Summer is well underway and I’ve spent the better part of this month fixing little things around the house. Next on the list is to give our deck a fresh coat of paint. I saved the old paint can so that I can get the store to match the same colour. I remember paying about $27 for one standard can of paint just over 5 years ago, but I was shocked to find out that a new, fresh can of paint is now almost $50 after taxes… for the exact same brand, same colour and from the same store. Yes, almost double the cost! Good old inflation rearing it’s ugly head again. Keep this in mind as we discuss comics…

In part one of market watch, I revisited 3 concerns I had…

1. 2016 holiday sales. Very similar to 2015 holiday sales… 2016 was relatively flat despite a slight uptick in the GDP.

2. US policies. Comics are an American product and the biggest pool of buyers are in the US. I’ve got a bit of money tied up in comics so when US policy makers talk, I listen.

3. Movie fatigue. I’ve decide my concern here is unwarranted. Most people are sheep, including myself, and need mindless distractions. If the simple premise of robots with guns has propelled the Transformers franchise to move forward with a loosely planned schedule of about 14 films, there is no reason why even bad comic book movies couldn’t also do the same. I’ve had to remind myself that art and commerce are two separate things. While it is possible for whole genres to fall out of favour with the movie going audience, the interconnected storylines and modern special effects sets the comic book movies apart from westerns, martial arts or rom-coms. Also, it’s an international market these days, so movies that are easy to understand overseas and are entertaining, like the Transformers franchise, will probably continue to be profitable.

Amazing Fantasy #15 continues to “amaze”. I remember when 4.0’s were selling for under $5k back in 2009/2010. Seven years later, the last recorded sale jumped to $35,000 USD and the current ask online is even higher.

So, how have these factors influenced the comic market… if at all? Let me get to the punch and say that not much has changed from this time last year. You can stop reading right here and save some time… or we can delve a little deeper. As I mentioned in part 1, it’s all a matter of perspective…

I’ve always felt that the Fantastic Four #48 was undervalued relative to what was happening with #45 and #52. In 2016, 9.0 copies suddenly surged from just above $1000 to just north of $2000.

Speaking of Fantastic Four #52, with several record breaking 9.8 sales on record, the lesser grades were poised to also outperform. However, the market suddenly stalled as we entered the US election cycle. With the Black Panther movie just around the corner, where its black star is about to be presented as a King, as opposed to the usual African American stereotype, perhaps conscientious collectors will recognize the importance of FF#52 and get the engine moving again. The 8.0 in the above chart has leveled out, but let’s see where it goes from here as we close in on February 8, 2018.

One of the reasons I like doing these writeups is to try and gain a bird’s eye view of the market. It’s my way of trying to determine what is normal in our area of interest. This is important because it helps to establish a benchmark, which we can use to gauge the investment viability of our books. It facilitates better decision making during ongoing changes in the greater economic, social and political spheres of influence. For example, why did the market suddenly surge in 2012? Why did it stall in 2016? The CGC market is relatively new and with so many external factors to consider… I’m not actually convinced that a “norm” can be established, but we share our knowledge and thoughts so that we can continue to move forward. Let’s break it down…

I hate looking at the above chart of Hulk #1, 4.0. Similar to my shares of Apple, I sold this book just before it took off. And sometimes, late at night when I’m looking at myself in the mirror, I can see a single tear drop rolling down my cheek. My personal pain aside, Hulk #1 appears to have leveled out finally… for now.

Silver Age – It should come as no surprise that Silver Age books have been very stable. Not all the books are rising as fast as they have been during recent years, but they are rising. You’ll see the odd decline once in a while, depending on the grade, probably due to an off auction, but overall “key” books from this era continue to perform well and are worth hanging on to.

Tales of Suspense #39 is steady as she goes, 4.0’s having doubled since I sold my 3 copies back in 2012. It hasn’t been crazy hot like the Amazing Fantasy #15 or Hulk #1, but I think the people who purchased my books should be very happy.

I recently sold my copy of Hulk #181, 9.2 due to a combination of factors, which included a direct cash offer, currently at the highest valuation this grade seen, a favourable US to CAD exchange rate, US policies that will ultimately work against the average consumer and the end of Wolverine at the movies.

Books like Hulk #181 are the only kinds that consistently sell well. At the time of this writing, the last 9.2 on record fetched a whooping $4500.

Bronze Age – “Key” books from this category are also doing well and may eventually become the new Silver Age of tomorrow as I see more and more investment buyers interested in this particular era. These buyers tend to be slightly younger than I am so it makes sense that they feel more connected to this particular age of books. The Bronze Age quadfecta have yet to reach their pre-2008 highs at the top grade, and probably never will until the effects of inflation kicks in over time, which to me suggests that books like Hulk #181 and X-Men #94 should never have been flying high at $25,000 to $30,000 to begin with. Amazing Spider-Man #129 may be the exception here as it closes in on its previous high with several recent sales in the $10k range… So, if you’re that one guy who paid $14k back in 2008, you may be on the verge of breaking even. The only problem is that these books are not rare and tend to be plentiful in high grade. The census continues to erode value as more and more high grade copies are made available, especially when they can be manufactured by pressing lesser books. Eventually, press-able books will dissipate but it’s hard to say when or how many more books are left to increase the census numbers. Still, all this is relative to demand so the values should hold as long as the interest is there.

I sold all 3 of my Giant-Sized X-Men #1, 9.8’s this past year. For the same reasons I’ve been selling my Hulk #181’s.

As you can see, the average price for Giant-Size X-Men #1, 9.8’s have been bouncing around $5k to $6k. However, recent higher results on Comic Link have helped to achieve a premium for my particular books.

Recently, this sharp looking Amazing Spider-Man #129, 9.8 sold for $13,800 on Comic Link, which is within spitting distance of all time high $14,340 back in 2008. This specific book has benefited from the Punisher’s TV success, “white” pages and the “Mark Jewelers” insert. I’m sure a bit of luck was also a factor, but for this book to recoup its losses from the housing crisis is kind of a big deal, and worth watching where it goes from here.

Modern Age – As you can imagine, the Modern Age tends to be the most volatile, but also the most fertile in terms of characters or undiscovered books. Similar to penny stocks, they have greater potential for return (by scale). But for now, almost every “key” book I looked up is off its peak. But, there is good news for people holding slabs like New Mutants #98 or Batman Adventures #12, which is that there are more movies coming down the pipe. The trick here is to buy only high grades… 9.8’s, 9.6’s… or bust, and never buy these at their highest point. For example, Amazing Spider-Man #300’s have recently shot up in value. If you’re one of the 889 people who are holding 9.8’s, or one of the 2527 people holding 9.6’s or 2749 people holding 9.4’s, congratulations. But if you’re not, and are tempted to make a purchase now due to the Venom hype, know that you’ll be paying the highest price this book has ever been. Yes, the book can and probably will climb even higher but if you’ve never been interested enough to make a purchase at its pre-hype price, there’s even less reason to be interested in it now. I’m not a fortune teller, but I think the play here is to wait it out, and revisit your buying premise once the dust settles and it’s “true” value is revealed.

Although there is a second Deadpool movie coming next year, I’m still concerned about how the New Mutants #98 will perform. I’m highly leveraged on 9.8’s and 9.6’s, and lack of influence from second run movies like Rogue One and the recent Guardian of the Galaxy, Vol. 2 on their respective books makes me nervous.

New Mutants #98, 9.8 is considered to be the modern bellweather. Although this book has dipped since Deadpool’s inaugural movie, currently, it appears to be attempting a comeback.

As I mentioned in part 1, Amazing Spider-Man #300’s have been white hot. With multiple 9.8 sales in the $2500 range, and even more north of $2000, the premium price for this book is hard to ignore. But will this book continue to rise… or recede once the movie has come and gone, and all the speculators have pulled out?

So in general, the good news is that “key” books are doing well. “Keys” that appeared to go flat are showing signs of improvement since my last report back in 2016, while the popular titles are doing exceptionally well, reaching record prices with each new sale. This has prompted me to start selling my inventory of Giant-Size X-Men #1’s, Hulk #181’s and Amazing Spider-Man #129’s and I’m happy to report that I have been receiving top dollar for these books. But the current high valuation is not the only reason I’ve tapped into my vault. Most of these books were purchased a decade ago during the housing crisis when I was more active with buying. So, the question I’ve had to ask myself is, do I really believe that these books will double, triple or quadruple again in the next 5-10 years? Perhaps some books will, but the overarching answer for me was no. I just can’t see Amazing Spider-Man #129, 9.8’s selling for $20+k anytime soon. Not with the current US political uncertainty, not with the overall market slowdown. But there’s more… Canadians also have one eye on the exchange rate and the recent conversion has been very favourable with the US dollar recently pegged at the second highest point against the Canadian dollar since 2004. As well, I generally don’t like to hold books above $2k (depending on the book). But why sell Giant-Size X-Men #1’s, Hulk #181’s and Amazing Spider-Man #129’s specifically…?

Captain America #360 features the first full appearance of Crossbones. A B-tier villain in a book published in 1989. Once plentiful in the dollar bins, these were picked out, slabbed and reached a high of $350 for 9.8’s back in 2015. Today, nobody I know wants this book unless the price is low enough for them to flip it online.

New Crossbones rumours has motivated someone to pay $340 for Captain America #360, 9.8 back in March, which is a shame… but at least it’s a 9.8. If you auction off anything less you risk getting $20 or $30 bucks. Just look at those low ending 9.6’s. After seller fees, the money barely covers the cost of grading. I hope the sellers paid $1 for the book itself.

The recent strength of the USD against our CAD has been the second highest since April of 2004. This is just one of the reason’s I stopped buying and focused my efforts on selling.

The bad news is that it’s ONLY the “keys” that have been moving, and so I’ve had no choice but to tap into my reserve. Perhaps the market read my write up about choosing “quality-keys” over “junk-keys”… because never has this been more true than it is now. “Semi-keys” remain flat and all other “junk-keys” or “non-keys” have been tough to sell unless you’re willing to offer a hefty discount. The problem of course is that there are less collectors, more speculators and in the case of newer books… waaaay too many available. Go to any show and practically every table with have an X-Factor #24 for sale. My sense is that buyers are being more selective about their purchases, which is a good thing. Buyers are not picking up just any old book, simply because it’s graded or because it’s cheap, nor should they. Also, low ending auctions and desperate sellers are skewing the numbers and bringing down some averages. When you see auctions end in the $20 to $30 range for books that used to sell for over $200 at one point, one could argue that it’s better to hold until the book’s value goes up again, or at least until it’s able to cover the cost of grading… But, the flip side to this equation is… TIME. Who knows when, if or by how much? In some cases, it may be better to cut your losses and roll that money into cans of paint instead. Certified books can’t be read and there are plenty of nice lower grades or reprints available for collecting. Thus, CGC books are for investing so if your particular book isn’t able to outperform plain old deck paint, especially during the 2012 to 2015 run when the market was surging, you may want to reconsider why you’re holding something that is ultimately eroding your wealth.

Of interest, Batman #1 from the New 52’s, 9.8 is actually doing better than I though it would after the launch of Rebirth. In fact, the graph above appears to be curving upwards. However, it’s still way off its peak and I know several people who would like to be rid of this book.

After the surprise performance of Batman #1 from the New 52’s, I know that many people loaded up on Batman #1, Rebirth. It’s only been about 10 months since Rebirth has launched but if you want to spec on this book, it might be better to buy slab copies instead considering how cheap they are, as opposed to submitting your own book and hoping for a 9.8.

Rogue One did nothing for Star War #1, 9.8. Many eBay sellers struggle to pull their money out of this book.

Star Wars #1, 9.8 is the poster child for how badly speculation can turn out for emotional decision making. All eyes are on the Last Jedi, set for later this year, to try and makes things right again.

Not to pick on Star Wars #1… I’m also looking at you Hulk #271, 9.8. Guardians of the Galaxy remains my favourite Marvel movie and Vol. 2 did not disappoint. Hulk #271 reached a fever pitch with an average selling price of $700 to $800 (one at $1250) during 2014. The current average price is at about $450 with little improvement from success of the second movie.

Okay… so, that’s my take on the current state of the market. Feel free to agree or disagree and share your thoughts or experiences. In the spirit of transparency, I also want to mention that I hold several copies of books mentioned in this write-up, with the exception of Amazing Fantasy #15, New 52 Batman #1, Hulk #1, Hulk #271, Star Wars #1 and Tales of Suspense #39. My comments are based on a bird’s eye view and nothing I’ve said is meant to be absolute, but rather, a general observation of the greater market. Finally, I am not seriously suggesting that people consider investing in cans of paint. It is a frame of reference that I’ve used to offer perspective.

Wonder Woman has been a huge success and no doubt, Kevin Fergie is taking notes for the up coming Captain Marvel movie. I think Ms. Marvel #1, 9.8 peaked to early with a $2200 sale price back in 2014 (the $2650 sale that I noted has mysteriously been removed… fraudulent?). After a steep drop, this book has risen back up to about $1400. Can or will it hit $2k by the time the trailers hit? I’ve got my copy and I’m ready to take advantage if it does.

Coming up… Maybe you noticed but I deliberately avoided talking about X-Men #94 because I’m planning on a separate write-up for this book. But before I do that, we’ll take a break from investing and go visit the indy pond and check out some artists on YouTube 😁

Salute!