As a kid, did you ever consider that many of the toys, comics, and trading cards you were playing with could be worth a fortune someday?
Probably not, and we bet you’ll be kicking yourself for misplacing them or throwing them out after learning more about what Mythic Markets can do for your investment portfolio.
For those who are pop and geek culture fans out there, investing in collectibles may just be a gamechanger for how you look at your diversification options.
Why Invest in Collectibles?
When considering the reasoning for investing in collectibles, some of these stats may speak for themselves.
Remember Cabbage Patch Kids? Many of the dolls list for $3,500 to $5,500 on eBay. Vintage Barbie is being sold for thousands on the platform as well.
G.I. Joe from 1963 sold in 2003 for $200,000 in a private sale.
Action Comics #1 featured the very first appearance of Superman and sold for $3.21 million on eBay in 2014.
Unless the average person randomly has one of these packed away in a box, they won’t have the money to purchase a collectible like this on their own. That’s where companies like Mythic Markets come into play to give you the opportunity by pooling investors.
You need to have the interest to make this risky type of investment worth it, but there is a potential for a big payday. It’s essential that if you choose this stock alternative that you do so because you see a benefit beyond the collectible’s monetary value.
You’ll also need to understand risks like loss, theft, counterfeiting, and tax consequences. However, alternative investments are forecasted to grow to between $13.6 trillion and $15.3 trillion in 2020.
Keep in mind that many financial advisors will not recommend investing more than five to ten percent of your net worth in collectibles.
What is Mythic Markets?
Mythic Markets is a venture-backed startup with a team based in the San Francisco Bay Area. They are an investing platform that enables you to take part in buying fractional shares of alternative investments in rare pop culture collectibles. Their ultimate goal is to make investing in your favorite things as easy as investing in stocks.
Here are some examples of what they offer in their marketplace:
- Vintage comics
- Magic: The Gathering
- Film & T.V. memorabilia
- eSports Teams
- Sports memorabilia
- The option to ask for something else!
How Does It Work?
After they hand-pick and purchase the collectible, they begin to start selling shares of it in a mini-IPO fashion. If you want to get started with Mythic Markets, there is an easy process to follow compared to many other alternative investments.
Here are the step-by-step instructions:
- Step 1: Sign up and complete the onboarding process to start investing.
- Step 2: Browse the Mythic Markets Marketplace to view their latest available offerings.
- Step 3: Select the number of shares you would like to purchase, with as little as $30.
- Step 4: Manage your account online, and wait for them to debut the chance for you to see your collectibles in person.
- Step 5: Collect your portion of investment returns once the assets are sold.
Pros of Mythic Markets
If you’re on the fence about investing in iconic pop culture collectibles, check out these positives which outweigh the negatives for the right person.
1. Uncorrelated Asset that Diversifies Your Portfolio
Movements in the stock market will not affect the returns from Mythic Markets, which means that it is an uncorrelated asset. People are interested in collectibles despite what the stock market may be doing, so it’s a less volatile way to add diversification to your portfolio.
2. Storage, Safety, and Insurance
Mythic Markets takes extra precaution to prevent damage to collectibles. They store them in temperature, light, and humidity-controlled vaults that are monitored 24 hours a day. Any paper-based assets are sealed in tamper-proof cases. Additionally, each collectible is fully insured.
3. Mythic Invests in Every Asset they offer
Mythic is a co-investor with other shareholders in each asset they offer. That helps keep their interests aligned with their investors. If investors make money, so does Mythic. If they lose money, so does Mythic. That gives them the incentive to work to make these investments as profitable as possible.
4. Non-Accredited Investors Welcome
It is completely legal to invest in Mythic Markets offerings as a U.S. citizen, U.S. resident, and non-resident U.S. citizen since it meets the SEC Guidelines with Regulation A+. You just have to make sure that you are not investing more than 10% of your income or net worth in each offering.
Historically, alternative investments were only open to accredited investors, or those that met the following criteria:
- Personal income of $200,000, or joint income of $300,000 for the last two years and expect to earn the same amount or more in the current year
- Personal or joint net worth above $1 million
- A person is a general partner, executive officer, director or combination of these for the entity issuing the unregistered securities
As you can see, the barrier to entry used to be very high on alternative investments. That is why it’s so exciting that Mythic Markets is opening up its platform to the average investor.
5. Invest in Things You Actually Care About
Investing can seem a little dull to those who wouldn’t consider themselves finance gurus. But Mythic Markets makes the idea exciting for pop culture fans who can enjoy their hobbies in a whole new way. They make it easy, fun, and affordable to diversify your investments. Not to mention, you have the chance of making money while reminiscing about all your favorite childhood toys, trading cards, comics, and characters.
6. No Trading Fees
Since only registered broker-dealers can legally accept transaction fees, investors are not required to pay trading fees. You can get started with as little as $30.
You may be wondering, though, how they make money. With a recent investment of over $2 million in funding, they are not immediately concerned with making money as they bring a quality product to the market. However, they do include a sourcing fee in the offering price to aid in covering some of their costs. You can read more about this fee here.
Cons of Mythic Markets
There are downsides to nearly every investment, and Mythic Markets has a few as well. Here are some deterrents that may lead you away from this stock market alternative.
1. Secondary Market Not Live Yet
Mythic Markets does not have a secondary market yet. The shares offered by Mythic Markets do not trade on a normal stock exchange. Instead, they must trade on an alternative trading system (ATS). Broker-dealers register as ATS’s, not exchanges. They find counterparties to complete a buy or sell transaction.
Jim Dowd, the co-founder and CEO of North Capital, recently commented in May 2020 that the SEC and FINRA approved their broker-dealer’s ATS so they can move forward in developing the platform.
Since they do not yet have a secondary market, the investments are illiquid, meaning that you can not easily turn your shares into cash. Typically, you’ll have to wait until the asset sells to see a return on your money as well as your principal investment.
3. Lack of Investment Dividends or Income
As mentioned previously, you have to wait until the asset sells to see any profit. So, you will need to be patient and prepared that your collectibles could be in for long-term appreciation if they don’t sell right away.
Who Is It For?
Investing in Mythic Markets is for anyone looking for a unique alternative investment available to everyone. If you are an investor that already has a passion for pop culture, this may be a good fit. It’s unique to be able to say that you own a portion of a rare collectible!
Additionally, those who want to diversify their portfolios with an uncorrelated asset may decide this is the right opportunity for a small portion of their funds. And remember, you don’t have to be an accredited investor to participate.
What People Say About Mythic Markets
The Mythic Markets reviews from around the web are widespread and diverse.
Some people have raised concerns about the low liquidity of the investments as well as the little control they would have as a shareholder. They mentioned that there could be the potential of getting little money back after a sale or even share dilution once the value of a product increases.
Other people were astounded (in a good way) at the fact that they could get their hands on a piece of an Avengers comic book, for instance, even after their mother threw out their collection! The comments show excitement as communities discuss what they used to collect as children.
Is Investing in Mythic Markets Worth It?
If you’re looking for a collectible that can sit on your shelf or in a china cabinet to look at, Mythic Markets may not be for you. But, if you’re looking for an investment in which the manager's goal is to increase the value of the collectibles for a profitable sale. Historically, these investment opportunities have experienced above-average returns. Mythic Markets may be the right choice to diversify your portfolio.
While you shouldn’t put all of your wealth in collectibles, it may be worth it to those who want to add alternative investments to the mix. You can choose from a variety of options that match your interests. They take factors like rarity, cultural significance, history, value, condition, size of the fandom, and future relevance into account when making their acquisitions.
Sam is the co-owner of How To FIRE, a blog that discusses financial independence and early retirement. She uses her BS in Finance and MBA to help others get control of their finances through budgeting, saving, investing, side hustles, and travel hacking. Due to following the FIRE Movement’s principles, she was able to quit her high-stress job in the financial services industry in July 2019 to pursue her side hustles full-time. When not working, she enjoys spending time with her dog “Simba” and traveling with her husband, John.