> > Collectable Review 2024: Invest in Iconic Sports Collectibles

Collectable Review 2024: Invest in Iconic Sports Collectibles

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The world of sports memorabilia has come a long way since the first official baseball card was shot off the press in 1866. From plastic sleeves to acrylic cubes to pressure-controlled cases, we’ve come up with increasingly sophisticated ways to preserve important artifacts from the history of athletics, particularly as those artifacts have come to increase in value. 

These days, with NFTs driving interest in alternative investments and innovation in financial technology at an all-time high, sports collectibles and memorabilia have become hot commodities — literally. 

In this guide, we’ll take a close look at Collectable, a novel investment platform offering fractional shares of sports memorabilia.

Collectable

Overall Rating 3.1

The Modest Wallet Overall Rating (Our Rating Methodology)

Bottom Line: Collectable is an innovative alternative investment platform where users can buy, sell, and trade collectibles such as sports cards, sports jerseys, and other sports memorabilia.

Account minimum

4.5

Account fees

3.0

Features and tools

3.0

Diversification

2.0

Liquidity

4.0

Security

3.0

Customer support

2.5

Ease of use

3.5

Best for:

  • Alternative investment traders
  • Non-accredited investors
  • People looking to invest in collectibles

Pros:

  • Low minimum investment
  • Available to non-accredited investors
  • Secondary market available

Cons:

  • Relatively high fees
  • Limited diversification

What Is Collectable? 

An investment platform focused on high-value sports memorabilia — game-worn shoes, trading cards, home run balls, and autographed ticket stubs — Collectable appeals to both your inner superfan and your inner finance geek. While you might never have the cash to purchase a Cal Ripken, Jr. jersey, Collectable allows you to purchase part of one in the form of fractional shares.

The brainchild of three former Wall Street finance guys turned entrepreneurs, Collectable aims to democratize the sports memorabilia market while promoting these unique assets as a comparatively safe, inflation-proof investment with reliably high returns.  

All of the items offered for sale on the platform have been verified as authentic by Collectable’s team of independent industry experts, and all assets are registered with the U.S. Securities and Exchange Commission (SEC) as part of the share-conversion process.

Despite its relative youth, the platform can claim some impressive figures. As of July 2021, the average return on investment hovered at 9.74%. While Collectable can’t take credit for the performance of the sports memorabilia market, it’s worth noting that the PWCC 100, an index of the most valuable sports cards, has increased by 932% since 2008. The S&P 500, in comparison, has increased 197% over the same period.

Collectable Homepage
Source: Collectable

How Does Collectable Work? 

If you’re new to investing in securities, the idea of a baseball card as a fractional investment might seem a bit out of, well, left field. Here’s how Collectable transforms sports memorabilia into a tradable security, complete with SEC registration.

Collectable’s team of experts monitors the memorabilia market for assets they believe will increase in value over time, such as the game-worn jersey of a promising college player likely to go pro. After verifying their authenticity, Collectable purchases the most desirable assets for offer on the platform.

Collectable registers each asset with the SEC, a process known as “securitization.” Once registered, the asset can be split into shares. If Collectable purchased the jersey for $50,000, it might divide it into 10,000 shares at the price of $5.00 per share.

Securitized assets are offered for sale each week in an initial public offering (IPO). Investors have the option to purchase as many shares as they like until the asset is fully funded. While the asset itself never leaves Collectable’s bank-style vault, shareholders do receive digital certificates of ownership.

If, after a 30-day “lock-up” period following the IPO, an asset appreciates in value, Collectable offers it for sale outside the platform. Shareholders vote on whether to accept any tender offers and receive a portion of the profits equal to their ownership percentage in case of a sale. If the $50,000 jersey sells for $100,000, and you own 15 shares, you’ll receive a payout of $75.00.

Investors who want to sell their shares in a given asset can offer them for purchase or trade on Collectable’s secondary market. Similar to a traditional stock market, investors post bid and ask prices, exchanging money and shares when a match is made.

Colletable vs S&P500
Source: Colletable

Account Minimum

You don’t need a minimum balance to open an account or maintain an active account. However, users will need $10 as a minimum investment to start trading on the platform.

Investing Account Types 

At the moment, Collectable offers only a taxable investment account. However, the platform has plans to offer tax-free retirement accounts, such as IRAs, in the future. 

Opening an Account 

Opening an account on Collectable is free and gives potential users the option to browse available assets and test out the platform prior to committing. Just click the “Create Your Free Account” button anywhere on the Collectable home page, select your preferred sign-in option and enter the verification code sent to your email address.

Once inside the platform, you can review the assets currently up for sale, explore Collectable’s archive of market research and news briefs or search for a specific asset on the secondary market. 

If you’re ready to trade, however, you’ll need to verify your account. This entails, among other things, agreeing to open an account with DriveWealth and Templum, Collectable’s brokerage partners responsible for overseeing trading on the platform’s secondary market.

You’ll also be asked to provide personal information to verify your identity and eligibility to trade, including your U.S. Social Security Number. You don’t need to be an accredited investor to buy, sell, and trade shares on Collectable, but you must be a U.S. citizen over the age of 18. 

After verifying your identity, you’ll need to link your bank account or credit card to your Collectable wallet and fund your account. Investors can begin buying and selling with a minimum balance of just $10, though you’re always free to add more. 

Create An Account With Collectable
Source: Collectable

Funding an Account 

In keeping with the platform’s goal of making sports memorabilia investing accessible, Collectable requires just $10 to begin buying and trading shares.

Investors can fund their accounts via a bank account or credit card. Bank transfers incur no fees, while credit card transactions have a funding fee of 3.15% +$0.70 and a $5,000 limit. 


Collectable Features and Tools

Collectable comes with many features and tools out of the box. From being open to non-accredited investors to a secondary market, Collectable is a good platform for those looking to invest in collectibles. 

Minimum Minimum$0 to open account, $10 to trade
FeesTrading fees: 1% based on the trade value, Sourcing fee: Up to 10% based on the value of the asset, and IPO fee: varies
Funding FeesBank account: $0, and Credit card: 3.15% + $0.70
Account TypesTaxable
Bank IntegrationYes, via Plaid
Available Outside of The U.S.No
Fractional Sharesyes
Open to Non-Accredited Investorsyes
Secondary Marketyes
PlatformWeb-based and Mobile (iOS / Android)
PromotionNone
SupportPhone (833-995-2178) and Email ([email protected]), and Support Ticket

Invest in Sports Memorabilia

As fractional investing increases in popularity, the number of platforms and apps devoted to different types of collectibles has likewise expanded. Many cite the variety of items available for sale as a bonus for investors looking to distribute risk, but Collectable sees it a bit differently.

By focusing exclusively on one asset class — sports memorabilia — Collectable offers a unique experience that welcomes both true fans and hobbyists alike. Specializing in one type of offering also allows the platform to devote more resources to sourcing, verifying, and storing valuable memorabilia.

Collectable Dashboard
Source: Collectable Dashboard

Invest With as Little as $10

Similar to other platforms offering fractional ownership, Collectable requires a low minimum deposit of only $10 to begin investing. 

Open to Non-Accredited Investors

While you will need to complete the “Know Your Customer” process to verify your account and begin buying and selling shares, you do not need to be an accredited investor to use Collectable. 

Live Trading 

Live trading on Collectable’s secondary market follows the New York Stock Exchange trading hours and holiday schedule: Monday to Friday, 9:00 AM ET to 4:00 PM ET. 

Collectable Discover
Source: Collectable

Secondary Market

If you miss out on the IPO for a coveted piece of sports history or lack the liquidity to invest immediately, Collectable offers a secondary market for shares that follows a similar 

Mobile Apps

As a mobile-first platform, Collectable has excellent trading infrastructure for those who prefer to manage their investments via smartphone. 

Collectable on the Apple App Store
Source: Apple App Store; Collectable

Collectable Fees 

All fees associated with an asset IPO are incorporated into the initial offering price, including Collectable’s sourcing fee, which can amount to up to 10% of the value of the asset. The platform distributes this fee across cash and equity in the IPO, and investors can review the specifics of the deal structure in each offering’s circular. 

Trades on the secondary market incur a fee of 1% of the total value of the transaction. Collectable states that these fees go to covering the cost of partnering with technology firms needed to ensure the security and integrity of investors’ trading activity.


Collectable Security 

Collectable takes both asset and cyber security seriously, ensuring that both the valuable memorabilia underpinning an investment and subscribers’ personal data remain under lock and key.

While the platform doesn’t go into detail about the specifics of its storage techniques, Collectable has indicated that it secures assets in bank-caliber vaults. Assets are also fully insured in the event of an “impairment,” such as theft or damage. All trading activity on the secondary market takes place on servers owned by Collectable’s FINRA- and SIPC-registered broker-dealer partners.

Collectable also aims to ensure that the platform and investors are aligned by participating in all IPOs. As shareholders in each and every asset, the logic goes, Collectable has a powerful incentive to manage those assets to their fullest potential.

Collectable indicates that it holds itself to FINRA-level standards when it comes to data privacy and security. The platform does not store sensitive information, such as bank account numbers or SSNs, on its servers. Instead, Collectable has partnered with Plaid, the same data transfer service used by American Express and Venmo, to connect with investors’ banks and credit cards. 

Collectable Screenshot
Source: Collectable

Collectable Customer Service 

Collectable users can reach out for help with technical issues via SMS and email, and the platform promises a response within 24 hours. Many users report faster response times, however, sometimes as quick as 45 minutes. The company also receives high marks for providing thorough, personalized replies to inquiries.


Collectable Ease of Use

Collectable’s web and mobile apps (iOS and Android) have a clean and intuitive interface. All portals are built for beginners or novice investors.  

The Collectable apps score poorly on both the Apple App Store and Google Play Store. Collectable has a 3.9 rating out of 5.0 for Android users, whereas it has a 2.3 rating out of 5.0 for iOS users. While the app doesn’t have a ton of ratings and reviews, it does serve as an indication of what users think of the service.

Collectable is not accredited by the Better Business Bureau, and it has poor Trustpilot ratings. One Trustpilot review states that Collectable is full of insider trading.


Collectable Pros Explained

  • Allows you to invest in important pieces of sports history
  • All items offered for sale are verified as authentic by Collectable’s team of independent experts
  • Offers comprehensive data and analytics to help you understand Collectable’s valuations
  • Open to non-accredited investors
  • The collectibles market has exceeded the S&P 500 since its founding
  • Trade via mobile or web app
  • Extensive customer support, including how-to guides, technical FAQs, and email contact forms

Collectable Cons Explained

  • Higher trading and sourcing fees than other platforms
  • A new platform with a short track record
  • Money invested in an asset stays locked until the asset sells or you find a buyer for your shares
  • Minimal onboarding materials for novices
  • Sports collectibles can be a high-risk investment
  • No protection for investors in the case of fraud or depreciation
  • Limits on the amount of money non-accredited investors can invest
Collectable Listings
Source: Collectable

Collectable Alternatives

Ready to dive into fractional shares but not sure if sports-centric Collectable is the best fit for you? Have a look at these alternative platforms:

Collectable vs. Rally Rd. 

Founded in 2016, Rally Rd. operates on the same fractional investment model as Collectable, but with a more diverse range of assets. Founders Christopher Bruno and Rob Petrozzo initially focused on classic cars and premium sports vehicles but have since diversified their offerings to include sports cards and memorabilia, as well as watches and rare books.

Rally Rd. does not require a minimum deposit to open an account and may pay dividends for some shares, depending on the type of securities issued. While Rally Rd. does allow traders to buy and sell shares on a secondary market, it limits live trading to a single, monthly window of live trading. 

When Rally Rd. receives a tender offer for an asset, it may opt to accept regardless of shareholder preferences.

Collectable vs. Dibbs 

Blockchain-based Dibbs differs from Collectable and Rally in that it allows the owners of trading cards, comics, and other collectibles to monetize their own assets by submitting them for verification and storage with Dibbs. Once added to a user’s “vault,” the asset owner can then offer fractional shares for sale across multiple blockchains, with complete control over share quantity and pricing. 

Dibbs charges a commission on each sale of shares, as well as a consignment fee if the owner accepts a tender offer for the underlying asset.

As a service that operates on the blockchain, Dibbs enjoys greater flexibility than either Rally Rd. or Collectable, both of which function as “walled gardens,” limiting investors to a single platform. On the other hand, Dibbs does not partner with FINRA- or SIPC-regulated broker-dealers and may offer fewer investor protections as a result.

CollectableRally
Our Rating

3.1

3.8

3.7

Account Minimum$0 to open account, $10 to trade$0 to open account; From $1 to trade (varies by asset)$0 to open account
FeesTrading fees: 1% based on the trade value, Sourcing fee: Up to 10% based on the value of the asset, and IPO fee: varies$0 trading fees$0 trading fees
PromotionNoneNoneNone
HighlightInvest in fractional shares of sports memorabiliaOffers a number of collectibles to diversify user’s portfoliosCollectible-backed NFTs
Best ForNon-accredited collectible investorsInvestor looking for zero commission collectible tradingNFT investor looking to get exposure to collectibles

Who Is Collectable Best For?

If you’re an experienced retail investor with a solid understanding of market analytics and a passion for sports, Collectable may be the right solution for you. 

Novices to online investing or those unfamiliar with the world of sports memorabilia, however, might be better served by other investment opportunities. Sports collectibles can be high-risk investment opportunities, and generating a profit requires in-depth knowledge and ample risk tolerance.


Notable Collectable Updates and News

  • On June 2, 2022, Collectable announced that Jay Clayton, the former Chair of the U.S. Securities and Exchange Commission (‘SEC’), joined the company as a Strategic Advisor on regulatory, markets, and governance matters.
  • In May 2022, Collectable offered shares of Wilt Chamberlain’s home jersey and uniform from his 1959-60 rookie season for $10 a share.

Collectable FAQs

We’ve found some of the most frequently asked questions with regard to Collectable; here are our answers.

Is Collectable Safe and Legit? 

Yes. All of Collectable’s investments are registered with the SEC, reviewed by a FINRA-registered broker-dealer, and subject to SEC regulations.

Are There Any Limits on the Amount of Shares I Can Purchase Through Collectable? 

Collectable limits the amount of shares non-accredited investors can purchase by value. Non-accredited investors can invest up to 10% of their net worth or annual income, but no more.

Are Collectable Offerings SEC Qualified? 

Yes. Collectable’s offerings are filed and qualified with the SEC under either Regulation A and Regulation D.

Is Collectable a Broker? 

No, Collectable is not a broker. Instead, the platform partners with DriveWealth and Templum Markets, FINRA-registered broker dealers, to administer securities transactions.

Is Collectable Available Outside the United States? 

No. Due to regulatory and compliance obligations, Collectable is only available in the U.S. at this time. 

How Does Collectable Make Money? 

Collectable receives a 10% sourcing fee on all successfully funded and completed IPOs. The platform also charges a 1% trading fee on all transactions in the secondary market.

Do I Need to Report Taxes on My Collectable Profits? 

Yes, you will need to report and pay taxes on any income from Collectable, whether capital gains or dividends.

Are Items on Collectable Authenticated? 

Collectable authenticates all assets offered for sale on the platform using reputable third-party grading and authentication companies. 

How Do I Make Money on Collectable? 

Investors make money on Collectable either through the sale of an asset itself or through the sale of shares on the secondary market.

In the case of a bona fide tender offer for a piece of memorabilia, Collectable will survey shareholders and, in the case of consensus, accept on their behalf. Shareholders then receive a portion of the profits from the sale on a pro-rata basis.

In the case of the secondary market, investors profit from the sale of shares directly. Depending on the amount of time an investor chooses to hold them, shares can dramatically increase in value following an IPO.

In A Nutshell

  • Account Minimum: $0 to pen an account; $10 to start trading
  • Fees: Trading fees: 1% based on the trade value, Sourcing fee: Up to 10% based on the value of the asset, and IPO fee: varies
  • Promotion: None
Collectable

on Collectable’s website


Final Thoughts

If you’ve always dreamed of owning a piece of sports history or just really want to combine your love of investing with a passion for sports, Collectable is for you. While these investments won’t yield quick profits, they’re a fun way to round out a diverse portfolio.

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