# Want to Invest? Start with a Genuine Love for the Brand
*(Click to listen to this episode’s audio 👆)*
> “80s-born trade stocks, 90s-born trade crypto, 2000s-born trade sneakers — and after entering the 2020s, everyone switched to trading cards.”
While just a joke, this line **reflects the recent boom** in the card trading market.
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## Overview
Trading cards began as free collectibles in cigarette packs. Over time, **battle attributes** transformed them into complex games with dedicated communities. Today, they’ve grown beyond niche culture into serious investment assets.
- **Current records**
- Pokémon: $5.275M
- Sports cards: $12.932M
- **Market growth**: Sports cards have a CAGR of 23% (2020–2027) and are projected to reach USD 100B in value by 2027.
- **UK firm Raisin** ranks card investment above vintage cars and whisky.
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In this podcast episode, hosts talk to **Vincent** and **Dabai** — co-founders of *Static Forest*, a Beijing shop for classic card and board games:
- Vincent: Sports cards expert
- Dabai: Pokémon collector (for his child)
They explore **how cards evolved from niche culture to investment assets** — and whether they can be a young person’s “first bucket of gold.”
> **Listen via the *Silicon Valley 101 Video Channel*** — available on all major audio platforms (details at end).
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## 1. Understanding the Basics
### TCG vs. CCG
**Mahua:** What are **TCG (Trading Card Game)** and **CCG (Collectible Card Game)**, and how do they differ?
**Dabai:**
- **CCG**: Over a century old; collectible celebrity/culture/historical cards produced in limited runs. Examples: food brand giveaways, cigarette pack cards.
- **TCG**: Adds gameplay mechanics — competitive battles, tournaments, and relies on a strong hobby shop ecosystem.
*Image source: Magic: The Gathering*
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### The “Big Three” TCGs
**Mahua:** Why are *Pokémon*, *Yu-Gi-Oh!*, and *Magic: The Gathering* considered the top three?
**Dabai:** Longevity and cultural penetration:
- *Magic: The Gathering*: First global TCG.
- *Pokémon*: Simpler rules + massive IP ecosystem (movies, merchandise, games).
- *Yu-Gi-Oh!*: Popular competitive scene.
**Vincent:** Pokémon’s **cute, animal-like characters** (“Q-style”) resonate more universally than human characters in most fantasy IPs.
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### Key to a Popular TCG IP
- Wide appeal through friendly + approachable design.
- Strong supporting media ecosystem.
- Long-term operation and active competitive scenes.
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**Investment Insight:**
For new TCG launches, **IP accounts for ~20%, gameplay ~10%, operations ~70%** of success.
*Operations* = maintaining tournaments, communities, player loyalty.
*Pokémon tournament — Official Pokémon Card Website*
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## 2. Sports Cards vs. TCG
### Differences in Audience & Risk
**Sports Cards (CCG):**
- Mainstream appeal — tied to famous athletes.
- Emotional value through nostalgia & personal milestones.
- Act as historical artifacts (“cards record history and become history”).
**Risks:**
- Player performance, scandals, injuries.
- Market volatility — especially for rookie cards.
**TCG Risks:**
- Higher supply risks — more printing during demand surges.
- Tournament ban lists can crash demand for specific powerful cards.
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### Edition Numbers
- **1 of 1**, **1/3**, etc. indicate rarity.
- **Numbered cards** protect value by limiting reprints.
- Examples: Magic's “Reserved List”, rare “Lord of the Rings” one-off card.
*Image source: Panini*
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### Memorabilia Integration
Sports cards may include:
- Jersey swatches
- Ball leather
- Court flooring
These pieces **boost production cost and collectible value** due to direct ties to historical moments.
*One-of-a-kind $12.932M sports card — BBC*
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## 3. The Art of Card Investment
### Cultural Shift
Cards are becoming cultural phenomena alongside:
- Antiques, stamps (past century)
- Sneakers, blind boxes (modern era)
- Boosted by **short video platforms** and **COVID-19 home time**
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### Market Manipulation & Alliances
- **Controlled supply**: Owning majority of rare editions boosts influence over pricing.
- **Information advantage**: Experienced TCG pros sell before cards get banned.
- International alliances sometimes manipulate prices.
*Yu-Gi-Oh Forbidden List*
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**Investment Rule:**
70% of card popularity → **consistent operations**: tournaments, pricing, community health.
*Pokémon City Championship — Static Forest*
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## 4. Value Drivers in Card Markets
**Primary Factor:** **Scarcity**
**TCG:**
- Price tied to play efficiency in the current metagame.
- Insight: Identify **underpriced cards with future synergy potential**.
**Sports Cards:**
- Similar — rookie hype, talent prediction.
- Example: Haliburton’s rise from rookie to All-Star boosted card value.
*Image source: Topps Official*
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### Newbie Advice
- Target **famous IP characters exclusive to a set**.
- Start with locally available cards, graduate to older series once experienced.
- Avoid recent 5-year prints — reprints risk value collapse.
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## 5. Secondary Market & Grading
**Risks:**
1. Counterfeit cards.
2. Grading costs & wait times.
**Grading Benefits:**
- Authenticity assurance.
- Quality differentiation (e.g., PSA scores: 10 vs. 9.5).
*High-graded PSA card — PSA official site*
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**Grading Tips:**
- Check alignment, edges, spots, dents.
- Only grade if score potential is high — costs range from thousands to tens of thousands.
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## 6. Case Study: KaYou
**KaYou**:
- Massive scale, strong production and distribution.
- Functions more like souvenir manufacturing.
- Weak secondary market presence compared to Pokémon/Magic.
**Opportunity:**
League of Legends cards abroad could be China’s first major overseas TCG success — IF global IP fan base is leveraged.
*Image source: KaYou*
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**Barriers to Entry in Card Industry:**
- IP ownership.
- High printing standards, machinery costs.
- Dominated distribution channels.
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## 7. Final Investment Advice
**Dabai:**
- Only invest if you genuinely like the theme/IP.
**Vincent:**
- Cards are **human** — built for community, not just speculation.
- Begin with in-person shop interactions to discover your interest.
**Pro Tip:**
- Consider **sealed products** — unopened boxes retain mystery and potential.
*Pokémon City Championship — Static Forest*
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**WeChat**: *Silicon Valley 101*
**China**: Apple | Xiaoyuzhou | Ximalaya | Qingting FM | NetEase Cloud Music | QQ Music | Lizhi Podcast | Bilibili
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📧 **Contact**: podcast@sv101.net
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