Quote:
Originally Posted by tiger8mush
Good point. So lets you buy a card at auction (more than anyone else is willing to pay, of course) for $1k. Then lets say 15% buyers premium of $150 + $20 insured shipping. So you have $1,170 invested in this card. You hold the card for 5 years as investment and then decide to consign it to an auction company that has 0% sellers premium. You spend another $20 to ship to them, insured. $1,190 now. So the card has to sell at auction for AT LEAST 20% higher than it did 5 years ago just for you to break even. You are taking a risk that it sells lower, you are NOT GUARANTEED it'll sell for that price. Did you also spend extra $ on home insurance for the card or a safety deposit box? So if you want to make 10% in 5 years (only 2% a year), it'll have to sell for at least 30% higher than its previous hammer price. Heck, inflation is higher than 2% a year! So even then you are probably losing money.
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If you can't get in the investment at a solid price, why would you invest in it? The money is better sitting around doing nothing than having a reasonable potential to lose.
Purchasing a card that you need to clear 20% more than the previous sale to break even is just putting more emphasis on the risk because you know you can get out of it but you don't know the amount until it actually sells.
Minimize the risk by making sure you purchase correctly in the first place - it would require more time making sure you get into whatever you are buying at a price you know you could get out of it at. So don't buy the card unless you are sure you could get what you paid "tomorrow"