Investment Potential

[ctownboy]

bluedevil89,

I am not concerned about what the "whales" pay for things or what they collect. However, in the context of this thread, I am trying to point out that "investing" in cards may not be a wise thing to do, no matter what card or set you go after.

When "whales" spend their money, either wisely or follishly, they are creating a demand in the market which I can not do.

With the advent of graded cards, auction houses dedicated to sports memorabilia and the internet, "whales" have an easier time finding things to buy and somewhat more assurance of what they are buying as being authentic. When they spend, all ships elevate with a rising tide. So, if they want to buy rare back T206s and go after them hard, prices go up. Same with Wilson Frank cards or anything else they throw their money at.

The problem is, what happens when they STOP throwing money at a card or a set? What happens if and when they become disinterested in collecting cards and/or memorabilia or they die? Where is the demand going to come from to keep the prices as high as they are or to increase them?

Are foreigners going to magically come into the market? They haven't done so in the last 10 years so why start now?

Are young people going to step in? If so, WHERE are they going to get the money from? T206 Wagners in VG condition go for what, $150,000 or $200,000 thousand dollars. How many people 40 and younger collect cards AND have that type of cash to throw around on ONE card?

How much do common T206's go for now as compared to 10 years ago? How much has the price increase in those cards been because of Baby Boomers using their money to buy cards? WHat happens when they STOP buying cards or they die? WHat happens when the heirs start putting all of that product onto the market?

If the person who started this thread (or their friend) is wanting to know about investing in cards and which one or ones are going to go up in value they also have to be told about the downside. What I have been posting about is the downside I see (and also the risks my mentor has warned me about).

Again, if my collection drops to ZERO value, I will be a little upset BUT I wont panic. That is because I haven't spent a lot to put it together and I didn't start out collecting thinking about making huge bucks and retiring early.

I bought what I liked and what I could afford.