Right or Wrong

[Archive]

Posted By: Bobby Binder

I have been seeing a lot of auctions on eBay by Beckettmedia and GAI has Global Passport. Am I wrong in thinking that this is a serious conflict of interest? Should grading companies be able to grade a card then sell it? To me this is wrong and they should not be in the business of selling cards.

[Archive]

Posted By: Cobby33

I don't think it's a conflict if and only if they card came into their possession, for them to sell, after already being graded.

[Archive]

Posted By: Matt

Didn't Beckett acknowledge this issue when they decided to use REA to auction the T206 Wagner instead of their own auction system?

[Archive]

Posted By: Bobby Binder

How would you ever know if the card was given to them already graded? We are suppose to trust them that they did not give themselves the grade "BUMP' you hear about everywhere? Just seems to me they would be better served if they just sold it through a service that specializes in eBay sales like Just Collect for one.

[Archive]

Posted By: Mark Lutz

In principle, a grading company could grade and sell cards without violating any moral codes or laws. They would be judged according to the quality of their grading and customer service. Of course there will be lots of room for error and duplicity. Myself, I had a bad experience last year with Globalpassport, whose customer service was horrendous. They put the wrong address on my cards and would not respond to my phone calls or emails begging for help. When I eventually tracked the cards down on my own, I found that the grading was a little generous, too.

[Archive]

Posted By: Cobby33

"How would you ever know if the card was given to them already graded? We are suppose to trust them that they did not give themselves the grade "BUMP' you hear about everywhere? Just seems to me they would be better served if they just sold it through a service that specializes in eBay sales like Just Collect for one."

I guess rely on their disclosures and take their word for it. On higher-profile cards such as the Gretzky Wagner (for example)- it would be clear whether that was re-graded or not.

[Archive]

Posted By: Dave Hornish

Huge conflict of interest IMHO. Huge.

[Archive]

Posted By: Eric B

There's a reason why it's called "third-party" grading.

Imaprtiality is crucial. Accounting auditors are not allowed to own stock in any company the firm audits. You lose trust, you go out of business - see Arthur Anderson.

[Archive]

Posted By: Tim

If the grade a card receives directly effects the sellers bottom line and the grader and seller are one in the same, you can't expect the grading to be completely impartial.

Granted if the grading were grossly inconsistent the market would have a backlash against the company in question. But with grading being as subjective as it is, the grey areas and grade bumps can become more one sided when profit is involved.

[Archive]

Posted By: Rob

i thought beckett graded the recent T206 find pretty fairly, but it was auctioned in REA. seems like they are just trying to sell it themselves instead of going through a 3rd party auction house - thus not paying consignment fees.

but i can see where some skepticism would exist. if they overgrade, they will shoot themselves in the foot.

Rob

[Archive]

Posted By: JimB

ENORMOUS conflict of interest. It is shocking to me that a "third-party" grading company would even consider it, much less that anyone would bid in these auctions. They are no longer "third-party" when they start doing it. Did they forget the whole point of what they are doing to begin with?
JimB

[Archive]

Posted By: DD

How about the fact that Dave Forman's brother Steve is an SGC authorized dealer?

[Archive]

Posted By: Bobby Binder

Nothing wrong with a little nepotism we all do it don't we for the most part.

[Archive]

Posted By: Mark Holt

I also believe it's a huge conflict of interest.

[Archive]

Posted By: Bruce Babcock

Alan Hager used to grade the cards (ASA), publish a price guide to tell you what his graded cards were worth, and then hold his own auctions, with very high estimates as to what the lots would go for.

A huge conflict of interest.

The marketplace took care of him. However, sometimes the just the appearance of impropriety is enough to keep bidders away.

[Archive]

Posted By: Rob

"How about the fact that Dave Forman's brother Steve is an SGC authorized dealer?"

DD, thats fine cuz its SGC.

Rob

[Archive]

Posted By: Joe D.

It is about as conflicted as an interest could get.

[Archive]

Posted By: MikeU

Auction companies are receiving way too much grief in today's market.

Never get cheated,

MikeU