From Pokemon cards to music services: Do alternative investments work?

It was a gambling game, using $100,000 for three packs of cards. But it paid off: two of them combined were worth more than what he paid.

“One could argue Pokemon cards and trading cards are a better place to store your value than something like the US dollar, given the scarce properties of the cards,” the Edmonton resident said in an interview.

What other investments are there?

Other investments—assets other than stocks and bonds—might resemble hedge funds or real estate. But for millennials and generation Z, indulging in niche collectibles like limited-edition shoes, handbags or trading cards is another way non-traditional investments have grown.

The popularity of trading cards has grown during the crisis when people want to invest time and money in things they love, said Patrick O'Neill, senior vice-president of sales and business development at NFP Canada. That interest drove up prices, and people who had cards and memorabilia saw the value of their possessions increase.

“It was going up much faster than inflation or stock market investments—more comparable to art, sculpture, fine wine or expensive jewelry,” O'Neill recalls.

He said the change in price and value attracted the younger generations to invest in souvenirs.

“For young people, they teach them life lessons at a young age—even investing,” he said.

Why Canadians see value in other goods

O'Neill, who is in his 60s, has been collecting hockey and game cards for five decades. For him, it was about nostalgia when he first entered the space.