MTG – Five Things to Know Before Getting into Magic Finance

There is a faction of Magic players and collectors
who are deeply invested in the game and play the financial markets associated with it. Some see these types of people as data gurus
who manage to make money off of a card game, while others may view them as evil hoarders
who are a detriment to the game. Say what you will, but I’m one of the people
who loves the secondary market aspect of the game. I’m your host Mike and here are Five Things
to Know Before Getting into Magic Finance. Personal Finances Come First
This doesn’t just apply to Magic Finance, but to investing in general. If you’re living paycheck to paycheck and
have debt, then you really should not be investing in anything. It is far more important to make sure you
have your own personal ducks in a row before even thinking about risking your money. Investments are just that – risks. It’s not uncommon to regularly see people
who are asking for advice about getting into Magic Finance, but they quickly reveal some
concerning details. Often, these types don’t have a lot of money
to back up their investments, and even go as far as to state that they know nothing
about the game. I consider Magic investments to be more risky
than an average stock, so quite a bit of research should be done before you dive in head-first. Grading Cards is Rarely Worth It
While browsing Grand Prix Vendors, it’s hard not to notice that some carry very high
end cards in excellent condition. Grading can do a lot for a cards value, adding
hundreds of dollars for each half point of quality in some cases. That being said, grading cards is rarely actually
worth the additional investment. What I as a player consider to be Near Mint,
and what I consider to be Near Mint as a collector can actually be pretty far apart. Small surface scratches and dings on the edges
may go unnoticed to the person playing with a card, but are heavily scrutinized by card
graders. This means that you will rarely ever have
an old raw card that is in good enough condition to grade, unless you cracked it open and kept
it protected yourself. Except for very high-valued cards like the
original Moxen, a grade below a 9 will not usually increase the value of the card that
much. Given the costs of grading, shipping, and
insurance, you might actually lose net value on grading a card. Without dealing in volume, the total cost
of grading a card can easily reach $40. Understanding Authenticity is a Must
As with any high-priced collectible, it is incredibly imperative to understand how to
verify authenticity. Perhaps the easiest way to do so is to send
the card to a major grading company such as PSA or BGS. However, as we highlighted in the last section,
the cost of grading a card is usually not worth it, and you wouldn’t want to spend
nearly $40 to grade a card that might be worth only $20. There are a number of do-it-yourself techniques
for testing authenticity, but the easiest and most reliable way of doing it yourself
is to get a jeweler’s loupe or USB microscope so that the card can be examined under heavy
magnification. The loupe I use has 30X and 60X magnification
lenses. There are a number of features that can be
examined for authenticity, so check out our video which goes through it in detail. Basic Accounting and Price Tracking
Remember that boring accounting class you took? Of course not. But if you’re going to treat investing in
Magic seriously, then you have to be ready to do some basic accounting. This includes inventory and price tracking,
along with calculating net values and profits. To be successful in a collectibles-based business,
you need to understand when the correct time to buy and sell items is. Price tracking can be a part-time job and
can require you to use a mix of sources to get a good pulse on the market. Separate your Finance game from your Magic
game This can absolutely be one of the hardest
points to pick up. If you’re going to invest in Magic, you
will probably lose money at some point and it’s important to not let that affect your
love for the game itself. On the reverse side, just because you really
like something in the game doesn’t mean it’s a good idea to try to speculate on
it from an investment standpoint. For me, playing the Magic finance game actually
enhances my love for the game overall itself, but it only takes losing a few hundred – or
thousand – dollars to really chip away at you. Best advice for this? Keep your budgets and inventory separate;
don’t spend your play money on investments and don’t sell your pool of playing cards
for investment money. Those were Five Things you should know before
getting into Magic Finance. If you’re new, do you feel comfortable about
jumping in? If you’re a veteran, what additional advice
would you give? If you liked this video, please leave us a
like down below we’d really appreciate it. If you’re not subscribed, you’ll want
to hit that subscribe button and turn notifications on so you get alerted when our next video
comes out. Until then, thanks for watching.

Author Since: Mar 11, 2019

  1. Rule #1, always and forever! Seen a lot of people forget that rule. Great tips 👍😉, any plans to add to the list in another video?

  2. It's highly risky and anyone who is considering on doing it should have a back up plan, just play and enjoy the game for what it is !

  3. Nice vid Mike! I was surprised to see that visual shoutout for MTGLexicon, you’re welcome back on our stream whenever you’re ready!

    I’ve definitely made MTG Finance mistakes in my day, this is a good primer for people starting out

  4. I think the thing that I like most about this is the telling authenticity of the cards. It’s something I really want to learn more about because I make trades and buy singles as much as the next guy but it’s peace of mind when I know they’re real.

  5. Finance is one of those areas I have mixed feelings about because of the potential for sketchy characters and the fact that the cards I love are never the ones that are worth anything.

    That said, I really like the way you've laid out the topic with some sound, cautious advice about balance and risk. Well done!

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