Card Graders vs. Credit Rating Agencies

[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.

[Beastmode]

Good analogy. There certainly are some similarities. Lot more exposure for credit rating agencies. I think (S and P?) was fined $2B last year for bad reviews. Feds are not going to fine TPG's as far as I know.

It's an interesting lesson we learned about Wall Street. I can remember the people getting mortgages and refinancing their houses that had no business owning a house or taking out equity. These mortgages were repackaged as "A" grade to investors (PSA 10's anyone?)

If you invested in that crap because some suit in New York gave it an "A" grade, I just can't feel sorry for you. Granted, it was probably your mutual fund or pension plan that ponied up your money to give to their golden boy buddies on Wall Street. When it's someone else's money, it never ends up good.

As for TPG's, theres been some good threads on here about the TPG review process, alterations of cards, etc. That is all golden information to use when you "invest" in cards. Education, not legislation

There is RISK in anything you invest in, even if you put your money in a mattress (fire). I'm dumbfounded but an entire generation of citizens that blame the banks and govt. when the stock market goes down and they lose some money. Unfortunately, we teach kids cursive in school still, not risk management.

Collecting graded cards can be enjoyable and prosperous, but know that it can swing the other way with a wicked current. And when it does, PM me and I'll buy your vintage PSA 9's.

[glynparson]

They are and the millions they've made some doctors things are still better than before grading started as far as number of bad cards out there. Counterfeits are way down and many of the same card doctors were doctors before grading.

[tjb1952tjb]

No one remembers Barney Frank?