Card Graders vs. Credit Rating Agencies

[bcornell]

Originally Posted by ejharrington

As a relatively new person to the hobby, I put faith in the grades PSA/SGC give. I don't buy ungraded cards just because I know I don't have the knowledge to determine if a card is fake, altered, etc.

The percentage of TPG mis-graded cards (intentional or not) is very small. The grading companies exist primarily because of the shenanigans that went on before. James Copeland, for one, certainly could have used them: I waved money at Bill Mastro and high grade cards appeared.

Bill

[Peter_Spaeth]

It may be small in percentage terms, if you include all the huge numbers of inexpensive cards that have been slabbed, but I would bet there are many millions of dollars of altered cards in holders.

Anybody can start a sports card grading company, not regulated or insurance required for grading error, but insurance most likely needed for theft etc when in their possession. So the card grading companies can make there own rules and its only their opinion what the grade is. Just remember a card just money on paper and is only worth what someone is willing to pay whether slabbed or raw at that time, Also it always come down to doing your research and if not sure about the card walk away.

[drcy]

Skip the 9 and 10 idiocy and collect mid and low grade cards. PSA and SGC and reliable about authentication and there are lots of great low grade cards to collect.

[glchen]

Ben, I think companies like SGC have to put that verbiage there to protect themselves. There are some cards that are not sold frequently, so even if you used something like VCP, you will see highs and lows, or there might not have been a recorded sale of that card at that grade for years. Therefore, that wording gives them some flexibility on what the price should be rather than having to be pinned down to a sale price that may be many years old and not reflect what is reasonable in the current market. As I said in my situation, SGC was very fair, and as long as you come into it that way, you'll be happy with the outcome. Obviously, SGC has been noted as having superior customer service by many people for a good reason.

[Bored5000]

Obviously, the third-party grading companies are not a perfect solution. Mistakes and bizarre grades happen at times. But I think the TPGs are a net positive to the alternative: a Wild West type of situation in which every card is "mint" in the eyes of a seller and "good" in the eyes of a buyer.

That being said. the price disparity between a card graded one grade higher or one grade lower is shocking at times, especially with the nonsense of "highest graded example."

[tschock]

Originally Posted by Bored5000

But I think the TPGs are a net positive to the alternative: a Wild West type of situation in which every card is "mint" in the eyes of a seller and "good" in the eyes of a buyer.

Ignoring authentication for the moment, the TPGs should be viewed merely as an unbiased, third opinion, provided to both the buyer and seller when negotiating a transaction. Too often however, their opinion is held as gospel.

Whether or not they are truly unbiased is debatable as well.

[ls7plus]

Originally Posted by bcornell

The percentage of TPG mis-graded cards (intentional or not) is very small. The grading companies exist primarily because of the shenanigans that went on before. James Copeland, for one, certainly could have used them: I waved money at Bill Mastro and high grade cards appeared.

Bill

+1 especially re the second sentence above. I don't know how many of you were avid collectors in the late '80's/early '90's, but it was pretty much the wild, wild, lawless west. Paper pressed and trimmed cards; black crayoned tips on 1971 Topps cards, counterfeits, etc. I went to shows with a 16x loupe to examine the edges (pressed and trimmed cards, though measuring correctly, had razor-sharp edges, as compared to the factory rough edge), and many dealers did the same when offered cards to buy!

While nothing will ever be perfect, may your collecting bring you much happiness,

Larry