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Comic relief

Did you grow up reading comic books, only to be told they would rot your brain by your parents? Rest assured, they were wrong. Top-tier comics from the 1940s and 1950s have sold at auction houses in recent times for hundreds of thousands of US dollars.

After the second world war, many children purchased Silver Age comics for about 10 to 15 US cents. Today, some of those same comics sell for astronomical sums.

Stephen Fishler and Vincent Zurzolo of Metropolis Collectibles in New York are bullish on comics as an investment, art medium and just plain fun.

According to Fishler, a 30-year comics business veteran and founder of Metropolis Collectibles, the Silver Age pertains to books published between the 1950s and '70s. In the mid-'50s, many '30s and '40s action heroes were reintroduced, especially characters such as the Flash and Green Lantern.

In the '60s, Marvel Comics introduced new characters such as Spider Man, the X-Men and The Hulk. A common Silver Age theme was the introduction of new characters. Although many Marvel books are not rare per se, they are rare in the best - nearly mint - condition, Fishler says.

Jamie Graham, president of Graham Cracker Comics, one of Chicago's largest dealers, also believes comics of the right time period and best condition are a sound investment.

Hong Kong also has its fair share of comic collectors who are willing to shell out a packet to buy a rare example.

Jerome Kwan, proprietor of Clark's Comics in Causeway Bay, concurs that comics are a good long-term investment, though he acknowledges that for Hongkongers 'the increase of value is not as good as the property market because the number of collectors is low'.

Comics are worth considering as a serious investment option because individual stock portfolios are subject to the whims of fund managers and markets.

'There's nothing like holding a hard asset such as a comic in your hands; they are less prone to market swings. Most people aren't confident these days that their money is secure in stocks, bonds or cash,' Fishler says.

Zurzolo says comics have performed favourably compared with blue chip stocks. 'Certainly at the high end, comics are extremely liquid assets and the commissions that most dealers charge aren't as high as [stock] brokers' charges.'

As most people aren't making much on their bank deposits, he may have a point.

To those contemplating investing in comics, Kwan suggests they pay attention to liquidity and the humidity of Hong Kong's climate. 'Comics are different from the stock market. They cannot be bought and sold in a short period of time. Furthermore, Hong Kong's humidity is comparatively high, so collectors are very concerned about those comics that are in mint condition. Mint condition comics have special investment value, but these are rare in the market,' he says.

According to Achung, who prefers to use one name, owner of Metro Comics in Causeway Bay, the most popular US comic titles locally are Batman, Spider Man, Green Lantern, New Avengers and Captain America 'because they have a big story'.

A comic's value is often a function of how close its condition is to when it just rolled off the printing presses. Blemishes, such as creases, tears and wrinkles, lower a book's value, says Zurzolo, Metropolis New York's vice-president and a 22-year veteran of the trade. Factors such as rarity and desirability also impinge on price. Moreover, popular connection with a character also counts. People adore timeless DC Comics characters such as Batman, Superman and Wonder Woman, and Marvel favourites such as The Hulk, Spider Man and Captain America.

'Most collectors should consider if a comic book is rare, contains an important story and if it comes from an important period,' Achung says. He believes the best comic period for investing is the '80s or earlier. In a similar vein, Zurzolo's threshold mark is 1980.

The comics showing the most increase year after year are Marvel comics with key events - either in terms of a character's first appearance or because of an important, classic or memorable storyline, Graham says.

For example, Fantastic Four No 12 is the first crossover and fight issue where The Hulk battles the Fantastic Four. 'Fantastic Four No 4 features the reappearance of The Submariner and Fantastic Four No 5 contains the first appearance of Doctor Doom,' Graham says.

Other notable books are Action Comics No 252 and Showcase No 4, which feature the first appearances of Supergirl and the Silver Age Flash respectively.

Likewise, investors should also factor in which issues of a title either start or end key storylines or have turning points in the life of a superhero that affect the future storyline, Kwan says. Original or introductory issues are also popular.

Fishler believes it is the enduring legacy of such characters that makes them a good investment. 'If you look at The Hulk, he's such a huge part of Marvel's history [since the early 1960s] and they've done two movies with the character, so he'll be around for a while.'

Fishler contends that despite Disney's recent takeover of Marvel, the former has a vested interest in preserving the equity and viability of such cash cows. He touts the fact that Marvel consistently promotes its comics through its many movies as raising the brand equity of its characters.

Some books are extremely hard to get in high grades because of low print runs and poor paper quality. For example, Amazing Fantasy No 15 features the first appearance of Spider Man, the most important Silver Age character. At a high grade, the book can go for US$100,000 (HK$780,000), whereas a taped and torn lower-grade version of the same issue can sell for US$2,000.

Such prices dwarf the most valuable item in Kwan's collection - a limited edition of a Gen 13 issue No1 box set (hard cover) with 12 artists drawing 12 different covers - valued at more than HK$3,000.

As for Golden Age books from the late 1930s through to the 1950s, such as Detective Comics No 27 (first appearance of Batman), Batman No 1 (first appearance of Robin) and Action Comics No 1 (first appearance of Superman), many books from the second world war era were thrown out for recycling and few survived, according to Fishler.

Comics from the 1940s are still very strong if they are Marvel, then known as Timely Comics, or DC Comics titles, Graham says.

'The collectors of investment-grade books, besides wanting high grades, also want war covers from the war years depicting superheroes giving it back to the enemy,' he says. Covers with Superman and Captain America fighting the Nazis remain hugely popular to this day.

Silver and Golden Age comics continue to be big hits with investors - the former more so for their scarcity, the latter for the spectacular art. For example, Jack Kirby had a massive role in creating early Marvel characters such as the Silver Surfer, The Avengers and the Fantastic Four, and his works frequently fetch high prices.

In these volatile economic times, comics are proving to be a lucrative investment. US-based Heritage Auctions sold US$20 million worth of comics last year.

For example, an issue of The Incredible Hulk, which sold for US$450 in 1998, sold at auction earlier this year for US$10,000.

However, as with any collectable, they are prone to supply and demand factors, says Fishler, who urges investors to do their homework.

'Don't get into comics just because you see people are making money in it. Do your research and get a sense of the market first,' he says.

The industry blue book is the Overstreet Price Guide - often deemed the 'comic price bible'.

Condition is key and the best suggestion is to get the nicest copy of a book you can afford because, although they can be costly, they tend to appreciate the most.

Moreover, as Fishler stresses, a comic's value can be gauged by its grade. To that end, CGC.comics.com certifies comics for a fee. CGC has a grading scale that many investors use because they want an impartial third party opinion as to a book's value.

However, CGC grading can pay off. 'We sold a CGC grade 6.0 copy of Action Comics No 1 for US$317,000 this past March,' Zurzolo says. As for the Man of Steel's other title, a restored copy of Superman No 1, with a grade of 5.0, fetched the company US$50,000 in 2006.

'CGC has revolutionised the way things work. It has caused huge increases in collector-investors entering the hobby and prices to rise. Also, as comics are graded by an independent service, it is entirely fair, so you can buy with confidence,' Graham says.

Metropolis also sold a copy of Green Lantern No 76 (published in the 1970s), with a CGC grade of 9.6, for US$30,500 - a record price for a Bronze Age book. However, with last month's announcement of a full-length Green Lantern feature film starring Ryan Reynolds, the company noticed Showcase No 27 (the character's first appearance) shoot up in value 40 per cent.

'As soon as the Green Lantern movie was announced, a CGC 8.5 copy of Green Lantern No 1 that previously sold for US$2,200 was now worth $9,500,' Zurzolo says.

As for the Dark Knight, Zurzolo sold a copy of Detective Comics No 27 for US$255,000 in January 2008. 'We also sold a 9.0 of Batman No1 in August 2007 for US$250,000.'

Among Graham's most valuable comics are Action Comics No 1, Detective Comics No 27 and Avengers No 4, that he conservatively values at US$195,000, US$65,000 and US$55,000 respectively.

Spider Man's popularity has spiked in recent years, helped by his movies, Zurzolo says. Price fluctuations are massive at the margins.

'A 9.4 of Amazing Fantasy No 15 can sell for US$300,000, but a 9.6 might sell for US$500,000 to US$750,000. You could have got a 9.4 five years ago for US$150,000,' he says.

Nevertheless, condition is a critical factor because, according to Graham, a CGC graded 6.0 copy of Amazing Fantasy No 15 in July last year sold for US$7500 to US$9000. 'This July, a copy [of Amazing Fantasy No 15] at CGC 6.5 was sold for US$22,000. I sold a CGC 6.0 copy in August for US$19,000,' he says.

All things considered, Graham still believes the importance and timelessness of a character are factors to remember because 'trends come and go'.

As for manga comics, Zurzolo believes they mainly tend to be seen as an investment in Japan. 'I don't think they've reached such heights yet.'

More patriotically, Graham stresses manga is not an investment but strictly reading material. 'They [manga] are issues like paperback books. You read them and put them on a shelf. American comics are where it is at.'

Kwan and Achung agree. 'The manga story is always published in weekly magazine format. It is hard to compare it to the value of American comics that are independently published in monthly issues,' Achung says.

Although comic conventions, such as Comicon in California and Chicago, tend to be fun, online comic sites are the best place for investments. But investors shouldn't expect a fast buck and should be patient.

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