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Chapter 10. Real Estate and Other Invest... > Liquidity and Market Value - Pg. 150

Real Estate and Other Investments 150 have ever seen. eBay also provides other forms of buyer protection, but I believe the feedback mechanism is the best. You don't have to buy from anyone whose feedback is negative or has insufficient feedback to make you feel comfortable. In this manner, eBay legitimizes the sale of goods and services through a simple "honor system." To tie this whole eBay discussion to the point, my wife and I were tasked (deemed more a labor of love) with finding a rare antique seltzer bottle for a friend. We did a search on eBay and found a number of possible items, and then we did research on the sellers by reviewing their feedback. We dismissed some off the cuff, and with others, we began an email exchange to ask questions and learn more. Those who responded quickly and who communicated clearly won our trust and got our bid. In three years of buying and selling on eBay, we have rarely been disappointed with the result. But back to the point--eBay has provided collectors with a system that allows them to trade their collectibles in a relatively safe environment. For an investment to be worthy of your consideration, there must be a ready market and a measurable means of protecting your investment. Liquidity and Market Value Any time you make an investment, you must take into account liquidity and market value risk. With collectibles, this risk is considerably higher than with other securities such as stocks and bonds. Usually, the market for collectibles is not very liquid and amateur collectors can lose money on their investments quickly. This is very common with investments in art and numismatic coins for which you are often dealing with individual buyers and sellers. This is a big reason for the success of eBay. With competitive markets, prices are more easily verified. Another way to look at market value is in buying or selling a used car. The most popular provider of comparative information on cars is the Kelley Blue Book. Before the Internet, you had to find some- one who subscribed to the Kelley Blue Book to find the wholesale and retail values of cars. Today,