Quote
I think I know what's up with the magic economy. I think, besides from speculation, that the euro finally is the standard for magic prices. Europe has been importing eternal staples for years now and when I compare the prices of the eu webshops with the american ones, the EU webshops are often cheaper. The reason why US webshops are so close in price and sometimes more expensive is because you guys have to reimport them from Europe. This really makes sense because a lot of the spiked cards have no tournament results to back them up. Wasteland, Exploration and Force of Will in its current dollar price is exactly what we've been paying for them all those years!
Quote
So the US prices went up because the Euro prices were higher, which went up because the US prices moved up to match them?
Hi,
The low Euro/Dollar exchange rate we were experiencing over the last years led to an increase in import prices in the US. This is especially true for Magic cards, where Europe represents at least 1/3 of the world market. US buyers on average had to pay more for their, say Exploration, the more the Dollar decreased in value. It was a time, when everyone was importing cards from the US due to the favorable exchange rate. In that enviroment US sellers were price setting, because they were the cheapest and therefore the guys to buy from.
With the rcent downturn of the Euro that situation reversed. Buying €-nominated cards has become cheaper for the rest of the world. In a world of perfect competition US cards prices would now go down, because importing them has become cheaper and cutting prices would improve ones marketshare. Unfortunatly, that is not what happens. Anyone who has bought a Magic card is unlikely to sell it below purchasing-value. That's true for private sellers as well as for businesses. I call this the "stickyness" in Magic cards prices.
The new *rally* therefore starts at the price level set on the other side of the ocean. And the rising €-prices will in turn increase world-market prices, leading to an upward spiral of prices for Magic cards.
This is just a model, depending on the "stickyness" of cards prices. However i do believe that a declining Euro can lead to a rise in € prices for Magic cards.
Thx 4 reading, bit off-topic =)
