1916 M101-4 Sporting News Babe Ruth PSA 4 on Goldin

[BobC]

Originally Posted by Yoda

Do I understand that, using collateral in the vault, PWCC and Goldin allow bidders to employ margin trading in their auctions? First time I have heard of that ploy. Nice to have leverage in a bull market.....but.

John,

It seems like only a matter of time before they start having "margin calls" based on prices/values of cards someone owns, especially when it comes to the modern card market. LOL

Part of the sad reality in that the hobby is becoming more like an investment industry every day.

[mrreality68]

Originally Posted by BobC

John,

It seems like only a matter of time before they start having "margin calls" based on prices/values of cards someone owns, especially when it comes to the modern card market. LOL

Part of the sad reality in that the hobby is becoming more like an investment industry every day.

+1 Agree. Those vaults are starting to allow you to borrow against the value of your cards in the vault. For them it is a smart move
1. they have your card so if you do not pay/default they are have possession of it and can sell it
2. it gets collectors/investors to store their cards in those vaults and associated benefits those companies get from it

For the collector/investor if they manage it they have funds they might not normally have and give them liquidity to bid or bid higher on cards they want and can get now and pay over time vs potentially either missing out on a card or have to sell something else to finance the card (Thus selling something they might not have wanted to)

I can see it being used by investors like mentioned as form of margin call. But I can also seeing collectors using it as mentioned above.
The key is how to be disciplined about it.

With that said I am thinking that card will go for $700K.

[Johnny630]

Auction Houses that allow this I consider them as Brokerage Account Companies.

[theshowandme]

Would not trade on margin with Vanguard/Fidelity/Charles Schwab, so definitely not trading on margin with any auction house. Wow.