All posts by Ross Lennon

I've been gaming MtG finance since artifacts were brown. Longtime magic player and TO. Loving husband and father. Cube > Commander.

PROTRADER: The Next Big Move

Okay, so today is the street release for Eldritch Moon, but we aren’t going to spend much time talking about that set. Instead, I want to talk about Kaladesh – or more accurately, the rotation accompanying it.

I can’t tell you how many times I was asked last week at FNM about “what’s rotating out”. Okay, so it was probably somewhere around four or five times, but still– that’s a lot of times to be asked the same question by a small crowd of people, especially when the answer is a pretty simple “nothing”. For whatever reason, the new (simplified!) rotation schedule has not yet trickled-down from the enfranchised players at the top to the lower-information players at the bottom1.

This really got me thinking however, and I think this is the best time to begin optimizing for the upcoming transition. One of the interesting, non-partisan elements of the current election is the discussion over how the transition will be made next January, even if the Democrats end up keeping the White House. It’s been compared to a new CEO taking the helm of a giant corporation, except that it’s unarguably even larger in scope. Both of the major parties have spent the last several months discussing how the protocol and procedure of such a move would take place; this isn’t as a means of political bluster, but as a way to avoid any costly hiccups or oversights. Stability and continuity is going to be the name of the game. Why should we approach Standard any differently?

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I mentioned the non-rotating rare lands a couple of weeks back, and this is certainly the foundational level of looking ahead. Being able to actually cast your spells is pretty important, and even though both cycles are going to have a tough time breaking into Modern, it’s not crazy to think that either SoI’s or BFZ’s lands could be commonly played in full sets. The Shadows lands all have a full year left in Standard, so the appeal of buying in at roughly $2 each now seems like it could easily pay off at some point in the next twelve months. My favorites here are undoubtedly Fortified Village and Port Town (White is VERY strong right now, and surprisingly deep in terms of deckbuilding options), but it’s worth mentioning that the red ones feel at least somewhat artificially depressed- don’t forget that R won like 3 Pro Tours in a row and could easily win another in the next year.

Building off of the revolutionary concept that Lands are good in Magic, the next look is to finding dynamic, standalone threats. It you look at winning games from the “Top Down” perspective advocated by Pat Chapin, then look for the things that are going to win you games either in immediacy or in essence just by casting them. One of the first things on my list here is actually a new card, Elder Deep-Fiend. This card saw a pretty interesting bump during preorders, and is probably going to see a small price shrink in a month (unless it is literally half the top 16 or more of PT:EMN, which is possible). Right now, it’s like the 2015 Minnesota Vikings or 2016 Jacksonville Jaguars2, a darling among the pundits that is going to have to prove the larger pools of doubters that they are legit. Emrakul is in this conversation to a degree, but she is definitely priced too high at $15, and I’m happy to wait that slump out.

Ulamog at $12 is only slightly more appealing, but World Breaker at $5 seems like the smarter play. World Breaker in application seems to certainly do enough to get the job done, and in conjuction with Drownyard Temple is able to take over most situations. The deckbuilding costs with splashing green for World Breaker are not terrible, since two or the best creature lands (Hissing Quagmire and Lumbering Falls) are simultaneously in G and the two best control colors. Staying in green, Cryptolith Rite seems like a solid buy at just under $3, especially since it’s high water-mark was more than twice as much. Cryptolith Rite is going to be in Standard just as long as Westvale Abbey (a tricky call at ~$7, but a powerful and broad threat nonetheless), and the two cards certainly pair well together. The trick here is to look for things that are good on their own, without relying on potential synergies that may prove too hard to bet on with yet-to-be-known mechanics from future sets.

A big reason why this is so important to focus on now is because Eldritch Moon rares/mythics are currently all at inflated values. The potential to convert something like a Liliana, the Last Hope into twelve or thirteen Fortified Villages seems like a trade that won’t be possible in a few weeks. Gisela, the Broken Blade was one of my favorite cards coming out, but I’m not sure how long she can maintain $24 without having that crucial fourth point of toughness. Spell Queller, the fifth most expensive card as of me writing this, is over $12 and still just a rare — I expect that value to crater as the set gets opened en masse. Heck, even Ishkanah, Grafwidow is floating around $10, and that card’s best home is probably Gauntlet Legends: Dark Legacy3.

Decimator of Provinces has already seen a slide down to about $5, and even though I think it’s probably safe there for a while (unless the card proves to be literally useless immediately, which I don’t think is possible), I think more mythics will be joining it by slipping down a few bucks in the short term. Consequently, cards from most of the other sets in Standard (not just DTK and Origins, which are entering their senior year) have had a small dip in value, making this the best time to buy most of the cards from any set BESIDES EMN.

Speaking of Origins (kinda), the slow burn on Jace, Vryn’s Prodigy is incredible to me. I’ve officially started targeting them aggressively, and if they get much lower than their current $30, expect to see someone with the capital stage at least a partial buyout. This card plays perfectly with the environment of the next few months, and is a proven player in Standard AND the Eternal formats. Ask yourself this- is there any point in the next 5 years where I would rather have a Tamiyo and a Grim Flayer OVER a Jace? This price drop feels like what happened years ago with rotations, before players realized that good cards were good even after they left the marquee format.

What do you think? Which cards do you think are safe or appealing in three or six months? Which EMN rares are best to trade away now?

Best,

Ross

1[‘condescending smirk’ emoji].

2DUUUUUUUUUUUVAAAAAAAAAAALLLLLLLLL.

3The PS2 version, obviously.

UNLOCKED PROTRADER: CYAs

Hello, and welcome back! We are just a little over a week past the release of Pokémon GO (AND ‘Stranger Things’ debuts today on Netflix!), so who knows if anyone even plays Magic anymore, but for those of you who are holding strong… let’s just get this over with. I think I see a Poliwhirl outside!

Poliwhirl

Magic’s secondary market is a largely unregulated economy. This is often held up as some sort of positive- be it an example of elsewhere unattainable libertarian ideals (fart noise) or a snarled inside joke out of the lips of ferocious jackals. In truth, there are both pros and cons to parking significant capital into an investment vehicle that has pictures of wizards and goblins on it (shocking!). One of the long-time issues in Magic specifically has been a lack of consumer and investor tools to operate as insurance against the various causes of loss (rough transition, I know, but we are powering through). The recent release of PucaShield has sparked an interesting conversation on the subject of consumer protection (as well as the larger impact of the site’s economic structure), so it’s going to be one of the topics we cover today. The rest are going to be various intersections of Magic and insurance that you should be aware of. I’m also going to be making today’s piece free, since it addresses very important needs that could impact the operation of local game stores. If you or someone you know operates a game store, make sure they at least read that section. Today’s title is taken from a well-worn term of insurance-insider jargon, referring to the sufficient methods and means of covering one own’s ass. In the interest of covering MY …self… let’s get the following out of the way off the bat: what follows is merely advice and neither myself nor MTGPrice are responsible for you being a knucklehead and doing something without first consulting a licensed professional. Yada yada yada, on with the article!

CYA: PucaTraders: So the inspiration for today’s piece was the introduction of PucaShield. This feature serves a few different uses, but it is primarily intended as a means of insurance against shipping/scummy traders/etc. The rate of the coverage is based on a percentage of its value (3% for free users, 2% for silvers, and 1% for golds), and can be purchased on a card by card basis. This means that while you may want to take a risk sending those $3 rares, you have an extra layer of protection when sending out something like a Mox. On the other hand, if you ARE sending something expensive, this sets a barrier for what is reasonable to otherwise spend on shipping (a Beta Mox Ruby will cost you about $43 worth of Puca Points, where as most reasonable USPS options will be significantly less). The way I am approaching trades has changed immediately, and I’m going to share my most recent batch with you below to explain why.

All trades were sent out this week.
All trades were sent out this week.

If you previously determined trades based on bonus offers, you may have a second consideration- cards in the ~$1 range that are on want lists. By committing to send out those two Burning-Tree Emissary, and purchasing insurance on three of the four cards in that envelope, I’ve guaranteed that the majority of the value in that package is going to be covered. Additionally, the point value earned by sending the uninsured copy essentially paid for all of my insurance for every trade listed. Since I’m expecting a couple of bounty bonuses also, it fudges the math to make the insurance about even with the 95pt uncovered Emissary.

The fascinating element to this (that we will go in-depth on as the results make themselves apparent) is that PucaTrade now has a points “sink” that may end up helping to combat inflation in the system. The potential here is that the Puca Point rallies back to toward the strength of the penny, rather than plummeting like the pound.

CYA: HOME OWNERS: Now, this paragraph is going to be brief for a few reasons, but the gist is this- there is no simple and easy way to truly carry insurance coverage on your collection. The problem is that most collections are living entities in the sense that it changes over time. If your cube stayed the same for the rest of time, was itemized, and your existing agent was able to put something together that would give you coverage in the event of your home being destroyed, that would be impressive. But, since people buy, sell, and trade cards, not to mention take them to events where theft has been on the rise, you’re going to have a rough go of it. Additionally, home (/apartment) insurance has some wrinkles from state to state, so what may work for someone won’t necessarily be an option for you. Ask around, explain the situation to your agent, and see what they can come up with.

The easiest thing to do, of course, is become extremely vigilant in where you bring your collection and what you do with it out of the house. This won’t cover things like fire and flood damage, but there are prevention techniques that you can take to minimize the frequency or the severity of those hazards.

Story Circle naming "Hazard Loss".
Story Circle naming “Hazard Loss”.

CYA: STORE OWNERS: Now, just as is the case with individual collectors (above), your available products and requirements may differ based on the rules and regulations of your state/province/country. Make sure that you consult your insurance agent before requesting any changes to an existing policy.

Okay, so as a business owner, you (should!) have some combination of the following insurance products:

Commercial General Liability: This is essentially your “whoopsies!” insurance, protecting you from stuff like slip-and-falls, pretend slip-and-falls, and anything else that may occur during the standard operation of a business. If you don’t own the building you’re in (and even if you do!), you should make sure that your landlord is listed as an additional named insured here.

Property: This includes both real property (buildings) and what’s called ‘business personal property’ or ‘contents’ (stuff). This is actually pretty tricky with regards to card shops, so we are gonna run through the rest of the list really quickly first. Put a mental pin in this, though.

Worker’s Compensation: If you have a certain number of employees (determined by your state), you may be required to carry WC coverage. This isn’t a Health product, but it covers them in the event of an injury during the course of business. Non-employees injured are covered under that first one, General Liability.

We’ll talk about additional coverage options later, but those are really the big three. Back to property though- most businesses that sell a product have a specific cost tied to the acquisition of that product (be it a wholesale price or the cost of materials and labor). That’s called the “Replacement Cost”, and it’s pretty much the basis for most property insurance policies. With Magic cards, however, you only have a clear replacement cost for booster boxes (the price on your invoice)- meaning that if that Mox Sapphire goes up in flames, you are going to have a hard time litigating with your carrier that you need a new one (while answering the question, how much does it cost?).

When I cover a card store, I ask one major question: “How much money do you need to get an inventory/furnishings/technology that can get you up and running again?”. This number should include computers, tables, and anything else if you were starting from scratch. Be aware, you are mostly insuring against hazard loss (wind, fire, water, heart), and theft typically won’t be included unless you have some serious security in place already.

Maybe don't let this guy show up at FNMs, either.
Maybe don’t let this guy show up at FNMs, either.

The only other thing to mention to your agent is that you DO have a regular schedule of events. Some carriers have tried to distance themselves from game stores that run things like tournaments, simply because it means they are open more and later hours, and more time is just more exposure.

That’s all for today, hopefully this was helpful to you or someone you know. Oh, and here’s what I’ve been spending a lot of those incoming puca points on, as a heads-up for the next two Standard formats:

Port Town

Fortified Village

Choked Estuary

Prairie Stream

When DTK/Origins rotate, we are going to be looking at a format that has two VERY powerful UW creatures (Reflector Mage and Spell Queller), and having the mana to cast them is going to be crucial. All of the above lands are less than the price of a booster pack (Canopy Vista is currently around $3), and these feel like potential steals in a few months. We don’t know anything substantive about Kaladesh yet, but the set will have new lands- but expect these to still see a raise in market share as things like the pain lands cycle out.

Until next week!

Best,

Ross

UNLOCKED PROTRADER: Design, Development, and Branding

Hi! For those of you who are new, and hopefully that’s at least a few of you, I’m Ross. If we think of Magic columnists as being niches like “EDH people” or “vendor folk”, then I’m probably… Abe Simpson?

grandpa_simpson_yelling_at_cloud

Typically this column is for ProTraders only, but I like to do some broader pieces every now and then as sort of a way to grow the collective understanding of the finance community. Magic is currently comprised of a large pool of relatively new players1, and I think that the market operates more efficiently if all of the actors are well-informed. Also, if I knock this one out of the park, I figure that James might invite me to co-host an episode of Fast Finance with him while Travis is out roaming wild and free across the European countryside.

All that being said, today’s article is about some of the explicit and implicit guide-rails of Magic design and development. While you don’t have to be a good Magic player to succeed in the finance realm, you will really benefit from understanding the directions that the game is growing in (and simultaneously what is being phased out!), as it gives you a better understanding of future growth potential. These elements can be derived from both trends in design and development (color pie definition in the case of the former, “knob-turning” in the case of the latter), as well as modifications to Magic’s brand. The first two are probably things you’ve either heard before (or have subliminally inferred, especially if you read/listen to Mark Rosewater a lot), so most of our time will end up being spent on that last topic. So let’s do like I did in high school and just speed our way through all this D&D talk.

DESIGN: Of the three pillars we are going to discuss today (Design, Development, and Brand), this is probably the least important, at least as far as finance is concerned. Design is constantly pushing outward into new creative space, and is the source of cards and mechanics that have never been seen before (albeit informed by both Development and Brand choices). Once you’ve endured a spoiler season (and we’ve got one coming up!), you’ll understand why speculating purely on new design is a risky (and often disappointing) mode of operation. However, Magic design is not governed by naïve whim and folly2, and there are a lot of elements at work that guide set construction (really trying to not bleed into development here, but you see why I said that was more important).

The color pie is one of Magic’s most valuable assets, and having it be well-defined is an excellent baseline for future expectations. For example, Red is currently the color of “Fast Mana” or Ritual effects- therefore, it is foolish to anticipate White getting it’s own form of Rite of Flame any time soon. Now, while this may seem obvious, apply it one step further- blue is just about as unlikely not to get its own Rite of Flame, but there are serious implications in eternal formats. This buoys the value of a card like High Tide (which is the closest to a Blue ritual that we will ever get), which in turn reinforces the cards that are dependent on High Tide being the best available option. If [THEORETICAL BLUE RITUAL] were to become a real card, it means that cards like Turnabout suffer by association. Now, High Tide and Turnabout may not be traditional “spec targets”, and cards like Time Spiral are probably really good either way, the core concept remains that a card’s value (both monetary and in a more performance-based sense) are dependent on several associated cards. Knowing what the color pie does or does not allow enables you to make more informed decisions about what is likely to come.

High_Tide_FE
An important part of Magic Finance is learning that cards are largely contingent on other cards.

DEVELOPMENT: I love development, and I think that it gets under-discussed relative to design3. Ultimately, Development is a huge factor in Magic finance, in the sense that it helps define and reinforce the (relatively abstract) concept of playability. Whereas designers come up with concepts and ideas for cards, it’s developers who cost and tweak those cards to fit within existing environments- and their choices can have major impact.

Development uses a concept called “knobs”, which refer to values or characteristics on a card that can be changed in their stage of the process (common examples are mana cost or power/toughness). If the team working on a new set feels that they want a card to be more aggressive, these knobs give them different means of finding that proper feel (by either making it cheaper or easier to cast, or by giving it higher stats than comparable cards at a higher cost).

It is important to point out, if you haven’t noticed before, that most Magic sets (and certainly all them since R&D got their act together4) follow a similar recipe. Every large set is going to have certain key elements (these are, not coincidentally, also tentpoles of the various color philosophies), and the importance of Limited play has helped to solidify the role of this skeletal structure. For example, every set is going to have some form of mass removal spell (a la Wrath of God), enchantment and artifact removal at common, as well as more brand-centric things like iconic creature types (a rare Dragon in every set!). Where it is Design’s job to compose new variations on these themes, it is Development’s to make sure that those are fit to print, and in the longer term, shape the baselines for future versions.

Take, as a popular example, Wrath of God. Originally printed in Alpha, it is considered the iconic mass removal spell. When Wrath was first printed, the understanding of Magic gameplay theory was literally nonexistent- Garfield and friends were just hoping their new game would sell! Since Alpha, however, WotC has refined the understanding of how games function (shifting primary interaction from the stack to the battlefield, for example), and this has resulted in some long-term changes. Wrath of God is no longer printable into a new Standard format, because the baseline for a mass removal spell is somewhere higher than [4]5. Likewise, new iterations of Birds of Paradise are extremely unlikely to cost [1], as that ability has moved to a baseline of [2]- or in the case of Honored Hierarch, something that at least can’t generate mana on turn 2.

The safe money here, as was the case with the design portion, is largely in where Development ISN’T going. In constructed formats with large card pools (Modern, Legacy), there is significant value in prioritizing converted mana cost, even at the expense of the actual ability. Therefore, cards like Wrath of God and Noble Hierarch are going to have additional equity built-in to the fact that they are now above a bar that cannot be applied retroactively (unlike Hearthstone, you can’t patch Magic cards!). While this means that cards like Wrath and Hierarch are unlikely to be replaced by something new and better, it also limits severely their reprint options- the best way to increase supply of an old card is to get it into a Standard legal set, because it will be printed for a year and opened in tremendous quantities compared to any other product. When this window is shut completely, you are more likely to reprints resulting in either buoying or increased prices due to inability to meet demand. Alternatively, by understanding what the development guidelines are for certain effects, you can identify future Standard role players early in their life cycle (as was the case with Languish when it was easily found at around $2).

BRAND: Of the three topics, this is the one I’ve previously delved into the least. This isn’t to say that it is unimportant, only that my understanding of how it shapes Magic was incomplete. The thing that helped it click for me (and was the impetus for this article) was me reaching the following conclusion:

WotC is NOT reprinting Liliana of the Veil in Eldritch Moon.

This is one of those things that is really difficult to explain to people who don’t have a broad understanding of how the game functions from a marketing perspective. While Liliana of the Veil (henceforth ‘LotV’) would certainly be cool in the new set (and reprinting a $100 card would be very considerate for those who want copies but can’t afford them), it doesn’t help Wizards define Eldritch Moon or Liliana as unique moments in Magic’s canon. The new Liliana is going to be reflective of Innistrad’s current condition (BAD!) and the conflict with Emrakul, and anything less than evocative on that matter is a negative on the card’s design. In the case of LotV, her “ultimate” ability was actually very representative of what was happening in the story- she forced Thalia to choose between saving the Helvault or her people (represented by the two card piles in LotV’s ability!), which resulted in the freeing of Griselbrand (and Avacyn). Now, you don’t need to know that little bit of trivia to appreciate how strong LotV is (heck, I didn’t even know it until a couple weeks ago), but because it serves a clear and specific purpose, it is a serious consideration.

Also, of course they aren’t reprinting LotV, that card is legitimately busted.

Branding displays itself in other ways also- things like iconic creatures (dragons, elves, goblins, etc.) help push the identity of the game while simultaneously engaging enfranchised players with new additions to their favorite tribes. I also expect that the long-term impact of e-sports and streaming will have a significant impact on the way Magic brands its product and play experiences going forward; more emphasis placed on Standard and Limited (the money makers!) and less on Legacy and Modern. This is not to say that Modern and Legacy aren’t interesting or fun, only that player increases only make it harder to provide those forms of engagement, and brand growth relies heavily on immediate and consistent engagement. We are slowly getting some information about the recent summit WotC held with some of their broadcasting staff, so more on that as it gets trickled out.

buzzwords

Have any questions about any of these topics? Leave them in the comments! Hope you enjoyed today’s article, and that you learned something, too (even if it was just that LotV trivia).

Best,

Ross

1Okay, if you REALLY haven’t read anything that I’ve written before, check out these articles on the Zendikar Boom, and why player population is the single biggest driver in Magic Finance. The numbers have scaled up, but the foundation is the same.

2Well, at least not anymore. Basically, this is why some of the early sets (HOMELANDS) were so bad. Legends was also horrible, but it gets (undue) credit for having a few incredibly busted cards.

3I think this is because most people, especially if Magic captivates them when they are young, attempt to make their own cards/set.

4Again I point a judgmental finger at the Homelands team.

5Obviously this is a sliding scale, and the “correct” number is probably something between 4 and 5, but the fact is that modern-day versions need to either be costed higher (Planar Outburst), conditional (Languish), or multicolor (Supreme Verdict). Keep in mind that internally WotC considers an additional color in a spell to be roughly equivalent to 1.5 or 2 generic mana.

PROTRADER: Grab Bag, EMA Edition

This week is going to be Grab Bag style, since there isn’t any one major thing to talk about.

ETERNAL MASTERS RELEASE NOTES

I am about to do something that I never thought I would ever do. I am so, so sorry.

Please forgive me.
Please forgive me.

And yet, Magic’s equivalent of ‘Family Circus’ makes a pretty valid point. Eternal Masters does some things to help promote Legacy (more than this and other, related strips would have you believe), but it also makes sense to broaden our understanding of what ‘Eternal’ really means. Technically, Pauper isn’t a supported paper format (at least, not as much as it is online), but it’s a huge gainer with this set release (there are Pauper staples at Common, Uncommon, AND Rare in EMA!).

We still don’t know what the final numbers are going to look like for distribution, but early reports have been considerably mixed. I’ve heard of some stores only getting half of their requested allotments, while others have had the opportunity to increase their orders. Because this is a distributor/store interaction (WotC has already sold off all of their stuff, and it sounds like stores will be unable to get more from them directly), the results are expected to be different based on geography and involved parties. In this instance, however, knowing what exists in your local market is likely to create some favorable short-term opportunities- if you feel the opportunity to leverage a trade premium in your favor, don’t be afraid to do so.

It currently looks like the money is made in the foil slot- there are a high number of cards with significant foil multipliers across each rarity, so make sure you are price checking anything you aren’t 100% sure of.

As a quick (and compiled) reminder, here are my top picks for cards that I expect to be gainers following EMA:

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ProTrader: Magic doesn’t have to be expensive.