Collectibles Markets vs Economy - Why does it have to be this way?

[steve B]

I think there are a lot of very long term things finally showing their effects.

For decades, as a nation we've insisted on lower prices, and have been willing to sacrifice service and quality to get those lower prices. And that's in nearly everything.
Along with that has been an ever increasing demand for
A) More profits for those of us that can invest in stocks or property
b) Higher wages, especially at the lower end if the scale.

None of that is bad in itself, minimum wage was kept artificially low for far too long. Maybe not $15, but for sure more than 7. *
Post pandemic, the kob market made that more than a bit of a joke, the local McDonalds was paying 18 for night shift, and 20 closer to Boston.

At the same time, the big box stores and online businesses delivering cheap stuff made overseas but with absolutely no service (Unless you count immediate delivery as "service" )had finally destroyed nearly all competition. Most small specialty stores are gone, as well as many larger chains. Sears had almost everything they needed to be Amazon and to be first. National stocking and distribution, national advertising ... all they lacked was a usable website, which they got far too late. (so much for CEOs not making a difference)
So now the places selling everything cheap and mostly without quality have no competition, small margins, so single store profit can be affected by essentially doubling everyones pay. Leading to finding ways to cut labor costs. Like self checkout. Leading to higher theft, no surprise. meaning higher costs.

Fewer ways to cut costs, and no competition means prices are sure to increase.
Add that many places had increases, but never rolled back when costs dropped because why would they? and we get what we've got now.
The grocery store I go to has gotten a little more expensive. Not like many claim, but more expensive. The biggest difference I see is that many things still have variable availability. My kids like mini wheels pasta, and I haven't even seen it there in several months. Some other favorites, have also either vanished or only turned up occasionally. Some things like Entemans coffe cakes have gotten expensive, but the in store bakery items are much less.
Eggs are strange, I saw many people complaining that they were $6 a dozen, but the ones I get stayed right around 3.50, 3.69 for the last few months. And that's with Mass not allowing anything but cage free. So the cheaper ones weren't around anymore. (I quit those years ago as the quality was poor. )

In the past, when things got difficult in the stock market, people looked to other things as hedges against inflation, like metals or more recently (Like 80's-90's ) collectibles. Stuff that while it's not needed, will hopefully continue to be wanted once things get good for business again.
Hopefully it's not too bad, but this one feels different. Despite the stock market doing reasonably well, down lately, but in general well over where it was before the drop in 2020, and inflation being a bit elevated, there doesn't seem to be a big rush to metals or collectibles.






*when the "fight for 15 was going on, realities of how much customers would pay for what I do pretty much capped what I could make at 15-20, and I have decades of experience. None of my friends believed that someone getting the same pay for whatever with no experience and no skills devalued my work. They all said "well you should get more too" until I told them that would put the price of a bicycle tuneup higher than any of them would pay.
Now a few are in the same boat - "why does the kid who messes up my McDonalds order make as much as I do" It's not fair
Why is everything so expensive? It's not fair!

Yeah, told you that 4 years ago.... It's fair, sort of, and predictable.

[KCRfan1]

Someone mentioned earlier about consumers putting everyday goods and services on credit cards.

This is exactly what is happening for most households. Credit card debt is at an all-time high, over a trillion dollars. To add, the spent credit ( used credit ) and available credit is minimal at this point. People have maxed their cards for the most part.

The number of people taking hardship withdrawals, loans, against their 401k is steadily growing.

How this all gets paid back is another story. I don't see it happening though.

This is just a tip of a big iceberg though as many things are impacting our economy. Some of which are obvious, yet the true expense has not manifested itself.

As mentioned previously, the collectors market is driven by discretionary income.

Unless the collectible is unique or an early great of the game, I do not see how present value is maintained for most items. Plenty of room and time for the common collectible to decline.

[brunswickreeves]

Originally Posted by KCRfan1

Someone mentioned earlier about consumers putting everyday goods and services on credit cards.

This is exactly what is happening for most households. Credit card debt is at an all-time high, over a trillion dollars. To add, the spent credit ( used credit ) and available credit is minimal at this point. People have maxed their cards for the most part.

The number of people taking hardship withdrawals, loans, against their 401k is steadily growing.

How this all gets paid back is another story. I don't see it happening though.

This is just a tip of a big iceberg though as many things are impacting our economy. Some of which are obvious, yet the true expense has not manifested itself.

As mentioned previously, the collectors market is driven by discretionary income.

Unless the collectible is unique or an early great of the game, I do not see how present value is maintained for most items. Plenty of room and time for the common collectible to decline.

‘When the tide goes out you’ll see who’s been swimming with no bathing suit.’ -Buffet (Warren, not Jimmy-rest his soul).