Posted By:
Bruce Dorskind
It is perfectly clear to us that the current stock market conditions will make it
nearly impossible to sell high priced baseball cards other than through auctions.
Most card dealers, with a very few notable exceptions, have very little cash.
They attempt to carry limited inventories -especially when said inventory
includes rare, expensive and somewhat obscure items.
Dealers are afraid to buy an item at any price approaching true market value.
We have also found that some prominent collectors, whilst refusing to buy an item
outright for $1200 were perfectly willing to pay $1450 + a 15% buyers premium
in an auction less than six weeks after they had an opportunity to buy the same card
for 33% less than they ultimately paid.
As you know, we predicted a depression back in March and a stock market at 8500.
We now see the market closing the year at closer to 6300. Unless the new President
takes action in partnership with the current administration on the day after election
day this depression will make the 1932-36 look like a cake walk.
We see a dramatic slowdown in card sales because sellers, unless they are desperate,
are going to wait to put their rare and high priced items in auction.
While there will no doubt be a few quiet trades, we expect to see a 33% drop in high
grade cards between now and April 1, 2009. It is sad, unfortunate, but mark our
words, the depression is going to cause everyone to suffer.
Bruce Dorskind
America's Toughest Want List