in something that might seem surprising to many: collectible trading cards. Specifically, he recently made headlines for his $12.9 million purchase of a rare Kobe Bryant and Michael Jordan dual-logoman collectible trading card.

O’Leary, known for his appearances on Shark Tank, described the purchase as more than just an investment. “This wasn’t about missing out. This was about pride, ego, and the drive to own something nobody else in the world could,” he wrote on his Instagram. His fascination with collectibles stems from their rarity and potential for appreciation, similar to how gold and bitcoin have historically held value.

From Skepticism to Enthusiasm

O’Leary once considered paying millions for “a piece of cardboard” as absurd. However, his perspective changed after working with Fanatics CEO Michael Rubin, who acquired Topps Trading Cards in 2022. Through this collaboration, O’Leary became interested in “piece uniques”—cards that can be bought at high prices and potentially turned into significant profits.

He compared the appeal of collectible cards to that of watches and art, noting that their rarity often leads to price appreciation even during economic downturns. “It’s no different than collectible watches, in some way,” O’Leary said. “It’s so rare that the prices continue to appreciate, and they seem to defy recessions.”

A New Venture in Collectibles

The purchase of the Kobe Bryant and Michael Jordan card is part of a larger initiative by O’Leary, along with co-buyers Matthew “Shyne” Allen and Paul Warshaw. They are involved in a venture called Secure Collectibles, which offers lending, sourcing, and private sales services for collectors.

Allen mentioned forming a “collector advisory board” and referencing Secure Collectibles in an Instagram post discussing the $13 million purchase. While it’s unclear if the board includes all three individuals, the company appears to be positioning itself as a key player in the collectibles market.

The Value of Rare Cards

The specific card that O’Leary purchased was described as “the finest modern basketball card in the world.” Heritage Auctions, the platform where the sale took place, highlighted its unique features, including two jersey patches—one representing Bryant’s NBA logoman and another from Jordan’s 1996-97 championship run. The card also features bold signatures from both athletes.

Chris Ivy, Heritage's Director of Sports Auctions, noted that the record-breaking price reflects the card’s exceptional quality and historical significance. “It’s a dazzling showpiece with aesthetics worthy of the subject matter,” he said.

Collectible Cards and Fine Art: A Growing Trend

O’Leary believes that collecting sports cards is not just a hobby but a way to learn about entrepreneurship. “The thing that’s amazing about the hobby is the relationship between a father or a mother and a daughter and a son,” he said. “If you look at collecting, everything you need to learn about entrepreneurship is baked into what happens when you start to collect cards.”

He also draws parallels between collectible cards and fine art, stating that building an index around them is “half art, half science.” Each piece holds emotional value for the buyer, and the uniqueness of the item contributes to its appeal.

Alternative Investment Options

While multimillion-dollar trading cards may not be accessible to everyone, other alternative investments like gold and cryptocurrency remain popular choices. Gold, in particular, has seen a strong performance this year, reaching a new high of about $3,700 per ounce in early September.

For those interested in gold, a gold IRA can be a solid option for retirement planning. Companies like Goldco allow investors to purchase physical gold and other precious metals while benefiting from tax advantages. With a minimum purchase of $10,000, Goldco offers free shipping and access to educational resources.

Silver has also shown strong growth, increasing by about 41% from $29 to around $41 per ounce. Investors looking to diversify their portfolios may consider exploring these options.

Investing in Fine Art

Another alternative asset class is fine art, which offers similar benefits to collectible cards. Platforms like Masterworks allow investors to crowdfund shares in artworks by renowned artists such as Picasso and Banksy. This approach makes it easier for individuals to participate in the art market without needing large sums of money upfront.

Masterworks handles the purchasing, storage, and sale of the artwork, making the process hands-off for investors. So far, the platform has delivered annualized net returns of up to 21.5% for long-term holders.

Final Thoughts

As the market for collectibles continues to evolve, investors are finding new ways to diversify their portfolios. Whether through sports cards, gold, cryptocurrency, or fine art, there are multiple avenues to explore. For those interested in alternative investments, platforms like Robinhood Crypto and Goldco offer accessible entry points, while companies like Masterworks provide opportunities in the art world.

By understanding the value of rare items and leveraging innovative investment strategies, individuals can build a more resilient financial future.