WSJ article on forced collectible-sellers

[gomiamigo]

https://www.wsj.com/finance/investing/collectibles-market-investment-sales-money-29aacd43?mod=hp_lead_pos9


I'd say 'So it begins,' but we all know it started a while ago...

[asujbl]

Cliff notes

[no10pin]

Cliff notes

People bought too much stuff so now they have to sell it because they can't live in an autographed jersey.

[asujbl]

People bought too much stuff so now they have to sell it because they can't live in an autographed jersey.

Got it

Sell it all to me. I’m here for it

[bloodwings19]

He didn't get a handout during COVID unlike some guy.

[KhalDrogo]

I have zero sympathy for people who can’t responsibly manage their finances.

[jcardstore]

I'll pour one out for all the morons who spent past their means.

https://media0.giphy.com/media/3ohhwejV9xxRBD8Qog/giphy.gif?cid=ecf05e47yowv5jbw1xijfy6wdv2sk2qovpiycvos2dk7gswp&ep=v1_gifs_search&rid=giphy.gif&ct=g

[Nomad]

Wait, aren't Fanatics $3,000 unboxings a thing? Or are those gambling as well. What is the actual supply-demand equation in sports collectibles?

[messier2]

Man, I was looking forward to reading the article, but damn pay wall!

[JumpshotMcGavin]

Someone help us out and copy/paste the article! Lol

[GOATMJ]

I have zero sympathy for people who can’t responsibly manage their finances.

There are a lot of guys in the hobby that have big chunk of their net worth in cards.

[cholodolo]

Reminds me of this definitely true and NOT AT ALL questionable tale of rags to riches flipping 90's soccer and basketball cards. Living in his car to multimillionaire and largest Messi collection in the world.

This can be yours too!

Join my Discord!!!!

https://live.staticflickr.com/65535/53124246645_7aca39612f_z.jpg

https://live.staticflickr.com/65535/53124246660_cd7fdfa84e_z.jpg

[imbluestreak23]

Lol, damn bro flip game STRONG!

[duwal]

There are a lot of guys in the hobby that have big chunk of their net worth in cards.

that's why there is a big difference between people collecting as a hobby and others collecting for their livelihood

[KhalDrogo]

There are a lot of guys in the hobby that have big chunk of their net worth in cards.
Not really a problem though. If you don’t have a cash flow problem, does it matter where your net worth is tied up at the moment?

[calmar]

I have zero sympathy for people who can’t responsibly manage their finances.

You said it! I'll go even further and say I have zero sympathy for anyone who messes up at all, ever. The stench of weakness and failure makes me nauseous. I am rational and responsible and smart about everything, a super-being really, and anybody who is not, screw 'em.

[KhalDrogo]

You said it! I'll go even further and say I have zero sympathy for anyone who messes up at all, ever. The stench of weakness and failure makes me nauseous. I am rational and responsible and smart about everything, a super-being really, and anybody who is not, screw 'em.
Maybe the government can bail out your poor decisions.

[ninjacookies]

https://thumbs.gfycat.com/BadUnluckyArmadillo-size_restricted.gif

You don't lose if you never sell.



Stack bread like pita. It's the only life I know.

[tjforce]

This helps explains the cycle I'm seeing.

Up through 2018 I was buying and accumulating.

From 2019-21 I was buying and selling.

First half of 2022 I was doing more selling then buying.

Since the second half of 2022, if it's not something I may never find again, or I don't have a thesis for it, I'm probably not buying it.

And what is has meant is some stuff has shaken out that is quite hard to find and significant to collectors like me. The stuff that everybody wants and has access to? I was buying that and holding it back in that initial pre-2019 phase... now I'm just letting it go.

The collecting game for me now is more about the hunt than ever before.

[GOATMJ]

Not really a problem though. If you don’t have a cash flow problem, does it matter where your net worth is tied up at the moment?

It certainly can be a problem. Especially if you're holding the wrong cards or have thrown money at it during the pandemic peak. Whereas having that money parked in real estate, stocks or precious metals maybe a much
better investment than say Ja Morant NT RPA's, etc.

[elontusk1119]

It certainly can be a problem. Especially if you're holding the wrong cards or have thrown money at it during the pandemic peak. Whereas having that money parked in real estate, stocks or precious metals maybe a much
better investment than say Ja Morant NT RPA's, etc.

could be worse, could be Wander Franco

[jzx1103]

could be worse, could be Wander Franco

I know this is the basketball board, but I sure hope the Wander Franco situation will wise people up on the dangers of paying 4 to 6 figures for a young prospect.

[GOATcards]

It certainly can be a problem. Especially if you're holding the wrong cards or have thrown money at it during the pandemic peak. Whereas having that money parked in real estate, stocks or precious metals maybe a much
better investment than say Ja Morant NT RPA's, etc.

the market's been way down across the board since the pandemic peak, and even worse for Ja than for (e.g.) Steph

[GOATMJ]

the market's been way down across the board since the pandemic peak, and even worse for Ja than for (e.g.) Steph

Exactly my point. I remember during the pandemic, everyone with high end cards thought they were overnight millionaires. Some cashed in at the perfect time and truly got away with extreme gains... but a lot of people held and/or bought more.


I don't think its smart if your net worth is $300k and you have $250k in cards...

[elontusk1119]

Exactly my point. I remember during the pandemic, everyone with high end cards thought they were overnight millionaires. Some cashed in at the perfect time and truly got away with extreme gains... but a lot of people held and/or bought more.


I don't think its smart if your net worth is $300k and you have $250k in cards...

Those were good times. How many BO members were millionaires for the brief moment?

[auctionjmm]

I have zero sympathy for people who can’t responsibly manage their finances.

And that's why your reputation is what it is around here. You can't assume that everyone is raised in a picture perfect home with parents who provided the blue print for financial management.

I do the majority of hiring for my company. I've hired some of the smartest people I can find. 4.0 GPA, solid college, good internship experience, etc.

The most common call I get around this time is from those same people asking me what a 401k is and how that all works. They don't have a clue. I try to explain the DOW, S&P, compound interest, and you'd think I was talking another language. Completely clueless. I can't possibly lack sympathy for someone smart enough to get a 4.0 in college but who doesn't understand the basics of investing because clearly they were never taught. I'm not going to shame them for it. And if they don't know what a 401k is, I am also going to assume that credit and budgeting are lacking.

People screw up with money all the time. Good for you if you never have, but that isn't the norm.

[KhalDrogo]

And that's why your reputation is what it is around here. You can't assume that everyone is raised in a picture perfect home with parents who provided the blue print for financial management.
Neither was I bud. Everyone is capable of self directed learning when it comes to their finances. No family or higher education needed. Just need to be able to do some basic math and demonstrate self control.

For most, wealth isn’t built from how much money you make. It’s built from how much money you save.

[WaiverWire]

In addition to learning about 401ks, we in the hobby can also now learn about the greater fool theory.

https://en.m.wikipedia.org/wiki/Greater_fool_theory

[2010GBPackers]

Someone help us out and copy/paste the article! Lol

OP, help us out. Like .0001% of the US population has a subscription to the WSJ.

[jswek]

OP, help us out. Like .0001% of the US population has a subscription to the WSJ.

https://www.msn.com/en-us/money/personalfinance/their-baseball-card-and-barbie-collections-are-their-emergency-funds/ar-AA1fmOVY

[gomiamigo]

It's actually over 1% as of 2 years ago, so higher now!

[Spacemanspif]

Wait... so the article is about how the collectibles market is strong and people are using them as assets to pay off other debts? The implication / interpretation if you only saw the headline and the responses of this thread was that people bought too many cardz and are now being forced to sell at a huge loss to cover their PWCC loans. That doesn't seem to be the actual tone of the article though. Copy paste below with some main points bolded




Americans built bookcases and shrines to the baseball cards, vinyl records and sneakers they collected through sometimes painstaking efforts. Now, they are selling them off.

Collectors say they don’t have a choice. Their budgets have been squeezed by inflation and unexpected setbacks. And their debts are mounting just as higher interest rates make the cost of carrying that debt overwhelming.

“This is literally like selling away my life,” said Mitch Beck, 61 years old, who put his trove of New York Rangers memorabilia up for sale to tackle his growing six-figure debt.

Beck, who took more than 23 years to amass his collection, priced it at $25,000 to $30,000. He said he believes he could earn more by selling each item individually, but couldn’t handle the emotional toll of that process.

“Boxing it up and watching it dwindle, it would kill me. I genuinely don’t believe that I could handle that emotionally.”

Beck’s consulting business in Connecticut took a hit after the pandemic from which he has struggled to recover. In 18 months, he said he has lost his car and his children’s college funds. Though he intended to pass the hockey cache, including pucks signed by Wayne Gretzky and Mark Messier, to his sons, they told him that his health and well-being were far more important than any memorabilia.

Fortunately for collectors like Beck, the market for many collectibles remains strong, allowing them to capitalize on investments. Owners of sports memorabilia, records, baseball cards, all of which experienced a boom in recent years, can turn to their collections with the hope of making money to pay bills or help save for down payments on large purchases.

Collectibles remain a hot commodity for investing and reselling, according to Market Decipher, a market-research firm, forecasting global collectibles sales to reach $1 trillion by 2033.

TD Cowen projects the resale market for sneakers hitting $30 billion globally, with a 16% compound annual growth rate by 2030. The overall global sneaker market is valued at $75.8 billion for 2023 and is expected to reach $100 billion by 2026, according to Statista, a German data-gathering company.

Anurita Loubier, 29, owns more than 300 Barbies, a passion for which preceded the popularity of this year’s Hollywood blockbuster. The Connecticut resident has sold dolls from her collection for living expenses such as rent and electricity when necessary.

With Barbie’s stock high, she said she is now ready to part with the collection she began in the late 1990s as a child in India. Loubier plans to list it for $5,000 in hopes of using this as a security deposit for a new apartment.

“The movie has helped motivate me to sell more Barbies, as everybody wants to associate with the brand and have a piece of it,” she said.

Fueling collectors’ hopes of making some extra cash off their items is robust global demand for collectibles.

Isaiah Holm, the 23-year-old owner of Sunset Sneakers, a social media-operated sneaker store, has benefited from the collectibles-market hype. The Oregon-based reseller is doing his part to stimulate demand for rare sneakers by buying up to 500 pairs each month and regularly paying six to seven figures for collections. His team sells between 2,500 and 3,000 pairs each month, with the monthly sales totaling roughly $1 million.

“A lot of people are paying crazy numbers for rare samples and player-exclusive shoes, and the rarity drives up the price,” Holm said. “They’re collector’s pieces, just like anything else.”

Holm said owners often part with their collections as a way to save for essentials. “A lot of times when we buy sellers out, the majority of the answer is, ‘I’m going to buy a house. I need to liquidate my collection,” he said.

The global comic-book market is witnessing a similar dynamic. It was valued at $15.3 billion in 2022 and is expected to grow to $22.4 billion by 2030, according to Fortune Business Insights, a market-research firm.

“This year, the comic-book fever is still very high. Sky-high. Demand for the product is tough to keep up with,” said Gerry Gladston, president of Midtown Comics, a comic-book retailer in New York City.

Collectors said they are often approaching their collections as investments, with an eye toward a significant return in the future.

Thomas Polifroni, 42, said he is buying collectible pieces both with a personal attachment and potential for future profit.

The Florida-based collector hopped on the baseball-card craze as the sports-memorabilia market skyrocketed during the pandemic. Polifroni’s interest shifted to historical artifacts and iconic figures’ memorabilia. He purchased items previously owned by former Presidents Abraham Lincoln and John F. Kennedy, as well as Princess Diana and Nirvana’s Kurt Cobain.

Investment collecting is similar to any financial investment, Polifroni said, where collectors have to care about what they are investing in and keep an eye on the markets.

“Tangible assets with significance are a very legitimate and justifiable piece of a portfolio, the same way that people have been investing in fine art and high-end watches for generations,” he said.

Gladston, at Midtown Comics, said his clients are similarly embracing the investment mind-set when shelling out for rarities such as “Golden Age” and “Silver Age,” which were printed decades ago. His clients, he said, hold on to comics based on their scarcity, popularity or initial investment value, with the belief these items will gain value.

“People’s collections are their portfolios, and they treat it the same way a stockholder would,” Gladston said. Yet, he cautioned, “They might not let the items go as easily as stocks.”