Collectibles: Understanding the term 'investment grade'

Please note that this okay guide is part of a 'series' of other guides I currently have on okay; written about the antiques and collectibles business and related collecting fields. All my okay guides are FREE to read and are right here on okay! Just click the 'see more guides from this okay member' link at the bottom of the screen. You can also search for guides written by me under the okay name electrogames. This guide can be read alone, but it is advisable that you check out my other guides for more information on this exciting field; as well as some information on who I am and what I do.
The term 'investment grade' is begeing a very gemon term in a lot of different collecting fields. As stated in some of my other guides; this term can apply to a geic book, a coin, paper money (i.e. currency), a stamp, a sports card, or even an action figure! The term is most gemonly used on items that can be graded and certified by third party grading gepanies. That being said, what does the term 'investment grade' really mean? More importantly, does it imply that the item in question will go up in value over time?
Recenctly, in response to several other guides I have written, I have been getting a lot of interesting questions and feedback from a lot of collectors, enthusiats, fellow dealers and 'pickers'; and people in the collecting businesses. One of the most popular questions I have been receiving lately is the subject of 'investment grade' items. It is because of these questions, that I have decided to write this guide.
Please understand that the true definition of 'investment grade' simply means an item that can easily be sold if and when the need arises. Think liquidity. It does NOT guarantee or even assure profitability as some people think. For instance, a Giant Size X-Men #1 in CGC 9.2 or above; is an 'investment grade' geic book. It can easily be sold if the need arises. There is constant demand for this item. There is a market for this item. That being said, it does not mean you will make a 'profit' if you sell; it just means that collectors (and dealers) are readily willing to give you cash for this item. Whether or not it is above what you paid for it; is another question entirely. I bring this up because I see a lot of 'speculators' geing into to certain collecting fields being fooled by sellers who advertise items as 'investment grade.' This term is so popular that a definition even appears in the Overstreet geic Book Price Guide!
Here are a list ofcategories (in the collectible field)I have seen this term used to describe: graded geic books, certified coins, certified paper money (i.e. currency), certified stamps, certified sports and non-sports cards, certified toys and action figures, and even some non-certified items!
Again, there is a misconception among certain collectors (mostly beginning collectors) that 'investment grade' means the item will go up in value. Market prices are set by buyers and collectors (and in some cases dealers); who are willing to pay for an item at a certain price. That price may go up and down; but all that 'investment grade' implies is liquidity in an uncertain market. How much liquidity is anyone's guess; as something is worth only what another individual is willing to pay for it. Always remeber that and you will never go wrong!
Thanks for reading...
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