Card prices skyrocketing

[jchcollins]

Originally Posted by cardsagain74

The liquidity of the new digital marketplace benefits collectibles so, so much. Back in the junk wax era and before, a dealer could have stuff like a 1961 Topps Al Kaline sit in his display forever unless it was highly discounted (especially at small town card shows).

Now, you just auction it off on ebay and get paid what it's worth whenever you want.

Exactly. In the 21st century we finally have the technology to make hobby markets work efficiently. Very similar to my example of being a kid in 1987 - I'd see some card I wanted (maybe even if it was just a cool looking common...) in Beckett or Baseball Cards Magazine. Then I'd have to wait months to go to a show near me. Then at the show, 50/50 chance if it was something slightly nobody there would have the card anyway.

With the advent of eBay, not only can I find that card - I can decide I want it at 10 pm, then go online and there are likely a dozen or more of them at my fingertips that can be here next Tuesday. Trust me as an introverted kid growing up the late 80's and early 90's - for all it's problems - eBay and online selling is quite literally a dream come true. Oh! And then there were all those old MAD magazines I could never find...

[kailes2872]

True. I think the stimulus plays very little part in this.

I am not an economist and every time I try to play one on TV, I get smacked down by someone who actually knows what they are talking about, so forgive me...

But, it seems like QE and the money printing is a stimulus for the (semi)wealthy. My investment portfolio was down 42% on March 23rd last year. Since then, my investments (and net worth) have more than doubled. Based on income, I don't qualify for the $2,000. But it seems that I get the a 10x factor of that benefit every time they juice the economy with more money. This could be just coincidental, but that money feeds the market and it feeds corporate earnings and that drives valuations.

I make a nice living with a paid off house and college saved, so I should be one of those people that are being described that are buying into the market. However, I bought one card in 2020 and just track auctions and prices so far this year. I have a memory of 2012-2015 prices and my mind won't seem to ever let me pull the trigger anymore. So the person buying the PSA 7 Mantle must be playing in a different stratosphere and considers it an asset class. I have a tough enough time leaving my collection in cards versus converting to equities. When you factor in the risk of fire and theft as well as the eventual costs with estate taxes at 28% and auction house fees, it just doesn't seem to make sense long term. The fact that someone would have several hundred grand in liquid cash to add to a safe or safe deposit box somewhere just seems hard to believe. It is not like they aren't getting good returns in equities right now. But there is some crazy money out there, I guess.

[JohnnyKilroy]

Originally Posted by kailes2872

I am not an economist and every time I try to play one on TV, I get smacked down by someone who actually knows what they are talking about, so forgive me...

But, it seems like QE and the money printing is a stimulus for the (semi)wealthy. My investment portfolio was down 42% on March 23rd last year. Since then, my investments (and net worth) have more than doubled. Based on income, I don't qualify for the $2,000. But it seems that I get the a 10x factor of that benefit every time they juice the economy with more money. This could be just coincidental, but that money feeds the market and it feeds corporate earnings and that drives valuations.

I make a nice living with a paid off house and college saved, so I should be one of those people that are being described that are buying into the market. However, I bought one card in 2020 and just track auctions and prices so far this year. I have a memory of 2012-2015 prices and my mind won't seem to ever let me pull the trigger anymore. So the person buying the PSA 7 Mantle must be playing in a different stratosphere and considers it an asset class. I have a tough enough time leaving my collection in cards versus converting to equities. When you factor in the risk of fire and theft as well as the eventual costs with estate taxes at 28% and auction house fees, it just doesn't seem to make sense long term. The fact that someone would have several hundred grand in liquid cash to add to a safe or safe deposit box somewhere just seems hard to believe. It is not like they aren't getting good returns in equities right now. But there is some crazy money out there, I guess.

Yes, I agree with your thoughts. The overall economic stimulus definitely helps. I was referring to lots of people who believe the 1200 or whatever payment they received was helping drive this train.. which I’d disagree. However, I’d agree with your theory.