Are we in a magic bubble?
I wanted to share a very thought provocative statement from a redditor.
Bonus: Are we in a Magic bubble?
While it is hard to say if we are in a bubble I can tell you that it is unfair to compare the comic book bubble to Magic's situation.
The key difference between Magic as a collectible vs. comic books as a collectible is this: Magic is a collectible card game. Not only is MTG a playable game but it is also one with that elusive increasing marginal utility. Buying four copies of Tarmogoyf increases the marginal utility of a 'Goyf whereas buying four copies of Action Comics #1 does not increase marginal utility.
From a liquidity point of view, Magic is a much more liquid item than almost any other collectible. While there is no official 'exchange', there are proxies (e.g. TCGplayer and the price tracking sites like mtgstocks, mtgprice, echomtg and mtggoldfish) and actual trading sites like Pucatrade & Deckbox plus numerous forums like Reddit and QS that facilitate feedback on what Magic cards should be worth. This is a big deal.
The reason why Pawn Stars and Antique Roadshow-type programs are such entertaining viewing is because 90% of people collecting those items have NO idea how much they are worth. That knowledge is concentrated in the 1%. In Magic, the data is much more accessible and transparent.
Follow Up Material
Baseball cards as collectibles vs. Magic cards as collectibles is not comparable: https://www.reddit.com/r/mtgfinance/comments/3jkqfs/macro_the_fundamental_challenge_for_magic_the/ Specifically (replace comic books with baseball cards):
Have a read of this Wall St Journal interview with a roundtable of finance consultants that only serves to highlight just how different Magic is from most other collectibles: http://www.wsj.com/articles/SB10001424127887324662404578330651775508058
About the Author
Hi I'm Teeg, the mythical programmer of EchoMTG. I've been a player since 1995, but took a hiatus before middle school, then returned in 2011. Upon returning I was hellbent on collecting nostalgic cards I once had in my collection (dual lands etc.) so I could jump into the legacy scene. Collecting duals needed to be done on a budget, so trading up was the only option. While trading heavily online, I started Echo database (early 2012) to help calculate quick trades. I take a lot of pride as a product author and still love mtg dearly, so Echo is a great avenue for experimental interface designs while feeding into my favorite hobby.
—teeg