The $45,000 Michael Jordan Sports Card Lesson
At the end of January, someone paid $240,000 on eBay for 6 Michael Jordan basketball cards.
I’m an NFL fan, fantasy football enthusiast, and just started playing NBA2K2020, which is drawing me into the basketball world a little bit more.
But spending $240,000 on 6 cards?
That won’t make sense to most people on the surface, which is why you have to dig a little deeper.
Sports Cards as an Investment
It still might feel odd that someone paid that much for basketball cards, but something is worth what someone else is willing to pay for it.
That’s the lesson here, so let’s go back to those 6 cards that sold for $240,000. If you are just looking at it per card without considering shipping and other costs, it would come out to $40,000 per card.
In March, someone paid $45,100 for just one card.
If that person from January resold their 6 cards and the auction finished at $45,100 per card, that would be $270,600, which is a $30,600 profit (minus additional costs associated with the card).
And with the Michael Jordan documentary the Last Dance airing today, that price might even go higher because of renewed demand.
The simplest reason why someone would pay $240,000 is because they think the cards will be worth more at some point.
The market, thus far, is proving them right.
And if you think that’s still out of whack, just think about the other things people have bought on eBay.
This Willy Wonka pinball machine sold for $12,500.
This Beanie Baby sold for over $41,470.
It doesn’t matter if it’s Jordan cards, pinball machines, or Beanie Babies.
It all makes sense because there’s someone at the end of the auction willing to pay that price.
If there wasn’t a demand, the cards wouldn’t find a home.
