Auction Houses-Going, Going..Gone?

[Archive]

Posted By: Bruce Dorskind

We have watched as the Board has commented on this thread

Here are our observations:


1. The Auction Houses, with a few notable exceptions, are too thinly capitalized. If a major Auction
House collapses- as we predicted months ago, the affect will spread across the Hobby. Most of the Auction
Houses have less than $1 million in free capital. Most are dependent on funding from one or two people.
One should not auction major material without a "deep dive" review of the Auction House's books. With three
exceptions we would only consign high-end items if the owners of the Auction House personally guaranteed
payment.Transparency and security will becomemajor factors for those auction houses attempting to secure major collections.


2. We believe that the US Economic Crisis is in a very early stage. We do not believe that our politicians and the infusion of
a trillion dollars of cash will solve this country's current problems. We are likely to face the most serious crisis in over 120 years.
Only luck and a significant external event (war?) will boost the economy during the next five years. We predicted a 7500
Stock Market on this Board in March of 2008. We now predict a 6000 stock market by September, 15% unemployment
and a number major changes in the US Government.



3. On a personal basis we are collectors. Not investors, Not Dealers. Unlike most of America, we don't
spend above our means. We seek the same cards for our collection regardless of the state of the Economy.
Whilst we consistently attempt to secure buying opportunities, we turn down 95%
of what we are offered because it does not meet our condition standards and/or it is not what
we collect. For example, we have no interest mid-grade rare T 206 backs at any price.
We will look for opportunities- but only for the items on America's Toughest Want List


Bruce Dorskind
America's Toughest Want List