Analysis of PWCC Vintage Auction 10/13/19

[Dpeck100]

Originally Posted by frankbmd

I'm not finding Net54 on any list of major lenders. If Leon is accepting cards as collateral, perhaps he can explain how that is structured.

It has been done before back in the day and in the works now for sure. We had a big discussion on it here and clearly it will not give you advance rates as high as liquid investments can. You can borrow in the range of 75% against many traded securities and I would think somewhere in the 30% to 40% range is the most anyone should consider on cards.

I am going to give you an analogy that is more appropriate here. My wife is into purses. She has seven or eight Chanel's, a bunch of Gucci's, some Yves Saint Laurent and a few others. Quite a pricey collection of purses. A purse has one function and that is to carry things but the prices of these purses are predicated on scarcity and bragging rights. You would think these would be a enough but she wants a Hermes Birkin bag. These are the most scarce of designer bags and you can't just go into a store and buy one. They have to ask you if you want one and it is hard to have that happen. Which one of these sells for the most? The Birkin naturally because it has the ultimate bragging rights. This is just how the world works. We don't make the rules. Once cards are elevated to elite hobby status symbols they can take on a mind of their own in terms of price. It is really simple.