Has Slice Investing in Collectibles Increased Prices?
I been digging into why it seems the prices of collectibles (posters, prints, comics, etc) have been increasing. Today I was with a group of friends and one of them was discussing how he was invested in “slice†investing of collectibles.
Basically, it is crowd-sourced funding of collectibles purchases. They purchase the collectible using the slice funds and resell it - if there is a price increase, each slice gets a profit.
This is very scary almost like shill bidding. Setup up one fund and buy a poster on one site with crowd sourced money. Setup second fund. Fund one sells it on another site and fund two rebuys at a higher price with more crowd-sourced funds. Fund one shows a profit and price is artificially raised shifting market in upward direction. Fund one has made the money. Sell all slices of fund two, three, so on. If it ever loses money they cover it under “nothing guaranteedâ€...
It also brings in more money to the market and stretches collectors with more cash to bid higher.
Thoughts?
Basically, it is crowd-sourced funding of collectibles purchases. They purchase the collectible using the slice funds and resell it - if there is a price increase, each slice gets a profit.
This is very scary almost like shill bidding. Setup up one fund and buy a poster on one site with crowd sourced money. Setup second fund. Fund one sells it on another site and fund two rebuys at a higher price with more crowd-sourced funds. Fund one shows a profit and price is artificially raised shifting market in upward direction. Fund one has made the money. Sell all slices of fund two, three, so on. If it ever loses money they cover it under “nothing guaranteedâ€...
It also brings in more money to the market and stretches collectors with more cash to bid higher.
Thoughts?
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Comments
How do the slicees decide what poster to buy and for how much? If there was one educated investor, why would he/she dice up their own pie?
2) It is not "shill bidding", but it IS a way to artificially raise prices that can't be sustained in the long run.
Early investors win big, later investors lose big
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Not sure many serious investors really go for movie posters. I don't think they are very reliable and we don't have the grading services etc like other collectibles. Is more of a hobby where people tend to buy for nostalgia.
"Once a user has bought shares in an asset and it becomes fully funded, they now own equity in that item"
Does this mean if I buy shares but the full remaining 40% is not picked up, what? I lose my money????
Agree with Mark, I can kinda see how this works for highly regulated/graded collectibles, but not movie posters...
What the feck is the world coming too...