Money in the hobby

[1952boyntoncollector]

Originally Posted by Dpeck100

Third party grading makes a card a certified collectible. Anyone can agree or disagree with the grade but when it comes time to buy or sell the marketplace treats it as such. I recall a 1974 Topps Dave Winfield rookie that was graded a PSA 10 and even the most die hard PSA supporter couldn't in any circumstances look at the card and say Gem Mint. Well guess what it went for over $7,400 at the time and the buyer got a Dave Winfield encapsulated in a PSA 10 holder. Cards in graded cases have become commodities and the ease in which many can change hands has led to more money coming into the marketplace. One of the primary reasons the publicly traded stock and bond markets are so active is because they are liquid. The card market obviously isn't as liquid with the bid ask spread being wider and trading costs being higher but without third party grading that spread would be so wide it wouldn't allow for what has happened.
There is nothing wrong with being average or owning average cards but the desire to be the best or own the best isn't going anywhere. When you add the element of past performance and true scarcity it is the perfect storm.

good write up as well. I like the point you made about the 'spread' being better because of PSA/SGC which is a great point.

The auctions houses also create the very important function by delivering mr. regular guys high end collectibles to the eyes of the right people. The right auction houses (which account for some of that spread) really are the equalizer for a regular guy selling his card to get similar results as the pro guy trying to get max money..