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Supply and Demand. These are the two factors that dictate a card’s value. The Invisible Hand, a metaphor used by Adam Smith, matches up the supply and demand curves to identify the appropriate price for a given item.
As much as it may pain dissenters, Magic Cards are no exception. Supply and demand dictate price – the only way to materially impact the market is to alter one of these two factors in a lasting way.
I use the word “materially” because artificial, short-term impact to supply or demand will not have a lasting impact on price. It may lead to ridiculous people trying to get greedy by charging an exorbitant amount of money for a card, sure. But that doesn’t mean the price is truly “changed”, no matter what mtgstocks.com tells you.
Allow me to explain further and provide some context.
Motivation
Last week, Jason wrote a terrific piece warning people who become excited by the notion of a card’s low supply. He cited multiple examples where a low supply on a card could incite panic despite there being no need to rush out and buy copies of a card. The example he cited was in my opinion the worst card in Magic: Sorrow's Path.
Last week I also entered into a heated debate over a Tweet I sent out.
This tweet was direct inspiration from Jason’s article. There was an edgy sarcasm to it – recognizing that Judge Promo Command Tower was extremely low in stock for weeks, I figured I’d share my observation. Those who read Jason’s article hopefully found the humor in the Tweet.
Unfortunately, some others decided this was an outrageous communication for me to make.
The last tweet above incited grand debate. Fortunately, all parties were highly civil and I left the discussion with some new insights.
So I’m calling that a win, despite the momentary increase in heart rate I experienced. Allow me to elaborate…
ZOMG – A Case Study
One day I came across a thread in the QS forums discussing Command Tower. About a zillion copies of the card exists, but many theorized a rise in popularity of Tiny Leaders could lead to increased demand for the mana-fixing land. Adam Smith tells me an increase in demand leads to a increase in price.
Certainly seemed like a sound thesis. I bought 12 copies.
But then I had an epiphany – what are Judge Foils selling for? If those are cheap, I’d rather put my money into those versions. If Tiny Leaders truly is like Legacy Light, and if many Commander players still like to foil out their decks, then demand for Judge Foil copies should be even juicier relative to the far smaller print run. Right?
Well to my surprise, there were a whopping 8 copies in stock on TCG Player. Star City Games was sold out, eBay was nearly sold out, and other sites didn’t have more than a copy or two. So I decided to buy 3 Judge Foils from TCG Player, leaving just 5 behind.
This did not have an immediate effect on the card’s price, but let’s face it: in terms of availability on the internet, I virtually reduced the supply by roughly 30%. I found this perplexing. Using Jason’s article for inspiration, I decided to send out my tweet sharing my observation.
Two things happened. First, I initiated a heated (yet civil) Twitter debate. Second, this:
This is all my fault, right? If I hadn’t mentioned the scarcity of Command Tower, there’s no way those 5 remaining copies would have been bought up so quickly. It’s not like people actually WANT fancy Command Towers for their new Commander and Tiny Leader decks, right? /sarcasm.
FIVE COPIES!!!! Supply was SO low on this Commander staple that any shift in demand – real or artificial – would have triggered this kind of jump. I’ll admit it’s possible I may have accelerated the 5 copy buyout of this card by tweeting about the low supply. But demand for the card is strong, and increasing. With supply being so low, the ensuing price jump was inevitable!
Fly In My Ointment
Here’s the part I don’t wish to be held responsible for – the new “price” on the card. $49.50? Give me a break!
First of all, this “price” is an artifact of mtgstocks.com’s pricing algorithm. There are only a few copies on TCG Player, so naturally the greedy sellers trying to capitalize on hype will temporarily dictate the price. It’s the same reason we saw a rapid spike in Whispersilk Cloak only to be followed by a rapid drop back down to reality.
This is the way pricing works. A sudden increase in demand does lead to a rapid rise in price. However, as the price rises, more sellers dig through their binders to try and sell their own copies at the new price. After all, everyone has a price at which they’d be willing to sell a given card. That’s the way the supply curve is drawn.
Coming back to Judge Foil Command Tower, this new “price” is only an interim step as part of the ensuing drop back down to reality. I don’t expect a $50 price tag to suddenly stick simply because I tweeted about it.
One quick look at recently sold copies on eBay supports this argument in spades: Not a single copy sold yet at the new price.
What if the price does stick, you ask? If the price sticks, it’s not because of my tweet. It’s because of the fundamental shifts in demand that inspired my purchase in the first place. People want copies more, and supply just isn’t available enough to match the growing demand. Thus the price rises.
It may overshoot a bit, but eventually the Invisible Hand gets it right. It always does.
Wrapping It Up
The major retailers currently have both foil versions of Command Tower in the $30 range, although some are currently priced higher. Given the likely long-term rise in demand and short supply of these premium cards, I’d say that kind of price increase is perfectly reasonable. I could even see $35 if Star City Games continues to remain out of stock for too long. I know I’m not willing to sell them my copies at $15, their current buy price.
Are you? If not, then expect them to increase both their buy and sell prices until they do have some in stock.
If they decide to increase their buy price, are they “manipulating the market”? Not at all. They are trying to get a sense for where the Invisible Hand is taking the price given the shift in the market. Only they’re doing it the right way – gradually increasing prices until they have supply again.
The sellers on TCG Player are doing it backwards. They are starting with an astronomically high price hoping to find a greater fool. But watch the race downward – it’ll be fun to observe. Prices will drop and drop until a buyer is found, establishing that new price.
As for my tweet? By this time next week, most will have forgotten about it. But they won’t forget about the ubiquity of Command Tower in both Commander and Tiny Leaders.
I may have caused a (silly) sudden spike in demand based simply on a scarcity metric – a mindset I condemn right alongside Jason. But the change in price was not my doing. The short term price change is being driven by an mtgstocks.com algorithm and greedy sellers. The long term price change will be driven by the increasing demand for this staple.
I feel an obligation to make one last defensive statement: I was NOT one of the greedy sellers charging $50+ for my 3 Judge Foil Command Towers.
In fact, I don’t even have a TCG Player account. If I was, then I would certainly deserve the accusations of coordinating a pump and dump effort. But my 3 copies are sitting tight in my binder. One of them will almost certainly make it into my Tiny Leaders deck, while I plan on sitting on the other two until the market stabilizes. After all, the $50 price tag may not stick in the short term.
But barring another foil printing in the original artwork, I see values even higher in the coming years. This is an investment made for the long haul. Fundamentals look terrific for this investment, with demand surely to increase against a fixed supply.
Adam Smith doesn’t need to tell us what that means for the price trajectory.
…
Sigbits
This Sigbits segment is very similar to my Command Tower tweet. I use this section of my article each week to highlight cards which are low in stock at Star City Games. These statements are for informational purposes, and are not meant to incite buyouts. That being said, low supply often does correlate well with high demand and could indicate a pending price increase. Hence my segment.
- After spiking initially, foil Abrupt Decays have stagnated. My guess is that too many speculators were in the kitchen, and now the market supply is a bit flooded at this higher price. Star City Games has 37 copies in stock, including 10 NM at $69.99. Meanwhile they are quite low on nonfoil copies – 0 NM at $12.29 and just 16 SP at $11.05.
- What began as a longshot buy for self-amusement has turned into one of my worst decisions in quite some time. I bought a set of Mishra's Bauble a couple weeks ago for around $14 shipped and promptly sold them for marginal profits when the card had zero impact on the Modern Pro Tour. Apparently that didn’t matter. The card has continued to skyrocket in price and Star City Games is now sold out at $9.99! Even a small increase in demand can do amazing things to a card’s price if supply is low enough. (see: Judge Foil Command Tower).
- Here’s one I almost missed: Karrthus, Tyrant of Jund. You know, that sweet dragon from Alara Reborn that can take everyone else’s dragons? There are currently only three sellers on TCG Player with this card in stock, although they have 15 copies amongst them. There are also 0 foil copies in stock. SCG has just 5 nonfoils in stock themselves, with 0 being NM with a $19.99 price tag. They also have just 1 foil in stock, in MP condition, at $24.99. I’m sure it’s going to be bought up quickly. I just sold my 2 foil copies on eBay myself for an average of $41. A quick shipping and fee calculation, and I don’t think there’s a ton of profit on the single MP copy. But if you have store credit with SCG, you could do FAR worse than buying up these from them.





































































