As a recent newcomer to the collectibles market since early September, I’ve noticed the discrepancy between sales, which gives rise to a huge market for arbitrage. That could well be a factor that has caused the recent increase in prices during 2020, as competing arbitragers will try to lock in the best deal (usually above market) while still retaining profits and buy anything that seems under market.
I’m sure everyone is aware the only real way for price discovery to occur organically in this market right now are auctions, and even then they can be orchestrated to be deceitful. There are more reputable auctioneers outside Ebay merchants that we can look to for reference in the broader scheme of things like PWCC and Heritage, are a few to name.
The disparity in pricing derives from scarcity, and therefore a lack of liquidity relative to the rarity of an item and its supply available on the open market. Whenever a sale is fulfilled, there is a window of delay in that item’s price discovery because of the time it takes for that item to be shipped and if the buyer decides to relist that item.
Looking to discuss this theory further and the economics around physical item sales fulfilled digitally.