Will Fractionalization Push Batman #1 Even Higher?
Rally Rd. Putting a $1.8mil tag on Batman #1 CGC 8.
November 12, 2022
Rally Rd. is bringing a 1940 Batman #1 CGC 8 to their fractionalized marketplace this month.
I think we all know that alternative assets like comics, trading cards, and NFTs have had a crazy two years. Starting shortly after the pandemic began, alternative asset values skyrocketed. Some of those values have fallen back to earth but many are still valued way above their pricing before covid.
That brings us to this Batman Comic #1 coming soon to Rally Rd.
With Batman #1 being issued in 1940, there aren’t many surviving copies. There are only 291 copies registered on the CGC census. There are six graded 8.0s and only seven comic books rated higher than 8.0.
Since 2002, there have only been 8 public sales of Batman #1 CGC 8s.
To call this rare would be a huge understatement.
I’m very curious to see how the market will react to the $1.8m price tag. The neat thing about this being fractionalized via Rally Rd is that we will be able to watch market sentiments in almost real time.
We will see how fast the IPO sells out, if it sells out. And then once the comic book enters regular trading we’ll see if demand pushes the price higher or lower and how the owners will respond to any potential buyout offers.
On one side I think that the fact that anyone with a rally road account will be able to own an interest in this comic will help push the value up. Since each share is starting at $10, that’s a small price to pay for the casual buyer or to have a conversation starter about owning Batman number one. If that’s how you want to open a conversation.
But on the other side I don’t think the valuation increases we saw during the 2021 frenzy we’re sustainable. November 2022 feels a lot different than August 2021 when it comes to alternative asset investing.
Let’s take a look at some of the recent pricing history of cgc 8 Batman #1s.
In September 2019, a Batman #1 CGC 8 sells for $498k. Let’s call this the pre-covid price.
Then April 2021, a Batman #1 sells for $1,050,000. A year into covid craziness, we pass the $1m mark.
September 2021, a Batman #1 CGC 8.0 sells for $1,440,000 at Goldin Auctions. Just five months after crossing the $1m mark. That’s an appreciation rate of over $2,500 per day!
And now in November 2022, we are looking at $1,800,000. An increase of $360,000 in 14 months. That’s an appreciation rate of about $850 per day. Slower from the 2021 madness, but still very very high.
Will the market bear it?
We will find out soon enough. A lot of people won’t be buying these shares casually, they’ll be buying them to make money. So if they think $1.8m is a good buy price, they must be bullish on these Batman #1s CGC 8s going to $2m soon and bullish on the alternative asset market as as a whole.
Stay Rad 😎