Feb
13
2025

Silver Certificate Dollar Bills: What Are They Worth?

By | Growing Wealth, invest, Investing, Terminology, Tools & Calculators | Comments Off on Silver Certificate Dollar Bills: What Are They Worth?

Silver certificates are a type of money, or paper bill, issued by the United States government between the years 1878 and 1964.

Although they resemble ordinary currency, and can still be used as legal tender, silver certificate bills are generally worth more than their face value. How much more depends on the type, the size, and several other factors. The rarer the certificate, the higher its likely value. In some cases, certain unusual or historic silver certificates may be worth large sums at auction.

Silver certificates are more like collectibles, in that their value can also fluctuate based on demand or trend factors. There is also the risk of fraud, and it’s wise to consult a professional before buying or trading silver certificates.

Key Points

•   Silver certificates, issued from 1878 to 1964, are a unique form of U.S. currency that could, at one time, be exchanged for silver.

•   They can now be used as legal tender, and are typically worth above face value, sometimes a lot more, depending on rarity.

•   Two types of silver certificates exist: large (pre-1929) and small (1929-1964) certificates, differing in size and production period.

•   Value depends on condition, age, denomination, serial number, design, with some rare certificates fetching thousands at auction.

•   Preservation involves using protective sleeves and storing in cool, dry, dark places to maintain condition.

What Are Silver Certificates?

Silver certificates, which were issued only between the years 1878 and 1964, could at one time be redeemed for their designated amount in silver: either coins or silver bullion.

History of Silver Certificates

Silver certificates are no longer printed or produced by the U.S. Mint, and haven’t been since the mid-1960s. As such, they’re somewhat rare, and may be worth more than their face value. Each series of silver certificates displays its own combination of design flourishes and security elements that also reflect artistic trends of the day, as well as technological developments.

The Mint stopped producing silver certificates in 1964 after Congress passed a law repealing the Silver Purchase Act — which had allowed certificates to be exchanged for silver. They were gradually replaced by Federal Reserve notes, which solidified the era of fiat currency: legal tender not backed by a precious metal, but rather the U.S. government’s guarantee.

Uses for Silver Certificates

Silver certificates can, however, still be used as cash even today. Depending on the type of silver certificate, they may vary slightly in appearance from other bills, but they are considered legal tender.

For collectors or investors, silver certificates may be considered a type of alternative investment, similar to collectibles like art, rare books, and antique sports cards. While they aren’t necessarily high-risk investments, silver certificates are beholden to certain risk factors, like potential fraud from counterfeit certificates, as well as a lack of transparency in the market for these items.

At this time, SoFi does not offer silver certificates.

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Types of Silver Certificates

Generally speaking, there are two types of silver certificates: Large and small silver certificates. The description actually refers to when the certificates were produced, as well as the difference in their physical dimensions. Because silver certificates are basically a type of collectible — in that their value isn’t derived from their face value — they fall under the rubric of alternative assets.

Large-Size Silver Certificates (pre-1929)

Large silver certificates are, as the name suggests, physically larger than small silver certificates, and measure around seven inches long by three inches wide. These certificates were produced between 1878 and 1923, and came in nine denominations, ranging from $1 to $1,000.

Small-Size Silver Certificates (1929-1964)

Small silver certificates conform to modern bill sizes, measuring at a bit more than six inches long, and two-and-a-half inches wide. They were produced beginning in 1928, after the Mint redesigned bills, and were printed until 1964. They come in only three denominations: $1, $5, and $10. And, like their modern standard counterparts, they feature portraits of either George Washington, Abraham Lincoln, or Alexander Hamilton.

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Factors Affecting the Value of Silver Certificates

There are quite a few variables that ultimately determine the value of a silver certificate today, just as there are a range of factors that impact the value of various types of stocks.

Perhaps the most important is the physical condition of the silver certificate itself, or “grading,” as numismatics would say. Similar to collecting rare coins, there are professionals who assess the condition of paper money and bills, and give them a specific grade to convey that condition.

The grade includes a number between one and 70 (70 indicates that the bill is in mint condition), and a letter, signifying that it is either in good, very good, very fine, extremely fine, about uncirculated, or gem uncirculated condition. The absolute best condition you could hope for would be a “70 Gem Unc.”

Beyond the condition and grade of a silver certificate, the value can be affected by its age, its denomination, and even its serial number, or whether or not it contains a minting error (bills with errors are rarer than those without errors, increasing their value to collectors). Further, where a bill was produced can affect its value, as can its specific design — again, some are more scarce than others.

Recommended: Alternative Investments, Explained

Common Silver Certificate Denominations and Their Worth

The most common silver certificate denominations on the market are $1, $5, and $10 varieties, although older bills may come in a wider range of denominations. And while their values depend on some of the factors discussed (most importantly, their grading), potential investors or collectors may want a ballpark figure of what they might pay to get their hands on one — or what they could reap if they were to sell it.

It’s likely worth it to speak with a specialist or numismatist to get a more accurate valuation of a specific bill.

•   $1 silver certificates: Depending on the certificate (grading, year, etc.), $1 silver certificates may be worth a bit more than their face value, or they could be worth hundreds of dollars.

•   $5 silver certificates: For the more common $5 silver certificates on the market, values are likely to be somewhere between 10% and 30% above face value. But again, some may be worth much more, into the hundreds of dollars, for rarer bills.

•   $10 silver certificates: Values for common $10 silver certificates are similar to $5 varieties, typically 10% to 30% above face value. For specific, rare certificates, the values could be much higher.

Owing to the wide range of factors that come into play regarding the actual current value of a silver certificate, it may be best to consult with a professional before buying, trading, or investing in silver certificates.

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Rare and Valuable Silver Certificates

As mentioned, there are some rare and more valuable silver certificates out there, too. While the more common certificates are not worth much more than their face value, these hard-to-find bills can fetch hundreds, or even perhaps thousands of dollars from the right buyer. Here are a few examples.

•   1896 $1 Silver Certificate Educational Series: Featuring an elaborate design and portraits of George and Martha Washington, this rare bill has sold for as much as $10,000.

•   1886 $5 Silver Certificate (Ulysses S. Grant): This certificate, featuring a portrait of Ulysses S. Grant on the front, is another old, rare bill. These specific certificates often sell for as much as $50,000 at auction, and sometimes more.

•   1891 Series $20 Silver Certificate: This bill has a portrait of Daniel Manning, and there are only a handful of them that still exist. Given its rarity, these bills can sell for as much as $50,000 at auction.

How to Determine the Value of Your Silver Certificate

Determining the value of a silver certificate isn’t easy, and may best be left up to professional numismatists to ensure you’re getting an accurate estimate. But you could begin by trying to assess the grade yourself — that is, determining the overall condition of the bill. Again, this may not be easy to do, but if the bill is damaged in specific ways, you may be able to use a grading guide to help you figure things out.

Beyond that, you can also look up the specific mintage or production information to get a sense of how rare a certificate is. That may also help you get a ballpark idea of the value of your certificate. But again, you may want to go to a professional — perhaps at a local coin shop or auction house — to get a professional appraisal, or more information.

Collecting vs. Investing in Silver Certificates

Perhaps the primary difference between collecting and investing in silver certificates is that investors are actively trying to generate a positive return. So, while a collector may be willing to pay higher prices, or even lose some money in order to get their hands on a specific silver certificate, an investor looking at various types of alternative investments likely won’t be willing to do the same, owing to the lack of transparency and liquidity.

Recommended: Why Alternative Investments?

Where to Buy and Sell Silver Certificates

Whether you’re collecting or investing in silver certificates, there are many online stores or retailers that sell silver certificates, and there are even auction houses that may offer the chance to buy rarer bills. Many physical coin or bullion stores may have silver certificates available for purchase, too, and be willing to buy them as well.

Preserving Silver Certificates

In order to keep silver certificates safe and their condition intact, it’s best to try and put them in some sort of protector, and control the environment in which they’re stored. That means likely purchasing currency sleeves — which can be purchased from many retailers — made of rigid plastic. That will help protect the bill from physical damage.

But you’ll also want to aim to keep your silver certificates in a place that is relatively cool, dry, and dark. Heat, humidity, and direct sunlight can and will damage paper bills, so if you can find a safe spot to keep them, it should help keep their integrity for longer.

The Takeaway

Silver certificates are paper bills that, at one time, could be exchanged for silver coins or silver bullion. They have not been produced since the mid-1960s, and as such, are something of a rarity on the market today — although they can still be used as legal tender to make purchases. Some are rarer than others, naturally, and can have higher values, and that’s made them attractive to investors and collectors alike.

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🛈 SoFi does not offer silver certificate dollar bill investments, but it does offer alternative investment funds, which may provide access commodities, venture capital, real estate assets, and more.

FAQ

Can silver certificates still be redeemed for silver?

No, silver certificates can no longer be redeemed for silver coins or bullion, but can be used as legal tender to conduct transactions — or bought as a collectible.

What makes some silver certificates more valuable than others?

The primary variables that determine the value of a silver certificate are its denomination, grade, age, and mintage or production information — in general, the rarer a bill, the higher its value.

How do you determine if a silver certificate is genuine?

The best thing to do in order to determine whether a silver certificate is genuine or not is to take it to a professional numismatist.

Photo credit: iStock/svetikd

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest is a trade name used by SoFi Wealth LLC and SoFi Securities LLC offering investment products and services. Robo investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser. Brokerage and self-directed investing products offered through SoFi Securities LLC, Member FINRA/SIPC.

For disclosures on SoFi Invest platforms visit SoFi.com/legal. For a full listing of the fees associated with Sofi Invest please view our fee schedule.

An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. This and other important information are contained in the Fund’s prospectus. For a current prospectus, please click the Prospectus link on the Fund’s respective page. The prospectus should be read carefully prior to investing.
Alternative investments, including funds that invest in alternative investments, are risky and may not be suitable for all investors. Alternative investments often employ leveraging and other speculative practices that increase an investor's risk of loss to include complete loss of investment, often charge high fees, and can be highly illiquid and volatile. Alternative investments may lack diversification, involve complex tax structures and have delays in reporting important tax information. Registered and unregistered alternative investments are not subject to the same regulatory requirements as mutual funds.
Please note that Interval Funds are illiquid instruments, hence the ability to trade on your timeline may be restricted. Investors should review the fee schedule for Interval Funds via the prospectus.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Disclaimer: The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

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Feb
13
2025

How to Invest in Platinum

By | Growing Wealth, invest, Investing, Terminology, Tools & Calculators | Comments Off on How to Invest in Platinum

Platinum is one of several precious metals, including silver and gold, that tend to have high relative values, which can make them attractive to investors. Investing in platinum, likewise, isn’t all that different from investing in other precious metals, and investors can generally add platinum to their portfolios by purchasing bullion (or, the metal itself), purchasing stocks that are involved in the mining or production of platinum, or through funds that may offer exposure to the precious metals market.

Investors may turn to platinum for a number of reasons, such as the potential to see gains or as a possible hedge against inflation. But, as with any alternative investment, there are additional risks and considerations investors should take into account before adding platinum to their portfolios.

Key Points

•   Platinum can be added to investment portfolios through physical purchases, mining stocks, or funds offering exposure to precious metals.

•   The metal’s value is influenced by supply, demand, and economic factors, including its use in vehicles and electronics.

•   Investing in platinum can offer diversification and potential protection against inflation, but involves risks due to price volatility.

•   Physical platinum requires secure storage and may be harder to sell compared to stocks or funds.

•   Tax implications vary, with physical platinum classified as a collectible, potentially incurring a 28% capital gains tax rate.

Understanding Platinum as an Investment

Platinum is a precious metal, which has a shiny metallic appearance, similar to silver. In fact, the moniker “platinum” comes from the Spanish word “platina,” which translates to “little silver.” It’s been mined and traded for hundreds of years, too, particularly in pre-Columbian South America, and was initially taken to European markets in the mid-1700s. It’s even been found in ancient Egyptian tombs, too. Today, a majority of platinum is mined in South Africa.

It’s commonly used to produce jewelry — again, because of its striking visual appeal — but is also used to produce some auto parts like catalytic converters, in chemical production, and to create computer and electronics components. Additionally, it’s used to produce a host of other products, including wind turbines and even dental fillings. It’s a versatile metal, but it’s largely due to its visual aesthetics that it carries a lot of value.

And that value is mostly tied to the fact that it’s scarce – scarcer even than gold, in fact. Since the mid-1700s, roughly 10,000 cubic tons of platinum have been mined, out of an estimated 70,000 total. So, platinum’s relative scarcity — meaning that it could go up in value in the future (or not, of course!) — is what primarily makes it attractive to investors as an alt investment.

Ways to Invest in Platinum

For investors who are interested in investing in platinum, there are a few primary ways to do it: By purchasing physical platinum, buying shares of funds that may add exposure to platinum to their portfolios, or by purchasing shares of mining companies that may be involved in platinum production. It’s not much different, really, from the types of assets you might consider when determining how to invest in gold or another alternative investment.

In addition, some investors may choose to invest in the precious metal through platinum futures, derivative contracts to buy or sell an asset at a future date for a set price. (Note that SoFi does not offer futures trading at this time.)

Read more: Guide to Alternative Investments

Physical Platinum

Purchasing physical platinum can include buying bullion, examples of which may be bars or coins. Effectively, platinum bullion is solid (or near solid) platinum, valued for its weight, rather than an assigned monetary value (such as a quarter from a mint that’s used for transactions) or its numismatic value (i.e., its value to collectors based on factors such as its rarity and condition).

Bullion coins can be purchased in different sizes, such as one ounce, one-half ounce, and one-quarter ounce . Bars, too, are generally sold by the ounce – one ounce, ten ounces, etc. – and can be purchased through the United States Mint, at coin and bullion dealers’ online shops or stores, and at certain retailers such as Walmart and Costco. Investors may also buy platinum jewelry from jewelers or other retailers.

Platinum ETFs and Mutual Funds

If buying physical platinum isn’t exactly what investors are looking for, they may look at fund options — that can include exchange-traded funds (ETFs) or mutual funds that are focused on or concentrated in the platinum market. There are numerous platinum-focused funds on the market, though each will vary in terms of costs, risks, price-per-share, and individual holdings or allocations. As such, investors should do their due diligence and research the particular funds they’re considering before investing.

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Platinum Mining Stocks

investing in stocks of companies that are involved in platinum mining or production is another option for investors. Like platinum-focused funds, there are many companies that mine platinum, each with their own individual risks and potential upsides. It’s up to investors to do their homework to weigh the pros and cons and consider how these stocks fit within their overall investment strategy before making a choice.

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Factors Affecting Platinum Prices

Platinum prices are subject to numerous factors, like other precious metals. The largest, however, is supply and demand — as simple as it is, the more that platinum is in demand, the higher its value tends to be. Supply and demand, of course, is influenced by a large set of variables that include how much and often platinum is being used by manufacturers, or even if platinum jewelry experiences a moment of popularity.

In recent years, platinum has seen an increase in demand due to an uptick in electric and hybrid vehicle production, for example. But it’s also been influenced by power outages in South Africa, where most mining takes place, as well as military conflicts and wars in Europe.

Economic factors can also play a role. For instance, some investors crowd into precious metals investing if they feel that a recession is on the horizon or if inflation becomes an issue. That’s because precious metals are often seen as a powerful store of value and a hedge against inflation — though whether or not that’s true is, itself, dependent on other factors.

Advantages of Investing in Platinum

There can be potential advantages of investing in platinum, as noted. For one, adding platinum or other precious metals to your portfolio can add an element of diversification. That is, if your portfolio already contains a good mix of other investment types — which may include stocks, bonds, ETFs, mutual funds, and more — precious metals may be yet another asset class that can help diversify it even further.

Additionally, as mentioned, it’s possible that investing in platinum or other precious metals may help a portfolio retain value if the markets see a dip, or if inflation goes up. Likewise, there’s always the possibility that platinum prices could rise in the future, helping a portfolio’s overall value increase as well — but there are no guarantees.

Read more: What are Alternative Investments?

Risks and Challenges

While there are some advantages to investing in platinum and precious metals, there are risks and other considerations that investors need to take into account to determine if precious metals may be a good investment choice for them.

For example, precious metal values — including platinum — are notoriously volatile. That means that one day platinum prices may look like they’re heading to the moon, and the next, they’re cratering. Investors who don’t have much of an appetite for risk may want to consider whether they can handle wild price swings.

On top of that, if investors are buying physical platinum, they’ll need a safe place to actually store it, where it won’t be affected by environmental conditions, or even tempt thieves. It could also be a bit more of a chore to sell physical platinum, as well, as it’d require at the very least a trip to a trusted coin store or finding a reputable buyer online.

How to Buy Physical Platinum

Buying physical platinum is fairly easy. Investors can find numerous online retailers that sell platinum and other precious metals, and buy through those channels. That includes the United States Mint, which produces and sells platinum coins. Investors can also visit coin or bullion shops in their local markets to see what platinum options are available.

Investing in Platinum Through the Stock Market

Investing in platinum through the stock market is likewise fairly straightforward, as it involves simply selecting the company or fund you want to buy shares in, and executing a trade. But the important part of the trade is doing due diligence before investing.

That means looking at a stock or fund’s financial statements and history of returns, where it’s being operated and by whom, and much more. It’s effectively the same process as investing in any other asset — doing some initial research and analysis of the fundamentals in order to make a choice that aligns with your investment strategy.

Tax Implications of Platinum Investments

Figuring out tax liabilities generated from platinum investments generally boils down to calculating any capital gains on those investments. If you invest in physical platinum, the IRS considers or classifies it as a collectible. So, if you sell it after holding it for more than a year, you may be subject to a 28% capital gains tax rate.

However, if you’ve invested in platinum-focused funds or stocks, there may be other tax implications, and potentially, a different capital gains tax rate. As such, it may be best to touch base with a financial professional to help you figure out exactly what the tax implications of your platinum investment might be.

Comparing Platinum to Other Precious Metals

Platinum is just one of several precious metals that investors often set their sights on, the others being gold, silver, and palladium. They each have their own unique properties, uses, and potential upsides and risks.

Their prices vary over time and, at times in the past, platinum has actually been more expensive than gold, given its rarity. Typically, however, gold is the most expensive per ounce of the four, while investing in silver is typically the cheapest — platinum and palladium lie somewhere between the two.

It may help to review the gold/silver ratio to better understand the pricing differences. Again, depending on an investor’s strategy and how much risk they’re willing to take on, looking at options for each precious metal may be worth the effort.

The Takeaway

Platinum is one of four main precious metals that investors typically focus on. The rare metal has a number of industrial uses, and is valued for its use in jewelry, given its aesthetic and physical qualities.

Platinum investments may be advantageous in that they can diversify a portfolio and act as a hedge against inflation, but precious metal values are typically volatile, and investors would do well to do their research before buying physical assets, or investing in related funds or stocks.

Ready to expand your portfolio's growth potential? Alternative investments, traditionally available to high-net-worth individuals, are accessible to everyday investors on SoFi's easy-to-use platform. Investments in commodities, real estate, venture capital, and more are now within reach. Alternative investments can be high risk, so it's important to consider your portfolio goals and risk tolerance to determine if they're right for you.

Invest in alts to take your portfolio beyond stocks and bonds.

FAQ

What are the different forms of platinum investments available?

Investors can buy physical platinum — such as bars or coins — or invest in funds that focus on platinum. It’s also possible to invest in companies that operate in or around platinum mining and production.

How does platinum pricing compare to gold and silver?

Gold is typically the most expensive precious metal per ounce, while silver is generally the least expensive. Platinum (and palladium) prices are often between the two, with platinum prices, as of mid-February 2025, around $1,001 per ounce.

What factors influence the platinum market?

Platinum values and the overall market can be influenced by a number of factors, including general supply and demand, industrial need, economic strength, and more.

Photo credit: iStock/Zinkevych

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest is a trade name used by SoFi Wealth LLC and SoFi Securities LLC offering investment products and services. Robo investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser. Brokerage and self-directed investing products offered through SoFi Securities LLC, Member FINRA/SIPC.

For disclosures on SoFi Invest platforms visit SoFi.com/legal. For a full listing of the fees associated with Sofi Invest please view our fee schedule.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. This and other important information are contained in the Fund’s prospectus. For a current prospectus, please click the Prospectus link on the Fund’s respective page. The prospectus should be read carefully prior to investing.
Alternative investments, including funds that invest in alternative investments, are risky and may not be suitable for all investors. Alternative investments often employ leveraging and other speculative practices that increase an investor's risk of loss to include complete loss of investment, often charge high fees, and can be highly illiquid and volatile. Alternative investments may lack diversification, involve complex tax structures and have delays in reporting important tax information. Registered and unregistered alternative investments are not subject to the same regulatory requirements as mutual funds.
Please note that Interval Funds are illiquid instruments, hence the ability to trade on your timeline may be restricted. Investors should review the fee schedule for Interval Funds via the prospectus.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

¹Claw Promotion: Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Probability percentage is subject to decrease. See full terms and conditions.

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Feb
07
2025

Investing in Alcohol Stocks

By | Growing Wealth, invest, Investing, Terminology, Tools & Calculators | Comments Off on Investing in Alcohol Stocks

Investing in alcohol stocks may be appealing to some investors, as alcohol is not only a consumer staple with steady demand, it’s generally considered a recession-proof industry. That doesn’t necessarily translate into stock performance, of course, but it can be one reason that investors find alcohol stocks appealing.

Nonetheless, investing in alcohol stocks can have its drawbacks. Some investors may be turned off by the industry itself. And there are risks that can affect the alcohol industry, too, such as supply chain issues, or even political and societal changes. Don’t forget that during the Prohibition Era in the United States (1920 to 1933), it was illegal to manufacture, transport, or sell alcohol for consumption.

Key Points

•   Investing in alcohol stocks may be appealing due to recession resistance and growth in emerging markets.

•   The alcohol industry is valued at nearly $2.3 trillion as of 2024, with an estimated annual growth rate of 10.74% from 2024 to 2030.

•   Types of alcohol stocks include large multinational corporations, craft breweries, distilleries, and alcohol distribution companies.

•   One of the key growth areas in the alcohol beverage market is the expansion of ready-to-drink products (RTD).

•   Sector risks include regulatory challenges, changing consumer preferences, competition, market saturation, and ethical concerns.

Overview of the Alcohol Industry

The alcohol industry is large, worth about $2.3 trillion as of 2024. It’s also projected to grow by a compound annual growth rate (CAGR) of 10.74% each year between 2025 and 2032. As a point of comparison, the global pharmaceutical industry is worth about $1.6 trillion as of 2023.

A Broad Sector

The industry itself consists of different types of companies and sub-industries. For instance, there are myriad types of alcoholic beverages, the companies that produce them, and the companies that distribute them.

Alcoholic beverages include beer, wine, ciders, spirits (hard liquor), hard seltzers, and more. Ready-to-drink (RTD) products are proving to be a growth area, with pre-made canned cocktails that combine different beverages and flavors with wines or spirits or ciders gaining market share.

The popularity of certain beverages tends to vary by region. Beer might be more popular among consumers in a place like Wisconsin, with its history of brewing, while wine may be more popular among drinkers in Northern California, owing to its focus on wine production.

Alcohol-Related Investments

The industry as a whole also depends on a network of alcohol-adjacent companies that might appeal to investors. In addition to brewers and alcohol producers, there are companies that distribute beverages or products. There are retail stores that sell them. And there are countless companies in between, too, that do marketing, product development, or other types of work for alcohol companies.

For investors interested in alcohol stocks, that means there’s plenty of opportunity to invest in the industry.

Consumer Staple or Luxury Goods?

Alcohol stocks, although a type of sin stock or vice stock, are generally considered a consumer staple. Because demand is generally steady for alcohol products, even in a recession, alcohol stocks have some of the qualities of other non-cyclical consumer goods like bread or shampoo.

But alcohol purchases also fall under discretionary spending, and as such some alcohol investments can be considered a luxury good.

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Types of Alcohol Stocks

As noted, there are many different types of stocks in the alcohol industry. Those include large, multinational corporations, small craft breweries or distilleries, alcohol marketing and distribution companies, equipment manufacturers, and more.

Large Multinational Corporations

The biggest corporations involved in the alcohol industry can encompass a variety of functions. Some, for instance, may produce alcoholic beverages and distribute them as well. But the main thing to know about companies in this category is that they tend to be publicly held stocks with larger market capitalizations — large- or mega-cap stocks — with branches all over the world.

Craft Breweries and Distilleries

Craft breweries and distilleries consist of stocks that are generally smaller, though many craft brewers have been absorbed into larger companies. But generally, these would likely be small-cap stocks in the alcohol production industry.

Alcohol Distribution Companies

Stocks of alcohol distribution companies would involve companies that move alcoholic beverages from one place to another — generally, from a company producing the beverages to the retailer or wholesaler selling them to businesses or the public.

In other words, these are companies involved in the alcohol supply chain, and can include packaging, shipping, and delivery companies.

Factors Influencing Alcohol Stocks

Since alcohol is a regulated substance, and that regulation differs from country to country (and from state to state), there can be a number of factors that influence alcohol stocks’ valuation from a legal perspective.

For instance, in some states, you can buy a six-pack of beer at a convenience store. In other states, that’s against the law; you’d need to buy beer at a designated alcohol retailer, like a liquor store or beer distributor. With that in mind, those rules and regulations can change, too, and that means that political or regulatory changes could potentially have an effect on alcohol stocks.

Economic Impacts

There are also economic factors to take into consideration. As noted, alcohol has sometimes been called a recession-proof industry, since consumption tends to be steady over time. But significant events, like the Covid-19 pandemic, can dramatically increase or decrease consumption.

In addition, companies involved in the alcohol sector can and do feel the effects of the overall economy. So, if there’s an economic downturn of some kind, there’s a chance that these stocks could see their valuations affected as well.

Consumer Trends

Changing consumer tastes are also something that affects the alcohol industry. That includes the types of drinks that people are buying. Ciders and alcoholic seltzers have become popular in recent years, as an example, in addition to pre-made cocktails and other RTD products.

Demographics can also introduce new factors into the alcohol stocks market. For example, younger Americans (Gen Zers) are drinking less than previous generations — which is something that alcohol companies will need to take into consideration, unless the trend reverts.

Pros of Investing in Alcohol Stocks

For thinking about investing in stocks in the industry, there can be some upsides to adding alcohol stocks to your portfolio. Those can include the potential recession-resistant nature of these stocks, as mentioned above, in addition to brand loyalty, and potential growth in emerging markets.

Steady Consumption

As discussed, like many consumer staples the consumption of alcohol tends to be constant. In addition, there is some truth to the notion that consumers like to drink when times are good and also when times are tough. But it’s not necessarily true that these stocks will be safe havens during economic downturns.

Alcohol stocks may perform better than stocks in other categories during a recession, but there is no guarantee that will happen. This sector is subject to its own risk factors, including ingredient costs, consumer trends, political issues, and more.

Brand Loyalty and Pricing Power

Some consumers exhibit high levels of loyalty to certain brands of liquor, beer, and wine. In fact, research shows that alcohol is one category of consumer goods in which consumers tend to be highly loyal to certain brands.

That can be a good thing for investors to keep in mind, as brand loyalty often translates to sales — but not always.

Potential for Growth in Emerging Markets

There’s also the potential that alcohol companies could find traction, and revenue, in emerging markets. For instance, in recent years, it’s expected that countries like India, China, Brazil, and Mexico will see demand for alcohol beverages increase, which could lead to more sales for alcohol companies — and potentially, returns for investors.

Again, it’s important to bear in mind the inherent risks in any emerging market, which can include political or economic upheaval that may roil markets or impact local consumption of consumer goods.

Cons and Risks

While there are potential benefits to investing in alcohol stocks, there are drawbacks, too. Here’s a rundown.

Regulatory and Legal Challenges

As previously discussed, there are many local, state, and federal regulations that govern the production and sale of alcohol. Those rules differ from place to place, and can take a variety of forms: some dictate how and where alcohol can be sold, for instance, and in some places, there are certain times of the day or week where alcohol sales are prohibited.

In some cases, an entire town may be legally “dry” — and alcohol cannot be sold there (but may be available in a neighboring vicinity).

Depending on the type of alcohol investments being considered, understanding the implications of local laws is important.

Changing Consumer Preferences

Also as discussed, consumer tastes wax and wane — and if some start moving away from drinking alcohol for one reason or another, there could be an effect on the industry at large, and investors. That doesn’t mean that alcohol companies can’t pivot, of course, but keeping up with current consumer demands can and will eat up resources, too, potentially affecting investors.

Competition and Market Saturation

There are myriad alcohol companies out there, big and small. No matter where you are, for example, you’re probably not too far from a bar, a store that sells beer, or some other way to get your hands on a drink.

In other words: the alcohol market is big, and it’s saturated. That can mean there isn’t a whole lot of room for alcohol stocks to grow.

Top Alcohol Stocks to Consider

While there are many alcohol stocks on the market, here are the five biggest U.S. companies by market cap:

•   Anheuser-Busch Inbev: The maker of popular brands such as Budweiser, Corona Extra, and Michelob.

•   Heineken: Makes Heineken, Amstel, and more.

•   Constellation Brands: Produces a wide variety of beer, wine, and spirits.

•   Diageo: Makes spirits such as Captain Morgan, Johnnie Walker, and Smirnoff.

•   Brown-Forman: Produces spirits such as Jack Daniel’s and Woodford Reserve.



💡 Quick Tip: It’s smart to invest in a range of assets so that you’re not overly reliant on any one company or market to do well. For example, by investing in different sectors you can add diversification to your portfolio, which may help mitigate some risk factors over time.

How to Invest in Alcohol Stocks

As far as actually investing in alcohol stocks goes, it’s not much different than investing in any other type of stock. There are a few ways to add alcohol stocks to your portfolio.

Direct Stock Purchase

You can buy alcohol stocks directly and add them to your portfolio, for starters. That means firing up an existing brokerage account, or opening a new one through a brokerage, choosing the specific alcohol stocks you want to buy, and purchasing some shares (read more about the difference between shares vs. stocks).

ETFs and Mutual Funds Focused on Alcohol

Investors can also add alcohol stocks to their portfolios by purchasing certain ETFs (exchange-traded funds) or mutual funds.

These types of funds can focus or specialize in specific industries, such as the alcohol sector. Investing in mutual funds or ETFs may also be a way to hedge risk when investing in the sector, as funds tend to have a degree of built-in diversification. Not that alcohol stocks are high-risk investments necessarily, but for more cautious investors, funds may be worth checking out.

Analyzing Alcohol Stocks

Doing your homework before buying stocks is important if you’re hoping to maximize your returns, or at least not lose your initial investment. While there’s no guarantee that you won’t, you can do some basic research and due diligence on the stocks that you’re thinking of investing in.

That may include doing some fundamental research, such as checking out the financial metrics and earnings reports of specific companies. It can also involve looking at the overarching trends and risks affecting the industry, too.

Ethical Considerations

There may also be ethical concerns that investors need to contend with as well when thinking about investing in alcohol stocks. Alcohol is a dangerous substance — it’s addictive, is associated with diseases and negative health effects, and more. There’s a reason that it’s regulated.

As such, some investors may not be comfortable with adding alcohol companies to their portfolios.

The Takeaway

Investing in alcohol stocks may be a way to diversify your portfolio, but investors should be aware that there are some unique risks (and potential benefits) to investing in the sector. There may also be ethical considerations investors want to think about as well, though that’ll depend on their individual preferences.

Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

¹Opening and funding an Active Invest account gives you the opportunity to get up to $3,000 in the stock of your choice.

FAQ

How do economic downturns typically affect alcohol stocks?

Economic downturns may see alcohol companies’ shares lose value, but they may not lose as much value as other types of stocks, since consumers tend to buy alcohol no matter the prevailing economic conditions. There are no guarantees, though, that past trends would continue during future downcycles.

What are the main subsectors within the alcohol industry for investors?

Investors may consider investing in companies that produce the main types of alcoholic beverages, such as beer, wine, or spirits.

How do changing consumer preferences impact alcohol stock performance?

Consumers’ preference can and do change, and that may affect alcohol stock performance in that sales may dip or increase. Further, if companies need to pivot into different products, that may eat up additional resources, affecting stock performance as well.

Photo credit: iStock/mihailomilovanovic

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For disclosures on SoFi Invest platforms visit SoFi.com/legal. For a full listing of the fees associated with Sofi Invest please view our fee schedule.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

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Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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2025

Hiring a Lawyer for Student Loan Forgiveness

By | Financial Topics, Growing Wealth, Life & Career, Life Stages, Terminology, Tools & Calculators | Comments Off on Hiring a Lawyer for Student Loan Forgiveness

If you’re struggling with a student loan problem like loan forgiveness or repayment challenges, and you’re getting nowhere on your own, it could be time to consider legal assistance.

A lawyer with expertise in student loan-related legal issues may be able to help you get the answers and action you need to resolve your situation.

Hiring an attorney may not make sense in some situations. And if you’re wondering, how much does a student loan lawyer cost?, there’s the expense to consider. But if you’re tired of spending time and energy on a problem that seems unsolvable, read on to find out how a student loan lawyer may be able to help.

Key Points

•   If you are struggling with a complex student loan issue, a student loan lawyer may be able to provide answers to help resolve the situation.

•   Student loan attorneys can help with such issues as loan forgiveness, forbearance and deferment, loan default, and loan servicer errors.

•   Costs for student loan legal representation may range from $1,000 to $10,000 or more.

•   Free consultations are available to assess a lawyer’s fit for your case.

•   Lower-cost alternatives to hiring a student loan lawyer include legal clinics, online resources, and credit counseling.

When Should I Seek Legal Advice for Student Loans?

A student loan attorney can explain complex rules so you can understand your rights and responsibilities as a borrower, whether you have federal or private student loans. If your situation requires it, they can also advocate for you with your loan servicer or lender, the U.S. Department of Education (DOE), or even go to court with you.

Here are some issues a lawyer might be able to help with:

Public Service Loan Forgiveness (PSLF)

Public Service Loan Forgiveness is a program to help those working in public service for the government and nonprofit organizations achieve forgiveness for their federal student loans. But there are many stipulations to meet, which may trip up those trying to apply as well as borrowers already in the program.

An experienced student loan lawyer can help ensure your compliance with the requirements of the often-confusing PSLF and other student loan forgiveness programs, and assist you in avoiding potential missteps. This might include reviewing your records for errors, helping correct mistakes, and following up on missing documentation such as employment certifications. Not all PSLF issues are fixable, but if you feel as though your application was unjustly denied, for example, you might decide to hire a student loan lawyer to help rectify the problem.

Total and Permanent Disability (TPD) Discharge

If you received a TPD discharge, you don’t have to repay your federal student loans or complete a Teacher Education Assistance for College and Higher Education (TEACH) Grantservice obligation, if you have one. But you’ll need to provide proof that your physical or mental disability severely limits your ability to work, both now and in the future.

A student loan lawyer can help you prepare your TPD discharge application and assemble the appropriate documentation to meet all the criteria. If your application is denied, an attorney can help if you choose to appeal.

Loan Servicer Errors

A lawyer may be able to pinpoint a loan servicer’s mistake — such as a payment that wasn’t properly applied to your account — that’s keeping you from getting student loan relief. A student loan attorney could also serve as your representative to get the error fixed.

Forbearance and Deferment Decisions

An attorney can help you determine if you qualify for federal student loan forbearance or deferment, assist with your application and documentation, and dispute a denial if you feel it’s incorrect.

If you don’t qualify for forbearance or deferment, but you can’t manage your current loan payments, an experienced student loan lawyer can help evaluate various options for lowering your monthly amount. You may be eligible for an income-driven repayment (IDR) plan that bases your monthly federal loan payments on your discretionary income and family size, for example.

Another option is to refinance student loans. With refinancing, you replace your current private or federal loans with a new loan from a private lender. Ideally, the new loan will have a lower interest rate and more favorable terms, which could lower your payments. Keep in mind, though, that if you refinance federal loans with a private lender, you’ll forfeit federal benefits like forgiveness and IDR.

Recommended: Refinancing Student Loans as an International Student

Collections and Garnishment Mitigation

A lawyer can offer negotiation assistance if your student loan is in default, meaning you’ve missed a series of payments on it, and the loan is being sent to collections. An attorney could also be helpful if you’re facing wage garnishment or some other legal action as the result of unpaid student loans. Options an attorney might suggest for you to consider include loan consolidation or rehabilitation.

Recommended: Paying for College Tuition

How Can I Find a Student Loan Lawyer?

If and when you decide it’s time to consult with a student loan lawyer, it’s important to find someone with the appropriate expertise and credentials to deal with your particular issue.
Ways to search for a student loan attorney include:

•   Contacting state and local bar associations for referrals to lawyers in your area.

•   Asking friends, colleagues, and family members for referrals. Or, if you’ve worked with an attorney with a different specialty in the past, he or she may be able to suggest someone.

•   Using an online database. The National Association of Consumer Advocates (NACA) website allows users to do a free attorney search based on practice specialty and location. Websites like Nolo and Avvo also offer attorney databases to consumers who need legal help.

Many lawyers offer a free consultation, so you can use that as an opportunity to make sure you’ve found the right fit. This is a good time to ask specific questions about the attorney’s credentials, costs, how and how often you should plan to communicate about your case, and what outcome you might expect based on similar cases. You can also ask if the person you meet with will be representing you personally, or if someone else might be assigned to your case. Finally, be sure to ask the attorney for references.

When you’re scheduling your first appointment, it’s a good idea to inquire about what documents and other information you should bring with you. Having this information organized and ready to go could help speed up the process and possibly lower your costs.

How Much Does a Student Loan Lawyer Cost?

The amount you pay for a student loan attorney can vary depending on several factors. Some lawyers bill by the hour, while others may charge a preset fee based on the complexity of your case and the services required. Where you live and the lawyer’s level of expertise might also affect your costs. Generally speaking, your bill could range from $1,000 to $10,000 or more.

Once you have an idea of what the overall cost will be, you can determine if it makes more sense to get legal help or continue pursuing a solution on your own. Ask yourself: Could hiring an attorney save you money in the long run? Would handing the reins to someone with more experience, contacts, and knowledge allow you to move on to other goals? Or would taking on more debt upfront to pay a lawyer lead to even more financial and emotional stress?

When you’re researching and interviewing student loan lawyers, keep your budget in mind and be clear about your concerns. Some attorneys may offer a payment plan, or they might be able to refer you to other, less expensive options that can provide help.

Other Ways to Get Student Loan Help

If you need help with student loan debt, but you don’t have the money to pay a student loan lawyer, here are some more affordable options to consider:

•   Legal clinics: You may be able to find free or low-cost legal help through a local organization or nearby law school program. You can find a list of legal aid resources at USA.gov.

•   Guidance online: Borrowers can get free virtual student loan help from the American Bar Association Free Legal Answers or from the Institute of Student Loan Advisors.

•   Credit counseling: If you’re feeling overwhelmed by your student debt, a debt counseling organization, such as the National Foundation for Credit Counseling (NFCC), might be able to help you work with your lender or loan servicer to create a repayment plan. The NFCC’s services aren’t free, but they may be more affordable than hiring a lawyer.

•   Ombudsman assistance: If you submitted a complaint about a federal student loan and believe the response was wrong or incomplete, you can contact the Federal Student Aid Ombudsman Group. If you have an unsolved dispute with a private loan lender, the Consumer Financial Protection Bureau (CFPB) may be able to help.

The Takeaway

Researching and pursuing student loan forgiveness, relief, and repayment options can be confusing and frustrating. If you feel as though you’ve hit a brick wall with your efforts to clear up a student loan issue, you may find it makes sense to hire a student loan attorney to evaluate your problem and help seek a solution.

It’s important to weigh the benefits vs. the costs of getting professional help. An experienced lawyer who specializes in student loan debt may be able to provide options you didn’t know about. And that assistance might help you get back on track with your federal or private student loans. But if you can’t afford a student loan lawyer, or decide that legal help doesn’t make sense for you, there are other ways to help manage your payments, including income-driven plans, credit counseling, and student loan refinancing.

The important thing to keep in mind is that you have options.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

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Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This article is not intended to be legal advice. Please consult an attorney for advice.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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2025

What Is Sports Card Investing?

By | Growing Wealth, invest, Investing, Terminology, Tools & Calculators | Comments Off on What Is Sports Card Investing?

Sports card investing typically involves buying and selling sports cards in the hope that the cards you collect will increase in value over time. If you collect sports cards as a hobby, you might be interested in exploring how your collection could fold into your overall investment strategy, if at all, and considering its potential to generate returns over time.

Are sports cards a good investment? They may be for investors who understand how the market for sports cards works and how to identify investment opportunities. Like any other investment, however, there are some risks to be aware of, especially when it comes to alternative investments like sports cards. Here’s a closer look at how investing in sports cards works.

Key Points

•   Sports cards originated in the 19th century, initially used for marketing.

•   By the 1980s, collecting and investing in sports cards became increasingly popular.

•   Card value is influenced by player performance, popularity, scarcity, and condition.

•   Professional grading services assess card condition, enhancing market transparency.

•   Sports cards offer portfolio diversification and potential returns, appealing to passionate investors.

History of Investing in Sports Cards


Sports cards have a lengthy history, dating back to the 19th century. The earliest known baseball card was issued in 1865 by the Brooklyn Atlantics, who were dominant in the New York City sports scene at the time, according to Library of Congress records. The team’s “carte de visit,” or visiting card, was handed out to fans as souvenirs.

More athletic organizations followed suit, issuing sets of trading cards featuring lithographic portraits and later, photographic prints of individual players. These early sports card sets were often included in packs of candy or tobacco and were used as a marketing tactic by companies to get consumers to buy their products.

Interest in sports card trading grew throughout the early 20th century, and collectors began to realize how valuable these cards could be. Baseball cards were joined by football cards, and later, basketball cards. By the 1980s, the market for sports cards investing and trading was beginning to take off. Investing in sports cards and other sports memorabilia has become a way to diversify and potentially generate returns, outside of traditional stocks and bonds.

As an alternative investment, sports cards offer the potential to combine your investment strategy with your passions if you’re a true sports enthusiast. But it’s important to know that alternative investments can be high risk, and whether or not sports card investing provides returns can depend on a number of factors. (SoFi offers funds with alternative investments, but it does not offer sports card investing.)

Recommended: Alt Investment Guide

The Sports Card Market


Sports card investments are seeing a resurgence in recent years, and as of 2023, the sports trading card market generated $14.8 billion in revenue. That number is expected to grow to more than $51 billion by 2033. Some of the most sought-after cards in the market trade for millions of dollars, including a T206 Honus Wagner baseball card which sold for $6.606 million at auction in 2021.

The sports card investment market extends to not only baseball or football cards, but a variety of other trading cards including:

•   Character cards

•   Image cards

•   Autograph cards

•   Pokémon cards

•   Magic: The Gathering cards

•   Yu-Gi-Oh! cards

•   Cardfight! Vanguard cards

Some of these specialty cards rival the performance of the most in-demand sports cards. One of the rarest and most valuable Pokémon cards, for instance, was valued at $5.275 million at auction.

How to Invest in Sports Cards


Investing in sports cards typically involves simply buying them. You can buy packs of cards, or even boxes, and then open those packs to see what’s in them – essentially, hoping that you’ll find a rare or valuable card. You can also go out on the market and try to track down specific cards that have value, or that you believe have value. Perhaps they’re selling for under market rate, or you believe they’ll be worth more in the future than you’d pay for them now? In that case, you can make an investment and hope it pays off.

In effect, though, buying cards is really the only way to invest in sports cards. You could also look into buying fractional shares of certain high-value cards on some investment platforms, too.

Key Factors That Influence Card Value


An obvious key to success when you invest in sports cards is knowing what’s valuable — and what’s not. There’s one simple rule of thumb to remember: Sports cards are worth what someone is willing to pay for them.

Sports card valuations are determined by a variety of factors, including their age and rarity. Developing a trained eye can help with your decision-making when trading investment sports cards.

Player Performance and Popularity


Player performance and popularity can make a difference in how much a sports card commands at an auction or in the trading market. A card featuring a high-profile player with an impressive list of career achievements is likely to have a higher valuation than the card of an average player.

Savvy collectors consider not just current but future popularity when deciding which cards to invest in. For example, they might buy up rookie cards for a number one draft pick if expectations are high that the player will have a stellar career.

Scarcity also factors in. Limited edition or autographed cards may hold more value and appeal for collectors if there are fewer of them in the trading market.

Card Condition and Grading


The card’s condition also factors in when determining what a sports card investment is worth. Cards that are in mint condition, for instance, generally have a higher value than a card that has some minor wear and tear.

It’s possible for sports card investors to have their cards professionally graded. Grading is the process of having a professional evaluate your cards to determine what they’re worth and rating them on a scale of 1 to 10. The higher the grade, the better the condition the card is in and the more it’s likely to be worth.

A perfect “10 card” would have:

•   Four perfectly-sharp corners

•   A correctly-centered image that is in sharp focus

•   No damage or wear to its original coating

•   No staining

•   No writing or stray in/pencil marks

Professional grading services know exactly what to look for, including how to spot fake cards which is one of the biggest risks associated with alt investments in sports cards.

Risks and Challenges in the Sports Card Market


Is collecting sports cards a good investment? Most investments carry some degree of risk and sports are no different.

If you’re interested in how to get into sports card investing it’s important to understand these risk factors:

•   Counterfeiting/fraud. Sports cards are a target for counterfeiting, which could put you at risk of making a bad investment if you can’t tell the difference between a fake and the real thing.

•   Inaccurate grading. You may rely on a pro grading service to tell you what your sports cards are worth, but it’s possible they could get it wrong. If the grader’s assessment is incorrect your cards could end up over or undervalued.

•   Volatility and unpredictability. The sports card trading market can be unpredictable and card valuations don’t always hold steady. If a player has a poor season, for instance, or gets traded to an underwhelming team, that could affect the value of your collectible cards and lead to a lower than expected rate of return.

Lastly, there’s the risk of simply getting it wrong. You might believe that a particular player’s card values are going to take off so you sink a chunk of money into buying them. Only, their career doesn’t go as planned or the market takes an unexpected turn and now you’re out the money that you’ve invested.

Recommended: Alternative Investment Definition

The Takeaway


You have different options for how to invest in sports cards, including buying cards at auction, trading through online marketplaces, or opting for digital versions with non-fungible tokens (NFTs). Regardless of your investing preferences, think about how much risk you’re comfortable taking on and what percentage of your portfolio you want to dedicate to sports card investments for the short and long term.

Ready to expand your portfolio's growth potential? Alternative investments, traditionally available to high-net-worth individuals, are accessible to everyday investors on SoFi's easy-to-use platform. Investments in commodities, real estate, venture capital, and more are now within reach. Alternative investments can be high risk, so it's important to consider your portfolio goals and risk tolerance to determine if they're right for you.

Invest in alts to take your portfolio beyond stocks and bonds.

🛈 SoFi does not offer sports card investing, but it provides access to funds with alternative investments such as real estate, commodities, private credit, hedge funds, and more.

FAQ

How important is card grading in sports card investing?

One of the first things you’ll hear about when researching how to start investing in sports cards is grading. Grading is what sets the standard for how much a sports card or another type of trading card is worth. There are numerous companies that offer grading services and it’s important to research them carefully to find a reputable grader to work with.

What sports typically have the most valuable cards?

Some of the most valuable sports card investments have historically been baseball cards, which makes sense since those were the first kind of trading cards to hit the market. Basketball and football cards can also be highly valuable if they belong to in-demand players. And surprisingly, rare Pokémon and other gaming cards can also command impressive prices.

What is the difference between a vintage and modern sports card?

Sports card collectors don’t always agree about what constitutes a vintage vs. modern card. For many collectors, the cutoff is 1980; cards produced before that year are vintage while cards produced after are modern. If you have a mixed collection of cards from different years, a grader can help you figure out which ones are vintage and which ones are not.7

About the author

Rebecca Lake

Rebecca Lake

Rebecca Lake has been a finance writer for nearly a decade, specializing in personal finance, investing, and small business. She is a contributor at Forbes Advisor, SmartAsset, Investopedia, The Balance, MyBankTracker, MoneyRates and CreditCards.com. Read full bio.


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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status, be residing in the U.S., and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates at the time of application and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, income, and other factors. If SoFi is unable to offer you a loan but matches you for a loan with a participating bank, then your rate may be outside the range of rates listed above. Rates and Terms are subject to change at any time without notice. SoFi Personal Loans can be used for any lawful personal, family, or household purposes and may not be used for post-secondary education expenses. Minimum loan amount is $5,000. The average of SoFi Personal Loans funded in 2023 was around $33K. Information current as of 2/26/24. SoFi Personal Loans originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org). See SoFi.com/legal for state-specific license details. See SoFi.com/eligibility for details and state restrictions.

✝ To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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