The economy may be down with people running for financial cover, but could this be the best time to buy collectible comic books?
Depending on the direction you think the economy will go in the next year or so, there may be no time like the present. If this is the time to buy, you’ll also have to make an even more important question – what to buy.
Why this may be the time to buy
The United States has been in a recession since December 2007 according to the “experts.” Comic book sales have held up remarkably well in the last year, but lately there have been some chinks in the armor. For example, the Denver copy of Marvel Comics #1 (CGC 8.5) sold for $172,500 in 2005, but sold for $155,350 in 2009. That is a decrease of $17,150 for one of the most desirable blue chip pedigree comic book. Demand may be softening for this type of book. But even if demand is softening you have to make a personal decision, is the economy forming a bottom, or will we see a recovery in the next year or so? Are we facing an end of the world scenario or will we make some sort of recovery?
If you think we are facing financial armageddon then the last thing you should buy is comic books. They are difficult to eat, of questionable nutritional value, and probably won’t be good for barter (try guns, ammo and food). But, outside of that scenario, if there is a recovery there is one thing that is almost certain to happen – inflation. If we have inflation we may wish we could get comics at this price again.
The position the government is taking in the U.S. is “reflation.” Call it what you will, it is inflation. An amazing amount of money is being printed, borrowed, etc. and the end result, save for any corrective action, is inflation. Inflation is a wealth destroyer, but in actual numbers, the dollar amount assigned to any hard asset usually goes up. It will take more dollars to purchase an asset – like investment grade comic books.
So, you have a decision to make. If you don’t think we are at the end of the road financially and the U.S. will recover, then you may want to start making purchases in anticipation of inflation. Once you make the decision to buy you need to know what to buy, and I’ll cover my recommendations in the upcoming issue of the Comic Book Secrets Newsletter.