Investing In Graded Cards: A Beginner's Guide To The Lucrative World Of Sports Card Collecting

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If you're looking to invest in sports cards, there are a few things to consider when it comes to card grading. Firstly, it's important to send your cards to a well-respected grading company such as PSA, BGS, or BVG. These companies will authenticate and grade your cards, which can increase their value. When deciding which cards to grade, consider the following: the condition of the card, the potential for the card to receive a high grade, the rarity and demand for the card, and the card's subject (hall of famers, rookies, and superstar players are generally the most desirable). Keep in mind that grading cards can be costly, so it's important to do your research and only grade cards that you think will increase in value.

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Graded cards are more expensive to buy but get higher returns when sold

Graded Cards: Higher Returns Despite Higher Costs

Graded cards are more expensive to buy, but they can get higher returns when sold. This is because grading a card proves its authenticity and increases its price. When the sports card market is volatile, graded cards tend to increase in value more than ungraded cards.

Protecting Your Investment

Graded cards are more protected from damage and deterioration over time than standard raw cards. Raw cards are susceptible to getting lost or damaged, whereas graded cards are preserved in slabs that are difficult to damage.

Higher Selling Price

The higher the grade, the better the selling price. Buyers are willing to pay higher prices for high-grade copies of certain cards. For example, a PSA 10 Michael Jordan card is worth more than 11 times its PSA 9 equivalent.

Expert Valuation

Grading a card provides an expert valuation of its condition, which is beneficial for both buyers and sellers. Buyers know exactly what they are getting, and sellers can establish the value and authenticity of their cards.

Online Certification Database

When a card is graded, it is added to the grading company's database and assigned a certification number, which can help identify the card if it is stolen.

Higher Costs

Grading cards can be costly, with services starting at $10 per card and going up to $20-$25 per card for premium services. There are also opportunity costs and shipping costs associated with sending cards for grading. Therefore, it is important to carefully evaluate whether grading a card is worth the investment.

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Graded cards are protected from damage and their authenticity is proven

When it comes to investing in sports cards, graded cards are a great option as they are protected from damage and their authenticity is proven. Graded cards are encapsulated in hard plastic slabs or cases that are very difficult to damage, thus protecting the card inside from most harm. These slabs are sonically sealed and tamper-evident, providing an added layer of security.

Additionally, grading companies authenticate the cards before assigning a grade, ensuring that the cards are not counterfeit or altered. They review the cards for any signs of doctoring, such as re-colouring or trimming, and use a 10-point grading scale to assess their quality and condition. This process helps establish the value of the cards, which is beneficial for both buyers and sellers. The higher the grade, the better the card sells, and buyers are often willing to pay premiums for high-grade copies.

Furthermore, graded cards are added to the grading company's online certification database, where they are assigned a unique certification number. This number helps identify the card if it is ever stolen, which is especially valuable for vintage or unnumbered cards.

While graded cards offer protection and authenticity, it is important to consider the costs and potential risks associated with the grading process. The grading process can be expensive, with fees ranging from $10 to $100 per card, depending on the service chosen. There may also be additional costs for supplies, postage, and insurance when sending cards to the grading company. Moreover, the grading process can take a significant amount of time, especially at leading grading companies, and card values may fluctuate during this period. Therefore, it is crucial to carefully evaluate the potential risks and returns before deciding to grade your cards.

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Graded cards are assigned a certification number, which helps identify them if they are stolen

If you're looking to invest in sports cards, there are a few different strategies you can consider: rookie card investing, vintage card investing, graded card investing, and milestone card investing. Each strategy comes with its own set of risks and potential rewards.

Graded cards are an excellent way to protect your investment, especially if you believe in a particular player's potential. The grading process can help preserve the condition and value of the card, making it a lucrative long-term investment. Additionally, graded cards are assigned a certification number, which is extremely beneficial for identification purposes if the card is ever stolen. This is especially valuable for vintage or unnumbered cards.

When it comes to grading companies, it's important to choose a reputable and trusted organisation. Some of the most well-respected companies in the industry include Professional Sports Authenticator (PSA), Beckett Vintage Grading (BVG), Beckett Grading Services (BGS), and Sportscard Guaranty Corporation (SGC). These companies have established standards and earned the trust of collectors.

The grading process typically involves submitting the card to the company, where it will be assessed for authenticity and condition. The company will then assign a grade based on a predefined set of criteria, which may include factors such as centering, corners, edges, and surface condition. The higher the grade, the better the selling potential, as buyers are often willing to pay premiums for high-grade copies of certain cards.

However, it's important to keep in mind that grading cards can be a costly and time-consuming process. There are also risks involved, such as the card receiving a lower grade than expected or even getting lost or damaged during the grading process. As such, it's crucial to carefully evaluate the potential value of a card before submitting it for grading to ensure it's worth the investment.

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Graded cards are more profitable if they are in good condition and are valuable

When it comes to investing in sports cards, graded cards are a great way to protect your investment and increase its value. Graded cards are more profitable if they are in good condition and are valuable for several reasons.

Firstly, graded cards hold up much better over time than ungraded or "raw" cards. Raw cards can get lost or damaged, whereas grading helps preserve their condition and value. Graded cards are protected by slabs, which are very difficult to damage, ensuring the safety of the card inside. Additionally, grading companies provide an expert valuation of the card's condition, which is beneficial for buyers and sellers.

Secondly, graded cards establish the authenticity and value of the card. This is especially important for vintage cards, as it confirms they are not counterfeit or altered. Graded cards are also added to the grading company's online database, which can help identify the card if it is stolen.

Thirdly, graded cards can increase in value exponentially. The higher the grade, the better the selling price. Buyers are often willing to pay premiums for high-grade copies of certain cards. For example, a PSA 10 Michael Jordan card is worth more than 11 times a PSA 9 card.

Finally, graded cards are a good investment for the long term. If you believe a rookie will become a superstar, getting their cards graded early can be lucrative. By the time they reach their prime, you will have graded copies ready to sell with confidence.

However, it is important to note that grading cards requires research, money, and patience. It may not be suitable for those seeking quick cash, as the process can be slow and there are costs associated with grading services and shipping. Additionally, not all cards are worth grading, as some may not see a sufficient increase in value to justify the costs. Therefore, it is crucial to research card values, population counts, and card conditions before deciding to grade your cards.

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Graded cards are best bought from respected companies such as PSA, BGS, and SGC

When it comes to investing in graded cards, it is best to buy from respected companies such as PSA, BGS, and SGC. These companies are trusted in the industry and have established themselves as reliable sources for graded cards.

PSA, or Professional Sports Authenticator, is often considered the industry standard and has been in the business for a long time. They use a 10-point grading scale and are known for their rigorous grading process. However, they tend to be the most expensive option and have slower turnaround times.

BGS, or Beckett Grading Services, founded by Dr James Beckett, is another well-respected company in the industry. They offer a dual grading system with sub-grades for various aspects of the card, providing more detailed information. BGS also has faster turnaround times compared to PSA.

SGC, or Sportscard Guaranty Company, is a younger company but has gained a lot of traction recently due to its competitive price reductions. They are known for their expertise in grading vintage cards and have established themselves as a trusted alternative to PSA and BGS. SGC also has faster turnaround times and more affordable pricing.

When investing in graded cards, it is crucial to consider the company's reputation, grading scale, pricing, and turnaround times. While PSA, BGS, and SGC are the most respected companies, each has its own advantages and disadvantages. It is essential to research and choose the company that best aligns with your investment goals and preferences.

Frequently asked questions

Graded cards are more likely to hold up over time compared to ungraded ("raw") cards. Grading a card can help preserve its condition and value, and graded cards tend to increase in value more than ungraded cards. Additionally, grading provides an expert valuation of the card's condition, which is beneficial for both buyers and sellers.

It is important to consider the card's condition and value before grading. Cards in good condition and those that are valuable enough are ideal candidates for grading. Grading companies typically charge a flat fee, so it is crucial to ensure that the potential increase in value justifies the cost.

Reputable grading companies include the Professional Sports Authenticator (PSA), Beckett Vintage Grading (BVG), Beckett Grading Services (BGS), and Sportscard Guaranty Corporation (SGC). These companies have established themselves in the industry and are trusted by collectors.

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