If PSA were to become a monopoly what would happen to the market regarding SGC cards?

[bbeck]

Although I own both PSA and SGC cards, I have a much larger % of PSA. Hypothetically, if PSA were to become a true monopoly in the grading business, what would happen to the market of SGC cards? Obviously, no SGC guarantees would matter anymore and crossovers and breakouts are always a crapshoot. What type of toll would it take on the SGC graded inventory and price levels that exists today? Would it increase the % of raw collectors? The key to the question is not to give a biased answer because you despise PSA, but an objective answer of what might really happen and how, in your opinion, the majority of collectors would react (not just the pure collectors).

[glchen]

I don't think that this will ever happen to SGC, especially because they have many, many loyal customers. Even if they never become as big as PSA, I think they'll always be a competitor in the market.

However, if any TPG goes out of business, you can expect cards in that holder will decrease in value over time, especially as newer collectors forget/don't know how reputable that TPG was originally. For example, I think SCD used to be a decent TPG, and I've seen cards in its holders crossover fairly well. However, many collectors never heard of SCD as a TPG so may equate it to a "non-TPG" like PRO.

[YankeeCollector]

If PSA becomes a monopoly, you can kiss this hobby goodbye! competition is always a good motivator! Can you imagine the screw-ups if there was only one legit grading company knowing you can't go elsewhere ?

[alanu]

Any company could go out of business for a variety of reasons and the reason PSA becomes a monopoly would have a big impact on what happens to the value of the competitors slabbed cards.

For example, if PSA bought the other grading companies, there might not be much affect on the values of slabbed cards... or maybe there would be a premium for cards graded before the "merger".

There are many other scenarios, it's really impossible to predict without knowing the circumstances that cause PSA to become a monopoly.

[Bunker]

Not that this would ever happen, but if PSA did buy out SGC, I would hope they would use the SGC holders instead of what they use now.

[philliesphan]

as soon as SGC shuttered (for whatever reason), GAI would ride in to the rescue the following Monday.