Nostalgia can be a powerful driver of consumer and investor behaviour. For most people who played Pokémon growing up, the game probably reminds them of happy memories and rekindles positive feelings of escape, excitement and comfort.
Many of these people, who used to save up pocket money for Pokémon cards, are now working full-time and have access to more money – and the ability to spend this money, fuelling the market.
Like almost all things, it’s scarcity that drives the perceived value of some Pokémon cards.
Meanwhile, new releases and versions of Pokémon in more recent years cater to changing preferences, expand choice for buyers and add novelty for those who have been following the franchise over time.
Spending on Pokémon is also driven by the “mystery” element of purchasing cards. While some people only buy specific cards that they want, many enjoy the rush of buying sealed packs of cards where the outcome is uncertain.
It’s a form of gambling, with many buyers hoping they will hit the jackpot: pocketing rare cards or drawing ones that will help them complete their collection. It’s part of what has made other collectibles, such as Labubus which come in sealed blind boxes, popular as well.
Loading
But like almost all things, it’s scarcity that drives the perceived value of some Pokémon cards.
The one that sold for nearly $US5.3 million, for example, was among the rarest Pokémon cards in the world: one of 39 “Pikachu Illustrator” cards given out to winners of an illustration contest in 1998. It was also graded a perfect “10″ by the Professional Sports Authenticator (PSA), meaning it was in almost perfect condition.
The card, purchased by YouTuber Logan Paul in 2022, is now up for sale in an online auction, which, at the time of writing, had reached $US2.1 million and received 25 bids.
Like many vintage items, it’s generally older, rarer and iconic cards in good condition that fetch the highest prices.
Social media has also fuelled the frenzy of spending on Pokémon cards with content creators such as Paul uploading videos of themselves opening card packs and boxes, capturing the attention of viewers – including many young people – around the world.
While it is mostly Millennials and Gen Z taking an interest in, and making a buck out of, investing in Pokémon cards, there are also younger people trading cards with an awareness of their financial values.
Anthony Neo, owner of Pokémon card shop Poke Stop Cafe in Perth says it was his primary-school-aged son who got him interested in Pokémon cards. “My son knows more about Pokémon than me,” he says, including the value of many of the cards.
While his son is mostly interested in collecting cards for himself and trading with friends, Neo says many kids camp out at shopping centres ahead of a new release of Pokémon cards in the hopes of buying them from a store, then selling them at a higher price.
It’s a form of scalping, but also a way through which some people – including younger generations – are betting and trading on the value of Pokémon cards.
While the surge in inflation and slowdown in economic growth in recent times have put pressure on household finances, the growth in spending on goods such as Pokémon cards has steadily increased.
Graded Pokémon cards can fetch up to tens of thousands of dollars in online markets.Credit: Joe Armao
That’s probably because buying Pokémon cards has been a decent way for people to “hedge” or protect the value of their money. Instead of storing their cash in a savings account or shares, which might have only climbed in value modestly when accounting for inflation, some Pokémon cards might have grown in value more strongly, helping to offset and outpace the growth in overall prices.
Of course, the key caveat here is “some”: the growth in value of Pokémon cards continues to be driven largely by a select few cards which are especially rare and sought-after.
People also tend to splash cash on “small comforts” such as Pokémon cards, even during times of economic hardship. While they might cut back on things like travel (especially during a pandemic) or high-end luxury goods, relatively smaller “treats” they can consume at home can remain popular.
There’s no guarantee – as with any investment – that Pokémon cards will continue to grow in value at the scale they have. But for those feeding their childhood dreams and nostalgia, Pokémon cards might present value beyond financial return or a hedge against inflation, especially if they take to heart the slogan that you “gotta catch ’em all”.
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.
