Nice write up, David. I am not a graded or raw collector and generally buy mid grade cards with great eye appeal (to me). I agree with a lot of your thoughts. Unless you are Bill Gates someone is always going to have more money than you. Collections are the same way. Just do what makes you happy. I appreciate seeing others collections and great cards too. The diversity of the hobby makes it interesting AS WELL as the amount of money. Take the money out and it does become less interesting to most. That all said, if the time and card are right, there is nothing wrong with a pointy cornered card...It seems the money just keeps rolling into the hobby.
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Originally Posted by Dpeck100
Third party grading makes a card a certified collectible. Anyone can agree or disagree with the grade but when it comes time to buy or sell the marketplace treats it as such. I recall a 1974 Topps Dave Winfield rookie that was graded a PSA 10 and even the most die hard PSA supporter couldn't in any circumstances look at the card and say Gem Mint. Well guess what it went for over $7,400 at the time and the buyer got a Dave Winfield encapsulated in a PSA 10 holder. Cards in graded cases have become commodities and the ease in which many can change hands has led to more money coming into the marketplace. One of the primary reasons the publicly traded stock and bond markets are so active is because they are liquid. The card market obviously isn't as liquid with the bid ask spread being wider and trading costs being higher but without third party grading that spread would be so wide it wouldn't allow for what has happened.
It is glaringly obvious from reading Net 54 that there are a ton of bitter collectors or haters that are so upset that they didn't jump on the graded card bandwagon in high grade. Many constantly throw insults at the people buying these cards and yet they are the one's laughing all the way to the bank. Anyone who thinks that you can't consistently tell the difference between a EX-MT card and a NM-MT or a NM and a Mint is just fooling themselves. In recent years there has been a movement towards mid grade cards with great eye appeal. These are obviously perfect cards for collectors wanting to enjoy the cards and have a reasonably nice card to look at but make no mistake about it the investment potential is in higher grades. It is really that simple. This topic has been discussed many times and at the core of collecting is ego. Whether you simply want to appease yourself for fun or you want to have the best that others can't it is a self interest motive and that is the core of one's ego. There is no doubt that many of the top cards in the hobby are bragging rights pieces. No different than any other high end collectibles or works of art.
The trend in the hobby is higher and while many sit and watch in amazement, happiness or bitterness it is what it is. I chose to collect a genre that I could afford the top level pieces. When you deal in the major sports you are competing against some of the wealthiest people in the world. All it takes is two very well off individuals to want an item and the sky is the limit. As the prices rise they become more intriguing. You can show someone a trading card that is worth $50 and they might say that is pretty cool. You show the same person a card that is worth $100,000 and their eyes light up and they say oh my God that is incredible. Taking that a step further showing someone a 7 figure card and they are in complete astonishment. This is one of the primary things that fuel high end prices. I can recall as a kid not being able to afford the 1986 Donruss Jose Canseco or the 1984 Fleer Update Roger Clemens. Imagine the same being true for someone who grew up watching Mickey Mantle or Nolan Ryan or another top star. This same person has gone on to great success and finds out that the same cards they wanted and couldn't afford can now be bought in differentiating condition like diamonds and are encapsulated for safety and handling with the grade proudly displayed on top. It doesn't take a genius to figure out that if they become interested they will get hooked.
Just this past week a 1958 Topps Bobby Hull in a PSA 8 went for $102,000. The wave is spreading to all of the top cards from various sports and genres. It is going to take a very serious economic contraction for this to come to an end. Even then there will be vultures looking to pick of weak prey and the cycle will start again. Humans love to collect things of sentiment and value and trading cards offer this. The card market is like the income distribution and the spread between the haves and have nots continues to widen. There is nothing wrong with being average or owning average cards but the desire to be the best or own the best isn't going anywhere. When you add the element of past performance and true scarcity it is the perfect storm.
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