I have been a sport card collector for 50 years.  In recent years the industry has made a big shift to online sales.  It makes so much sense and offers a broader market for both sellers and buyers.  The days of going into the sports shop and looking for a 1973 Nolan Ryan are gone, you can go on ebay and find a hundred of them.  The question  is the condition, and is the card in the photo the one I will receive lends way to the importance of grading companies.  I owned a grading company for several years and have graded a few thousand cards, which I believe qualifies me to speak on the subject. 

First let me say the grading service has been around for about thirty years but came to life with the growth of ebay. It is so important to both  the buyer and seller.  There are a few grading companies that have been around and have a decent history of being fair.  There are also a few companies who are a step above being crooks.  I am not going to mention companies by name, but we can call them A, B, C and so on.  How do you spot a graded card that you should not trust?  Look at the seller, if they use private feedback information or keep the bidder information private stay away not only from this sell but from this grading company.  I have talked to over 50 people who have been ripped off by these dealers.  A couple years ago I tracked one sell who was buying cards (ungraded) for a few dollars.  He would then trim them, have them graded (usually a 9 or 10) and then resell them for very large profits.  I kept track of his auctions and noted he was making over $20,000.00 a month profit.

Now lets talk about the honest grading companies, and most of them are honest.  You may think they hire the best most experience people and collectors on the market.  If you ever visit one of these facilities, and I have visited several of them.  The graders are usually very young people and make in the $8.00 to $12.00 an hour range.  They use several graders and the turnover is very high.  I have sent one card to a grader six times to see the difference.  The results were two sevens, three eights, and one nine.  This variation could be worth several thousand dollars in the value of a card.  If you look at something like a 1959 Mantle card the difference between a grade 7 and a grade 9 could be $3,000.  To their credit they usually catch if the card was trimmed, touched up or if it is a copy.  Some of the smaller grading companies actually do a better job because they may have but one or two graders and they are generally within the ownership of the company.  The problem with the smaller companies is their history and precieved value of the card will make it sell for less than an card of equal value by a larger grading company.

I recommend you buy some low cost cards by smaller grading companies and evaluate them for their grades, even take a few out of the case and have them graded by the larger companies to see how they stack up.  You may be suprised that the grades by the larger companies will be higher as ofter as lower.  One thing to remember is never send it to the larger grading company while it is still in the grading case.  If you do this it will always, and I mean always come back with a lower grade.  They do this  to impress upon you their higher standards (which may not be actual).

Now if you are going to sell a card without it being graded, expect to receive about 1/2 of the actual value of that card.  Since grading cost can be expensive it does not pay to grade anything with a value of less than $50.00 and even that may be a break even price point.  Most grading companies charge a very high preminum for fast service.  Always plan ahead so you can get the service for the lowest price as possible.  Don't be afraid to use the smaller companies with cards in the $30-$60 range, it will save you money and be a better return on your investment.  Once you start a customer base with these cards they will continue to buy from you if you are getting honest grades.  Time and volume will prove these companies.

It is very difficult to go to shows and get cards graded by anyone but a very few select companies.  They control the shows and have deals that will not allow other grading companies space on the floor.  They also have a very large influence on magazines on sports cards and price guides.  It may be unfair how the big boys can push around everyone else in the industry, but that is the way life is and he who has the gold makes the rule applies.

Remember, you may know as much about grading cards as the 22 year old English major working the summer grading your 1933 collection.  Do some research on auctions by people who keep their feedback private and bidders private, unless you are selling movies like Hollywood Nurses II, there is no value in keeping anything private unless there is something you want to hide, and there is.  Check who graded their cards and keep away from dealing with them or buying cards graded by them.

If you are a true collector and not in it for the investment having your cards graded makes sense also.  They are sealed and can be handled without damage.  I could never understand collecting something you can not enjoy and share with family and friends.  When people come to my house I like for them to hold my 1952 Mantle in mint condition while I tell them it is a $25,000 card they are holding.  Good luck and I welcome your comments.