[mrreality68]

Originally Posted by BobC

Like I was saying earlier, would love to see some of the actual documents and paperwork they have these people signing. Also wondering if this isn't just an advance on a sale consignment of the card, as opposed to a true loan with PWCC holding the card as collateral. Regardless, this could possibly be a huge reason they got so much in alleged "vault" submissions during the National. The bulk of those $100M in submissions could have actually been consignments more so than just people putting cards in their "vault" to be held for some unknown period of time. Especially if those people doing the submitting were also looking to get advances/loans against their cards right away.

I understand PWCC does quite well, but if they are getting submissions and then giving out such advances/loans of the nature mentioned, I'd have to speculate they don't have that much cash just lying around to continue doing such advances/loans if they expect to continue this going forward. And if they do continue this, I would expect they would look to get financing to supply them with cash to cover such advances/loans. I don't see normal banks going to approve such financing (or being allowed to under current regulations) if the collateral is primarily sports cards, which would seem to leave it for private investment companies/investors to step in then.

OMG - If this is now going to be the case going forward, we are truly seeing the transformation of our hobby into an industry dealing in investment commodities. Instead of someone buying and selling cards to make money, this is where someone can make money off the capital loaned to others buying and selling their cards. So PWCC (and/or whomever is supplying them with cash) is possibly becoming the first J.G. Wentworth type of company to start taking advantage of people dealing in cards. Unbelievable if this turns out to be true.

And now would like to find out even more how these advances/loans are going to be paid for with charged interest, or some other type of payment/charge to cover the carrying costs of whomever is fronting the money. If there is an interest charge in their somewhere, that in and of itself could have different tax implications depending on whether or not the person paying the interest is a dealer, investor, or collector. And if not necessarily an interest charge per se, can whatever charges are being incurred then be applied towards the basis of cards eventually sold so the seller gets some tax break? This could get real interesting going forward?

Very Well said and I am of the same basic mind set