Do Pokémon Cards Beat Bonds When Rates Rise?
Interest rates are climbing again, and that spells trouble for traditional bonds. When rates go up, bond prices drop because new bonds pay higher yields, making older ones less attractive. Investors in bonds often see losses during these periods. But what about Pokémon cards? Could they hold up better or even shine?
Pokémon cards act like alternative investments, driven by collector demand, nostalgia, and limited supply rather than interest rates. Unlike bonds, their value comes from fan excitement, new game releases, and rarity. Recent data shows sealed Pokémon products appreciating by up to 27% on average in 2025, with some sets climbing much higher. Certain booster boxes have delivered 10x returns in just five years, far outpacing the 3 to 7% annual returns from index funds or bonds.[2][3]
Bonds from companies like The Pokémon Company itself offer a glimpse into the comparison. The company holds a BB- credit rating with a stable z-spread of 4.69%, putting its risk in the top 89th percentile of bonds. But its credit spreads are tighter than peers like Crunchyroll at 6.38%, showing lower default risk. Even so, rising rates would pressure these bonds’ prices downward. Pokémon cards sidestep this because their market ignores central bank moves. Demand stays strong from players and collectors, fueled by hits like the Trading Card Game Pocket app and store expansions.[1]
Look at real performance. Some Pokémon cards jumped 346% or 150% in a year, with PSA 10 graded gems targeting 40 to 60% annual ROI heading into 2026. Sealed packs from sets like Crown Zenith or Temporal Forces keep growing due to popular art and characters, not rate cycles.[3][5][6] Videos from investors highlight cards hitting support levels around $50 with low risk and 59% yearly gains, even in cooling markets.[4]
Of course, Pokémon cards bring volatility. Prices spike and dip with trends, and not every pick wins. Singles from booster packs often lose value when opened, with 95% failing to deliver. Strategy matters: focus on sealed products, proven sets, and an 80/20 split between safe holds and growth plays to manage risk.[2][3]
In a rising rate world, bonds face headwinds from falling prices and yields that lag inflation. Pokémon cards, tied to enduring fandom, have consistently outperformed traditional assets over the past decade. Investors eyeing alternatives might find cards offering upside that bonds simply can’t match right now.[1][2]
