OT---Currency & Cards

[jrog007]

Because I respect the opinions of many members of this board, I pose the following question: How would a currency crisis affect the value (not in $$$ of course) of sports cards and memorabilia in both the immediate and mid-range (8-15 years) future? There is some talk around the country about the dangerous state of our currency. In your opinion(s), is this type of talk ludicrous, or is the thought that our currency is in a precarious situation based on facts that should not be ignored?

[FrankWakefield]

I think ludicrous. And if some disaster did hit, then ball card concerns would be of minimal importance.

[bbcard1]

Most everyone who is predicting this have their own other political points to push...but my cases of 1988 Topps will be we worthless. Oh, wait.

[ctownboy]

jrog,

The only two ways a currency crises would affect cards, as far as I can tell, are as follows:

1) The dollar is valued so low, against foreign currencies, that it makes it VERY expensive to buy cards from people in foreign countries. To me, that isn't a very big deal because I don't currently buy ANY cards from people in foreign countries nor do I sell cards to those people (how many cards do YOU currently buy from people in foreign countries?) Now, gold coins might be a different matter.

2) Hyperinflation hits and we have to use wheelbarrows to carry our money to the grocery store (like I think happened in Germany between the wars). Then EVERYBODY would be in trouble because we would be trying to buy stuff as quickly as possible BEFORE our currency became less valuable.

In short, I am not worried about the currency, as far as it relates to cards. Nor am I out buying gold. 1) Because it might NOT hit $2,000 dollars an ounce and 2) hoarding gold takes up space and is dnagerous if other people find out you own it. It is also not good to hold onto or be near by if a nucular weapon explodes because gold holds radiation. That is the premise behind the attack on Fort Knox in Goldfinger.

David

[sb1]

Every country in the world is trying to purposely lower their currency value to make their products more attractive to foreign buyers to stimulate their economy. It has absolutely no bearing on sports cards or any other collectible.

Once the economy in all of these countries are more robust they will make moves to strengthen their respective currency values. While it may appear that the value of the US dollar is falling it is actually being deliberately pushed down to achieve the above.

Gold is a terrible buy, really a suckers bet. If you want capital appreciation go with equities.

Just my thoughts.

[BlueDevil89]

The USA may continue weakening the dollar as a last resort measure to combat China's manipulation of the yuan. By refusing to allow the yuan to float and thereby appreciate normally in the free market, China is able to maintain an artificially high / unfair export trade with other nations (---as if the trade imbalance is not already high enough in China's favor).

If the USA does weaken its currency aggressively (as many nations are considering) in an attempt to create some balance of trade with China, then this will result in inflation.

Inflation means more $$$ available in the market to buy the finite number of vintage baseball cards that are out there. Therefore, the prices of vintage cards go up.

Inflation is not necessarily a bad thing. For those holding precious metals, collectibles, etc, the values of those assets tend to go up with inflation. If you have a mortgage, inflation is usually a good thing, because your salary will rise while your monthly mortgage payment stays fixed over the same period, making it much easier to pay off your house. Moderate inflation is quite healthy and normal for a stable, growing economy.

Now, hyper-inflation (ie, having to bring a wheelbarrow of cash to the grocery store to buy a loaf of bread)...that's another story. If your local currency collapses, you better be holding precious metals or other assets that you can trade and barter for basic necessities.

[NOTE: Just my personal thoughts and musings on the topic. I am not a financial professional nor an economist.]

[jrog007]

Thanks for your thoughts on this topic.

[triwak]

money!