Who would spend $140,000 on a piece of chocolate?
Evidently, someone who’s really hungry — not for food, but for profits.
Today, I’ll explain what’s going on here.
Then I’ll reveal how you, too, can satisfy your craving for money-making opportunities.
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This Chocolate Isn’t Edible
To understand the situation here, first you need to meet this man:
This is Jason Williams, the former professional basketball player.
Williams was renowned for his flashy, street-ball-style passing and ball-handling. He’d pull off no-look passes, behind-the-back bullets, and passes using his elbows instead of his hands.
Williams became one of the most electrifying players of his era. And in the process, he earned the nickname “White Chocolate.”
Williams’ jerseys were repeatedly top sellers. During his rookie year with Sacramento in 1998, his No. 55 was among the top-five sold NBA jerseys.
And nearly thirty years later, someone just paid a small fortune for one of them…
Jersey for Sale!
Last week, a private buyer purchased a Williams game-worn Sacramento Kings jersey from the 1998-99 NBA season. The price? $140,000.
Williams wore that exact jersey for the cover of the August 1999 issue of Slam, a popular basketball magazine. Slam Media’s president David Schnur told ESPN that this issue was “one of the most revered covers in the history of the magazine.”
The jersey was worn back when NBA players routinely wore the same jersey night after night (washed in between, of course). Noted Barry Meisel, president of authentication-company MeiGray, “This was still the era where players had one or two jerseys a season — and a rookie jersey is about as good as it gets in the game-worn hobby.”
The buyer was represented by Curio Advisors, an advisory firm for fine arts & collectibles. Its clients range from individual collectors to financial funds and even nation-states — all of whom are starting to dive into sports-memorabilia investing.
We can’t blame them. After all, the rich have been investing here for years…
The Rich Invest Differently
Most folks invest mainly in stocks, bonds, and ETFs. If they’re adventurous, maybe they’ll add some bitcoin.
But the rich invest differently. According to the Motley Fool, the rich mainly invest in alternative assets — for example, private startups and private real-estate deals like we focus on here at Crowdability, along with collectibles like art, watches, and sports memorabilia.
As of 2020, the wealthy held about half of their assets in these alternative investments, and less than a third in stocks. The remainder was in bonds and cash.
Why would they do such a thing?
Three Reasons the Wealthy Invest in Alternatives
For starters, investing in alternative assets provides diversification. So even if the stock market crashes, these assets can keep growing in value.
Furthermore, they offer a hedge against inflation. In inflationary times like we’re in today, that’s a valuable trick.
But perhaps most important of all, they can provide market-beating returns.
For example, over the last twenty-five years, startups have delivered annual returns of fifty-eight percent. That’s about ten-times higher than the historical average for stocks.
Meanwhile, according to the Sports Memorabilia Index, the average annual return from sports memorabilia from 2008 to 2021 was fourteen-and-a-half percent. That beats the S&P 500 by a huge margin.
And according to the Motley Fool, over the last decade or so:
- Wine has shot up 127% in value.
- Classic cars have gone up 193%.
- And rare whisky is up an astonishing 478%.
How can you get access to these types of investments?
Your Turn to Invest — Starting at Just $100
Recently, a new type of platform has emerged to give ordinary people the ability to invest small amounts of money into everything from fine wine to fine art.
Essentially, just like you can buy a $100 stake in a startup, now you can buy $100 worth of a vintage Bordeaux, a classic piece of art, or sports memorabilia like a Jason Williams jersey.
One of the leading such platforms is Rally. Founded in 2016, Rally enables anyone to purchase fractional shares of sports memorabilia, comic books, trading cards, and even classic cars.
If White Chocolate’s recent jersey sale piqued your interest, check out Rally for other game-worn apparel. Right now, for example, you can purchase shares of a 1960 Mickey Mantle game-worn signed jersey. Or a signed pair of 1988 Nike Air sneakers worn by NBA legend Michael Jordan.
You can invest whatever you’re comfortable with — $100 here, $100 there — and when the item sells, you receive your pro rata share of profits.
Before You Dive In
Keep in mind: all the typical caveats about investing apply here.
For example, don’t invest more than you can afford to lose; invest in what you know; and be sure to dip your toe into the water before diving in.
Furthermore, many alternative investments are illiquid. That means they can’t necessarily be converted into cash at the snap of your fingers.
So don’t invest your rent or grocery money into these offerings.
But if you’re looking to invest like the rich — and you’re craving a piece of chocolate with plenty of profit potential — then platforms like Rally are a great place to start.
Happy investing.
Best Regards,
Brian Eller
Editor
Crowdability.com
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