A few rare collectibles can soar in value – but most are not worthwhile investments

We’ve seen the snaking long queues for Pokemon cards around the world, as well as for the latest Pop Mart figurines when a new collection drops.

But for some standing hours in line, they aren't doing so to relive their childhood of playing Pokemon cards, nor are they doing so because they find Pop Mart characters like the viral toothy-grinned Labubu adorable.

Instead, some people now buy these items hoping they might be worth significantly more one day. 

It feels intuitive enough – buy early, hold for a few years, and then sell later for a tidy profit.

After all, the headlines have shown some are worth more than a pretty penny. Earlier this year, a rare Pikachu Illustrator card sold for US$16.5 million (S$21 million). A first edition Charizard PSA 10 sold for US$550,000 in December 2025. A Labubu set of three dolls – which are part of the "Three Wise Labubu" series – sold for US$70,900 at a Sotheby’s auction in Hong Kong last year.

It is easy to look at stories like these and conclude that collectibles can be a serious asset class.

But that is exactly what makes them such a seductive trap: The big success stories people remember are often the exceptions, not the rule.

NOT EVERY COLLECTIBLE IS PROFITABLE

While Pokemon and Labubu have tempted investors and captured headlines globally, not every collectible will become so popular – nor is there any guarantee that other collectibles will give you a profit.

Sometimes, it's luck that makes something popular. Labubu's surge in global popularity can be attributed to the ripple effect of thousands of TikToks fuelling a full-blown trend, along with accidental endorsements from celebrities such as Rihanna, Dua Lipa, and Blackpink's Lisa and Rose, who were spotted with the doll. 

But not every Labubu today can be resold for more than the purchase price. 

Most of these collectibles are sold as part of blind boxes – sealed packages whose contents are unknown until they are opened. Most are part of a series and features a collectible that is rarer than others, which means their value differs depending on luck.

Even within Pop Mart itself, not every character becomes a Labubu. Figures such as Crybaby and Skullpanda have not sold for anywhere near as much.

Another example you might remember – Magic: The Gathering (MTG) cards, which were massively popular in the 1990s before Pokémon cards took off globally. 

Based on headlines alone, you might think MTG collectors did brilliantly by holding onto their cards. After all, a card graded "CGC Pristine 10" – which means it is not damaged and is of high quality – called the Alpha Black Lotus sold for US$3 million in 2024, while the one-of-one "The One Ring" card was sold to American singer-rapper Post Malone for US$2 million in 2023.

But for the average collector or investor, MTG cards have not been anywhere near that lucrative. Most face difficulties reselling their collection and have yet to recoup what they spent on it.

Indeed, a few trophy assets that are limited can produce eye-popping prices. However, the truth is that the vast majority of ordinary cards and collections do not.

Here's the irony: The MTG franchise has done extremely well, reportedly lifting parent company Hasbro's financial results in 2025, with strong demand for the trading card game supporting the business.

In many cases, investors would have had a cleaner, simpler way to benefit from the franchise by purchasing shares in the business rather than boxes of cards. Hasbro's share price has increased from US$16 in 1993, when it first launched these cards, to US$97 on May 6, a jump of more than 500 per cent.

At the same time, such trends around collectibles do come and go – meaning that shares from the parent company of such items can also be overvalued at times, depending on when you buy them. 

Take Pop Mart International Group, for example, whose shares dropped more than 20 per cent in March after their annual earnings did not meet expectations. Those who bought shares only when or after the Labubu craze hit its peak might have incurred losses, or made only a small profit.

This is a reminder that in collectibles, investor enthusiasm tends to concentrate around a few winners, not the whole shelf.

HOW IT COULD BACKFIRE

When too many people own and hoard a collectible, this creates the opposite of what investors need. 

For an item to become truly valuable over time, it usually needs to become genuinely scarce. But when something is sold from the start as a collectible, many buyers preserve it carefully, keep it sealed, and store it away in the hope of selling it later.

If thousands of people are all doing the same thing, then the item may not become scarce at all. It will simply become future inventory.

That does not mean collectibles can never become valuable. Clearly, some do.

But when we look closely at Pokemon cards, those that became very valuable were usually not just ordinary retail items bought and stored because everyone already thought they were "investments". 

Instead, the highest-end Pokemon cards selling for millions of dollars are often prize cards, trophy cards or specific vintage grails, whose appeal is not just gameplay availability. 

The Pikachu Illustrator, for instance, was not a normal retail card. It was a prize card from a late-1990s illustration contest.

The Pokemon cards that became very valuable were usually rare by accident, by contest distribution, by early production history or by elite grading scarcity – not simply because they were sold as "collectibles". 

That is a very different story from buying a mass-market release simply because it is currently hyped online.

PROFITABILITY IS NOT ALWAYS OBVIOUS 

Today, investing in Pokemon cards looks obvious. But who could have known with certainty, in the early days, that it would become a multi-decade global franchise? 

The Pokemon brand now spans more than 90 countries and regions, and The Pokemon Company says over 75 billion cards had been produced as of March 2025. But today's hot collectible looks inevitable only after it has already made it.

This is exactly what makes current collectible trends so difficult to assess.

People like to imagine they are spotting the next Pokemon early. In reality, many might be buying only after prices have already risen, when risk is higher and future upside is less certain.

And after you have spent the money, regretting it might be too late.

News outlet China Press reported last year that a 23-year-old Malaysian man borrowed nearly RM30,000 (US$7,635) from 14 loan sharks after his business selling popular collectibles like Labubu figurines and Pokemon cards failed.

He wanted to ride on the hype surrounding these items. But in the end, he was unable to sell all of them for profit.

His case is one such example that many people think they are investing, when in reality they are simply jumping onto speculative resale fantasies.

TREAT COLLECTIBLES AS HOBBIES, NOT INVESTMENT

Personally, I have a crybaby figurine and several Pokemon Eevee soft toys at home. 

These items aren't investments – I doubt they have much resale value. But rather, they're toys that simply bring joy.

If you genuinely enjoy the item, can comfortably afford it, and would still be happy owning it even if prices fall, then there is nothing wrong with buying it. Life is too short to drain all the fun from spending.

But if you are buying mainly to resell later at a profit, think twice. Not every limited edition will become rare, and not every popular franchise means its merchandise will become valuable.

Not every "collection" means it will become a profitable investment.

Instead of building wealth, you might simply be helping someone else clear their inventory instead.