Posted By:
DJWhen I purchase a card, I purchase it because I want it for my collection, but in the background, I know that when I finally do sell my collection, I should get a decent return on the original purchase. It's not like I'm buying something stupid that won't appreciate like my ex-fiance' who owned an $800 purse. When I see that purse, I think "Hmmm...I could buy two Ned Williamson Old Judges for that price!". What will her purse be worth in the future? It should also be noted that she thought 'cards were stupid...that it was just pieces of paper'. How can I live with someone with an $800 bag telling me this?
You can't compare pre-war cards to cars, TV's, stereo's or anything that loses it's value shortly after the purchase and the money is never recovered. You have to look at cards the same way you look at artwork, stamps, coins, antiques and such.
An investment can best be described as something that appreciates in value and if you look at a Beckett from 1980 and then a 1985 and then five years after the fact, cards hold their own and there is a steady increase:
I.E:
1983 Beckett- T206 Honus Wagner $18,000
T206 Cy Young Portrait $25
T204 Ramly Set $7500 Mint
N300 Mayo Hugh Duffy $125 Mint
N172 Old Judge Charles Comisky $100 Mint
1991 Beckett- T206 Honus Wagner $125,000
T206 Cy Young Portrait $550
T204 Ramly Set $24,500 EX-MT
N300 Mayo Hugh Duffy $600 EX-MT
N172 Old Judge Charles Comisky $800 EX-Mt
Amusing how 'Mint' was an option in the old days.
I worked in a Stock brokerage for three years and I will tell you that there is little buyer confidence there at this moment.
The 'bubble'(people who invested in companies like Global Crossing, CMGI, Cisco, Enron, Corning etc.) and fraud (can you compare trimmed cards to what happened to those Enron stock holders?) have caused 'paranoia' and people are looking to place money elsewhere. They figure that if they purchase $10,000 worth of these silly pieces of paper, that maybe in ten years, it will double in value.
The problem lies in the fact that prices are so out of control right now (listen, the price guide is flying out the window) that it's hurting us 'die-hards' add to our collections. This has been my experience from talking to those who are paying through the nose for cards and who have removed funds form their portfolio. If I had a choice- $50K worth of cards or Microsoft, I would go for the cards to be honest with you.
This isn't your grandfather's stock market anymore. But, will there be a pre-war 'bubble' in the horizon?
DJ