Cards = Investments

[calvindog]

WTF is a "shair?"

[Fred]

I only read part of the post so I'm assuming that a "shair" must be a measure of MSG (isn't that the Chinese food preservative that's not supposed to be good for us?)...

I just saw a post on page 3 I'd like to comment on. It was Bill making the observation that a lot of cards haven't really seen much appreciation since 2007 (something like that, Bill - If I misinterpreted this, I apologize). I have to agree with Bill because I really haven't seen much appreciation or card value rises (overall) for the hobby since about that time. Like I mentioned before, if there was supposed to be a great "appreciation" in asset value then I would think it would be occurring now with the QE-$$$ hitting the economy. I don't see it (thank goodness)....

[pcoz]

Originally Posted by calvindog

wtf is a "shair?"

+1 lol!

[Jlighter]

Originally Posted by Fred

Here's something to think about. If cards were truly an investment wouldn't the market be strong because of the 'quantative easing" that's going on? That's a lot of $$$ getting pumped into this economy and I don't see the card values sky rocketing with the extra amount of money being thrown into our economy. Do you think this stuff has topped out?
D

I myself have seen no positive correlation between current rounds of quantitative easing and consumer spending.

[Leon]

Originally Posted by Fred

I just saw a post on page 3 I'd like to comment on.

This should be 2/3 of the way down page one. If you go to your User Control Panel (CP) you can change the number of threads on one page, to 80, instead of the default, which is 10-20. Just a friendly suggestion so you don't have to scroll down so many pages, it's all on one page.

Oh, and back to subject... Buy low, sell high.

[Fred]

Thanks Leon... I probably should have just said post #21. Aint nuthin like bein a computer illiterate... but hey, I know how to enter a bid on ebay and my momma still loves me (I think)!

[Leon]

Originally Posted by Fred

.. but hey, I know how to enter a bid on ebay and my momma still loves me (I think)!

and that's all that really counts!!

[tschock]

Originally Posted by Leon

Oh, and back to subject... Buy low, sell high.

Not sure about that advice. Last time I did that the dog and car were gone and there was case of Doritos in the kitchen.

[Smanzari]

I think they are definitely investments, but definitely long-term ones. I actually wrote a fairly long paper on it while getting my Masters in Finance (which my professor loved). I will see if I can find it on my old computer later this evening....

[Touch'EmAll]

One would like to think cards are investments. Everyone is willing to talk about the good buys/sells. But not as often do you hear the not good buys/sells.

Last year I took losses on two cards purchased a while back. I sold a 1935 Diamond Stars Jimmy Foxx PSA 8 - through ebay for a loss. And I sold a T206 Cobb Green PSA 5 for a loss - through Robert Edward auction.

These cards are "supposed" to be higher end vintage quality HOF'ers in semi-high demand, just like cards folks here recommend for investments. Still chalked up the losses nonethless.

And yes, I have had a few positive transactions as well.

Just food for thought,

Steve

[ullmandds]

Most of my collection I have owned for decades...and these have turned out to be excellent investments over the years...but the fact is they were never purchased as investments...just cards because I love them! In more recent years I have bought and sold a few cards here and there and made a little money in most cases...lost some in some cases. It used to be a lot easier to buy lots from auction houses and sell some of them and recoup all of your initial investment...and then keep the rest.

Those that can successfully "invest" in vintage cards have a lot of knowledge...and do a lot of leg work to find these deals. The avg joe will not be successful at this.

[mawitzi]

I do not believe that buying baseball cards is a smart investment. They do not pay interest or dividends. They increase in price only if the market for them gets bigger. If the collector base for cards does not grow you will not see prices increase.

Before investing in cards you need to be sure that the number of people that will want them in future will grow. So, are you sure of this?

I collect because I enjoy it. I hope my cards hold their value, but I don't really know what will happen in the future. I also hope prices don't increase too much, as this would price me out of my hobby.

[pcoz]

[QUOTE=mawitzi;1080178]I do not believe that buying baseball cards is a smart investment. They do not pay interest or dividends. They increase in price only if the market for them gets bigger. If the collector base for cards does not grow you will not see prices increase.

There are many investments that don't pay you back interest or dividends, ie...art, sportscards, commodities, growth stocks for that matter. If you look at the prices of "most" prewar cards the past 10+ yrs, they've appreciated significantly. Even "E" cards, which have recently been soft, have exponentially grown. As for the collector base...none of us were around 100 yrs ago, so I'm not concerned with a solid base in the future if I needed to sell my cards, as I'm sure others will come into the hobby of the sport we all love. If you're concerned with this aspect, then collect the high-end rare pieces that you know collectors will gravitate to anytime. We all are in the hobby because we love the cardboard. But, anyone that says they can spend 5-10k for a card and not care what its resale value down the road isn't being honest. No one wants to see their investment not be worth at least what they put into it if not more over time. Most great cards have been excellent investments as well as enjoyment for those who own them IMO.

[Bocabirdman]

If you collect cards for the fun of it and eventually sell them for less than you paid for them, it can be viewed as, "Hey I enjoyed my time in the hobby and got a good piece of cash back.". If the same negative cash flow occured after holding them as an investment you would feel bad about the whole affair.

[pcoz]

Originally Posted by Bocabirdman

If you collect cards for the fun of it and eventually sell them for less than you paid for them, it can be viewed as, "Hey I enjoyed my time in the hobby and got a good piece of cash back.". If the same negative cash flow occured after holding them as an investment you would feel bad about the whole affair.

Mike, I don't think these are mutually exclusive thoughts. I enjoy my Babe Ruth RC immensely, but if I got back half of what I paid, I don't think I'd be happy just to get back a good piece of cash, even with the enjoyment I had owning it. But maybe it's just me. This is a hobby, but it's also a business with tremendous worth. Card collecting isn't Las Vegas, it's a calculated risk in a tangible asset of value. Any item in the world you're putting money into, you'd want to get back some return whether you could afford to lose the money or not. My cards give me much enjoyment, but also give me another asset class in my long-term investment portfolio. I'll tell you in 20 yrs how it goes!

[Bocabirdman]

Originally Posted by pcoz

Mike, I don't think these are mutually exclusive thoughts. I enjoy my Babe Ruth RC immensely, but if I got back half of what I paid, I don't think I'd be happy just to get back a good piece of cash, even with the enjoyment I had owning it. But maybe it's just me. This is a hobby, but it's also a business with tremendous worth. Card collecting isn't Las Vegas, it's a calculated risk in a tangible asset of value. Any item in the world you're putting money into, you'd want to get back some return whether you could afford to lose the money or not. My cards give me much enjoyment, but also give me another asset class in my long-term investment portfolio. I'll tell you in 20 yrs how it goes!

I am not suggesting to overpay for a card then years later, give it away. Also, there is a big difference between a Ruth RC and anything in my collection. If I hold on to 2000 $20 cards and in twenty years decide to sell them for $35000, it is a better return than most other hobbies would yield. My "hobby" would have cost me $400 bucks a year Plus, I would have enjoyed those cards for all those years. No pressure to make a profit. No worrying about the market going up or staying flat.

[ullmandds]

So what do y'all think of Jason Leblanc's "investment" strategy in purchasing the 1865 Brooklyn Atlantics CDV. Definitely a thin market for a "card" such as this.

[Mrc32]

Not how I would have invested $92,000. I guess it just depends on if he has money to burn. I would classify spending that much on a baseball card as a risky investment no question. But his goals and his resources available for investment are surely different than mine.

[Bridwell]

For me, stashing some cash in baseball cards has turned out to be a good investment. If not for cards, I'd spend some of the money in a way where 5 years later I have nothing to show for it. For example, vacations, buying expensive clothes, golfing trips, or decorating the house. With cards, they have maintained their value and even increased a little.