Friends giving up collecting in 2023 - Post continuation

[BobC]

Originally Posted by Johnny630

Steve that whole fractional sports card hype was another failed attempt at pushing baseball cards as an investment. Anyone with half a brain knows that was ridiculous. Sports cards aren't shares of a business to own interest it, they're a hard asset.

Regardless Johnny, in times of economic instability and panic, many people often view "hard assets" as a viable alternative to the volatile marketplace. Think of people who buy gold, silver, and other precious metals as a potential hedge against that market instability. Whether any of us like it or not, there are many people that now look at cards as one of these "hard assets" that may be a viable alternative to the stock market and other investment vehicles. With the proliferation of TPG grading, AHs, online sellers/consignors, and even Ebay, cards are not such an illiquid asset as they may have been just a couple decades or so ago.

And the eventual drop in value of such "hard assets" as cards is not entirely unpredictable either. There are more than a few well known advisors out there telling people to put, and keep things, in cash for now, and leave it there until the overall market volatility factors start to play out and we can maybe get a better idea of where things are headed.

[Johnny630]

Originally Posted by BobC

Regardless Johnny, in times of economic instability and panic, many people often view "hard assets" as a viable alternative to the volatile marketplace. Think of people who buy gold, silver, and other precious metals as a potential hedge against that market instability. Whether any of us like it or not, there are many people that now look at cards as one of these "hard assets" that may be a viable alternative to the stock market and other investment vehicles. With the proliferation of TPG grading, AHs, online sellers/consignors, and even Ebay, cards are not such an illiquid asset as they may have been just a couple decades or so ago.

And the eventual drop in value of such "hard assets" as cards is not entirely unpredictable either. There are more than a few well known advisors out there telling people to put, and keep things, in cash for now, and leave it there until the overall market volatility factors start to play out and we can maybe get a better idea of where things are headed.

No doubt, I don't disagree. The point of my comment was this whole hype of fractionalizing shares of cards was an attempt to bring in perspective investors into BIG Time Expensive Cards that couldn't normally be purchased outright by most people due to the cost. To me in order for the card to be consider a Investment Type "Hard Asset Vehicle" Like Gold or Silver you need to actually own and posses said card. Not pieces of it.

[BobC]

Originally Posted by Johnny630

No doubt, I don't disagree. The point of my comment was this whole hype of fractionalizing shares of cards was an attempt to bring in perspective investors into BIG Time Expensive Cards that couldn't normally be purchased outright by most people due to the cost. To me in order for the card to be consider a Investment Type "Hard Asset Vehicle" Like Gold or Silver you need to actually own and posses said card. Not pieces of it.

Hey, I'm with you Johnny, but in the end, it seems to be the same idea/concept that you then actually own a piece of a physical card that does exist. Kind of like how card companies cut up bats and jerseys to create GUs cards for people that otherwise may not be able to afford buying the entire GU bat or jersey for their collection. At least it seems a little better than buying into an NFT or a crypto-currency that has absolutely nothing physical actually backing your investment up.

Having said all that, aren't there monetary and other types of funds you can buy into that supposedly do all the investing/buying, and then holding, those physical gold and silver assets for you as well? If so, then it isn't always all about having physical access/possession of an item. In the end, if there's any way someone can come up with an idea to make a buck off of someone else, they've already done it, or they're working on it. And that you can bet on! LOL

[Rhotchkiss]

It’s not for me, but I don’t have an issue with fractional ownership and/or investing in a fund that invests in cards/collectibles. Bottom line is that sports stuff has value. If it has value, you can invest in it- if value goes up, you make money; if value goes down, you lose money. Once something has value and can be an investment, people will find all sorts of ways to make money off it, both directly and as a secondary player to the investment (like auction house, offerer of shares, TPGs, etc).

From what I understand, Gretzky and the Kings owner partnered to buy the Gretzky Wagner. A partnership to own a card is necessarily a fractional share relationship. Suppose I go out and find 10 guys all willing to put in $100k to buy a $1mm item- whether we do it through a business entity (like an LLC) or on a handshake, it’s a fractional share relationship. Collectible simply takes that concept to an extreme.

Again, it is not for me and I do not, and likely will not, own a fractional share of a card or other collectible. But I certainly understand it, do not begrudge it, and see how (at least people thought) it could work.

As far as the OP’s question is concerned, I personally have witnessed cards exist as a viable hobby (and yes Investment) for 40 years, and from what I understand, the hobby (and the profit motives it sometimes brought) existed long before I came along. I expect this trend will continue for many years to come. In fact, I think the past few years brought a large influx of new collectors (or used to be collectors back) to the hobby, at least some of whom will stick. I don’t think the hobby is going anywhere. That said, I certainly expect people to take some money off the table, which means some may sell their entire collection. I have sold my entire collection twice, but always return like a moth to a flame. If stuff you own is worth a lot of money and you could use that money to do things better/more important than owning cardboard, sell the cards! I suspect most sellers are in this boat. Profit taking, however, is hardly the death knell of the hobby.

[todeen]

Originally Posted by BobC

Regardless Johnny, in times of economic instability and panic, many people often view "hard assets" as a viable alternative to the volatile marketplace. Think of people who buy gold, silver, and other precious metals as a potential hedge against that market instability. Whether any of us like it or not, there are many people that now look at cards as one of these "hard assets" that may be a viable alternative to the stock market and other investment vehicles. With the proliferation of TPG grading, AHs, online sellers/consignors, and even Ebay, cards are not such an illiquid asset as they may have been just a couple decades or so ago.

And the eventual drop in value of such "hard assets" as cards is not entirely unpredictable either. There are more than a few well known advisors out there telling people to put, and keep things, in cash for now, and leave it there until the overall market volatility factors start to play out and we can maybe get a better idea of where things are headed.

I buy silver as a hedge against an apocalyptic situation. Read it in a "preppers" book and thought it sounded reasonable. Gold will always be too expensive to use as real currency. I'm not certain my baseball cards would be considered currency/hard asset if something like a Civil War was to start and I needed to relocate in a hurry.

Sent from my SM-G9900 using Tapatalk

[Exhibitman]

Originally Posted by todeen

I buy silver as a hedge against an apocalyptic situation. Read it in a "preppers" book and thought it sounded reasonable. Gold will always be too expensive to use as real currency. I'm not certain my baseball cards would be considered currency/hard asset if something like a Civil War was to start and I needed to relocate in a hurry.

Sent from my SM-G9900 using Tapatalk

My hedge against the apocalypse is Smith & Wesson. Can't kill a zombie with a silver coin.

[Yoda]

Originally Posted by Exhibitman

My hedge against the apocalypse is Smith & Wesson. Can't kill a zombie with a silver coin.

Nor with a Mantle RC.

[G1911]

Originally Posted by todeen

I buy silver as a hedge against an apocalyptic situation. Read it in a "preppers" book and thought it sounded reasonable. Gold will always be too expensive to use as real currency. I'm not certain my baseball cards would be considered currency/hard asset if something like a Civil War was to start and I needed to relocate in a hurry.

Sent from my SM-G9900 using Tapatalk

When the apocalypse comes, I will be swapping 5.56 and 7.62 for T cards. Bring your hall of famers by my bunker. I might not survive long.

In a SHTF world where all order has collapsed, I doubt much besides food, water, medication and especially ammunition would have value. I doubt such a situation is likely, thankfully.