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PCI believe SGC set the cross-over value at $500 because they charge more to grade more valuable cards, and they do not want people to take advantage of the lower cross-over fees for high dollar cards. Seems fair to me -- the SGC guarantee is quite limited, but in theory SGC has increased liability from misgrading expensive material, which justifies the higher fees.
Steve: since it is close on value, you might email SGC and see if they will take this card at the cross-over pricing. I suspect SGC would be glad to have another T206 Mathewson portrait in their holder, and one less in the competition's slab.