Search This Site

Friday, August 14, 2015

Reinvesting or Upgrading Comic Investments


Here's a subject I've yet to touch upon, and there will come a time when these two options will present themselves to you. Sometimes a comic you have a certain grade just doesn't cut it anymore, or maybe you sent it in and it came back a less desirable grade than you anticipated.

I'm sure we've all been hit with that. There's also gonna be times when you want to dish off certain comics and reinvest in that key issue you've always wanted.

You know what I'm talking about. Those extremely in demand key issues that have a more than great track record as comic investments.

This post is actually the brain child of Ed, who is unloading quite a few comics to get another comic. Many of the comics he's selling currently aren't piss-pot key issues. Quite a few of them are really good key comic issues.

Click this link here to check out what he's got. He may have something you're gunnin' for and at a price right for ya.


Quite a few of them caught my eye as well such as the 2nd and 3rd appearance of Punisher - Amazing Spider-Man #135 CGC 9.4 and Giant-Size Spider-Man #4. No surprise those two caught my eye since most everyone knows I'm a Punisher fan.

Hawkman #4, the 1st appearance of Zatanna and Amazing Spider-Man #300, 1st full appearance of Venom, are just a few examples. A lot more goodies other than that for sure so check it out.

So reinvesting or upgrading comic investments can basically be done in two ways. You can either sell the comics you don't want anymore or that don't make the cut, or you can trade them for the desired comic you do want.

In my own vault, I have a Fantastic Four #48, 1st appearance of Silver Surfer, that's a CGC 3.0. You know, that doesn't really quite cut it for me.

A CGC 3.0 for a Brave and the Bold #28 maybe, but not for the 1st appearance of Silver Surfer. A little too low to my liking, but that's just me.

That is a comic I did buy raw and came back from CGC a bit of a disappointment. I knew it was low grade when I bought it, but I thought it would be more closer to the VG/VG+ range.

Anyways, those comics that just don't cut the chase can be upgraded or sold to reinvest in a higher grade of the comic or a totally different comic investment. If you're interested in a comic that's substantially more valuable then you'll have put together a package of comics that's equal or around the value of the other comic you want to trade with. If you plan on selling, you'll have to sell enough comics to be able to pay for reinvestment obviously.

Definitely not rocket science.

You can also do even trades for a single comic as well and even trade or sell comics you have a loss on. Pretty simple, or is it? Well there are benefits and drawbacks as well.

Some people like to dump all the dough or capital gains they acquire from selling off comics into the other reinvestment comic. I generally do not like doing this for two reasons.


One, you sell anything for a profit and the government considers it income. If it's considered income, you have to pay taxes on it. 

Collectibles can be considered an investment and are subject to capital gains taxes in which the highest income tax brackets pay the maximum of 28% for capital gains on collectibles.

Well, that's if you're living in the U.S. Other countries I have no clue about, but it would probably be best to understand your tax laws concerning investments.

Another reason I'm not fond of reinvesting all my capital gains is because the minute I purchase or trade in for that new comic as an investment, I go back to zero. That means if that comic suddenly plummets, any and all profit I made from selling off those comics to acquire what became a dud is wiped out and starts heading into the negative zone or a loss.

When you trade comics for a comic, you're basically doing the same thing. You start at zero again. None of the gains you made from the comics you traded with apply anymore.

Any gains on the new comic investment starts at the trade value you traded your comics for it. Any loss begins at that trade value as well.

A benefit of this method, however, is that since you technically did not receive money for the transaction, you don't owe any capital gains tax. Uncle Sam has no idea if you traded that comic or not as opposed to receiving money.

Either way, I don't like it, because if you're investing in comics, the goal is to make returns back. That means actual dollars 'n cents. 

Remember, comics are valuable, but they're not actual money. You don't bring in a comic to pay your mortgage, credit card bills, or groceries etc.

When I'm selling comics off to acquire another comic investment, I always tuck away a percentage of the money I sold it for taxes and for savings. Usually, my investment costs goes towards helping to fund the other comic investment, and that includes what I purchased the comic for or CGC costs if any.

With the capital gains, I will usually split 60/40 or even 70/30, in which the higher percentage goes towards savings and the lower goes towards the new comic. Of course, this is just how I handle it. Doesn't mean you have to.

Just letting you know that Uncle Sam doesn't care if you sold comics and used all the money to reinvest in another comic. He wants a cut of the capital gains profit you made from each of those comics sold. If you sell on eBay or online and receive money via a check or Paypal, you are on the radar already.

Besides that jargon, Ed thought it would be fun to have a poll so you could vote on which comic you would reinvest in or get out of pure fandom if you were in his shoes. The budget is around $4,000 to $4300 give or take a few. Put in your votes below.


Which Comic Would You Reinvest In?
pollcode.com free polls

Should be interesting to see the results of this or if there are even any results. No answer is really wrong and it's just for fun. Well, that's a little bit of info on upgrading or reinvesting comics as investments.

Doesn't really have to be about the whole comic investing aspect. It could simply just be about comic collecting as well, and there are quite a few comics I want just to have also.

As usual, it's just my opinion and how I view things. Maybe it'll help you in your comic investing or comic collecting venture or maybe it won't. 

So, you can either trade comics or sell them. It's up to you to figure out which would be better for you, and some comics are probably situational as well.

Also, be sure to check out what Ed's selling over at eBay. He may have something you're looking to snag.

Good luck and happy collecting!


8 comments:

  1. Great Article!

    Thanks. I' m planing to reinvest my Dr. Strange 169, probably 8,0 with a little stamp on it. What do you think Mayhem, what can I expect to get for it? That 3d Punisher appearance is on my mind as well... Plus the first appearance of the Leader as major Hulk villain. Don' t know, but I bet you can still get it for a decent price.

    Ace

    ReplyDelete
    Replies
    1. Depends on when and where you sell. May get around the $100 mark or closer to $120 for that book at that grade raw on eBay.

      Delete
  2. i always look at what's relatively valued when comparing a list above. first Iron Man, compared to other big marvel characters, is definitely the case imo. i'd also look at the first Dr. Strange, if you're looking at the $4-5K price range. you can get one in the 6.0-7.0 range for that money.

    then look at what a Hulk 1 will set you back at the same grade (6.0-7.0) or a first Thor, first Spider-Man?... compare that to other 1st line characters. and you'll see what can be bought relatively VERY cheaply.

    ReplyDelete
    Replies
    1. Good point and way to gauge potential comic investments for sure.

      Delete
    2. sure.. look at Daredevil #1. dirt dirt cheap compared to other Marvel characters of that age.

      Delete
  3. I do this a lot and it saves me $$$$. I got a Hulk 181 by trading my way up to a CGC 6.0 with initial investment of $70. I also buy tons of key comics at shows, sell them, and use the proceeds to buy comics like Amazing Spiderman #1 CGC 2.0 with initial investment of just $500. If you are clever, and not afraid of a little work, you can always find a way to achieve your goals. Great Work {as always} Mayhem! lk

    ReplyDelete
    Replies
    1. Cool story LK about the trading up to a CGC 6.0! Absolutely correct, a little work and know how and you can get a lot of comics that you want or think is out of reach by selling or trading up. Especially in this current boom. Rock on LK.

      Delete
  4. The package of Ms. Marvel 16, 17 and 18 also looks like a good investment. Together, these books with the first appearance of Mystique command a nice price. I' ve seen them for about 160 bucks.

    Max Rebo

    ReplyDelete