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The $5.2 Million Mickey Mantle Card

Actor and Entrepreneur Rob Gough has purchased a 1952 Mickey Mantle card for $5.2 million — shattering the previous $3.94 million record — but what's the backstory?

January 15, 2021

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Friends,

With the COVID-19 pandemic ravaging global economies in 2020, governments have printed money like never before. In total, more than $20 trillion in economic stimulus has been allocated globally, with countries like Germany and Japan producing stimulus equal to 20-30% of GDP.

The result?

Investors have flocked to inflation-hedged assets like gold, real estate, bitcoin, art, and even sports trading cards.

Yes, even sports trading cards.

Check this out…

In August 2020, a signed 1-of-1 Mike Trout rookie card sold for a record $3.94 million.

The craziest part?

Less than 6 months later, the record has been shattered again.

Entrepreneur and actor Rob Gough bought a 1952 Mickey Mantle PSA 9 card for $5.2 million yesterday, only two years after it sold at auction for $2.88 million — representing an 80% increase in price.

The card is only one of six left in existence, and Gough called the $5.2 million price tag “a steal.”

So what makes the card so expensive?

While it doesn’t have the same pedigree as a 1951 Mickey Mantle rookie card, the 1952 edition has an interesting story nonetheless.

Here’s the quick version:

The cards were the first annual set for Topps, and they produced double the expected amount given the popularity of Mantle, but they made one giant mistake — they released them late in the season.

Within months, all the kids wanted new cards.

After almost a decade of trying to sell the cards — occasionally even offering 10 for a penny — Topps executives loaded up a barge and dumped thousands of leftovers in the Hudson River.

This decision, along with kids flipping cards, losing them, damaging them, and throwing them out, has further decreased available supply — ultimately increasing the price over time.

According to PSA, there are only six PSA 9’s and just three PSA 10’s in existence — which are valued at $10M+.

Furthermore, here’s what Gough had to say about the purchase:

“The 1952 Topps Mantle is the holy grail of sports cards. As a kid ripping packs in the ’90s, I always dreamt of owning one.

My analysis showed this $5.2m price was highly undervalued. If you look at other less iconic cards, their values have more than 10X’d in the same period of time since the last sale of $2.88m for this card.

The 1952 Topps Mantle has an incredible story and is the closest thing in the hobby of being a priceless piece of art. To me, it has always been the most iconic holy grail card in the world. I’m honoured to add it to my collection.”

A piece of cardboard is “highly undervalued” at $5.2 million?

While some will laugh, he’s probably right.

When It Comes to Trading Card Selling, PWCC Is Changing the Game

The surge in interest in sports trading cards may have picked up throughout the pandemic, but the asset has performed well for some time now.

Check this out…

Since 2008, the PWCC 500 Index—which tracks trading card returns similar to the S&P 500—has an ROI of 270% compared to 160% for the S&P 500.

Sure, there are obvious concerns around liquidity, access, and storage. Still, trading cards' ability to act as a hedge during uncertain economic times—think 2008 & 2020—has investors pouring money into the marketplace.

In my opinion, pandemic or not, the continued introduction of sports memorabilia and collectibles as an asset class is here to stay.

Whether it’s fractional share companies like Rally Rd. and Otis — which allow you to buy a piece of expensive collectibles — or new portfolio management tools like ALT, the growth in collectibles has resulted in an influx of cash being invested in the space.

As ancillary services continue to get built out and grading companies like Collectors Universe improve after being acquired, we will only see more investors enter the space.

After all, no one questions the worth of a Picasso.

Have a great weekend, and we’ll talk on Monday.

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Extra Credit

Earlier this week, Bloomberg wrote an exclusive update on the financial growth of my sponsor Athletic Brewing.

The best part?

Along with financials, they pulled back the curtain on their impressive investor list.

Investors include:

  • JJ Watt

  • Justin Tuck

  • Lance Armstrong

  • Darren Rovell

If you want to read more about it, the Bloomberg article is in the tweet below — enjoy!

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