Who's Cracking $250 Slabs?

[frankbmd]

We generally agree that people (collectors and flippers) buy numbers (grades & pops), which require an opinion (not necessarily accurate) and results in the card being placed in a slab.

Many collectors here and elsewhere abhor tombs and take pride in their practice of cracking cards out of slabs for their binders and collections immediately after purchase.

Clearly without the tomb and the number resale value is compromised in the marketplace. The TPGs are fortunately positioned ideally in this apparent conundrum and more than willing to grade the card again at the time of the next sale.

At $250 a pop, I do not think that flippers are doing a lot of cracking, unless of course they are intending to "fix" the card to attain a higher number and this no doubt happens quite frequently.

Given the rapidly escalating grading fees are collectors still as willing to crack every slab they see. I doubt it, but I could be wrong.

Does it make sense to grade a $30 card for $250 so you can sell it for $100? I may not be up to date on the new math, but this method does not seem sustainable.

I would hazard a guess that historically the majority of existing graded cards are worth less than the current price of grading. Are the TPGs shooting themselves in the foot or are their new fee scales designed to offset the grading of trivial cards (a waste of time) and designed to maintain or grow their income in the age of vault flippers?

It would seem advisable that those collectors with a substantial numbers of low value slabs, due to condition or no-name, should not crack their slabs. You can't afford to regrade them when you are ready to sell.

Times have certainly changed. Have I got it all wrong? Educate me.