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Buying Graded Cards: Some Things to Know.

by: gograded( 32908Feedback score is 25,000 to 49,999) Top 5000 Reviewer
48 out of 56 people found this guide helpful.
Guide viewed: 4261 times Tags: Grading Graded | Rookie Card | PSA BGS GEM 10 | PGI SGC GAI | baseball card


The emergence of sports card grading was an enormous benefit to a hobby rife with trust issues further complicated by the advent of the Internet and stranger-to-stranger sales. Grading provided the consumer with the opportunity to purchase cards virtually site unseen and with an expert affirming the card's overall condition. The custom designed plastic grading holders also assist in the protection of cards both in the mail and the collector's possession.

From this need grew several industry leaders which now include PSA, Beckett's BGS, and Global Authentication GAI. These firms are considered the premium entities for graded sportscards and are presumably market leaders. The most valuable sportscards (over $50) are normally graded with these entities.

Prices to grade cards at the aforementioned grading houses range but are generally around $10 per submission. This pricing paired with a weakening resale market for lesser expensive cards in graded form created the advent of discount graders like Mint Grading (MGS), Pristine Grading International (PGI) and Beckett's own (BCCG). Lesser expensive cards were being graded less frequently at the senior houses because of the expense and lack of profitable resale value.

The discount firms are somewhat less conservative than PSA, BGS, or GAI and the respective grades from MGS, PGI, or BCCG reflexively attain lower values in the marketplace. A MGS, PGI, or BCCG 10 grade is "softer" than a BGS 9.5 or PSA 10 comparatively.

However, PGI, Mint, and BCCG, all offer the consumer a protective holder to safeguard the card as well as a detailed label that notes the card's year of origin, card number, player featured, etc. just as PSA/BGS/GAI do. Many cards with ungraded values less than $20 find their way to MGS, PGI, BCCG holders as a result of the cost-prohibitive nature of grading a $10 card at rate of $10 per card. Many cards that receive PSA 10 grades don't resell for more than the cost of submission.

Some collectors wonder why they rarely see cards graded lower than Gem Mint (10) by Mint, PGI, or BCCG 10's. It's simple enough, the grading company is told not to grade anything that won't make the higher grade and the subpar cards are returned to the submitter for a small fee. Just as it is often not profitable for a dealer to pay $10 to grade an inexpensive card with PSA, BGS, or GAI, it is similarly not worth encapsulating and reselling cards less than a 10 grade with MGS, PGI, or BCCG.

Companies like MGS, PGI and BCCG do provide tremendous value for collectors. For the price difference- often as much as 200% cheaper- discount grading offers a fantastic opportunity for the collector and has become enormously popular. I have personally 'crossed over' both PGI 10's and MGS 10's to Beckett 9.5's and PSA 10's. A simple review of eBay sellers who primarily sell the discount grading company's cards usually displays extremely positive feedback.

In summation, a buyer of a graded card should make a choice as to what level of investment they wish to make which will of course be reflected in the cost of the card, even in an auction marketplace. Personally, we grade our more expensive inventory with the top flight graders like GAI or Beckett's BGS line (our faves) and use PGI for the more affordable cards. That's just what makes sense for us and where we see the best bang for our buck.

Regards,

GG

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Guide ID: 10000000001458051Guide created: 07/31/06 (updated 06/26/08)

 
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