Quote:
Originally Posted by glchen
Barry, I completely see what you are saying here, and I agree with a lot of it. However, there are a lot of different ways that I could answer this question. However, to focus on the cards that are going for 6 figures, I'll put it this way. The people who are buying these cards go to shows or events like the PSA luncheons and see other collectors like them, and they trust that other rich people like them (e.g., Ken Kendrick, etc) are buying cards, so they know that it's not just them in this market. When they sell their cards, they get paid real cash, real money with no restrictions like you can't sell for 2 years. They see the card prices going up based upon VCP, past auction sales, or other ways that are easily accessible. And which cards are going up the fastest? The ones with the highest number on the flips, which makes perfect sense to them because rich people collect the highest quality collectibles.
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I understand herd mentality, and everyone assumes the card they buy will be just as desirable when it comes time to sell. But I still have trouble with how much faith is put on that label.
If you have 1952 Topps Mantle that grades PSA 8, and you are able to convince the grader that it deserves an extra ".5" on the label- not a full grade, but a half grade- that grader has just created a half a million dollars of wealth out of thin area. How did such a market evolve? Something about this simply escapes me.
And Peter S. is correct that the label, and not the card, is the commodity (and I love Wallace Stevens).