Will SGC Over Take PSA

[Dpeck100]

There is a zero percent chance that SGC takes over PSA in the third party card grading business.

A busy month for SGC can be 10,000 cards. PSA is averaging 225,000 a month. Whether one likes PSA or not you can't reverse a market share scenario like this. The only scenario would be if some on this boards dream came true and PSA got shut down but obviously that isn't going to happen.

I don't know what the exact number is today but in investor presentation materials in the last five years PSA had it at 89% of total graded cards. Generic searches on EBAY can land in the high 70's to low 80's but obviously this isn't a perfect science.

SGC simply doesn't have the infrastructure to compete. As PSA's submission volume swelled so did their wait times and you can't prepare for a huge increase in volume quickly in an industry like this.

PSA is making some money but this isn't a business with massive profits so once again it is hard to ramp up production.

The area where PSA was so smart is they worked on their brand. Collectors like to see uniformity in their collections and so branding was paramount in them taking over the market. They are close to a monopoly at this point because cards in their slabs sell for such a premium in many cases to other third party grading companies so it almost forces the consumer to use them if they want to maximize value.

They have increased prices every year for grading in the nearly ten I have been collecting graded cards consistently and volumes have gone up significantly too. No one is taking over that is for sure.