Go, Pokemon! Rare cards fetching monstrous value, but dare you invest in them?

Rare Pokemon cards have delivered a staggering 3,821% return since 2004

- Angela Tan

Pokemon cards, once childhood collectibles, have made a comeback as niche investments, notably among young investors chasing returns that exceed traditional equities.

My introduction to the world of these “pocket monsters” — Pokemon is a portmanteau of the words — came when my daughter showed me a holographic card protected in a clear sleeve encased in a hard plastic cover.

“What's that?” I asked as I reached for the item.

“Be careful!” my daughter shrieked. “This is a limited edition PSA-10 Pokemon card.”

Rolling my eyes, I wiped my hands dry as instructed before gently taking the card by its edges to prevent fingerprints and smudges.

“My friend Jeff gave it to me as a present. He said it will be worth a lot more by next year as Pokemon turns 30,” said my daughter.

The incident piqued my interest. Why are smart kids spending their hard-earned money on trading cards?

I did some quick research online and found the value of certain Pokemon cards has risen, mainly due to the nostalgia for vintage trading cards and the competition to get the rare and difficult-to-find ones.

Based on information from the search, it seems that from 1999 to 2003, there was a fixed number of cards printed, and there is a high demand for these cards in mint condition nowadays.

Rare Pokemon cards have delivered a staggering 3,821 per cent return since 2004, far outpacing the S&P 500 index which gained 483 per cent over the same period, according to data from analytics firm Card Ladder.

In comparison, Nasdaq-listed Meta Platforms, which owns prominent social media platforms including Facebook, Instagram and WhatsApp, has risen 1,855 per cent since its 2012 market debut.