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Alt Asset Report #002 - Pokémon Cards

Alt Asset Report #002 - Pokémon Cards

Overview

  • The Pokémon Company (TPC) is a Japanese media franchise including
  • Pokémon is a portmanteau of ‘Pocket’ and ‘Monsters’
  • Originally released in 1996 as a pair of video games for the Nintendo Game Boy
  • Pokémon are creatures whom you collect and train for battles against each other
    • There are 1,025 unique Pokémon tracked in the National Pokédex
    • They are different species with their own characteristics, habitats, special abilities, and more

Investment Hypothesis

  • Maintained popularity and price levels for nearly 30 years and useful to play a game
  • Mastered the famous Walt Disney flywheel of reinforcing media properties
    • The mediums for Pokemon are different, video games and television shows reinforcing the continued release of new cards
  • A way to connect with 6-12 year-olds in your life while growing assets
  • A way to meet people in real-world space

Investment Factors

  • Split into 9 different generations split over time. Each generation introduces new Pokémon characters, regions, storylines, and game mechanics
  • Rarity is a symbol on each card that shows how common it is to find
    • Common, Uncommon, and Rare
  • Highly graded cards (8+) return much higher dollar values
    • Paid service to get cards graded by 3rd party PSA and CGC
    • Measures the color, centering, corners, and general condition of the card

Gen

Years

Games

Pokémon

Region

Notes

Generation I

1996-1999

Pokémon Red, Blue, Green (Japan), and Yellow

151

Kanto

Most valuable

Generation II

1999-2002

Pokémon Gold, Silver, and Crystal

100

Johto


Generation III

2002-2006

Pokémon Ruby, Sapphire, Emerald, FireRed, and LeafGreen

135

Hoenn

EX cards

Generation IV

2006-2010

Pokémon Diamond, Pearl, Platinum, HeartGold, and SoulSilver

107

Sinnoh

Level X cards

Generation V

2010-2013

Pokémon Black, White, Black 2, and White 2

156

Unova


Generation VI

2013-2016

Pokémon X, Y, Omega Ruby, and Alpha Sapphire

72

Kalos

Mega Evolutions

Generation VII

2016-2019

Pokémon Sun, Moon, Ultra Sun, and Ultra Moon

86

Alola

GX cards

Generation VIII

2019-2022

Pokémon Sword, Shield, Brilliant Diamond, Shining Pearl, and Legends: Arceus

89

Galar

Dynamax and Gigantamax

Generation IX

2022-Present

Pokémon Scarlet and Violet

103

Paldea


  • Risk of individual company subject to economic cycle and/or mismanagement
  • Too many graded cards may put downward pressure on prices
  • Increased card production may hurt prices - 9.7 billion printed in 2023
    • “Around 18.3% of all Pokémon cards produced in history were produced between April 2022 and March 2023” - Joe Merrick
  • Saw a boom during COVID pandemic, might lead to a bust
  • Potential for Pokémon fatigue similar to Marvel and superhero fatigue

Marketplaces

  • Cardmarket - Europe’s largest online Pokémon marketplace
  • TCG Player - Market prices and marketplace in one location
  • Troll and Toad - Online store with over 10k individual Pokémon cards for sale
  • Card Trader - Marketplace providing market prices and products across multiple sellers
  • WeBuyPokeCards - Consignment seller. Takes, appraises, and sells your cards
  • Mercari - Marketplace with an active Pokémon TCG section
  • Ebay - Marketplace with extremely active Pokémon TCG section
  • CoolStuffInc.com - Consignment seller for your entire Pokémon collection
  • GameStop stores - In test-markets, stores will buy cards graded PSA 8 or higher

Investment Types

  • Individual cards
  • Sealed packs of valuable generations

Investment Guides

Industry Sources

Published by:

Scott Moorhouse