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Sunday, July 26, 2009

The best comment ever about Book Value

Regardless of the actual argument that was going on and whether you agree or disagree of the value of the card.

Him:

Well, if one just sold last April for $50 and one just sold for $25, WITH A SMUDGED AUTO, than I would say that the book value of $100 is appropriate. Cards generally bring anywhere from 25-50% of high book, and that is what that Mills SPA auto/99 has been bringing.

So, when I first stated that the card had a book value of $100, it was a valid comment, because the card is bringing a normal percentage of what a typical card brings...

Me:
Wow, just wow. You are saying that book value is correct if the card actually sells for 25-50% of that value? Shouldn't the book value reflect the actual value of the card? That is so illogical. How is that appropriate? Someone picks up a Beckett to find out what they could reasonably expect to pay or conversely sell a card for, in this case $100. The card actually brings $25-$50. How could one expect book value to carry any weight?

By that logic Beckett should find actual sale prices on cards and either double or quintuple them to get the book price? You realize that is what you are saying.

4 comments:

Fuji said...

lol... i see where the guy is going... but it just show's that book value is worthless. it's not even a guide anymore... b/c some cards go for 20% of book... some 50%... and some even go for more than book.

i sure hope you're going to post his response. during these tough times, we can all use a good laugh.

stusigpi said...

I understood his comment, but as applied his primace and thus his conclusion fail because "book value" is not meant to provide what he is proposing. His response was not worth posting.

I suppose that sometimes I will look at my 3 year old tuff stuff and if its a card I want I will bid no more than 1/2 or even 1/4, but then what's the point. I am sure that if the book value was what they actually sell for, the selling prices would still be the same. Supply and demand.

We have all picked up cards on the bay for 1/10 - 1/4 of book value especially in lots and book value did not play into our decision as to what we paid. We saw, we wanted, we bought.

thehamiltonian said...

I assume he was talking about eBay pricing, which is generally 25 - 50 % of high BV. Card shows, and other venues usually get much closer to high BV.

For all the complaints, I find 95 % of the time, the price I either buy or sell a card at falls between low and high BV. The few exceptions are usually when someone is hot and in demand.

JRJ said...

That kind of logic is mind-numbing. How exactly does he define "value?"