How did this all start?

[packs]

I recall some people across multiple boards suggesting that major sales for particular cards may have been artificial and that the tactic would raise the prices on all copies of the card, which may have been the real motivation behind the original record breaking price.

[Peter_Spaeth]

Originally Posted by packs

I recall some people across multiple boards suggesting that major sales for particular cards may have been artificial and that the tactic would raise the prices on all copies of the card, which may have been the real motivation behind the original record breaking price.

In a hobby where the items have no real value, all subjective, there is a huge reliance on reported prices, which IMO has led to much mischief.

[todeen]

Originally Posted by Fred

Then you stop and consider the Game Stop short squeeze (early 2021) and the line of knucklehead investors reading/reacting to the Reddit blogs.

A lot of those Game Stop Reddit readers got burned, badly. The smart ones (probably a small percentage) got out at the right time because they understood the market and the ignorant ones lost quite a bit. Someone had to lose in that scam.

I bumped into an old acquaintance of mine -- hadn't seen him in 10 years. I asked what he was doing for work and he said it was a long story. He hated his healthcare job during COVID, but was considered essential. So he stayed on working. Then he met a guy who started teaching him day trading. He got a pay boost during COVID as part of the stimulus package to retain healthcare workers. So he started putting cash in the Robin Hood app, small stuff like that. He quit his job, because he was getting paid more to be unemployed than to continue working. Then he fell into the Reddit Crowd. He was too late for GameStop, but gambled on AMC Theaters and sold near the top of the hype. He made "Enough." Now he is a self-employed day trader. That's his job.

You also asked the demographic who was investing in cards? My doctor Bro-in-law is about 45 yrs old. He has the money to invest. He follows all sports, but doesn't buy cards. The only reason he did not invest was because he trusted me when I told him to wait it out, things were going bonkers and he could get burned. He was buying at the wrong time.

[BioCRN]

COVID investment gains side story... I still can't believe how many people fell in love with meme stocks and the cult-like pull some of them still pull when COVID brought some very evident and special investment opportunities.

I had friends I was trying to talk into paying attention to how the market is reacting to news from China about shutdowns and how the energy market reacted and quickly rebounded after the initial news. There were multiple buy-low and very quick rebounds to take advantage of, but they were stuck falling for the latest hype on an "over-shorted" company...usually one with very weak outlook.

While I was casually making money off energy on these bounces they were busy sinking money into near bankrupt retailers because the hype chambers they were in had taken over their sanity.

I am a casual investor, like them, but once you see China shutdown rollercoaster price bounces a couple times it seems like a no-brainer to get in on the next few of them if you're actually looking to play in the market.

[mrreality68]

A variety of factors but
1. Covid stuck home
2. Government funding everyone in different forms
3. Market crashing and people wanting to put their money somewhere
4. Bitcoin rise and fall
A. Rise created wealth for many to spend somewhere
B. Decline people pulling out of bitcoin and wanting to invest elsewhere
5. Institutional investors that wanted to have funds to invest in big alternative investments
6. Ryan H and Jeff L. That bought up everything that created the frenzy for the leftovers

[Johnny630]

Originally Posted by Peter_Spaeth

In a hobby where the items have no real value, all subjective, there is a huge reliance on reported prices, which IMO has led to much mischief.

A lot of high priced cards played musical chairs multiple times a year from auction house to auction house...

[Exhibitman]

One question I would like to toss out there for the group: is anyone actively rooting for prices to fall? Some of the comments here sound like people are shorting the card market.

[G1911]

Originally Posted by Exhibitman

One question I would like to toss out there for the group: is anyone actively rooting for prices to fall? Some of the comments here sound like people are shorting the card market.

I suspect that they will fall a little bit as usually happens after hypebeast demand dries up. I highly doubt a collapse.

Rooting for it? I'd root for a full collapse. Cards are for fun and a hobby, not a profit center in my portfolio. The cheaper they are the more cards I can have fun collecting. It's not in my interest for prices to go up as a collector. Rising prices = good for investor or collector/investor, falling prices = good for collector.

[packs]

As a collector first I agree. I’d love for low grade Cobb T206s to cost a little under a thousand dollars again.

[brianp-beme]

Although not rooting for a complete collapse to early 1980's levels, I wouldn't mind pricing to come down to pre-covid levels, or at least pre-covid levels +10%, (a much more reasonable increase over the past 3+ years span than what collectors have had to do battle against during that stretch).

Brian

[tycobb]

Originally Posted by packs

I’d love for low grade Cobb T206s to cost a little under a thousand dollars again.

Yes i would too ! fingers crossed

[raulus]

Originally Posted by Exhibitman

One question I would like to toss out there for the group: is anyone actively rooting for prices to fall? Some of the comments here sound like people are shorting the card market.

Hell yes I’m rooting for it!

Then I can emerge from my long hibernation and start buying in earnest, instead of just making minor pickups at the margins and only when I’m convinced it’s so rare that I’ll probably never see another one like it again.

Definitely not shorting the market. But I’m absolutely in an “underweight” scenario.