There are a lot of factors that come to play here----your goal, your competitive spirit, your passion level for the particular item and what it represents to you as a collector, to your collection, and perhaps to other hobbyists, and ESPECIALLY your financial means.
I will key in on the statement you used: "Some collectors pay huge premiums on highest graded material."
If there is a particular set or player that you are simply nuts about; I mean, one that you have admired and enjoyed for several years or even most of your collecting life, and particularly one that you will likely not change your mind about, then you will tend to studiously ascertain what are your chances of seeing that item become available again.
Granted, finds may happen, but not as they did in the 70s, 80s, and early 90s. Most pioneers are now deceased, and their collections sold. The public has been aware for about 35 years that baseball cards are valuable---98% of them have cashed in grandpa's cards, or the ones saved as souvinirs from the printer. Surprises happen, like the 1953-55 Dormand postcard of Gil Hodges, but that is a rare case.
It is hard to discuss without mentioning a specific player or set. Since this is a pre-war board, I will try to respect it with at least one good example. But the question is a good one that covers any era of collecting. In my own life, during the mid-1970s, I enjoyed the post-war regional/food issues. One of the sets that I was quite taken with were the 1955 Rodeo Meats Kansas City Athletics. I loved the design, the promotion--including the fact that many cards were pasted into a well-designed album that the Rodeo hot dog company sold the kids, the plethora of colors, the fact there was some variety in poses, the scarcity, the rarity, the players, and just the idea that the set celebrated the arrival of the brand-new Kansas City Athletics. You could tell the town was ecstatic over their own major league team. Civic pride personified in that big, tough as nails, regional set. Fairly unheard of until the card conventions of the 70s introduced many, including some pioneers, to these beautiful cards. The pioneers were really scrambling. They loved them. They loved the challenge. No one wanted to sell any--only trade. I got absolutely nowhere, save for a few smashed examples.
Fast forward to about 1997, over 20 years later. Mastro Auctions was selling the prestigious collection of the renown hobby pioneer Don Steinbach. He had Wilsons, he had Glendales, but he also had the finest 55 Rodeo set in the world. It once belonged to another hobby pioneer from the KC area WHO SPENT 25 LONG YEARS PUTTING THAT MONSTER BABY TOGETHER!!!!! Can you say chance of a lifetime? Precisely.
I did not hesitate, nor tell anyone what I was going to fight for. I do not recall what the guide price was. Do you think I cared? Do you think I would agonize over a few extra measily thousand dollars (NOTE: I LOST SLEEP OVER "A FEW EXTRA MEASILY THOUSAND DOLLARS" --I SINCERELY REGRET THAT POOR WORD CHOICE IN THESE DIFFICULT TIMES) over a set that might not come on the market again for 20 years, and then when it did sell again might go for 50K? I had plenty of competition, but I won it. When I got the cards, they were unreal. I could not fathom how nice they looked, because they were in such high grade, for I was well aware that Rodeos are simply not found in nice condition. Rodeos do not sell that high, because they often are not found in EXCELLENT or better condition. There are several meat sets like that--Briggs, Hunter's, Stahl-Meyer, Glendale, Esskay, '59 Morrell, and Rodeo. Sometimes high grade examples of these, or in the case of the hand-cut sets--complete boxes or full panels, sell for fabulous premiums. The worst case scenario for a collector is when a tough set happens to include your favorite star player, and the eye appeal is spine-tingling ferocious. Such would include a Wilson Franks Ted Williams, Morrell/Bell Brand Sandy Koufax, Stahl-Meyer/Wilson Franks Roy Campanella, or Stahl-Meyer/Dan-Dee/ Briggs Mickey Mantle. There are major differences between them, but this reply is too long already.
I shall now make it longer.
Remember, I said I would include a prewar example. I respect Leon's wishes, and want to keep you all happy. Let's bring it down to your favorite time frame. OK, so low and behold someone turns up an EXCELLENT-TO- MINT 1910 Washington Times Ty Cobb. Virtually perfect, with only just enough corner wear to render it "only a SGC 80/PSA 6". I mean, the deep crimson borders are rich and undisturbed. Ty Cobb's portrait with that quintessential glare and fire in his eyes visage is overwhelmingly attractive and most desirable. Few collect the set. Just like collecting the Stahl-Meyer Franks. I don't care about the set---I love Mickey Mantle and Roy Campanella. Same here, if you put such a brilliant piece in an All-State Display case displaying a portfolio of Ty's best-looking, most artistically-designed pieces----there would be the T-3, there would be all 4 T-206s, there would be one of the Cracker Jack, the T-205, the '33 Goudey Sport King, several of those fantastic postcards (The Rose Company, etc.), a Colgan's Chip, and maybe if you are daring, a Conlon color card that was well-done of him stealing third into Jimmy Austin. But believe you me, the piece that the Cobb connoisseurs would be drooling over (keep the door of it closed, just in case) would be that 1910 Washington Times--for its eye appeal, its scarcity, its 1 of 1 rarity, and the fact it would be a fantastic conversation piece. You might even enjoy watching your rivals go white as a sheet at its sight--bitten clean through their windpipe. That would be a nice example of a North Pole six-figure card. A piece de resistance Ty Cobb. Just wish someone would turn one up.
I must get back to work. Thanks for listening, if you made it this far. Bye. --Brian Powell