San Diego Report: Why Sales Are Up
Metropolis Collectibles just returned from a week at San Diego Comic-Con International. Their booth opened for business on Wednesday the 23rd, and by show's closing on Sunday the 27th, the convention turned into one of the best years ever for Metropolis with strong buying and really high sales.
The question is..."Why?"
The economic forecast for the U.S. economy is gloomy at best. American consumer confidence is the lowest it has been in years. The stock market is tumultuous, and the nation's unemployment rate is reaching levels not seen in decades at 5.5%. Housing prices are plummeting. According to the July 26th issue of the Economist, inflation is soaring past 1992 levels to exceed 5%. More unheard of, even government mortgage stalwarts Fannie Mae and Freddie Mac are in such bad shape, Congress is fast at work on controversial bailout legislation. Meanwhile, Chicken Littles everywhere are crying out the words Fed-Head Benjamin Bernanke is so reluctant to declare: "Recession! Recession! Recession!"
So why are collectors going bullish investing in vintage comic books?
There are many reasons. For some, vintage comic books are bought and traded like other "counter-cyclical" investments stockpiled during times of a depressed economy. Similar to pork-bellies, gold, oil and commodities trading, the steady compounding annual growth rate (CAGR) of blue chip comics are seen as a safe-house for cash away from plummeting stock portfolios. Metropolis first observed this phenomenon during the dotcom fallout of 2000-2002, and since that time, those keen investors have realized a very happy return on their comics, sometimes exceeding a 17% CAGR.
Another factor driving the value of vintage comic books is international investment, and the buying power of the British Pound, Euro, Australian & Canadian dollars (among other currencies), compared to the weakening value of the U.S. Dollar. Case in point, the Two Dollars for every 1 British Pound have sent many British collectors on a spending spree. And why not? Everything is half price! As the exposure and popularity of 20th Century American comic book heroes continue to increase across the globe, many project the longevity of the comic book market to remain bullish for years and years to come.
Metropolis would like to thank all their customers for helping to make
San Diego such a great show. For a free consultation on investing in comic books, contact Metropolis at 1.800.229.METRO, international 001.212.260.4147, or email [email protected]. Metropolis Collectibles is located at 873 Broadway Suite 201,
New York, NY
10003 . Visits to the gallery may be scheduled by appointment only.