When some rare first-edition Pokemon trading cards went on sale three years ago, Adam OB次元官网网址橞rien was hit with a wave of nostalgia. For the now 32-year-old, it was an irresistible offer that had the potential for value in the long run.

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

B次元官网网址淥ne could argue the Pokemon cards and trading cards are a better place to store your value than something like the U.S. dollar, just given the scarce properties of the cards,B次元官网网址� said the Edmonton resident in an interview.

Alternative investments B次元官网网址� assets other than stocks and bonds B次元官网网址� may bring to mind hedge funds or real estate. But for millennials and generation Z, indulging in niche collectibles such as limited-edition shoes, handbags or trading cards is another way non-traditional investing has taken shape.

The popularity of trading cards grew during the pandemic when people were looking to invest time and money in hobbies, said Patrick OB次元官网网址橬eill, senior vice-president of sales and business development at NFP Canada. That interest drove up prices, and people who owned cards and memorabilia saw the value of their possessions surge.

B次元官网网址淚t was going up a lot faster than inflation or investments in the stock market B次元官网网址� very comparable to art, sculptures, fine wine or expensive jewelry,B次元官网网址� OB次元官网网址橬eill recollected.

He said the shift in price and value attracted younger generations to invest in memorabilia.

B次元官网网址淔or the young people, itB次元官网网址檚 teaching them life lessons at a very early age B次元官网网址� even investment,B次元官网网址� he said.

OB次元官网网址橬eill, who is in his 60s, has been collecting hockey and game cards for five decades. For him, it was about nostalgia when he first stepped into the space.

B次元官网网址淣ow, youB次元官网网址檝e got people that have that interest (of nostalgia) but also the interest of being an investor,B次元官网网址� he said.

OB次元官网网址橬eill said his cards are now worth about $50,000.

Earlier this year, a case of old unopened hockey cards likely featuring Wayne Gretzky in his rookie season fetched more than $3.7 million after it was uncovered in a Regina home.

The winning bidder bought the case of 16 sealed boxes of O-Pee-CheeB次元官网网址檚 1979 hockey card collection, amounting to more than 10,000 cards, Heritage Auctions said.

The auctioneer says the case could include 25 or more highly coveted Wayne Gretzky rookie cards.

But placing value on niche alternative investments such as wine bottles, designer bags or sporting cards can be difficult.

OB次元官网网址橬eill said itB次元官网网址檚 hard to value sporting or trading cards unless they are professionally graded, which means assessing physical conditions such as fades, creases or residue.

To preserve the value of his rare edition, high-value Pokemon cards, OB次元官网网址橞rien has stored them safely in a locker.

B次元官网网址淭heyB次元官网网址檙e stored in a fireproof vault, definitely not in my house,B次元官网网址� he said. B次元官网网址淭heyB次元官网网址檙e stored in the same way that youB次元官网网址檇 store bricks of gold.B次元官网网址�

For other items, factors like rarity, circumstance and sentiments play a strong role in determining the value. And the amount can fluctuate widely.

B次元官网网址淭he valuation is literally what the next person will pay for it,B次元官网网址� said Scott Blair, chief investment officer at CWB Wealth. B次元官网网址淚tB次元官网网址檚 not a liquid market.B次元官网网址�

While some alternative investments can return a good value, it is also a risky bet, Blair said.

ItB次元官网网址檚 hard to determine the value of niche alternative assets similar to a mainstream investment, such as corporate shares, because there are no quarterly appraisals, cash flows or earnings to quantify the asset, he said.

B次元官网网址淧okemon cards, sports cards, memorabilia B次元官网网址� a lot of it is tied to emotions,B次元官网网址� Blair said.

B次元官网网址淚f in 20 years nobody really cares about Pokemon cards, then you might have spent hundreds of thousands of dollars only to find out that itB次元官网网址檚 not worth anything,B次元官网网址� he said.

B次元官网网址淭here is a huge risk that as you go through time, it (could) just fall out of favour.B次元官网网址�

But valuations can be a little more calculative if done right.

Music royalties, for example, prove a good alternative investment depending on streaming patterns. It might also be worth considering the age of the musician, said James Burron, co-founder of the Canadian Association of Alternative Strategies and Assets.

B次元官网网址淕ordon Lightfoot just passed on B次元官网网址� then, everyone was playing Gordon Lightfoot (songs),B次元官网网址� Burron said. B次元官网网址淭hat would be a kick in the royalties.B次元官网网址�

Burron, who owns vintage Wolverine cards, says the key to investing in niche alternative assets is to not put all eggs in one basket, instead diversify across markets.

B次元官网网址淚f you just have alternatives, then you actually have a more risky portfolio than if you add some of stocks,B次元官网网址� he said.

Stocks and bonds are also not correlated to the alternative assets market, Burron said. That means economic elements such as inflation wonB次元官网网址檛 affect alternative investments the same way as mainstream investments.

For OB次元官网网址橞rien, buying the Pokemon cards has been a learning experience.

Three years after the purchase, his collection value has dropped 20 per cent. OB次元官网网址橞rien said he has moved away from memorabilia.

B次元官网网址淚 donB次元官网网址檛 see that long-term value sustaining,B次元官网网址� he said of his collection.