Seriously, who is buying from Heritage/CertifiedLink?

[RH | 5,121]

First, I don't want to throw out that I assume these companies are shill bidding.  I'm not and I'd ask that unless enough people have really solid, legit evidence, don't bring it up further.

Regardless, from time to time I go and check out Heritage and CertifiedLink to see their auctions.  The prices are crazy.  I mean, I get it, post COVID prices are high, but I'm seeing graded sealed NES games that are in fair condition, at best, go for multiple thousands of dollars.  And these aren't even finished auctions.

I'm not asking why are these prices are that high but rather, what is the general demographic throwing those types of digits at these games?  I'm not mad, nor do I think my chances to get some of the more uncommon but obscure games are diminishing.  I don't care so much about that.  Regardless, there are a couple of high rollers around here and from my observation, most people on VGS roll a collective eye at the nonsense that seems to be going on over there on those sites, with the exception of the really rare, highly desirable games.

So... who's buying this stuff?  And why?  This has really skyrocketed in the past few years, and I have no clue who would do this.

Edited August 11, 2020 by RH

[BortLicensePlate | 652]

I can't speak for all of them, but I am guessing this is mostly comic book collectors who are trying to get into games before the prices get too crazy. Crazy for them is much different than crazy for us, considering what some books go for. The problem is, they dont all know video games that well, so they use their comic collector logic to decide what they should get. This is how a common game like spiderman on atari 2600 gets so high. I dont see this being sustainable to be honest

[spacepup | 2,461]

New players have entered the game, for one thing.

For example:

[DefaultGen | 5,668]

I want people like the $9k Spider-man and $9k Pac-man guy to make a Youtube video explaining themselves. Like the people buying 5 figure Marios and Punch Outs think that primo sealed games are going to be millions like the hot 1930s stuff and AF15, so at least I understand their perspective. It's the trash I don't understand. Is it Nic Cage remembering his childhood at any cost or what.

[RH | 5,121]

9 minutes ago, DefaultGen said:

I want people like the $9k Spider-man and $9k Pac-man guy to make a Youtube video explaining themselves. Like the people buying 5 figure Marios and Punch Outs think that primo sealed games are going to be millions like the hot 1930s stuff and AF15, so at least I understand their perspective. It's the trash I don't understand. Is it Nic Cage remembering his childhood at any cost or what.

This exactly.  I mean, it seems there are people entering the market with deep pockets that just think "oh, sealed NES games! Those don't exist! Better pay whatever it takes to build a portfolio today?!"  Again, if it's a graded 9.8 or better, maybe.  I like a decent graded game every now and then, but it's to rich for my blood.  But, seriously, a trash title that's a 7.0-7.5 going for $2,000... well, for those people I have a bridge in Brooklyn I'd like to sell them, and I have a really tall structure in the middle of Paris as well for the international buyers.

Edited August 11, 2020 by RH

[16BitBricks | 59]

They’re Probably Narcos. Remember Pablo Escobar lost an estimated 3 billion dollars a year due to rats eating money in warehouses. Whether it’s $9 or $9,000, either way it’s pennies to some people. Could also be some sort of money laundering scheme (I’m joking but always skeptical). Honestly, it is pretty interesting and kinda fun seeing how high these prices are going.

Edited August 11, 2020 by 16BitBricks

[Reed Rothchild | 9,817]

[Code Monkey | 2,074]

I know some local guys that buy and sell on there, they never keep a game for more than a few months and then roll the profit into something else. A lot of these games have been undervalued for way too long, try to find certain hangtabs or no REV-A or first prints of games and it's nearly impossible. Previously they were worth the same as a later release of the same game but now they're finally getting their own value relative to their scarcity. The prices are simply going to where they should have always been.

[Abelardo | 155]

Seems that what happened is that a lot of "investor" type collectors jumping in right now, perhaps people with a decent amount of extra money and enough interest in video games are fueling all this money into the hobby, and we have more than 10 years of sales data in Price Charting suggesting there's enough stability in the market, so seeing things selling for crazy amounts doesn't surprise me all that much.

These collectors are essentially betting they're going to come out ahead when they sell, a lot seems like dumb purchases but this stuff is being bid up so there are other buyers willing to spend just about as much. Will it work out in the end? Who knows, if you know what you're doing and avoiding trash I can see this might work nicely, but the market can crash anytime, then again they're willing to take the risk.

Personally I'd take my money elsewhere, maybe if I had more than enough money invested in more traditional options I'd start looking into this kind of hobby investments, but that's my two cents.

[T-Pac | 7,774]

I have no clue who is buying these, but it makes me feel bad for all the regular people who like to collect CIB/sealed/graded stuff as this madness spills over into the ordinary market.

I'm lucky I only collect loose, chewed-up games covered in dried grape jelly with 1/16th of a label and used tissues stuffed into the pin-connectors.

-CasualCart

[zeppelin03 | 314]

20 minutes ago, CasualCart said:

I have no clue who is buying these, but it makes me feel bad for all the regular people who like to collect CIB/sealed/graded stuff as this madness spills over into the ordinary market.

I'm lucky I only collect loose, chewed-up games covered in dried grape jelly with 1/16th of a label and used tissues stuffed into the pin-connectors.

-CasualCart

Everyone has their niche.  Though it must be a while between pickups.

[3rdStrongestMole | 433]

Either way, it's good, right? If the market sustains or rises, then all my stuff will jump in price. If not, it will be cheap again at some point to get the sealed games I want

[Sumez | 3,109]

Now here's a market that would be amazing to see just crash and burn.

[Startyde | 175]

It's the perfect storm of swirling ignorance.

CGC and Wata are locked at the hip, so it has pulled all the comic people in who have vested interested in both succeeding. They hype up the rarity of games to one another while being somewhat disingenuous or ignorant of the amounts or variants. For example, I've seen certain comic personalities hype up the rarity and value of certain Atari games that sold high on HA, only to find out they themselves submitted them from cases they have, knowing full well these are not rare. It's that kinda shady stuff that really ticks me off, and necessitates the need for a census.

Besides that, it's just innocent ignorance. People are buying by name only and not knowing the specifics. PS2 games they dont know should have a holostrip, buying greatest hits SNES games not knowing they are less rare, etc etc. A lot of money will be lost, but many of these folks have the cushion to be fine.

It's the small time buyer blinded by nostalgia and setting themselves up for a burn I worry about.

TLDR: Buy whatever you want if you want it, but don't depend on it as an investment. 

 

[sp1nz | 648]

The demographic throwing that money is speculators with low video game market knowledge.

[Tanooki | 5,028]

Which means it's horrid as a buyer and a fantastic market to be a seller right now.  Stupidity and money are a bad combination, unless you're on the receiving end of such a stupid generous donation.

[sp1nz | 648]

True but in relative terms, even though the buyers are being stupid, their purchases probably have very minimal impact on their finances. That kind of misguided demand is the breeding ground for hoarding false grails and market manipulation though. I imagine these types of profiteers are stuck with their fails unless the stupidity keeps rolling forward in the specific circle it started in. The future demand won't be what they assume it is, so getting into the market impatiently with high aspirations and deep pockets from other collecting mediums is a fool's game.

[RH | 5,121]

3 minutes ago, sp1nz said:

True but in relative terms, even though the buyers are being stupid, their purchases probably have very minimal impact on their finances. That kind of misguided demand is the breeding ground for hoarding false grails and market manipulation though. I imagine these types of profiteers are stuck with their fails unless the stupidity keeps rolling forward in the specific circle it started in. The future demand won't be what they assume it is, so getting into the market impatiently with high aspirations and deep pockets from other collecting mediums is a fool's game.

Let's all pray Chinese investors never tap into this market.  We'll never get anything worth owning for anything close to a fair price! Bright side, if that were to happen though, I'd get out and just start using Everdrives.  I love my collections but when markets spiral out of control in an upward direction, at some point it makes sense to just profit and use that money in a better way.

[sp1nz | 648]

This phenomenon is definitely more centered around sealed games but of course there's certain spiking in other areas too, but nothing lasts forever, so collect how you can and like during your lifetime. Still I know of hoarding examples in the CIB realm too, I know someone who had like 5+ Trip World CIBs and bunch of Hammerin' Harrys on Game Boy, either it's searching for the best copy and flipping the rest on the journey or artificial scarcity through hoarding already rare games. Anyway there are no rules what a collector can or can't do in what or how many things they collect, it's on the other collectors to not get roped into a stupid game of compulsion.

[captmorgandrinker | 1,652]

19 minutes ago, RH said:

Let's all pray Chinese investors never tap into this market.  We'll never get anything worth owning for anything close to a fair price! Bright side, if that were to happen though, I'd get out and just start using Everdrives.  I love my collections but when markets spiral out of control in an upward direction, at some point it makes sense to just profit and use that money in a better way.

They might already be in there judging by some of these prices.

[Ferris Bueller | 507]

I bought Dain's Dragon Warrior from them for my collection.

[OptOut | 8,936]

4 minutes ago, Ferris Bueller said:

I bought Dain's Dragon Warrior from them for my collection.

 

You mean... YOU own a CAROLINA COLLECTION TM Dragon Quest Warrior 1??!!?!

 

That's got to be worth like all of the other 15,000 you own combined!

[RH | 5,121]

13 minutes ago, OptOut said:

 

You mean... YOU own a CAROLINA COLLECTION TM Dragon Quest Warrior 1??!!?!

 

That's got to be worth like all of the other 15,000 you own combined!

I reject all of this nonsense. I am in NC, so by definition I AM CAROLINA COLLECTION!

[Bearcat-Doug | 5,110]

I've bought stuff, but the CIB NES prices aren't anywhere near the sealed games.

[Code Monkey | 2,074]

These guys don't seem to have a lot of knowledge on exactly what they should be buying so be ready for them to slowly start realizing what's rare and which variants are worthless. Once that happens, I have a feeling a lot of the non-sealed games will jump in price as well as truly uncommon games like Casino Kid II which is currently fairly affordable.  Good luck finding a box for that game, I've needed a manual for 5 years.