Investors who purchase sports cards often focus on cards exclusively. After all, it takes a significant amount of time to master the trade in sports cards, and seasoned investors have a substantial advantage over novices.
However, the investors who really make it big in sports cards usually have a background in a similar field that provides them with an advantage when making decisions.
One of the most significant areas that investors can learn from is the field of silver stacking.
Although precious metals are generally perceived as being very different from paper sports cards, the reality is that both asset classes share a broad range of similarities.
By taking in the lessons learned by experienced silver stackers, people investing in sports cards can learn the strategies needed to gain the essential edge necessary for earning huge returns.
What Is Silver Stacking?
Silver stacking is an approach used by precious metals traders to gradually save up the capital necessary to start and grow a silver collecting business.
Silver stackers basically allocate a portion of their income or investment returns toward purchasing silver coins or bullion.
After receiving money, most silver stackers will immediately visit their favorite website or local shop to purchase as much silver as they can afford.
In many cases, silver stackers will set aside 10 to 40 percent of their income to purchase silver on a weekly or monthly basis.
Silver stackers aim to profit over the long run by hiding away any silver that they accumulate. When their silver is not physically lying around, investors are often able to accumulate more than when their savings are tied to highly liquid assets.
Additionally, every silver stacker believes that the value of their investments will grow over the years to eventually yield a massive profit.
Understanding Silver Stacking Is Key When Investing in Sports Cards
Although many silver stackers simply purchase bullion, there are also a significant amount of silver stackers who seek to collect limited-edition coins.
The concept of collecting silver coins is very similar to collecting sports cards since choosing the right investments will lead to massive returns over time.
By purchasing coins with intrinsic value, investors can potentially compound their returns.
At the same time, investors are able to hedge against potential losses since silver coins are always worth their material cost.
The paradigms that characterize collecting silver are ultimately very similar to card collecting. Some cards will obviously be worth more in the future, but smart investors quickly bid up the market price of these products.
As a result, some cards that appear to be overpriced can actually yield massive returns for investors who know what they are doing.
Card collecting also has its concept of “safe haven” investments involving cards that are unlikely to ever go down in value.
Sports Cards and Silver Stacking Are Complimentary
The skills learned from silver stacking can be used to make better decisions when collecting cards.
Investors can use the same techniques that silver stackers use to gradually set aside a portion of their income to grow their card collection over time.
Many silver stackers regularly visit shops to plan ahead for their future investments, and card collectors can plan ahead in the same way to get more value for their money.
In the silver markets, there are major products that every committed investor deals with, such as the Canadian Maple Leafs or American Silver Eagles.
Consequently, the investment classes in silver investing are not much different than the major brands, such as Topps and Upper Deck, that investors focus on in sportscard collecting.
Just as some investors trade Upper Deck cards exclusively, some silver stackers focus only on American Silver Eagles. The reality is that investors who focus on only one type of asset often perform better since they tend to get more specialized.
Consequently, card collectors can learn valuable lessons from how silver stackers build large businesses by focusing only on American Silver Eagles or other investment types.
Learning Lessons From Silver Stackers
The lifelong passion that many silver stackers have is a powerful quality that every sports card investor can benefit from having.
Silver stackers provide a wealth of knowledge that can be useful for anyone trying to invest in sports cards.
The bottom line is that if you want to improve your ability to invest in sports cards, you should get to know a committed silver stacker who can help you to grow your business.
