A rare Pokémon trading card recently made headlines after selling for a staggering $16.5 million, setting a new world record for the most expensive trading card ever auctioned. The card, a Pikachu Illustrator graded PSA 10, was sold by influencer and WWE star Logan Paul through the auction house Goldin. The buyer, venture capitalist AJ Scaramucci, called this purchase the start of a “planetary treasure hunt” for ultra-rare collectibles.
The Pikachu Illustrator card is especially rare, with only about 40 copies believed to exist worldwide. What makes Paul’s card stand out even more is its perfect PSA 10 grading, reportedly the only one of its kind, which played a huge role in its high value. Originally released in 1998 through a Japanese contest, the card has become a prized item among collectors.
This sale highlights a growing shift in how people view collectibles. Items once seen mainly as sentimental or niche hobby pieces, like trading cards, sports memorabilia, and pop culture artifacts, are now recognized as valuable assets like fine art and jewelry. High-net-worth individuals are increasingly adding these types of items to their investment portfolios, which is driving the need for better insurance coverage tailored to these unique risks.
Experts from Marsh, a global insurance brokerage, point out that the definition of valuable property is expanding. Now, insurance for fine art and collectibles includes trading cards, rare sneakers, handbags, and toys. This shift means standard homeowners’ policies often don’t provide enough coverage for these high-value items. Instead, collectors are turning to specialized insurance designed to protect their investments properly.
Trading cards come with specific risks. They can be fragile and easily damaged by water, humidity, or light, which can drastically reduce their worth. Market prices can also swing wildly, influenced by trends, collector interest, and celebrity endorsements—something that doesn’t affect traditional fine art as much. Authentication and proper documentation are another concern, as many collectibles were kept for fun rather than investment, and records like grading certificates or provenance documents might be missing or incomplete.
Insurance professionals recommend policies that match the unique needs of each collection. For trading cards, this means accounting for their sensitivity to condition and fluctuating market value. Settlements should reflect the current worth of the item, not just its original purchase price or a capped sublimit. Good documentation, like invoices and photos, is essential for making claims.
Logan Paul bought the Pikachu card for $5.3 million in 2021 and sold it for over three times that amount five years later, showing how quickly these assets can grow in value. Experts advise focusing on strong, flexible insurance coverage that adjusts with the market rather than frequent revaluations.
In short, as collectibles take on greater financial significance, it’s important for owners to have insurance that truly fits their needs. Working with brokers who understand this specialized market can make all the difference in protecting these unique and valuable possessions.