Introduction

The autograph hobby has become a billion dollar industry and there are collectors worldwide.  With the popularity of the hobby growing demand begins to outweigh supply.  Many autographs have had considerable price increases over recent years, better than other investments such as equities and rare metal commodities.  Hence, there is an opportunity to invest in something that is not only unique but also fun.

What to Invest

Ebay is flooded with autograph postings.  Many collectors simply buy autographs of favorite players or teams, this is fine but unless the player or team are top tier they're not always a wise investment. 

Examples of top tier teams:

• Baseball: Yankees, Red Sox, Cardinals
• Basketball: Lakers, Celtics, Knicks, Pistons
• Football: Steelers, Raiders, Cowboys, Packers
• Hockey: Red Wings, Canadiens, Maple Leafs
• Soccer: Manchester United, Liverpool, Arsenal

Individuals associated with these teams, particulary with autographs related to these teams have heightened value due to a heightened fan base.  Many collectors try to collect autographs of every player from a certain team, thus more fans more demand.

Supply and demand are the single most important factors in investing and this is true with autographs.  The tougher the autograph, the higher the value, and the better investment.  This also applies to famous celebrities that died at a young age, the smaller the window of opportunity to gain an individuals autograph, the higher the value.

Examples of tough or rare signatures:

• Film: James Dean, Marilyn Monroe, Marlin Brando
• Baseball: Lou Gehrig, Roger Maris, Thurman Munson
• Football: Jim Thorpe, Al Davis, Knut Rockne
• Hockey: Georges Vezina, Eddie Shore, Jacques Plante, Terry Sawchuk
• Basketball: Bill Russell, Pete Maravich
• Golf: Bobby Jones

Rarity is only one factor in an autograph's value, who the autograph is of is just as important.  The bigger the name the bigger the value.  Just as importantly is what the autograph is on.  Official balls, photographs, magazines, jerseys, and official helmets are a few items that have great value retention.  There are celebrities whose autographs are not uncommon but still possess great value retention and potential.  But these celebrities are considered bigger than their sport or industry.  They include:

• Baseball: Joe DiMaggio, Mickey Mantle, Ted Williams, Cal Ripken Jr.
• Basketball: Larry Bird, Magic Johnson, Michael Jordan
• Football: Joe Montana, Joe Namath, John Elway, Dan Marino
• Hockey: Wayne Gretzky, Mario Lemieux
• Golf: Tiger Woods, Jack Nicklaus, Arnold Palmer

Authenticity

Much focus has been brought upon the authenticity of autographs.  Make certain you are always dealing with a respectable dealer.  Be sure that they have been in business and can provide references or memberships to industry organizations such as the UACC, IADA, or Manuscript Society.  You should also make sure they offer a money back guarantee.  If they are unwilling to do so walk away.

Third-party authentication services have also gained popularity and do take much of the risk out of collecting, but there are only a few reliable sources for authentication.  You should stick to PSA/DNA and James Spence Authentication,  both are industry leaders and James did PSA's authentication at one time.  These two are the most notable and recognized experts and their backing will maximize the value of the autograph and minimize the risk of counterfits.

Autograph sources such as Upper Deck (UDA) and Steiner Sports provide the least amount of risk as they personally obtain the autograph.  They also have exclusive rights to resell autographs of individuals under contract.  UDA has contracted icons such as Michael Jordan and Tiger Woods.  Steiner has contracted sports celebrities such as Mark McGwire.  The negative of using these companies is that they sell at full retail price, so they should only be used as a very long term investment.

Conclusion

Autograph collecting is an escape for many to invest in something they can enjoy.  Autographs are being treated as commodities. But as with any investment there is risk, so have fun with the hobby.