Pokemon Hedge Fund Discussion

[budget]

The market cap just feels too low right now for this to be a reality.

[PokemonRadar]

I would like to see a StockX type company startup for other collectibles. Pokemon/MTG/Yugioh could be one branch of a company like that.

[pokeschweno]

@kaldoverde

Actually this post got me thinking about a way to create an investment mechanism that is self contained and prevents speculation. Get ready guys things will get confusing and then boring, and then confusing again.

Basically, instead of having an exchange fund goble up all copies of a valuable card, there could be an online exchange for pokemon cards in which each card is split into shares, something along these lines:

The actual cards would need to be stored at a 3rd party custodian service and inventory would need to be audited regularly. Shares for a particular card would be associated with its PSA cert number to ensure full transparency.
Let’s say @garyis2000 , wants to put one of his shadowless charizards for sale. The card gets sent to the custodian service and split into 100 shares which belong to Gary. He then logs in to his account and puts those shares up for sale. With each share sold, the equivalent dollar amount is added to his account and can be withdrawn.
People showed concern regarding the sale of the actual physical card, however that would not be a problem due to price discovery. If I want to sell my share of the Zard, the card doesn’t need to get sold, only my share does. And the only way it gets sold is if I sell it at a price that is accepted by the market.
This mechanism would not only allow ‘investors’ to sell their physical cards into the exchange and withdraw the funds, but also give them the opportunity to diversify their portfolio by reinvesting the proceeds of the sales into other cards on the exchange if they wish to do so.
Seems like a complicated endeavour, but it would ensure that whoever sees Pokemon cards as an investment would be able to trade on a purely financial platform in which price discovery would naturally be pegged to real life prices without disrupting their organic growth.

Now, the logistics of such a project would require an amount of capital that would only be justified if there was actually enough interest from the investment community which I think (and hope) there isn’t. Should such interest in financial speculation around pokemon cards materialize, I would rather see it in this format than in an MTG style buyout environment.

I’ve been thinking about the concept of a “Pokémon Stock Exchange” for a while now. Haven’t sat down and worked through some of the bigger road blocks and pit-falls, but I do think that this idea has legs…

[chavycat]

I’d love to do this for 1st edition psa 10 base zard. I can’t afford 40k. By the time I’m able to, the price will probably be 70k. I’d love to go in a certain percentage of the cost and ve a certain percentage owner. Majority holder decides when to sell. Then everybody splits the profits. Or other shareholders who want to keep the card can buy out other people’s positions.

[cullers]

@chavycat

I’d love to do this for 1st edition psa 10 base zard. I can’t afford 40k. By the time I’m able to, the price will probably be 70k. I’d love to go in a certain percentage of the cost and ve a certain percentage owner. Majority holder decides when to sell. Then everybody splits the profits. Or other shareholders who want to keep the card can buy out other people’s positions.

I’ll do this with you, but I’m never going to sell my zard. So you’re essentually just giving me money for a claim that you own part of it.