Whenever you buy a comic book, you may wonder to yourself- is this comic book a good store of value?
Typically this is a question investors ask themselves before buying assets. But comic books are collectible items and are sometimes very valuable assets, whether you think of them like that or not.
Here we unpack what it means to be a store of value and if comic books would fall under that category. Please remember that this is not considered investment advice, and please speak to your investment advisor or industry expert prior to making any large investment decisions.
What Does It Mean To Be A Store Of Value?
We use dollars as a means to exchange goods and services. When you make an investment into an asset, whether that’s a stock, bond or yes even a comic book, you hope to be able to sell that asset in the future for more than what you bought it for. After all, you cannot pay your mortgage or pay for groceries with a comic book, so eventually you’ll need to turn that asset back to cash. If an asset’s value in general goes up over time, ideally up faster than the rate of inflation, then it is considered a good store of value. So in general, good stores of value are stocks, bonds, homes, real estate and precious metals. In general, poor stores of value are automobiles, boats and other things where their value goes down as they get older.
Why Is Being A Store Of Value Attractive?
A dollar today is worth a lot less than a dollar from 1900. That’s because of inflation. So it’s technically not enough to seek out assets that don’t decline in value, you really need to invest in assets that rise in price faster than the rate of inflation, which is historically around 2%. If they do that consistently, then that asset is considered a good store of value because the purchasing power of the cash equivalent of your asset has gone up.
Are Comic Books Stores Of Value?
This is a complicated question. The answer is- it depends. It depends on what comic book we’re talking about. In general, the rarer the comic book and the better condition it’s in, the better store of value it will be. It’s important to take into account what drives the value of a comic book, and also to store your comic books properly so they don’t deteriorate in condition and therefore value.
Want To Buy And Sell Comic Books? Sparkle City Comics Can Help!
Whether you’re already heavily invested in comic books and want to liquidate some of your assets, or you’re simply looking to sell the few comic books you have for some extra cash, Sparkle City Comics is the place you want to be! We pride ourselves on top-notch customer service, all-cash top-dollar offers and fast and frictionless transactions.
Give us a call at 800-326-7064 or fill out our seller inquiry form and someone will be able to help you get the process started!