Is the Grading System Broken?

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Posted By: Charlie Barokas

Barry,

Yes, dealers get bumps. And the biggest mutual funds get the breaking news the fastest because of their commmison dollars. But once again, not every card that a dealer submitts is graded favorably. Some of the largest transactions in the hobby are dealers buying from other dealers, therefore there must be some meat left on the bone. And once again, the best collectors and dealers will be decided, based upon their ability to ferret out deals (in this case over-graded or under-graded cards). No buddy, dealers included, force collectors or dealers to buy overgraded cards. If you are looking to buy cards at a discount to SMR you might be able to do so in tough issues by buying overgraded cards. It makes more sense to pay over SMR for an under graded card with eye-appeal of two grades higher. Finding those cards is what the hobby is all about.

Many dealers and collectors do not submit under their own name. I perosonally have submitted cards for collectors and the results have varied quite a bit. Besides, a bump that is not-warranted is not always a good thing. I have seen many PSA 5's go for more money than PSA 7's of the same card because of the eye-appeal of the lesser grade and the converse of the higher grade. An example would be a 1941 Play Ball Ted Williams dead-centered in a PSA 5 with sharp corners but with a small or hidden technical problem will out sell the same card graded a PSA 7 but the centering is 75/35 or maybe slightly rounded corners etc. In this case, the latter card would sell for about the same money in a PSA 6 or 7, so the bump might not help that much.

Also, if you sell cards under your own name and consistently the cards you sell look overgraded your prices will suffer and will cancel out any favorable bumps you might receive.

CB