I don't understand graded card pricing

[Archive]

Posted By: <b>Hagar Henderson</b><p>OK, I just don't see why there is such a huge jump in price from one grade to the next. For a hypothetical example, sometimes I'll see a card graded a "5" for $100. However the same card graded a "6" selling for $250! Is that one point increase really worth that much difference in price? We all know that grading is subjective and there's a lot of inconsistency in grading. Most 5's could be 6's if graded by a different person or graded by the same person on a different day. If the condition of the card is that close, where is the logic in the prices being exponentially higher? <br /><br />For the record, if I buy a graded card, I usually go with a middle grade. There seems to be the best value. You get good eye appeal with 4's through 6's without paying insane prices in most cases.<br /><br />Anyway, can someone explain a card that's graded one point higher than another identical card costing more than double?

[Archive]

Posted By: <b>Adam</b><p>This thread seems quite silly. People are willing to pay more for cards in better condition. A card that is graded one grade higher than another card is in better condition. Accordingly, people will generally pay more (quite often a whole lot more) for a card that is one grade higher.

[Archive]

Posted By: <b>Eric Bennett</b><p><P>Could the question have been answered without the "this thread seems quite silly" comment? I don't know anything about the poster but it could be he just wanted some discussion on the topic. This is why I and many others rarely post. The attitudes of superiorority of some are beyond belief.</P><P> </P><P>Eric</P>

[Archive]

Posted By: <b>Tony Andrea</b><p>Eric, well said. Adam, you could have done without that one comment.<br />Life's to short man. C'mon!!!!!!!<br /><br />Tony A.

[Archive]

Posted By: <b>leon</b><p>Well, I respect anyone's right to discuss things on the board especially when they put their name by it. Even the poster saying it's a silly question has a right to state his opinion, imo. Personally, while the answer is sort of obvious, I think it's a darn good debate. I also think that certain pricing jumps for minimal condition improvements are "interesting" to put it politely. Myself and many others feel the EX-MT grade might hold the best value...as the price jump between a 6 and 7 is usually large and there isn't much discernible difference in the condition. I think it's a good question.....and I approve that statement <img src="/images/happy.gif" height=14 width=14>....

[Archive]

Posted By: <b>T206Collector</b><p>...supply and demand as well as scale.<br /><br />With respect to supply and demand:<br /><br />a) Supply. For any card issue -- and especially so in pre-war -- there are less of a supply of higher graded cards than lower graded cards. <br /><br />b) Demand. All things equal, people like higher graded cards for the same price. That is what drives the price up for some and down for others.<br /><br />When you have diminishing supply and heightening demand, prices will rise. This is especially true when people are competing with each other for registry rankings.<br /><br />But I think the question really goes to grading scale. Keep in mind a few things: the difference between a 5 and a 6 is not just "one point" on the grading scale. It is actually 2 tiers now, given half grades. (In SGC land, it is the difference between a 60 and an 80, which is 20 points, by the same logic.)<br /><br />I also think the question goes to what people are willing to tolerate as far as imperfections. After you hold a bunch of SGC 80 and SGC 60 T206 cards, you can certainly see why some people would consider paying twice as much (or more) for the 80. For me the tougher question is the difference between a 7 or 8 ...or a 9 and a 10. Then it's like we're talking about diamonds.<br /><br />Have you ever shopped for a diamond? People pay thousands upon thousands more for diamonds that look the same to the naked eye, but under a 10x loupe you can see "clouds" in the cheaper diamond. It's all about what the market defines as relevant, in terms of supply and demand, and then what people are willing to pay. If your point is that you'd take the cloudy diamond every time, then all that means is your life choices are different from someone that strives for perfection in diamonds. <br /><br><br>_ <u> </u> _ <u> </u> _ <u> </u> _ <u> </u> _ <u> </u> _ <u> </u> _ _ <br /><br />Visit <a href="http://www.t206collector.com" target="_new" rel="nofollow">http://www.t206collector.com</a> for Net54 T206 archive, signed deadball card galleries, articles and more!

[Archive]

Posted By: <b>Jodi Birkholm</b><p>Some people strive for perfection in all aspects of their lives--Type-A personalities, if you will. Therefore, they wish to own the finest examples of the cards/memorabilia they enjoy. <br /><br />Some folks are in this hobby more for investment purposes. Therefore, they are keen on securing the sharpest cards to ensure what they feel to be the healthiest turnaround in the future.<br /><br />Other collectors collect more for the joy it brings them, and would rather have a more hands-on approach to their hobby. And, let's face it, not all of us can drop five figures on gorgeous examples of the things we love. These collectors are just as happy with their low-mid grade examples as the "Registry Kings" are with <i>their</i> cards. <br /><br />If I ever decided to resume my card-collecting, I would definitely try my best to combine all of the above "collector types" into my type of collecting. Provided I had the available funds, I would attempt to secure a handful of investment-quality cards and store them until the time was right to make the best profit possible. Simultaneously, I would collect the lower-mid grade cards for my personal pleasure, using the profits reaped from the investment-quality cards to fuel further purchases. <br /><br />Just as there happens to be an abundance of different cards (and countless different ways of collecting them), there are just as many unique personality traits that dictate how each of us goes about our day-to-day lives. That explains why there are so many avenues to take in any branch of this hobby.

[Archive]

Posted By: <b>James Gallo</b><p>I think it really depends on the grade jump.<br /><br />Should there be the same type of jump in price between a 2 and 3 4 and 5, 5 and 6. The gap certainly increases as the grade gets higher but is that really correct.<br /><br />If you remove the registry people would the gaps between grades still be so huge. Is a 9 worth 100x what an 8 will go for? I have seen many high grade SGC Cracker Jacks and to the naked eye there isn't much different between a 84 and a 92/96. The difference certainly doesn't equate to the huge price difference and I think this compares well with the diamond example above.<br /><br />To me the people that drive the top end are registry people and/or people that have a great deal of expendable income. <br /><br />I think it is hard to justify a huge different in price for the tweener grades the SGC 50, 70, 80 etc, these cards generally really don't going to look much if any different then the grade higher or lower.<br /><br />I think it comes down to buy the card and not the grade, as I know I have kept a lower grade card because it presents better then the higher grade card.<br /><br />I think this is a good debate and worth talking about.<br /><br />James G<br><br>Looking for 1915 Cracker Jacks and 1909-11 American Caramel E90-1.

[Archive]

Posted By: <b>Mark</b><p>I completely agree with the original poster, and think it's a great topic. I have seen counless "5s" that are better than "6s", depending on who graded them. The process is anything but scientific, and to robotically pay hundreds of dollars more for something with a 1 point grade difference is usually a poor decision IMO. <br /><br />On any given day, the 6 could be a 5 (and vice-versa). Hopefully there will come a day when these companies can simply grade the card authentic/unaltered, and buyers/sellers can use their own brains to dictate a price. The power being put in the hands of these "graders" is out of line and unwarranted.<br />

[Archive]

Posted By: <b>scott fandango</b><p>the point of third party graders was to take the "opinion" of the seller out of the equation....by having the grading companies revert back to authentic or altered, would bring back the hobby to where it was 20 years ago...a buyer saying the raw card was not "near mint" like advertised, i want my money back!

[Archive]

Posted By: <b>boxingcardman</b><p>and the reasons for the prices are just as numerous as the collectors. Some are plastic collectors, who buy the alab regardless of the visual appeal of the card. Some have pet peeves on cards, like centering, that will lead them to pay more for a perfectly centered card. Some are registry competitors who really care if they have the #1 set and will pay large sums for the highest numerically graded specimen of a card. And sometimes there's just an element of blind luck to it, i.e., two people happen to see an auction for something they want and beat each others' brains out trying to win it. <br /><br />Nothing wrong with the topic. "Knowledge is good."--Emile Faber. <br><br>Sic Gorgiamus Allos Subjectatos Nunc

[Archive]

Posted By: <b>Fred C</b><p>Hagar,<br /><br />The higher the number on the label, the more people will pay for the card... of course this seems a bit stupid when you consider the difference between an 8 and a 9 could be thousands of dollars but if you were to crack the card out of the slab and resubmit it you could very well come back with a 7 or AUTH (trimmed) designation. But I don't think many people are crazy enough to crack a high grade card from the slab. As has been mentioned before you're paying a premium for someone's opinion. If that isn't a bit stupid then I don't know what is.... ok, you guys with the registry sets go ahead and tell me what a knucklehead I am....