Liquidity & Investing vs collecting

[Peter_Spaeth]

Originally Posted by sbfinley

The only thing I've taken from this thread is that he doesn't like people who complain that the market is manipulated because it isn't. But in the next paragraph he stated he would manipulate the market to protect an investment.

Correction he said he IS doing it.

I can tell you all this. I don't buy a 50k Namath rookie unless I am willing to buy 50 of them for that. I consider my investments before I make them. I encourage those who don't think this way to realize there are others like me out there that are willing to buy not only one card, but all of them for "X" price and control the market.
This is happening and it bugs me that no one else realizes it. I can't convince you all that this is right or wrong, but I'm telling you it's happening because I am doing it and will continue to do so.

[SAllen2556]

My limited understanding of economics suggests that if one person were to buy 50 Namath Rookies and thus greatly reduce supply, then the price would indeed increase, but with the increased price, demand would also decrease. If demand decreases, then the price decreases. If I can't get a Namath rookie at a price I can afford, don't I just eventually move on to Joe Montana?

Also, if supply decreases, production usually increases. So wouldn't more people who wouldn't have previously sold their Namath card now put it in the market, thus increasing supply again and causing prices to decrease. I seem to remember something about price equilibrium.

I have a headache.