Investment Grade Cards

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Posted By: identify7

As Lee points out, investor grade cards include cards whose condition is less than pristine. Some think that the number of highly graded cards is adequate to fulfill the demand, but that the number of low graded cards is not.

Specifically, the baseball card hobby is experiencing an influx of collectors; many of whom do not choose to purchase more than $1000. worth of cards annually. However, these collectors demand many cards for their purchasing dollars.

Admittedly many more low grade cards exist than high grade cards, but there also exists many more low grade card collectors.

Could it be that f/g/vg t206 and Goudey cards are a better investment than PSA8s? That is not vg to vg/ex. That is f/g/vg grade. Could demand for this grade put more pressure on supply than the demand for any other grade range? I think so. What are your thoughts?

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Posted By: jay behrens

If you look at prices on a percentage basis, commons have always been a better investment. Mid to low grade cards were never really seen as investment grade because the price guides used to be driven strictly by NM prices. Those days are pretty much over and you can no longer create a price guide with NM 100% Ex 50% VG 25% etc. This makes low to mid grade cards a much better investment today than 10 years ago.

Jay

I've just reached Upper Lower Class. I am now officially a babe magnet for poor chicks.

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Posted By: Al Crisafulli

Great question.

I think the value of the highest-grade cards will continue to increase exponentially over time. The end result of this, which we've already begun to see with certain issues, is that the highest-grade cards will become unattainable for the average collector.

Conversely, there will always be a market for off-grade cards, and their value will consistenly increase (particularly in the prewar arena). As people get more consumed by the hobby, a large number of them eventually migrate to the prewar arena, and so the demand for these cards will continuously increase.

So, basically, I think a tiny but wealthy fraction of the market will consistently drive up the price of high-grade cards, and consistent increases in demand will drive up the price of off-grade cards. The value of high-grade cards will increase exponentially, but the value of off-grade cards will increase steadily (and respectably).

-Al

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Posted By: t206King

Jay and fellow board members are correct. put it in prospective. say 5 ppl want a high grade card 8 out of 10 cobb. and 500 ppl want a 2 out of 10 cobb. i see alot more demand on that. its hard to put values on the low end cards because of the spikes in prices. one minute you can get cards cheap, next day over priced. i also find that grades dont matter in some low end aspects. if the card presents well, they tend to go for alot more than there normal average price.

i collect low end and mid range pre-war, and its hard sometimes to fork out hundreds of dolalrs for 1 card. after paying bills etc etc, but thats what makes the hobby so interesting!

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Posted By: Lee Behrens

I have found it intesting that the price of SGC 50 & 4's seem to to be relatively inexpensive compared to what a 40 will go for and what a 60 will go for. The 40's often go for $40 plus where as you can get 50's in the $40's range quite commonly, yet 60's go for $85- $125 regularly. I think alot of people feel the 60 EX is the staart of the high end market.

I have bought very little "high grade" cards in the 5 years since I got back into the hobby and have did quite nicely in turning what I want to resell for a profit to support my habit.

Lee

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Posted By: JimB

I thought we were all collectors, not evil investors. Isn't it sinful to even discuss this?


JimB

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Posted By: barrysloate

It's sinful to discuss, but while we are silent everything is skyrocketing. I say just build a nice collection over time and it will take care of itself.

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Posted By: Darren J. Duet

Vintage collector's want presentable, good looking cards of their favorite players. They also have limited budgets. The result is an increasing demand for cobbs for $600, wagners for less than 4 figures(the same for shoeless), matty & johnson for $300, etc. As long as there are good looking vintage cobbs going for $600 bucks or so, there is no reason for most collectors to spend $3K on a high grade t206 cobb(which for many is not an option).

I'd say there are hundreds, if not thousands, of collectors who would drop $500 on a vg attractive example of shoeless. Bottomline, there just aren't that many vg wg4's out there to satisfy the demand. Wagner is also in that realm, Cobb is getting there, matty/johnson/young are on their way.

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Posted By: Lee Behrens

I personnally try to draw the line at $500, doesn't work all the time. I was able to get all 6 of my T202 Cobbs for under $400. Still the most reasonable Cobb's you will find.

Lee

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Posted By: warshawlaw

High grade slab-heads are a small but very rich market for the highest grade cards.

Many of us buy the highest grade cards we can afford or perceive that we can afford. I have my own personal ceiling above which I just don't like to spend unless something really wonderous is available.

Many of us limit ourselves strictly to lower grade cards to accumulate more.

Many among us buy what exists, regardless of grade.

Many of us tend to mix it up depending on which items are being collected. For an issue I think I can afford in high grade, I buy the best I can find. My 1970's collection is a blazer but my T206s average vg and my OJ collection is just about all 1's.

It is misleading, though, to segment the card market strictly by condition. For many issues collected by the folks here, vg may be the highest grade known. I know I have Exhibits and Zeenuts in my collection that suck condition-wise, but find me one in nice shape...