Grading Companies (Overview & Opinions)

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Posted By: gdporter

I, too, am waiting on a conference call - so here goes my response to your legnthy set of questions.</P>

By way of background, though, some of you may know that three years ago I made a point of trying to understand the grading companies. Prior to the summer SportsFest, I carefully put together a panel of ten different cards spanning from 1887 to 2001, some graded and some ungraded, and then spent two solid days doing nothing other than sitting with the then-chief grader of each grading company (PSA, SGC, GAI, Beckett, SCD and one or two others that do not merit comment) and discussing their evaluation of each of the ten cards. Given the size of my collection, and my decision to grade much of the collection, this was an important point for me - and most, but not all of the grading companies were wonderfully cooperative (PSA being the least cooperative in that instance). The result was informative, but not dispositive; suffice it to say that the two graders who stood out with their knowledge, skill and maturity were Mike Baker (GAI) and Derek Grady (formerly SGC). Since that time I have graded well over 2,000 cards from my collection, and after a brief hiatus to re-think my overall strategy, have begun grading again. In keeping with the theme of this Board, my comments are based solely on grading vintage cards.</P>

1 - WHO DO YOU TRUST: The answer is GAI and SGC. I have seen far too much variation in the "standards" for PSA cards, though it is possible that some of the reason for this is the evolving grading standards over time and my inability to tell the "vintage" of the grade. Though GAI and SGC use different standards that are somewhat evident side-by-side, I have found them both to be consistent - and in both cases they have been completely open and accessible when I have questions about the grades - which is to me an essential part of the grading relationship. That said, I also believe that both of them are "tougher" than PSA, though in significantly different ways. SGC is tougher than GAI on overall card condition, but is more relaxed than GAI when it comes to centering issues. Both are downright maniacal in spotting "trimmed" cards, though they often differ on which cards were the trimmed ones - I have given up fighting them on this since it is clear that they genuinely believe what they say, even though I often disagree. I have seen postings on this site regarding problems with GAI holders, etc. but I have never had any problems with them (other than an occasional late delivery).</P>

2 - RESALE VALUE: In the realm of internet commerce, PSA is the standard-bearer. That said, I will usually not buy PSA cards based on their grade unless I have personally examined them. I often buy SGC cards site unseen and have always been satisfied. Though I have not had the occasion to purchase that many GAI cards as yet, my confidence level in them is equal to SGC. But, I have to admit that for the widest possible resale market, PSA is the answer (for now). </P>

3 - IMPACT ON HOBBY: I would have to say "positive", with some reservations. Grading of cards is/was an essential component to permit the hobby to be accesible through the internet. How many times have I been ripped off by a dealer's promise that I was purchasing a NMT card? With ANY of these grading companies, the standards are FAR FAR more accurate. The result is that I feel more comfortable with the value of my collection and its liquidity, which permits to invest more and enjoy more. And since I am a butterfingers of major proportion, it is nice that I can drop a card without losing a fortune in the process. The problem is, of course, the obsession of some hobbyists to collect the grade instead of the card - when deciding which cards to sell or keep, I have often kept the lower-graded-but better-looking card and sold the other.</P>

4 - HIGH-END VALUES: I believe that high-end cards hold their value much better than lower-end cards (though depending onthe issue, a high-end card could be a strong VG-EX). But "ultra high end" can be quite tricky. Is a 52 Topps Mantle PSA9 worth more than Leon's Four Base Hits Kelly - heck no. The "ultra-high-end" cards are often roiled in price based on a few elite collectors, and I watch my dollars pretty carefully when I play with them. My "ultra-value" cards are almost all rarities, rather than super-high-grades.</P>

5 - GRADING FOR PROFITS: If I get a good grade, absolutely! If I get a "bad" grade that does not reflect the visual appeal of the card, then probably not unless (as is the case for certain older issues) there is value in merely confirming that it is genuine and untrimmed.</P>

6 - CONSISTENCY: Answered in 1, above.</P>

7 - SPECIAL TREATMENT: Rumors abound (as do "unexplainable" examples in select dealer cases). I will let others speak to this issue, but I alas have not yet been able to claim any such special privilege.</P>

8 - FUTURE: I absolutely believe that graded cards (even if the grade is merely "Authentic") is a permanent fixture of our hobby. The growing presence of forgeries, and the amazing level of sophistication in doctoring of cards, cements the importance of such services, even while the internet commerce demands it.</P>

Look forward to seeing the other posts.</P>