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Bank of PSA?

calleochocalleocho Posts: 1,569 ✭✭
in PSA Set Registry Forum
PSA is going to start lending money to summiters based on their summisions...

Kind of raises some interesting issues.

Lets say I borrow $1000 and 90 days later i default on the loan. Since the cards i sent are kept at PSA headquaters...my guess its that they now belong to PSA.

Does PSA then sell the cards themselves like a bank would sell a real state property? or on Ebay?

Also they will lend up to half of estimated SMR value...that should ensure that they keep the price guide more current.

what are your thoughts?



"Women should be obscene and not heard. "
Groucho Marx

Comments

  • WabittwaxWabittwax Posts: 1,984 ✭✭✭
    I think it's a great idea. A lot of people have a lot of money tied up in cards. I've never tried to use cards as collateral for a loan, but it seems that having a "financial institution" that understands cards would be easier to get a loan from than a tradional bank. I think this also adds confidence to novice collector's that collecting PSA cards has some real value. If that happens, it should help the card market overall. It's also a nice idea to sort of liquidate your collection for more purchases without having to lose cards that you've worked hard to find.
  • BoopottsBoopotts Posts: 6,784 ✭✭
    I'm sure they've done their homework, but c'mon-- what kind of dealer-- or collector, for that matter-- is ever unable to submit stuff because of the grading fees? If you've got a basketful of '56 Mantles you could just get one graded, sell it, and use that money to get the other 50 slabbed.

    It sounds like it could just turn into a huge debacle. I know I'd be suffering through sleepless nights right about now if I was the poor guy who was slated to organize and manage this program. I wouldn't trust the average card dealer with a handful of '88 Donruss (SteveK can insert the joke of his choice right here), much less be willing to lend them any kind of money.

    Edit to say: Wait, I think I misunderstood. So if you submit, say, a NMT-MT 52 Mantle and it grades an 8, then PSA will hold that card and lend you it's market value? If that's the case then I could see how something like this could be doable, as well as being a service to undercapitalized dealers.
  • calleochocalleocho Posts: 1,569 ✭✭
    CU has a ton a cash reserves ...now they can invest that money at 4% plus prime ...much better than any money market account.
    "Women should be obscene and not heard. "
    Groucho Marx
  • mikeschmidtmikeschmidt Posts: 5,756 ✭✭✭
    If you are willing to pay PSA Prime + 4% for loan money on your cards - it's pretty likely that you have too much of your assets/worth tied up in cardboard.
    I am actively buying MIKE SCHMIDT gem mint baseball cards. Also looking for any 19th century cabinets of Philadephia Nationals. Please PM with additional details.
  • WabittwaxWabittwax Posts: 1,984 ✭✭✭


    << <i>Edit to say: Wait, I think I misunderstood. So if you submit, say, a NMT-MT 52 Mantle and it grades an 8, then PSA will hold that card and lend you it's market value? If that's the case then I could see how something like this could be doable, as well as being a service to undercapitalized dealers. >>



    Yeah, that's pretty much correct. Really it's like taking a loan out and using your cards as collateral, only at 50% SMR though. But, as long as you pay the loan back, then there's no worry about losing the cards. PSA is in a win win situation there.
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