Buy or Sell: Is holding on to expensive Coral like playing the stock market?

BRS

Do you think buying and selling coral is similar to playing the stock market?

  • YES

    Votes: 106 23.5%
  • NO

    Votes: 220 48.7%
  • Kinda

    Votes: 121 26.8%
  • Other (please explain)

    Votes: 5 1.1%

  • Total voters
    452

Waynerock

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That’s why I told my wife I need a warehouse so I can grow a bunch of everything and keep up with the fads and by the time they roll back around after a couple years the stock will be grown back out. Sounds like a good excuse I think she’ll buy it.
 

The Camaro Show

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It can be like playing the stock market, IF you only invest in stocks for short term gains and want to dump it before it plummets. Like investing in that company called Signal after Elon Musk said to "use signal". The price of acros and torches may fluctuate a little over time, but I don't think we'll see a big drop anytime soon in prices. I actually think it will go the other way. Hawaii bans the collection of fish for the pet trade, it's only a matter of time until there are Ausie and Indo bans on coral again, which will drive the price of aquacultured pieces even higher.


Acros drop faster in price because they grow relatively faster than lps like torches, so the price drop is expected as people frag them out and sell them through the FB communities and other platforms.
It may be hard to turn a profit as someone working out of their display tank with a few frag racks and a limited selection. But it can be highly profitable if investments are made, ie WWC and TSA, even smaller operations (single person) can be highly successful like FishofHex.

We all like to talk about the $1200 acro frag or $900 torch that someone sold, but we never talk about the 1,000 other $20 frags that sold in the same time frame.
This is very true, but acros keep their value because they are hard for most people and they die. Now they do drop just look at Homewrecker used to be $600 for a absolute nub now that nub is a 1/2 frag for $150.

The absolute best way to make money is buy when that coral is new and first released and $$$$, because if you think about the people who bought HW first and kept it alive they have had colony’s long in advance before most people had it so have been cutting frags when it was still $$$ and still are today. The guy who just bought the frag for $150 by the time it’s grown enough to frag it’ll be down to $100 a frag.
 

ZipAdeeZoa

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When I buy corals the main thing is that I really like them and would like to work with them. Fragging is something I consider but definitely not for the profit, just things that others might enjoy as much as I do. I work at an LFS and love helping people have flourishing tanks and if I can provide them with flourishing corals that make them happy while off setting some of my hobbies expense and help me take my mind off the insanity of the world- I don’t really see a down side!

I know some people are in it for the money but frankly I think if money is your main concern you’d be better off doing anything else!
 

blasterman

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I've seen some corals stay at elevated prices, but never seen them go from cheap to expensive.. The trend is generally downward as a coral gets propagated and more popular.

Euyphillia for example and many high demand LPS corals have always stayed rather expensive, but this is because demand has stayed high. We've also seen shortages in supply during the pandemic. Reef stores are begging me for SPS that I normally can't give away. Reef swaps in my area are banned due to gathering restrictions, but person to person trading remains strong.

The high profile online reef stores really can't be taken seriously in terms of prices. They have high over head and need to move a lot of coral to pay bills. For this reason their prices are stupidly high for scrub corals some of us use as a nutrient export.

I've seen basement fraggers make good money by keeping their gear costs low and focusing on volume. Basically mini wholesalers.
 

DJF

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If your into this hobby because you think corals and fish are a tool to become wealthy then your reasons for getting into this are completely opposite to mine.
Ha! And you’re in for a rude awakening :) I can’t even cover my electricity.
 

Devaji

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Yes, I believe it is very similar to playing the stock market. To put it in perspective, I am a zoa guy. I have had probably 175 different varieties, but many of them do not hold much value. Just like stocks, a person needs to research the possible value and "dividends" so they can invest wisely. The value I look for most is that it is a coral that I personally like and want in my tank. Only then do I think about fragging future growth to sell so I can reinvest my dividends on others.
I also look at availablity in my area of the types of zoas that I keep. Are the message boards flooded with Rastas? Are Aphrodites still selling for $80 a polyp? Does every dealer have frags of Acid Reflux, Or, Wow! Little Shop of Horrors are nowhere to be seen and I have a hundred polyps! Thats just supply and demand, but research is needed. So....my take:

Penny Stocks = Texas Trash Palys, Pandoras, Mohawks. Sure, you may get someone to buy them from you, but may never buy from you again as they now have a tank full of them. I learned that lesson and will not keep those.

Crypto Currency = these would be the high priced and known to melt if you look at them too much. Stratospheres come to mind....there are others, but I have no experience with these types.

S&P 500's = These would be your proven, good growing, attractive and dividend providers. Varieties like Utter Chaos, Pink Zippers, Rastas, Rainbow Infusions and on and on. Good Investment here.

Mutual Funds = Now this is your best value. Buy a pack of say 8-10 different frags from a hobbyist here on R2R and you can get a great variety of quality frags and maybe even a high end or two for a decent price.

IPO's = These are the high priced polyps that are really nice, but do you take the risk buying high and 2 months from now, every other dealer will have them for half of what you paid.

In conclusion, you can make money selling frags. Researching what you grow and how you will sell those helps a lot, just like the stock market. And remember, that hot coral you saw selling for $100/polyp at last years frag swap, may only be selling for $10/polyp now because everyone has it.
I just wish for once, Jim Cramer would start shouting about my zoas on his show!

you know we live in interesting times when we can compareall the different types of zoas to finical markets...and yet we all understand it....LOL

IDK I think we as reefers should be tying to get as many corals growing across the world of all types as possible as some day, most likley in out life time what's in our tank are it. no more coming in, we need to work together for the future of this hobby. now that said I dont have a problem with someone trying to get some $$ to help cover the cost to grow X frag but IMHO the focus should be getting as many corals out there as we can.

now if you want to invest get some bitcoin ;) you will be sorry you did not in a few years...just saying.
 

NanoReefLovers

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1. Do you consider the "risks" when holding or selling coral that is a HOT MARKET coral?

Nope. I get what I like, usually just a 1” frag and let it grow out. For the most part I have “cheap” stuff (I won’t pay 100’s for a coral. The most I have ever spent on 1 coral is $60). I prefer to trade but am willing to buy if the price is right, a bit more if I really want it. Although I have never, if memory serves, paid more than $60 I would if the right coral was available. That being said; it is what I want, not what I think I can make money on that I get.

2. What do you think about comparing buying and selling coral to playing the stock market?

For some people, maybe. However, I think for the most part people don’t get their money back as much as slightly offset what they may spend in the future.

I would love to “make money” off my hobby, but I don’t think that is realistic to do so and keep it a hobby.
 

UnderseaOddities

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So I have this rock that has a few pretty big WWC Bounce Mushrooms on it that I have grown out over the past few years and I'm thinking of selling it. Thinking of selling it though got me also thinking about coral and how you might "liken" it, somewhat, to the stock market. You can hold and hope for more growth/value or you can sell and cash out while the prices are good or before a tank crash takes out your prized coral. Let's talk about that today!

1. Do you consider the "risks" when holding or selling coral that is a HOT MARKET coral?

2. What do you think about comparing buying and selling coral to playing the stock market?



image via @WWC
WWC_OG_Bounce_Mushroom_WCS07119-SM.jpg
It all depenends soft or hard(in detroit hustler voice

Then trend setting/ snatching comes in take few good pics slap indo on it give it a crazy name(if its not already named chances are it already has a name now) start a good dosing regimen if it iridecent you gotta keeper!(fanboys will want

Next follow trends and prices as well as geographic relevance people in large cities will pay more(view aquaculture as gardening no lawn or trees just cement and builfings) so many city dwellers find zen in fish or coral or house plant.

These people are the onesyou want to sellto the 9 to 5 ers, have thicker pockets(higher minimum wage the larger percaptia the higher cost of living)some stick fan boys and chalice and mushir collectors will pay ridicoulous amounts for that flavor of the week.. so find species specific fanboys from larger cities


Next are people that live by the ocean... as you go to place like wa md ca fl tx you will notice lower prices this is due to geographic relevance... heres my theory most exporters are by the ocean(atleast thats how it used to be) for fresh water and shipping purposes all maricultured specimens come in via plane or boat then are transported again via train plane or truck thrpught amercia, states located by the ocean set the ceiling and floor price here in america(selling off cheaper pieces in bulk lots to the lower 48 then cherry picking the best pieces and selling to local wholesalers who sell to lfs locally then to hobbyist like us!

Next are landlocked states(pretty much were im from greatlakes states,southwest,tornado alley... these are were your fteshwater fish keeper historically now that is changing over time more and more people that are landlocked are turning freshwater displays into saltwater dt woth hob equipment, historically as freshwater fish keepers many still view salt as s mystery(mostly science) and dont like to dish out a whole lot on fish and coral these will be your bobs and barbs that are happy with spending 50$ on two clowns and a gramma and a cuc maybe a nem, as you get into areas by lakes and rivers (transportation and industry was built around water in the american midwest, so where you have planes trains and boats you will have a shipping industry that can support import export logistics, which means fish... however despite beibg in a digitial age alot of tgese people are older and more skeptical of newer technology and dislike the ever inflated post 2008 market, and would rather shop at chain or lfs to save a few $$$ or not have a piece mailed and deal with online vendor and stressof letting money float( in youngstown oh where im from one bounce frag is a months rent or a used car or a month of food so alot of people are hesitant to drop somethiby like 300- 400$ for that new flavor of the week because thats like a weeks pay at a 12$ an hour job) would rather settle for that gsp or 10$ lose mushroom or a 12$condy

Next we have the veteran, he knows what he has he knows what its worth if he or she knows you or likes you youre in like flynn, but you try to flexx and act like a know it all hes gonna hit you over the head with that idiot tax...box charge and tax(even though the guy cant do that legally cuz hes selling out his garage or basement but that what you get for trying to out flex the tlexxer)hes been in this half of your life and hissystem with licestock cost more than some peoples houses, he also knows what he wants, keep your eye out for the wiley vetran they can be the best person to find a deal or the worse person to buy from online its all situation dependent

Last you have the collector, these are classy edicated people who keep fish and coral for the clout(drs dentist lawyers teachers)... they want that one and only..alot of these people are karen types supe bougie aquarium keepers(have more money than time so they pay to play) even if it mean losing 1000$ fish they want all the reward and ussually have large systems and pay someone else to get their elbows wet
They grew up watching le wonders of le osean! With jaque coustau and their six kids whos names all begin with k aswell) watched the little mermaid spongebob and nemo so like i had to have one... these are the people to watch out for the ones that hace mobey to throw away on an impulse buy and because theyre working 40 to 60 hours a week they arent observing because they physically arent their andthe tank get lfs or company to service system(which i tottally understand if anyone does this it sound like im ranting but im not, some just physically cant be there but still want the aethsics of a dt

Those are the types of buyers
 

UnderseaOddities

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Hottest selling corals here in ohio are unamed mushroom that were common pre ban but now have become extinct to bounce or jb , multi colred kenya tree(common before 2010) now youll see a whole saler have em once a year, and chalices imo these will always keep their value mushrooms then leathers then chalice from a seller cillector aspect(so many expressions gotta catch em all)
 
BRS

Speaking of your latest coral purchase...

  • It was a GREAT deal

    Votes: 98 36.0%
  • It was a good deal

    Votes: 88 32.4%
  • It was nether good nor bad

    Votes: 65 23.9%
  • It was a bad deal

    Votes: 17 6.3%
  • Other (please explain)

    Votes: 4 1.5%
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