How the economy of cards work?
Economics forum
Posted on May 19, 2015, 3:56 p.m. by benfit
Hey!
So as far as I understand, the trading of cards is one of the ways, how to significantly reduce the costs attached to this game (both mtg and mtgo). To me it seems, that the actual trading is a bit more strict in the online version of the game, because you rarely trade with people - more with bots, and they have fixed prices for stuff. And its more like selling and buying individual cards instead of trading a card I want for a card you want.
But that aside, I want toknow how the card economy works here. I understand, that upon an expansion or season release, the good new cards will increase in value in time. That is when players will figure out how to use them and with what. Preferably improve their meta-decks. But what about the existing cards. Like is it possible that a card, from say 2013 set, sky rockets in one day and drops in price the next. If so, what makes these spikes?
Can we discuss this topic?
Benfit
NoPantsParade says... #3
Magicrafter is right. Generally buyouts or just low supply. I don't know what happened to Rings of Brighthearth, but I remember picking one up at $5 about two years ago. Someone asked for it, and I checked, and it was about $21 or so. I'm guessing it was because (1) it's been printed once in a set from a while ago (2) it's a casual giant and (3) maybe a buyout. It's normally due to cards suddenly seeing the light of day in a tournament-placing deck.
May 19, 2015 4:03 p.m. Edited.
The good new cards in standard tend to not slowly increase over time - they start high and stay steady or small. Standard does not see slow increases in the same way modern and legacy does.
May 19, 2015 4:20 p.m.
insertcleverid says... #5
The value of a card is pretty much supply and demand. A card's normal life looks like this:
Pre-release Hype causes prices to be, on the average, higher than after release, so prices tend to drop (Narset Transcendent). A few always prove to be much better than most players realized (Collected Company), so those go up.
As standard tests cards and more are opened each day their value first stabilizes, then starts to slip down until Peak Supply is reached. Peak supply typically comes when the set rotates out of Limited. Later, when card rotates out of standard there is usually another drop, unless that card has found a home in another format like modern or even EDH. A bad card will settle to bulk as newer cards make it irrelevant, while a good card's price will typically slowly rise as more new players come around and discover the card. Reprints or changes to the formats that change the demand for the card can cause spikes (bannings, new formats like Tiny Leaders etc). Speculators are always on the lookout for changes like this, and their buy-outs and hype may also cause the card to spike.
May 19, 2015 5:22 p.m.
TheAnnihilator says... #6
As for gaining value off of trading (the "significantly reduce the costs attached to this game" part of the post), you have to be a smart trader in this day and age. Everyone is attached to online pricing methods, so you have to speculate rather than try to snipe good deals.
Trade for a card when its price is low and likely to rise, then trade it away at the peak of it's price. Similar to buying low and selling high.
HolyFalcon says... #2
There's buyouts that cause spikes. Main price increase is from Standard/Modern play, you might see some from Legacy.
May 19, 2015 3:58 p.m.