Posted By:
Bruce Dorskind
As many of you know, more than a year ago, we
predicted that the Dow would fall below 7500 and
that several major investment banks would go bankrupt.
Many of our posts reflect our strong belief that the US will face
a depression between 2009-2012. Baseball card prices, with some
notable exceptions are likely to fall- perhaps as much as 25%-35%
A number of auction houses will close because collectors will stop selling.
However, there is a strong possibility that a far more tragic scenario
will develop.
For argument sake, let us assume the announced US Government investigation
into price manipulation and alteration of cards moves ahead rapidly and there
are formal Indictments.
Let's all assume the government decides to seize all the property of the auction
houses and or grading service that has been indicted.
What is the position of the consignor with regard to items seized by the Government?
If he or she has received an advance, do they have to return it?
How can he or she get his cards back?
Is there any insurance available that will protect collectors or consignors?
If and when this "perfect storm" occurs, how will impact the future of the
hobby?
The purpose of this post is not to argue the state of the economy and/or
how bad things are likely to get, but rather to raise the question of how
is the collector protected when and if an auction house
(a) Is indicted by the government and property is seized?
(b) Auction house closes its doors before an auction is completed
and said auction house has consignments from collectors.
Our hobby must prepare for a worse case scenario- who knows, our own
version of Bernie Madoff could be on the Board as we speak.
Best wishes for the New Year!
Bruce Dorskind
America's Toughest Want List