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A note on investment potential

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I noticed there was already a topic on this but thought I'd generate some new discussion. For me I look at collecting new/sealed this way:

The feeling you get after waiting for ages for a rare game even in used condition, turns up in new sealed, it is the thrill and excitement in knowing that there may just be a handful of copies out there in the world - and you have one!!

I collect for the Japanese PC Engine. For me the PC Engine was and still is in some respects, well ahead of it's time. On the 30th of this month, it will officially be the 20th anniversary since it's launch. So sometimes obtaining a game that is 20 years old can be very difficult indeed, even if it was very common and popular back then and even more so if the game had a very short print run for example like Magical Chase or Tatsujin. These games can fetch between $100-$150 in used condition alone. Obtaining these games are virtually impossible in new/sealed but if you wait long enough (and that can mean years) and if you are lucky and you pay big, you can get it. There is a great sense of satisfaction in obtaining the seemingly unobtainable.

So for me it is more than an investment - remember up to now, we are only dealing with investment potential. The new/sealed market isn't flourishing yet say as the comic book market where some comics can go for upwards of $100,000. But there is the potential that in the future there will be a "craze" period when retro systems regain popularity and become the must thing to have - that will be the time to cash in!!

So personally, I believe the best investment is having a new/sealed system plus a collection of the most popular games (rare as new/sealed but common in used condition). I don't think collecting an ultra rare game is a good investment if it has bad gameplay or graphics etc. Simply collecting based on rarity is a bad idea. In the future, the majority of people are going to want to play the games that they did when they were younger i.e. ones that they remembered playing in the arcade or on a home system. So I think if you are looking to make a good return in the future, collecting for a popular a system together with a bunch of it's best games probably has a better potential of obtaining a very high premium in the future.
Great post Imp. I completely agree with all that you said.
Since this topic has attracted a little bit of interest again, I'll just qualify what I had said earlier (I made it sound as though it was stupid to invest in video games; that's not quite true):

All investing requires a research component; usually, time spent studying the market. Investing without research isn't investing; it's gambling.

Since a lot of people who "invest" in video games spend a significant amount of time at garage sales or flea markets or pawn shops or - in modern times - on eBay and in forums, this means that those people are:
1. More qualified investors of video games than others who did not spend any time researching that market
2. More qualified at investing in video games than in other forms of investment that they have not put so much research into

So, if you spend a lot of time researching the video games market to complete your collections (or simply as a hobby), you essentially get your investment research component for free; you already did your research (for another purpose, but still applicable).

So, if you don't have a job or hobby that educates you on other investment types, then you'll be more "efficient" at investing in video games than anything else. Might as well put that knowledge to good use if it can make you some money, eh? Sure, you're not going to be storming the investment tycoon seminar circuit on the back of video game trading, but that doesn't mean that you can't have your hobby maybe pay for itself, or perhaps even more than that, if you give it some thought.

> The Imp wrote:Video Games, sensibly traded, can make okay investments. But if they are being traded *only* as investments, they are inferior to other, established investment vehicles.
Thus, while I still believe as I said already, this does not mean that you shouldn't invest in video games, or that you should invest in anything else. It only means that if you're just in it for the money, it's probably not going to be enough of a motivator for you, since the same amount of effort would probably yield better returns via another mechanism. But if you love it anyway, you certainly can make money at it, and there's no good reason not to make money doing what you love, if it means that you can do more of what you love that way.
I think in these times with all the bankruptcy of the banks and the fear of the people that the money could lose value, collecting sealed games (or collecting anything else) is a very good step

What do you think???

If I am watching the news it sounds that the whole world is falling apart...
The almighty RUBLE prevails!! Dollar will go to hell pretty soon
LOOOOOOL!!!!! MUHAHAHAHAHA!!!

.........................

Sorry guys, just couldn't hold myself, hehehe. Sol's a crazy russian, just like me

Beware of my world domination plan....
> Dark Sol wrote:The almighty RUBLE prevails!! Dollar will go to hell pretty soon

EVERYTHING will go to hell pretty soon


http://www.time.com/time/business/article/0,8599,1723152,00.html
Amero is the future!

https://www.youtube.com/watch?v=ge2J2lNusJs

Maybe not.

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