Cards as an inflation hedge ?

Johnny630 · #1 01-07-2022, 11:46 AM

One Word to Describe this Industry over the past 3 Years....MANIPULATION

Touch'EmAll · #2 01-07-2022, 12:18 PM

American's love collectibles. I would guess cards are one of the most prominent collectibles of all with perhaps the biggest collector base of any collectible that exits. Sure, there may be bumps, but doubt the sky will fall. Certain card sectors may experience more volatility than others, however, the big name vintage/Pre-War sector seems quite safe compared to other sectors. I feel safe and secure holding the good stuff for the long term. Haha, fingers crossed.

ajjohnsonsoxfan · #3 01-07-2022, 12:50 PM

I think stimulus funds played an oversize role in the run up in prices. Think about all the business owners in the US (google says approx 31.7 million). There were two rounds of stimulus rounds available to business owners that allowed them to keep workers with funds mandated to cover payroll expenses. The calculation was 3x your monthly payroll amount. So for example if your business employed 75 people with a monthly payroll of $375k you got two checks for $1,250,000 each. $2.5M total. For those business owners who were unaffected by the pandemic, that was just free money to spend spend spend. Hence the huge price increases. What cards would you buy with $2.5m? :-)

Peter_Spaeth · #4 01-07-2022, 01:09 PM

Quote:

Originally Posted by ajjohnsonsoxfan

I think stimulus funds played an oversize role in the run up in prices. Think about all the business owners in the US (google says approx 31.7 million). There were two rounds of stimulus rounds available to business owners that allowed them to keep workers with funds mandated to cover payroll expenses. The calculation was 3x your monthly payroll amount. So for example if your business employed 75 people with a monthly payroll of $375k you got two checks for $1,250,000 each. $2.5M total. For those business owners who were unaffected by the pandemic, that was just free money to spend spend spend. Hence the huge price increases. What cards would you buy with $2.5m? :-)

If indeed the federal government was funding well-off people's purchases of sports cards in a national crisis, it's little wonder to me why the far left is gaining traction in this country.

JohnnyKilroy · #5 01-07-2022, 02:07 PM

Quote:

Originally Posted by Peter_Spaeth

If indeed the federal government was funding well-off people's purchases of sports cards in a national crisis, it's little wonder to me why the far left is gaining traction in this country.

Well we can�t exactly question anything anymore. You either get silenced, or laughed at as a conspiracy theorist since they all pull �facts� from the same playbook. Like a clown on fire.. kinda funny, kinda sad.

Yoda · #6 01-07-2022, 03:12 PM

To be overly simplistic, just look look at recent wealth distributions in the country with hedge fund managers pulling in billions in income and nasty service jobs go wanting because the pay is crap for unpleasant repetitive work.
This inequity is as big a threat to our system as the political wars being waged in Washington. And what do the ultra rich buy with their seeming unlimited wealth. Toys; massive estates, mega yachts, Ferraris, the best fashions, security. So why not a few top line cards of the Babe, Tyrus and Joe Jax? If sports cards becomes a new acceptable asset diversification it will please us to see cards we hold increase in value because of high prices but may close off many acquisition opportunities

Peter_Spaeth · #7 01-07-2022, 03:15 PM

Quote:

Originally Posted by Yoda

To be overly simplistic, just look look at recent wealth distributions in the country with hedge fund managers pulling in billions in income and nasty service jobs go wanting because the pay is crap for unpleasant repetitive work.
This inequity is as big a threat to our system as the political wars being waged in Washington. And what do the ultra rich buy with their seeming unlimited wealth. Toys; massive estates, mega yachts, Ferraris, the best fashions, security. So why not a few top line cards of the Babe, Tyrus and Joe Jax? If sports cards becomes a new acceptable asset diversification it will please us to see cards we hold increase in value because of high prices but may close off many acquisition opportunities

I am no socialist, but yes, the wealth gap as it increases is in my opinion something that could have catastrophic consequences eventually. To quote William Blake, and again I am no socialist,
A dog starv'd at his master's gate
Predicts the ruin of the state

Rhotchkiss · #8 01-07-2022, 02:54 PM

Quote:

Originally Posted by ajjohnsonsoxfan

I think stimulus funds played an oversize role in the run up in prices. Think about all the business owners in the US (google says approx 31.7 million). There were two rounds of stimulus rounds available to business owners that allowed them to keep workers with funds mandated to cover payroll expenses. The calculation was 3x your monthly payroll amount. So for example if your business employed 75 people with a monthly payroll of $375k you got two checks for $1,250,000 each. $2.5M total. For those business owners who were unaffected by the pandemic, that was just free money to spend spend spend. Hence the huge price increases. What cards would you buy with $2.5m? :-)

AJ, this is totally accurate, although I dont know anyone who used the money on cards; I understand most put it into stocks or larger/second homes, both of which have appreciated significantly.

When that all went down, numerous banks and lawfirms approached me asking if they could acquire stimulus for my company. My answer was, we dont need it, we are doing fine. Many said, it doesnt matter, its there for the taking. Or, more politically correct, just get it to be safe bc you never know. I did not take a dime of business stimulus and I was given no personal stimulus check. I think people who took the business money knowing they didnt need it should go to jail for theft. Doing that is as unpatriotic as storming the Capitol (yup, I went there).

Johnny630 · #9 01-07-2022, 03:14 PM

This PPP Stimulus money that was handed out to businesses I was just wondering do the businesses have to pay this back? If so how much time do the have to pay said back and at what interest rate??

Wanaselja · #10 01-07-2022, 04:42 PM

Quote:

Originally Posted by Johnny630

This PPP Stimulus money that was handed out to businesses I was just wondering do the businesses have to pay this back? If so how much time do the have to pay said back and at what interest rate??

If the money was used for what it was intended (payroll mainly) and you meet other criteria (retaining your employees etc) the loan is forgiven.

Peter_Spaeth · #11 01-07-2022, 04:47 PM

Quote:

Originally Posted by Wanaselja

If the money was used for what it was intended (payroll mainly) and you meet other criteria (retaining your employees etc) the loan is forgiven.

So if the government gives you a million that you didn't need, you spend it on payroll, and then take the million you would have spent on payroll and buy cards, the government essentially has bought your cards for you.

Wanaselja · #12 01-07-2022, 04:48 PM

Additionally, you needed to qualify for the PPP funding by demonstrating a % of loss in revenue from preceding quarters.

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