The Covid shutdowns brought new collectors into (and back into) the hobby. These new hobbyists increased grading demand, which obviously caused higher grading fees. They also had “free” stimulus money to spend, and they did, further adding to the fire.
Covid shutdowns are now over, and some people have left the hobby. Those that stayed don’t spend as much on the hobby, because other entertainment forms are viable again. This was the first shoe to drop.
The second shoe is that we have across the board inflation that is reducing disposable income. Moreover, investment portfolio values are dropping. I don’t care what that Net54 poll indicated, psychology shows that people fee richer and spend more when their portfolios are up.
We are headed into a recession, and possibly are already in one. All these factors will decrease the grading demand, and the grading fees will eventually follow. Card collecting/grading is a hobby - not a necessity. Something will give. I predict grading and card budgets are where people will make cuts.
I don’t know when the grading fees will normalize, but I don’t think we are there yet. Just sit tight and the fees will eventually become reasonable again.
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