On Dec. 5, 1996, acting Federal Reserve Board Chairman Alan Greenspan gave a speech titled The Challenge of Central Banking in a Democratic Society. It was during this speech that the term irrational exuberance was first used. The phrase gained popularity after the devastating effects of the financial crisis of 2008/09. The term irrational exuberance is used when the price of an asset or commodity objectively becomes extremely overvalued. And while Alan Greenspan applied the term to the stock market and housing markets (bubbles) of yesteryear, in the year 2022, many different asset classes can be defined by the term irrational exuberance, including several markets that make up the overall antiques and collectibles trade. Over the past few years, I have sounded the alarm quite often in a lot of my articles in which I truly believe that certain sectors of the antiques and collectibles trade are completely overvalued at present time. Pop culture collectibles in particular have been the subject of a lot of my ramblings concerning the disconnect of supply and demand and any rational pricing on the secondary market. Mentors of mine in the trade have cautiously reminded me time and time again that none of these markets are rational. Even in past articles, I have alluded to mass speculation and market manipulation as tools being employed by crafty investors to get nostalgia-driven collectors to part with their hard-earned money. These kinds of tactics have been occurring since the infancy of the trade, but the adoption of the internet and hype-driven content that populates social media, collecting forums, and YouTube just add fuel to the proverbial fire. There is, however, one collecting market that has caught fire over the past few years that cannot be ignored, and make no mistake, 2021 was its breakout year. The market for third-party graded factory-sealed video games has now become one of the hottest collecting markets in the trade. Fueled by speculation, market manipulation, and nostalgia, this is and was the hottest collecting market in 2021 and is sure to be even bigger in 2022. If you happen to own any factory-sealed video games from the coveted original Nintendo, Super Nintendo, or Nintendo 64 eras, now may be a good time to sell. In 2021 alone we saw certain factory-sealed video games change hands for over $1 million or more. Ironically, most of these games that hit this mystical mark could have been had for a small fraction of that amount just a few years ago. However, the market is anything but stable. A copy of Super Mario 64 graded by WATA Games in 9.8 condition sold for a little over $1.5 million, and then a few months later a second copy sold at auction for a little over half that amount, giving some potential investors pause. To be fair, video games represent the next frontier. Do I think the market for graded video games has been manipulated? Yes, I do. Do I think the market is completely overblown at present time? Yes, I do. Do I think some collectors and speculators are going to get hurt by paying some of these record sums that some of these games bring at auction? Yes, I do. However, do I also think the market is here to stay? Absolutely! A market can exist without it being a great investment and not end up like Beanie Babies. And to be fair, there are some very nostalgia-driven Beanie Baby collectors out there even today. The difference is most collectors are not trying to invest in Beanie Babies for the long term. Sadly, I cannot say the same for most of these video game collectors paying high six- and seven-figure sums for some of these vintage games. Irrational exuberance really sums up my thoughts about a lot of collecting markets at present time. However, I strongly caution pop culture collectors and investors as to what is transpiring behind the scenes in a lot of these markets. It is not all based on love and nostalgia, and sadly in the collectibles market today, it is usually the people who simply have love and nostalgia in their hearts who get hurt the most when investors enter a collecting category en masse. Comic book and Pokmon collectors are starting to learn this lesson all too well as a lot of those individuals are currently priced out of the markets they most adore. This is something coin and currency collectors have to realize as well. In the year 2022, collectibles are no longer just collectibles, they are commodities. And once the average collector realizes that and understands the full risks and rewards that come along with it, only then can he or she attempt to see the market for what it is. It is both a sad time and a very exciting time to be involved in the antiques and collectibles trade. Until next time. Shawn Surmick has been an avid collector since the age of 12. He currently resides in his hometown of Boyertown, Pa., and is a passionate collector of antiques and collectibles. His articles focus on various topics affecting the marketplace