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The Super Investmentof the Century:

A Guide to the Collectible Comic Book MarketWhen I walked into my first Miami comic convention in 2010, I was crushed by the crowd. Thousands of people im-mediately flooded me on all sides.

If you could get an aerial view of the convention hall, you would see an endless ocean of people. Some bobbed around their favorite comic-book writers and artists, trying to score a photo or an autograph. Others clustered around tables housing action figures and merchandise that brought up waves of childhood nostalgia. The rest, like me, dove into the crowd, focused on the hunt.

I squeezed past photo shoots and skirted tables of anime art and superhero T-shirts, until they emerged: The glossy covers of hundreds, thousands, of comic books.

Issues of Deadpool, Green Lantern, Astonishing X-Men, Batman Beyond, The Amazing Spider-Man and more were spread in layers over the tables until you couldn’t see the surface. Droves of people milled around carefully examining the selection, loudly comparing variant covers.

I was in Valhalla.

For those of you who may not know, comic conventions are the ultimate assemblies of anyone who even peripherally en-joys comic books, either because they love reading the issues, watching the movies and TV shows, revisiting childhood memories — or simply because they’re a collector.

But actually, it’s much more than this. It’s a great and of-ten-overlooked investment opportunity. In fact, it’s an ideal gathering for those interested in alternative investments that can generate an average rate of return of 23% a year. That’s double what the stock market can boast!

And the ever-increasing popularity of comic conventions goes to show just how lucrative this business is and will con-tinue to be. The exhibition I attended in 2010 was forced to find a larger convention center this year because attendance numbers kept increasing.

San Diego Comic-Con International, perhaps the largest comic-con in North America, is another perfect example: When the convention first opened in 1970, 145 people walked through the door. In 1990, that number shot up to 13,000. In 2000, it more than tripled to 48,500. You might think that the growth would plateau there … but in 2010 over 130,000 people filled the halls of the convention. Now if you want to buy a ticket, you better act fast: This year, tickets sold out in about 90 minutes.

In no small part, we have pop culture to thank for that. Interest in anything comic-related has spiked in recent years. And that huge surge in interest means big money for collectors. As Investment Director Jeff Opdyke, who has a col-lection of over 1,000 comics, told me:

Last year, more than 130,000 people attended San Diego Comic Con. This year, the same massive numbers showed up, and this trend seems likely to continue.

Photo by Heng Ung is licensed under CC BY 2.0.

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Comics, like most collectibles, are not correlated with financial markets. Comics are often in “strong hands,” meaning collectors who have no interest in dumping their comics because the stock market fell or bond prices crumbled. That gives them stability and provides a certain counterbalance to an investment portfolio. That doesn’t mean they won’t fall in value; they can and do at times. But if you’re investing the long haul with the idea that you will sell a collection at auction one day to supplement retirement or maybe pay a kid’s college education, then the growing demand for certain characters and franchises means that key issues will likely retain their value or grow in value over time.

He said collectibles — true collectibles that can’t be mass-produced — hold value over time because of the nostalgia factor, and because they become a part of pop culture. Collectors want to hold on to their conquests … and are willing to pay big money for them. Spider-Man, Batman, Superman, even The Walking Dead (of which he has the first issue) are parts of our culture. People who like these shows, movies and characters want to be associated with them through their collections.

And that means huge profit potential.

In an age when The Dark Knight trilogy earned over $2.4 billion worldwide and when the X-Men series is the 12th highest-grossing film franchise of all-time (mak-ing more than $3 billion worldwide), it’s no wonder that interest in the comic world has risen. And let’s not forget the Marvel Cinematic Universe, which boasts 10 films and spawned the TV series, Agents of S.H.I.E.L.D. Those films grossed more than $7 bil-lion worldwide, making the series the second-highest grossing film franchise, beaten only by Harry Potter. The Superman and Spider-Man film franchises have also raked in billions.

Those recent releases have generated a massive amount of comic-book attention. So not only are more people attending comic cons, simply more people are buying comics in general. Free Times reports: “According to joint estimates by the websites Comichron and ICV2, the market grew from $715 million in 2011 to $805 million in 2012 and $870 million in 2013, an in-crease of 8.2% across the last two years.”

Comic-book collecting is simply the market that sav-vy investors want to be in.

And that’s not even discussing the overall rise in the value of comics.

A History of Valuable Comics

This past August, Action Comics No. 1, the first appearance of Superman, sold on eBay for $3.2 million, making it the most valuable comic book of all-time. And it had been breaking sales records decades before then. In 1992, it sold for $86,000; in 1997 it sold for $150,000; and in 2010, it went for a whopping $1.5 million. Know what the issue cost when it first came out in 1938? A total of 10 cents. Now there are just about 50 to 100 copies in existence. And only two have been certified by the Certified Guaranty Company (CGC), an independent authority that grades comic books submitted for auction, with a grade of 9.0 out of 10. The other 9.0 copy was owned by actor Nicolas Cage in 1995. It was stolen from his home in 2000 and, in 2011, it sold for more than $2.1 million.

Clearly, comic books represent a valuable component of the collectible market.

These Marvel prop replicas were showcased at San Diego Comic-Con in 2011. Marvel’s $7 billion movie franchise has made comic-book interest explode recently.

Photo by The Community – Pop Culture Geek is licensed under CC BY 2.0.

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Don’t get me wrong, millions of dollars a pop is not the norm for comic books. While you are looking for the chance to make great returns that can be exponentially greater than the purchasing price, it is not every day that a comic sells for $2.1 or $3.2 million. That’s because Action Comics No. 1 is essentially the holy grail, lauded for launching the su-perhero industry and starting the Golden Age of comics, which ended in the early ‘50s. During that time, comic books experienced their first surge in popularity, and some of the most famous superheroes were born: Superman, Batman, Captain Marvel, Wonder Woman, Captain America, the Flash, and Green Lantern (characters that are still to this day the focus of TV shows and films). Another valuable comic from this time includes Batman’s first appearance, Detective Comics No. 27 from 1939. One copy sold for $1,075,000 in a February 2010 auction.

The Golden Age isn’t the only holder of valuable comics, though.

The Silver Age of comics, which began in 1956 with DC Comics’ debut of the new Flash in Showcase No. 4 and ended in 1970, also boasts million-dollar comics. During the Silver Age, the Justice League of America and the Fantastic Four had their first appearances, and many superheroes were reworked, as new writers (including legend Stan Lee) gave them fresh personalities. In 2011, Amazing Fantasy No. 15, which introduced Spider-Man in 1962, sold for $1.1 million. That holds the record for highest price paid for a Silver Age comic. It originally sold for 12 cents.

But Action Comics No. 1, Detective Comics No. 27, and Amazing Fantasy No. 15 all debuted a famous character, and are treasured for containing the birth of a hero much beloved by the comic world. It’s no surprise that they sold for millions. Those were also from times when comic collecting didn’t exist at any real level and the print runs were shorter. So there are fewer surviving copies, and more people prepared to part with a fortune to own them.

So what about the more modern ages? Are those comics worth anything?

Of course!

The Bronze Age came immediately after and lasted from 1970 to 1985. It released issues that had darker elements, and were more socially relevant than the Silver Age. Green Lantern No. 76 was from this era. It featured a team-up between Green Lantern and Green Arrow, and sold for $37,000.

The newly-named Copper Age (1985 to 1991), with dark and gritty explorations and dissections of superheroes, like Alan Moore’s Watchmen — which I wholeheartedly believe is the best graphic novel ever produced — soon followed. The recent 2009 film adaptation brought fresh attention to the series, and the cover art to Watchmen No. 1 (which debuted in 1985) sold for $155,350 last year.

Now we are in the Modern Age of comics — where independent comics flourish and larger publishing houses have become commercialized. While these comics are not glorified for having the oldest, rarest issues, pop culture is giving them shiny-new appeal. For example, The Walking Dead No. 1, released in October 2003, launched a massively popu-lar TV show that now has a cult following. The comic in a high grade, such as 9.8 is $2,000-plus … for something that cost just $2.95 originally. In fact, in 2012, a 9.9-rated version sold for $10,100 on eBay.

And one of Jeff Opdyke’s favorite series, Saga No. 1, a space opera/science fiction comic first published in March of 2012, fetches $300 or more in high grades. It was originally $2.99. Jeff says some signed, variant copies can fetch up-ward of $1,000 or more. So his advice is that you shouldn’t focus on just the Golden and Silver Age comics, or even the Bronze. Look to some of the modern stuff, as well.

Because pop culture is shining a new light on comics, whether they’re from the 1930s or the 2000s.

No matter the release date, comics are a hot trend right now, and a great opportunity for anyone interested in an alter-native investment. Plus, comics are quiet wealth. They’re not reportable as a financial asset, and they’re easy to transfer to heirs.

So here’s what you have to do if you’re interested in comics for your quiet-wealth, alternative-investment fix …

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The Collectible Comic Book Market: A Beginner’s Guide

Comics, like all collectibles, depend on interest, scarcity and condition. So, here’s what you have to look for when considering your collection:

Hot Comics: Pop culture has quickly turned certain series and characters into hot commodities. The Walking Dead was one instance. All of the recent Marvel and DC films and the impacts on their respective comics are another: De-mand for key issues skyrocketed. When a franchise develops a cult following, buyers rush to grab the comics. And that interest has a direct impact on value. Neil Gaiman’s Sandman series, what Jeff and I agree is one of the greatest comics of the last 20 years, is another great example. Lucifer, a Sandman character who showed up in issue No. 4, is getting his own TV series on Fox. The announcement came in mid-September of this year, and the prices for Sandman No. 4 and Lucifer No. 1, from the spin-off series, are already hot on eBay and rising in value. Oh yeah, and Sandman is also getting its own movie. Look out, this is going to be a series investors will want to get their hands on.

The upcoming 2016 Deadpool movie is going to be another opportunity. Deadpool, a popular anti-hero who breaks the fourth wall, first appeared in New Mutants No. 98. A copy of that issue sold for $15,449 last year. Now the date has finally been released for his own movie (filming was on hold for years and many speculated that it would never get made). So you can be sure that the value for his comics is going to surge.

If you’d like to see the other comic book movies slotted for release, just click here. There’s an entire speculative market surrounding those release dates. And here are a few sites that speculate on the comics that have the greatest po-tential to rise: Dakoit Speculator, ComicsHeatingUp.net and Larry’s Comics.

Key Issues: As Jeff said, key issues, are, well, key when collecting comics. Those include the No. 1 issue for any character or series, like Action Comics No. 1, Detective Comics No. 27, and Amazing Fantasy No. 15. Beyond that, it’s the first and sometimes the second appearance of a key character. Or key events like the death of a character … or even something like the appearance of Spider-Man in his first-ever full-black venom suit in the Amazing Spider-Man No. 252. Key issues are what collectors gravitate toward, so that’s where you want to be as an investor.

Variant Covers: Variant covers are limited-release covers that vary from the original cover. In fact, Modern Age comics have extremely low print runs for their variant covers, and the demand for them can see the price soar. For example, the Spawn No. 1 Black and White variant reprint from September 1997 has about 3,100 copies printed, was valued at $20 by CGC for 9.4-rat-ed copies and now sells around $500.

High CGC Grades: As you can see, a high grade from the Certified Guaranty Company, the first third-party certification service, has huge sway over comic valuation. The grades are given on a 10-point scale, and a final CGC grade is an aggregate of the opinions of three professional graders and the approval of a final primary grader. A grade of 10 is extraordinarily rare. You can see the issues that have received that honor by clicking here.

There are several pricing options for their grading, from $14 (for a 14-week turnaround) to $95 (same-day appraisal). Sometimes you can even find the company at a comic convention doing on-site appraisals.

Once certified, the company encapsulates the book “in a state-of-the art, tamper-evident holder, providing superior protection and stability for long-term preservation.” And then it ships it back to you.

Our very own Managing Editor of Sovereign, Jocelynn Smith, met Stan Lee at San Diego Comic Con in 2010. Stan Lee is a comic-book legend who co-created some of the greats: Spider-Man, Iron Man, Thor, X-Men, the list goes on. A CGC certified Stan Lee-signed book can command 10% to 20% above the usual price.

Photo: Jocelynn Smith

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Signed Copies: Sometimes you’ll come across a comic that has been signed by one of the writers or artists. Or maybe you go out of your way to get your favorite issue signed. This is where things get tricky. On one hand, this can possibly increase the value of the comic. On the other hand, it may also decrease the grade since a signature changes the origi-nal condition of the comic book. And while some collectors may be searching for signed work, others may be seeking a pristine, unblemished copy. As with any collectible, rarity is key. If you manage to score a signature that isn’t easily obtained, and it’s on an issue that has a high grade, then you’re looking at an extremely valuable copy.

Preservation: Clearly, preservation plays a huge part in value. Those comics that are in pristine condition can fetch hundreds or thousands more than one with a tear or a wrinkle. I’ll give you a few steps for how you can preserve your comics in a moment. Of course, you can always use the CGC. They also provide a label with a description of the comic, the grade and an identification number, which is all duplicated in a bar code. The encapsulation process is ac-complished through a combination of compression and ultrasonic vibration.

However, keep in mind that ratty comics can still fetch a pretty penny if they are a rare or classic issue that’s high in demand.

So now that you know what to look for, let’s discuss how you go about getting it …

How to Score Your Comic

If you prefer hunting for an easier-to-find copy offline:

1. Your local comic book stores will have many popular issues, and will order certain ones for you that they don’t have in stock.

2. The other option is to go to a comic convention. Hundreds of com-ic stores bring their merchandise to those gatherings. The added plus of going to a comic convention is that you’ll also have an op-portunity to get a signature if an artist or writer is attending.

3. And remember that you can also find a gem at a rummage sale, al-though its condition may not be pristine. Many descendants of avid comics readers may not know what they have and are just looking to clear room in their house.

However, for those looking for those rare, hard-to-obtain copies, auctions for graded books are where you want to be:

1. Heritage Auctions, comics.ha.com, is well known in the collectible universe.

2. As you can see with a few of my examples, eBay, has also proven to be a great avenue for buying (and selling) comics.

3. Comic Connect, at comiconnect.com, is an online comic marketplace with no buyer’s premiums.

4. And Comic Link, at comiclink.com, is a very easy-to-navigate auction site for comics.

For those who would like to focus on the Golden Age, Mile High Comics is well known for having those in stock: milehighcomics.com.

But once you have your hands on your valuable issues, you’re not done. You still need to know how to store them.

I collapsed upon thousands of comics after finally finding an issue of Sandman at my favorite comic-book store in South Florida, Past Present Future Comics. Sometimes it can take a while to find your perfect comic if you are hunting on foot.

Photo: Nikki Zylstra

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Preserving Your Collection

A collector knows that there’s more to collecting an item than just buying it.

The item has to be preserved, kept safe and sound in the perfect condition. Just like the guitars from our last Collec-tor’s Club report, there are certain tips for keeping your collectible in the optimum condition, because one smudge, one stain, one tear could mean thousands of dollars.

How you store your comics is critical.

As I mentioned, CGC provides encapsulation storage that will give the optimum long-term protection for your copy.

But if you would prefer to do it yourself, here’s what you have to know:

1. When handling, make sure to use cotton gloves. If you are forced to touch a comic with your bare skin, make sure your hands are dry and clean.

2. Your comics need to keep their shape and have support. Acid-free cardboard backing is the perfect way to ensure your issue isn’t creased or bent in any way. I suggest getting a full back rather than a half back for stur-dier quality. You should replace the board every three to five years.

3. Place your comics in Mylar bags, and tape the bags shut with acid-free double-sided tape. This will keep out dust and harmful elements.

4. Put the bagged comics upright in protective acid-free, cardboard boxes.

5. Make sure you store the boxes in a climate-controlled environment. The place should be somewhere dark, dry and cool. Humid-ity, direct sunlight and fluorescent lights are a comic killers.

6. Remember to inspect them on a regular ba-sis to ensure that nothing has changed in the environment.

I suggest you buy the storage products directly from the manufacturer for a cheaper price. Jeff uses E. Gerber Archival Products: www.egerber.com. You can call them, and they will ship directly to you. Buying the same products online through dealers or at a local store is far more pricey.

Jeff’s tip: You must preserve your comics incredibly well. Each wrinkle, dent and tear wipes away potentially huge amounts of value. Take my Batman Adventures No. 12, for instance. It’s graded 9.9 and worth between $800 and $1,000. But in 9.6, which is maybe a dent here or a color break there on the spine (i.e., nothing significantly different but a few very minor cosmetic issues most people wouldn’t notice), the book goes down to about $500. At a grade of 9.4, still considered a near mint book, it’s in the $350 range. So preservation is crucial. I keep my books in 4-mil Mylar bags, each book held firm by a so-called “full back” piece of archival quality cardboard … and the bag sealed with archival quality, double-sided tape. And all the comics are stored in archival quality boxes.

If you want to read your comics and aren’t quite ready to pack them away, you should at least put them in a protective sleeve, with a full back, as shown in the example above.

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I also suggest that you find a way to track your collection. Your comics can quickly multiply over time, especially if you’re buying for the pleasure of reading the stories and not just for the value. That means that you may be picking up dozens of issues every Wednesday when new comics are released. One way to track your collection is by creating an excel spreadsheet with information such as the name and issue numbers, how much you bought it for, the date of publication, and the date of purchase. And of course, where you are storing it. I can’t tell you how easy it is to forget where you put an issue you bought years ago at a random garage sale. There are also plenty of comic databases you can look into for your computer or smartphone: www.collectorz.com/comic, www.clz.com/comics, and www.comicbase.com are a few.

Then when the time comes for you to look for a way to cash in on a particular issue, you’ll have all the information you need.

And that brings me to the next step: How do you cash in on your comic?

Cash in on Your Comics

When you are ready to sell a comic, make sure you know the grade — and the value. While grading may tell you what type of condition your copy is in, it doesn’t tell you its worth. So if you think you have something of real value, get it appraised by a professional like Heritage Auctions. If you’d like a free appraisal, visit metropoliscomics.com.

Then you have to find the ideal place for selling. You can actually sell your comics in many of the places you found them. My tip is to go to your local comic-book shop. While they probably won’t offer you the best price, they may have a few leads you can follow. After all, they are immersed in the business.

Another great option is to auction it off.

eBay is quickly becoming a great way to auction your collectibles. It even breaks up the comics section by age, so, for instance, you can immediately see what’s being offered in the Golden or Silver Age. The other auction sites I listed in the “How to Score Your Comic” section — Heritage Auctions, Comic Link and Comic Connect — are also great avenues for selling your copies.

If you would prefer to use a big auction house with a history of finding high prices for sellers, Sotheby’s is a good choice. An obscure comic-book collector used Sotheby’s to auction his Action Comics No. 1 in 1992 for a then-record $82,500.

But remember to pay attention to what’s selling! Don’t just forget about your collection, letting it collect dust until you decide to hawk it. A movie or TV show could send the value shooting up and you may want to collect on your investment.

Here’s a collection of comics from the L.A. Country Fair in 2012, including issues of the Fantastic Four, The Incredible Hulk and The Uncanny X-Men.Photo by Sam Howzit is licensed under CC BY 2.0.

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You can follow comic trends and prices at places like comicspriceguide.com, sellmycomicbooks.com, or nostomania.com. And when selling through an auction site, make sure to do a little investigation first. Check to see if there are other auctions of the same kind happening. This will save you from the hurdles of competing with them directly.

You may even feel the urge to sell you entire collection, like self-proclaimed comic-book fanatic Nicholas Cage. His collection was renowned for being the most expensive celebrity-owned comic-book collection.

He used Heritage Auction Galleries to make his sale, and ended up making $1.68 million, while his comic-book art and paraphernalia pulled in $5 million. Keep in mind that while this is the quickest way to unload your collection, it may not be the most profitable. People tend to offer less money per issue when buying an entire collection.

As you can see, comics are a huge market these days, showing solid appreciation. Keep track of your collection, wait for the perfect moment when interest shoots up, and sell when the buying frenzy strikes. Or keep ahold of your col-lection and see what happens.

No matter what, if you become an avid comic collector, and pay attention to the market, you’re certain to end up with a collection that will give you big returns.

And for those who still love following the adventures of their favorite heroes, you’ll be having fun while you’re at it.

Happy hunting!

Regards,

Jessica Cohn-KleinbergAssistant Managing Editor, Premium Publications

Top 5 Most Valuable Comics

1 Action Comics No. 1 2 Detective Comics

No. 27 3 Superman No. 1 4 Marvel Comics

No. 1 5 Batman No. 1

Golden Age Comic Golden Age Comic Golden Age Comic Gold Age Comic Golden Age ComicCGC Near Mint Value: $3,207,000. It was printed on June 30,1938, and was the issue that introduced Superman. It had a print run of 200,000 copies.

CGC Near Mint Value: $2,220,000. It was printed in May of 1939, and is the longest continuously published comic book series in U.S. history. Batman didn’t make his first appearance issue until No. 27.

The CGC Near Mint value: $712,000. It was printed in June of 1939, and is the first comic book series to ever be devoted to a single comic book character. It was also the first issue to feature a pinup back cover.

The CGC Near Mint value: $578,000. It was printed in October of 1939, and is the first issue that featured famous superheroes like The Human Torch, The Angel, and Namor the Sub-Mariner. The first printing sold out at 80,000 copies in the month of its release. The second printing in November also sold out at 800,000 copies.

The CGC Near Mint value: $530,000. It was printed in the Spring of 1940, and is the first issue of a self-titled series about Batman.

For a look at the other top 95 most valuable comic books, click here.

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