When to sell a collectible that has significantly increased in value?

[bradgator2]

Title says it all.

People collect all sorts of crap. Art, coins, baseball cards…. You name it. For Ox, it’s 3d printed movie props and dildos. The “pandemic” has caused my hobby to nearly triple in purchase price over the last couple of years. To prices that have never been seen.

When do you sell?

I am tempted. It’s a fun hobby and I never considered it an investment, but do count it as an asset. There is no real sentimental value attached. Sell while the iron is hot? I dont need the cash right now. I will say it is nice to have a significant asset that is actually going up in value.

 

[LaylaGator]

I can see where gay porn is trending upward, but I don't think it's peaked yet.

 

[FireFoley]

Perhaps if we knew what it was you might get a variety of opinions. Mood rings, pet rocks, used speculums?

 

[bradgator2]

Beanie Babies

 

[FireFoley]

Beanie Babies

My advice

 

[bradgator2]

I really dont see how the object matters here. But specifically, I am talking good old fashion coin collecting. We’re not talking pocket change oddities here. Dealers cannot keep any inventory. Everyone is sorta just scratching their heads. But demand and prices are stupid HIGH and showing no signs of letting up.

No sane person should jump into this hobby as an investment. But when when you buy a rare piece of silver years ago for $200 because you liked the history and beauty of it, and it now costs $1000 to buy the same thing…. Well, then you have thoughts like this. (And multiply that by hundreds of pieces)

 

[Bernardo de la Paz]

I would expect the peak to have some correlation with the inflation peak. But I would expect junk to peak a little earlier than necessities.

 

[FireFoley]

I think the object matters for these reasons. Sure they won't make anymore whether it be coins, dolls, mood rings, etc. But I feel certain items keep people interests like a buffalo headed nickel or certain wheat pennies, vs. a stuffed animal etc. But to each his own.

 

[Concrete Helmet]

I really dont see how the object matters here

You're comparing something like a car, coins or art to Beanie Babies?.....I guess it depends on what you enjoy but it's good to know they have gone up in value since theres a whole big box of them in our garage. Do you recommend Ebay or is there some special way to sell them.

 

[bradgator2]

I would expect the peak to have some correlation with the inflation peak. But I would expect junk to peak a little earlier than necessities.

Hmmm. Do you think it is that simple (tied to inflation)? The sudden runup started middle of last year. My theory is people were stuck at home, bored, getting "free" government money, people were were either firing backup childhood hobbies or starting it new. The weird thing is that this isnt the cheap stuff. Even on the marketplace for commoners... ebay. And for people who have done this for a long time, we are all like, "we aint buying at these stupid prices!".

@oxrageous didnt you mess around with third party graded baseball cards for awhile? You still doing that? If so, has there been a price swing over the last year?

 

[bradgator2]

You're comparing something like a car, coins or art to Beanie Babies?.....I guess it depends on what you enjoy but it's good to know they have gone up in value since theres a whole big box of them in our garage. Do you recommend Ebay or is there some special way to sell them.

I was totally kidding about the beanie babies

 

[Concrete Helmet]

I was totally kidding about the beanie babies

Yeah.....sure you were....

 

[Bernardo de la Paz]

Hmmm. Do you think it is that simple (tied to inflation)? The sudden runup started middle of last year. My theory is people were stuck at home, bored, getting "free" government money, people were were either firing backup childhood hobbies or starting it new. The weird thing is that this isnt the cheap stuff. Even on the marketplace for commoners... ebay. And for people who have done this for a long time, we are all like, "we aint buying at these stupid prices!".

@oxrageous didnt you mess around with third party graded baseball cards for awhile? You still doing that? If so, has there been a price swing over the last year?

I do think it's tied to inflation from the standpoint that the factors causing the run up - the things you mentioned plus the fact that a huge segment of the population hid in their closets and didn't spend any money for a year - are the same things driving the demand side of inflation.

I would expect that as we tighten and people run out of free money, the first thing that will fall out of the budget are things like this rather than rent and gas.

 

[bradgator2]

I do think it's tied to inflation from the standpoint that the factors causing the run up - the things you mentioned plus the fact that a huge segment of the population hid in their closets and didn't spend any money for a year - are the same things driving the demand side of inflation.

I would expect that as we tighten and people run out of free money, the first thing that will fall out of the budget are things like this rather than rent and gas.

Then it's really tempting to play this game due the fact that I was "in" at basement prices and was never counting on a price hike this. Sell everything at sky high prices. Wait a year or so ala Peloton bikes.... or just move on to something else.

Do you know what the tax situation is on something like that? I believe you owe taxes on the difference. If you buy something for $200 and sell it for $1000 at a garage sell... I am pretty certain you owe taxes on that $800 (if the government knows). Now, Ebay actually automatically (and noway to stop it) generates tax paperwork if you sell more than $600 through their marketplace. Unfortunately, I didnt keep proof of any purchase as this has been a multi decade long thing.

 

[Bernardo de la Paz]

Do you know what the tax situation is on something like that?

How Collectibles Are Taxed

The sale of collectibles can lead to a cash windfall. However, proceeds are heavily taxed because collectibles are not considered economic drivers.

www.investopedia.com

 

[bradgator2]

How Collectibles Are Taxed

The sale of collectibles can lead to a cash windfall. However, proceeds are heavily taxed because collectibles are not considered economic drivers.

www.investopedia.com

Thanks, that was pretty close to my basic understanding.

 

[Bernardo de la Paz]

Thanks, that was pretty close to my basic understanding.

Obviously you should fully comply with all tax laws.

There are other places to sell these things besides eBay I assume.

 

[FireFoley]

@bradgator2 here is the answer to your tax question!

 

[bradgator2]

Obviously you should fully comply with all tax laws.

There are other places to sell these things besides eBay I assume.

Oh yeah... plenty of other options.

Personally, I wouldnt sell on ebay. Ebay will take 10%. Paypal will take another 3.5%. And you have to ship.

 

[AlexDaGator]

Sell that sh!t.


Alex.