Is there a relation between Gold and Collectables (Comics)???

[Wally's Comics]

I noticed that once the stock market slummed that Gold and

Comics (mainly keys) made some fast traction upward...

 

Note: I hate to refer to comics as an investment, but when you plug thousands

into a book(s) (whether it's graded or not) you would like to think that one would

like to at least get the money they paid out of it.

 

well, the Gold Market had a hard day today mainly due to a solidifying market (I can guess).

 

Is this going to transcend to the Hot key books that spiked during this time period???

 

When was the last time a market freeze had a cause on collectables

or is this just a coincidence that this happened???

 

No worry warting here, I'm just talking and I'm interested on what others take is...

 

 

 

 

[oakman29]

I have noticed that when the economy was at it's worst,gold and collectibles were at it's highest.People want to have money in tangible things,you kind of feel like you have control of your own destiny.Whereas stocks don't give you any kind of control over yourself.As the economy gets better,people are spending less in gold and collectibles,and moving money to stocks.Just my two cents.

[JazzMan]

From a historical perspective they have typically been inversely proportionate (probably the wrong word, but if one went up the other went down) in their movement, but today it seems everyone is selling!

[Ditch Fahrenheit]

There has been a recent trend of sideline money finding its way into other markets. Over the last few years there have been a lot of articles in the financial presses about alternative venues such as the collectibles markets - specifically key comics. Couple this with superhero blockbuster movies and the trend is likely to continue. So when the stock market slumps, demand increases for Keys which raises prices. On the other hand, Gold is viewed as a safe-haven during stock market slumps. So Key comic prices should correlate positively with the Gold market, and negatively with the stock market.

[oakman29]

There has been a recent trend of sideline money finding its way into other markets. Over the last few years there have been a lot of articles in the financial presses about alternative venues such as the collectibles markets - specifically key comics. Couple this with superhero blockbuster movies and the trend is likely to continue. So when the stock market slumps, demand increases for Keys which raises prices. On the other hand, Gold is viewed as a safe-haven during stock market slumps. So Key comic prices should correlate positively with the Gold market, and negatively with the stock market.

Bingo! That's what I was trying to say. (thumbs u

[delekkerste]

I have noticed that when the economy was at it's worst,gold and collectibles were at it's highest

 

Actually, gold lost about 30% between mid-July 2008 and the end of October 2008 when liquidity seized up and the financial system was pushed to the brink. The S&P 500 fell a similar amount during that period. Stocks, gold and art/collectibles all rallied from their respective early 2009 lows when the system was flooded with liquidity.

 

The markets are telling you that liquidity is seizing up again and that there is a deflationary pulse coursing through the financial system and real economy now. It really could not be clearer - gold and silver are plummeting, oil is plummeting, copper is plummeting, grains are plummeting, the U.S. dollar is strengthening, bond yields are falling again, cyclical stocks are in freefall, defensive stocks are holding in better, etc. Both domestic and global economic growth is slowing if recent data is anything to go by.

 

So, yes, I think unprecedented liquidity (or the perception thereof) has bolstered all asset prices over the past 4 years, and if that prop is going away, I think that will affect both hard assets like gold and collectibles as well as financial assets.

[FlyingDonut]

No.

[FlyingDonut]

I have noticed that when the economy was at it's worst,gold and collectibles were at it's highest

 

Actually, gold lost about 30% between mid-July 2008 and the end of October 2008 when liquidity seized up and the financial system was pushed to the brink. The S&P 500 fell a similar amount during that period. Stocks, gold and art/collectibles all rallied from their respective early 2009 lows when the system was flooded with liquidity.

 

The markets are telling you that liquidity is seizing up again and that there is a deflationary pulse coursing through the financial system and real economy now. It really could not be clearer - gold and silver are plummeting, oil is plummeting, copper is plummeting, grains are plummeting, the U.S. dollar is strengthening, bond yields are falling again, cyclical stocks are in freefall, defensive stocks are holding in better.

 

So, yes, I think unprecedented liquidity (or the perception thereof) has bolstered all asset prices over the past 4 years, and if that prop is going away, I think that will affect both hard assets like gold and collectibles as well as financial assets.

 

You do realize that you've been saying the same thing for 12 years.

[delekkerste]

You do realize that you've been saying the same thing for 12 years.

 

How can I have been saying the same thing for 12 years when I am describing a dynamic that has only existed for 4?

[ComicConnoisseur]

I have noticed that when the economy was at it's worst,gold and collectibles were at it's highest.People want to have money in tangible things,you kind of feel like you have control of your own destiny.Whereas stocks don't give you any kind of control over yourself.As the economy gets better,people are spending less in gold and collectibles,and moving money to stocks.Just my two cents.

+1

[comicwiz]

If we're having a "nest egg" conversation , I think Gold will always win out.

 

Even in the digital age where people can make purchases 24 hrs a day, 7 days a week, there are layers upon layers upon layers of hassles in reselling this junk.

 

PayPal allows pirates the opportunity to lynch and pillage, with the buyers winning the lions share of online chargeback schemes.

 

Having had over 20 years of experience under my belt in multiple collecting categories, I just can't stomach the idea of handing down the hassle to my family to curate this stuff, and Gold will always be the simplest way to achieve the nest egg goal.

 

What I see happening with most commodities nowadays is people are less inclined to hold, and go long on anything. The other aspect is credit, and if speculative behaviour didn't have access to credit, we probably wouldn't see such dramatic, reactionary drops and rises in values. If you're active in multiple markets, a lot of this actually starts to look quite predictable.

 

Gold will be back up in the next few months, and should continue to trend upwards as it traditionally does nearing the months of Christmas. The question is whether specs who were seeking a short-term gain want to ride out the waterslide until then, especially if they're credit is still a shambles from post-holiday spending and with tax season just around the corner.

[RockMyAmadeus]

???

 

!!!

 

!?!

 

?!?

 

??!

 

!!?

 

 

[zosocane]

There has been a recent trend of sideline money finding its way into other markets. Over the last few years there have been a lot of articles in the financial presses about alternative venues such as the collectibles markets - specifically key comics. Couple this with superhero blockbuster movies and the trend is likely to continue. So when the stock market slumps, demand increases for Keys which raises prices. On the other hand, Gold is viewed as a safe-haven during stock market slumps. So Key comic prices should correlate positively with the Gold market, and negatively with the stock market.

 

The S&P 500 index and the DJIA index have been steadily rising following the dark days of September 2008. Those indices didn't suddenly rise. Since 2008, key books have also risen steadily and, in most cases, are at all time highs and have not dropped. Gold has now dropped, but based on news that the stock indices are back to 2006/2007 levels.

 

Unlike prior collecting cycles, over the last 10 years, this hobby now has Hollywood, CGC and the Internet bringing significant, new liquidity to the market (and subsequent price rises).

 

So assuming the stock market continues to rise (and every indication is that it will, with slowness predicted in the U.S. economy for the balance of 2013 but then noticeable growth expected in 2014 and beyond), are we saying that we should expect comic keys now to start to trend downward like gold?

[dupont2005]

I don't think there is a major link, but there could be a minor one. Gold is a major commodity, traded internationally by countless investors, brokers, and speculators. The price of gold does seem to shoot up when us small fry's want to invest though. I think the mega keys in comics, like highest graded Action 1's and Tec 27's may be on a cycle closer to hot commodities like gold, but for lower grade mega keys and everything else, it would be based more on discretionary spending available to people. So while in a bad economy I can see gold and the two million dollar Action seeing an increase in value, a mid grade ASM #1 probably not. The hottest new Image #1 probably not. A Hulk #181 probably not. The major shifts in value in commodities seem to come either when one commodity is losing value and everyone dumps their money into gold, or when demand for that particular commodity skyrockets, for whatever reason, because of that commodities practical use, like how gold is used in machinery because of it's conductive and anti-corrosive properties. That's something comics don't have is a practical use. We can't eat them, use them as fuel, or build machines out of them. They're a commodity like antiques. Some antiques, like Faberge eggs and Tiffany lamps, are safe bets. Others, like that chair at the antique shop off the freeway, not so much.

[thedude]

I'm not sure the "good stuff", has gown down in over 40 years. sure, there have been periods of slow growth, but aside from a few books or genres that have fallen out of favor, (Marvel Mystery #1, certain Mile High non-Supes/Bats books, Duck books, westerns, etc.) it's mostly been up, up, up since 1970.

 

I've noticed lately CGC graded Actions/Tecs/Bats/Supes/Timelys in 6.0 grade are pulling prices that CGC 7.0s were pulling a few years ago. and we've all noticed the recent upswing on certain pre-code horror books.

 

I keep waiting for the stuff I like to buy to plummet so that I can buy more, but it just hasn't happened.

[Ditch Fahrenheit]

There has been a recent trend of sideline money finding its way into other markets. Over the last few years there have been a lot of articles in the financial presses about alternative venues such as the collectibles markets - specifically key comics. Couple this with superhero blockbuster movies and the trend is likely to continue. So when the stock market slumps, demand increases for Keys which raises prices. On the other hand, Gold is viewed as a safe-haven during stock market slumps. So Key comic prices should correlate positively with the Gold market, and negatively with the stock market.

 

The S&P 500 index and the DJIA index have been steadily rising following the dark days of September 2008. Those indices didn't suddenly rise. Since 2008, key books have also risen steadily and, in most cases, are at all time highs and have not dropped. Gold has now dropped, but based on news that the stock indices are back to 2006/2007 levels.

 

Unlike prior collecting cycles, over the last 10 years, this hobby now has Hollywood, CGC and the Internet bringing significant, new liquidity to the market (and subsequent price rises).

 

So assuming the stock market continues to rise (and every indication is that it will, with slowness predicted in the U.S. economy for the balance of 2013 but then noticeable growth expected in 2014 and beyond), are we saying that we should expect comic keys now to start to trend downward like gold?

 

I would look at it as "additional demand." I could have been clearer about this.

[zosocane]

Dupont makes an excellent point that, unlike most commodities, comic keys are divided into scores of pricing levels depending on the condition and rarity of a book, etc., for which investors with throw-away money come in to bring the lower priced books up, and then you have hedge funds (or really deep-pocketed collectors) chasing the rare investment grade stuff, creating very different "sub-markets" for the same publication.

[Ditch Fahrenheit]

Dupont makes an excellent point that, unlike most commodities, comic keys are divided into scores of pricing levels depending on the condition and rarity of a book, etc., for which investors with throw-away money come in to bring the lower priced books up, and then you have hedge funds (or really deep-pocketed collectors) chasing the rare investment grade stuff, creating very different "sub-markets" for the same publication.

 

Yeah, it's an extremely complicated market.

 

The advice given to the newbie investors is to buy well-established keys, but they rarely mention grades or the variations in demand within a particular key book market because of the grade. Much like other markets, new investors run in where experts tread carefully.

[jimbo_707]

I have noticed that when the economy was at it's worst,gold and collectibles were at it's highest.People want to have money in tangible things,you kind of feel like you have control of your own destiny.Whereas stocks don't give you any kind of control over yourself.As the economy gets better,people are spending less in gold and collectibles,and moving money to stocks.Just my two cents.

I tend to agree. The improving economy will take some speculators out of collectibles and send them back into stocks. You'll probably see prices go down on most titles over the next year or so, with the possible exception of the mega-keys (Action 1, Detective 27, Captain America 1, Amazing Fantasy 15, and maybe a few others). Scarce books are usually bought by dedicated collectors, who will stay in, so those may stay about even.

[ComicConnoisseur]

There has been a recent trend of sideline money finding its way into other markets. Over the last few years there have been a lot of articles in the financial presses about alternative venues such as the collectibles markets - specifically key comics. Couple this with superhero blockbuster movies and the trend is likely to continue. So when the stock market slumps, demand increases for Keys which raises prices. On the other hand, Gold is viewed as a safe-haven during stock market slumps. So Key comic prices should correlate positively with the Gold market, and negatively with the stock market.

 

The S&P 500 index and the DJIA index have been steadily rising following the dark days of September 2008. Those indices didn't suddenly rise. Since 2008, key books have also risen steadily and, in most cases, are at all time highs and have not dropped. Gold has now dropped, but based on news that the stock indices are back to 2006/2007 levels.

 

Unlike prior collecting cycles, over the last 10 years, this hobby now has Hollywood, CGC and the Internet bringing significant, new liquidity to the market (and subsequent price rises).

 

So assuming the stock market continues to rise (and every indication is that it will, with slowness predicted in the U.S. economy for the balance of 2013 but then noticeable growth expected in 2014 and beyond), are we saying that we should expect comic keys now to start to trend downward like gold?

Most will be suspect,but the Marvel silver age keys and any Batman keys should be safe.

(thumbs u