Quote:
Originally Posted by Peter_Spaeth
Or maybe his wife found out he was cheating so he decided to sell the card to reduce his liabilities in divorce. Also possible, isn't it? You're really out on a limb, Bob, with the speculation.
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Peter, I distinctly said this wasn't necessarily what was happening in the specific cases several posters were going back and forth about. But it does seem true that as our hobby appears to really be plunged into the investment side of things that actions of some may start more from an investment way of thinking. I've had numerous discussions with people adopting this investment strategy over the years, especially in times where markets are down, like the crash back in 2008, or even the 2020 market hit from the pandemic. They still like the investment (card) and don't necessarily want to sell it, but if there is a way they could still keep that investment (card) AND also generate a current tax saving capital loss, why wouldn't they go for it? Time value of money and all, they could take the dollars they saved from harvesting the tax losses and use it to buy more investments (cards) that they maybe couldn't have afforded to buy now otherwise. You would likely be surprised how many people would think of harvesting capital losses like that.
I'm not speculating at all, this thinking and investment strategy happens every day. I'm merely trying to point out that there may be other legit reasons for what some people say are attempts to manipulate the card market that they did not realize and consider. This hobby is undergoing such rapid and dramatic changes right now that you have to be aware of new ideas and concepts going forward, and can't just blindly assume things aren't changing, whether you like or agree with them or not.
So I am not out on any limb and what I'm saying is absolutely valid, whether it is applicable to the specific cases discussed in this thread or not. If not those cases, maybe the next ones down the road.
And even your postulated reason for selling having to do with a pending divorce could be a valid alternative as well, however, a lot less likely I think than my suggestion for selling to harvest capital losses for tax purposes. First off, you said they may have sold to reduce liabilities, don't you mean reduce assets so they could then try to hide the cash and pay less in the divorce settlement? Of course, that begs the question of whether the spouse knew about the card to begin with. Assuming they did, the sale could have been to establish the exact value for the divorce proceedings and make it real easy to just split the cash between the parties. Otherwise, if the spouse knew of the card they would likely tell their attorney, who would likely inquire and investigate what it ended up selling for and where did the cash go. And if the spouse was not aware of the card, I think the last thing you'd want to do is sell it to potentially create a taxable event that the spouse's attorney could pick up from doing a review of the divorcing couple's tax returns. In that case you'd be better off leaving the card alone and just keeping it, and a big reason why a sale because of divorce may be less likely than a sale to utilize capital losses.