Health of Asset Class - Over/Under 1955 Topps Koufax PSA 9

[joshuanip]

Originally Posted by Exhibitman

One of the things I've noticed about crypto and meme stocks and card investing is how similarly the participants behave. There is an almost palpable sense of giving the middle finger to The Man in all of it, hence the hostility of the young towards mainstream investments like mutual funds. The card 'bros i see at shows would be right at home selling weed. Same style as the drug dealers who used to supply our highs in college. That makes it harder to promote an investment angle on cards. Too many players want to be 'playas', not investors, and stubbornly resist efforts to professionalize the hobby or make it look like a mainstream investment. So many collectors also like the sheer transgressiveness of buying and selling in cash in a field without much regulation. It gives them that "G's and keys" swagger to throw around cash, feel like a street guy, but with cards and without any real danger. Look at some of the linguistic stylings of the hobby: buyer's premium is "vig", cards are "product", etc. The fact that the authorities don't really seem to care actually is a selling point.

The Singer interview in the current WSJ is apt. Fed’s response to every crisis is to print money and the rise of crypto is a libertarian impulse for the disdain on the fed’s disrespect to fiat currency… article is bearish on crypto which I agree on, it root principles to crypto and art/cards are the same. An alternative store of value. But art and cards have another thing going for them, they can’t be produced in any more quantities that that exist out there. There will be “finds” but supply is pretty much set (sans e98 prior to bsf). And there is something tangible to the asset unlike “ether” assets.

Always thought and still think employment is the highest coefficient in card prices (as it affects demand (by people’s wherewithal) and supply (as people need to sell to fund cost of living). And with that metric we’re doing pretty good.

Of course there’s asset beta, which is what we are feeling today, as people “trade” based on how far cards appreciated and where they think cards will go. But as a long term driver, it’s hard to argue against the initial point as to why cards are a good store of value in a diversified asset portfolio.