Card grading is a significant aspect of the baseball card hobby, with companies providing an objective evaluation of a card’s condition that directly impacts its value. However, the hobby is not without card grading controversies. From questions of legitimacy to discrepancies between grading companies and concerns over inexperienced or fraudulent entities, there are many debates in the hobby about the integrity and standards of card grading. This article examines key card grading controversies, the differences between grading companies, the rise of “fly by night” services, and the specialization of companies based on card era, offering a fact-based exploration of these topics.
The Legitimacy of Card Grading
The core function of card grading is to assign a numerical value to the condition of a card. This is typically on a 1-10 scale. This scale influences a card’s market price, making the difference between a valuable collectible and a less-desired one. While most collectors accept the grading process as a necessary step in determining a card’s true value, others question the legitimacy of these evaluations.
The controversy primarily stems from the subjectivity involved in grading. Although companies aim to apply standardized criteria, such as centering, edges, corners, and surface quality, human error and opinion play a role. Grading inconsistencies, where two identical cards receive different grades, fuel skepticism in the hobby. Even the largest grading companies have faced scrutiny for not providing fully transparent or consistent explanations behind the numerical grades they assign.
Differences Between Grading Companies
Several companies dominate the card grading landscape, each with their own standards and reputations. Among them, the largest are:
- Professional Sports Authenticator (PSA)
- Beckett Grading Services (BGS)
- Sportscard Guaranty Corporation (SGC)
While all three are reputable, each has differences in grading philosophy, grading scales, and public perception.
Professional Sports Authenticator (PSA)
PSA is the largest and most widely known grading company. It uses a 1-10 scale with half grades (e.g., 8.5). PSA has a reputation for being slightly lenient on centering, which can lead to higher grades compared to its competitors. However, this leniency has sparked debates, as some believe the company’s grades may inflate card values. PSA’s focus has traditionally been on modern cards, though it is trusted in vintage as well.
Beckett Grading Services (BGS)
Beckett uses a similar 1-10 scale but includes subgrades, assessing centering, corners, edges, and surface individually. This additional detail provides transparency in how the overall grade is calculated. However, Beckett is often considered stricter on vintage cards and certain aspects like centering. This can lead to a card graded lower by BGS compared to PSA. Beckett is often preferred by collectors of modern cards, especially autograph inserts and patch cards, given their in-depth grading approach.
Sportscard Guaranty Corporation (SGC)
Known for its prominence in vintage card grading, SGC is favored by collectors of pre-1980 cards. They previously used a unique 1-100 scale; the problem, was it didn’t convert clearly to a 1-10 scale. For example, an SGC 96 was a 9, but an SGC 92 was an 8.) They’ve since converted into a standard 1-10 scale.
Some collectors argue that SGC is tougher on condition, resulting in more accurate grades for older cards. Collectors may also favor the “tuxedo black” holders for cards. However, SGC has struggled to gain the same market share for modern card grading, where PSA and BGS dominate.
The differences in grading standards across companies create significant debates. A card graded by one company may sell for more or less than the same card graded by another company, even if the numerical grades are the same. This inconsistency can cause frustration for collectors and investors who rely on grading to determine a card’s value.
The Rise of Other Grading Companies
While the “Big Three” remain the industry leaders, demand for graded cards has resulted in a surge of smaller, lesser-known grading companies. Many of these companies have popped up with the promise of lower fees, quicker turnaround times, or more lenient grading standards. Lesser known and “fly by night” grading companies are a major concern in the hobby and cause many card grading controversies.
The problem lies in the lack of credibility or industry recognition for these smaller companies. Their grading standards are often questioned; their grades rarely hold the same value as those graded by established companies. Some collectors view these companies as unreliable, potentially damaging the overall legitimacy of the card grading industry.
In some cases, smaller companies have been accused of fraudulent practices, including inflating grades or providing certifications for altered cards. This has led to a lack of trust, making it difficult for them to establish a foothold in the market. Many collectors and dealers warn against using unknown or unproven grading companies. Significantly, the resale value of cards graded by these companies is generally far lower than those graded by PSA, BGS, or SGC.
Beckett Collectors Club Grading (BCCG)
Even Beckett, a behemoth of the hobby, has not escaped scrutiny. According to collectors, their BCCG brand of card grading, which is cheaper and often used for mass submissions, does not grade as critically as BGS or BVG (Beckett Vintage Grading), despite being from the same company. As a result, BCCG will typically not sell a well as the “Big Three” grading companies.
Companies That Specialize in Vintage vs. Modern Cards
Another area of contention in the card grading industry is the specialization of companies in either vintage or modern cards. As mentioned earlier, SGC has built its reputation on grading vintage cards, particularly pre-1980 issues. Vintage collectors value the company’s consistency, attention to detail, and tougher grading standards. Many believe these standards reflect the true condition of older, sometimes fragile, cards.
In contrast, PSA and BGS have captured the modern card market, where autographs, relics, and inserts are now more common. PSA, in particular, has become the go-to for modern collectors. They have involvement with major auction houses and high-profile sales, adding to their profile. BGS, with its subgrade system, is preferred by collectors of higher-end modern cards, where every aspect of the card’s condition matters.
The debate between vintage and modern grading companies centers on whether one grading system can effectively evaluate both types of cards. Some argue that vintage cards require a more nuanced approach due to issues like aging and print technology. Meanwhile, modern cards should focus more on manufacturing defects like centering and surface quality. Critics believe that grading companies need to specialize in one era to maintain accuracy; others argue that a universal standard should apply to all cards.
Grading Scandals and Ethical Concerns
Over the years, the card grading industry has faced several scandals that have further fueled card grading controversies. In some instances, prominent grading companies have been accused of favoring certain high-profile clients, giving higher grades to cards submitted by these clients in exchange for business partnerships or financial incentives. These allegations, though rarely proven, have caused mistrust within the hobby.
Additionally, issues of altered cards slipping through the grading process have raised ethical concerns. Some collectors and dealers have been known to trim or recolor cards to improve their condition and increase their value. While grading companies are supposed to catch these alterations, there have been instances where altered cards have been graded as authentic, resulting in financial losses for buyers. This raises questions about the thoroughness and effectiveness of grading practices.
The card grading industry is also criticized for being profit-driven, with some companies offering expedited grading services at higher prices. Collectors argue that this creates an unfair advantage for those willing to pay more, as their cards are graded faster and potentially more leniently than those submitted through standard services.
Grading Turnaround Times and Backlogs
One of the most significant card grading controversies in recent years has been the issue of grading turnaround times. As the popularity of card grading has grown, so has the number of submissions to the major companies. This has led to massive backlogs, with some collectors waiting months or even over a year to receive their graded cards.
In response to the backlog, companies like PSA temporarily shut down certain grading tiers to catch up on submissions, but this decision only further frustrated collectors. The long wait times, combined with rising grading fees, have made it difficult for collectors to trust that their cards will be graded in a reasonable timeframe, especially for lower-value submissions.
The debate over turnaround times is closely linked to the issue of pricing. As grading fees have increased, collectors have become more selective about which cards they submit for grading. While high-end cards are still worth grading due to their potential value increase, many lower-tier cards no longer justify the cost. This has led to concerns that grading is becoming a service only for wealthier collectors, pricing out casual hobbyists.
The Future of Card Grading
Looking ahead, the card grading industry faces several challenges. The continued demand for graded cards suggests that the industry will remain a vital part of the hobby, but grading companies must address the card grading controversies that plague them. Increased transparency, better quality control, and improved turnaround times are essential to maintaining trust within the collector community.
Technological advancements may also play a role in the future of card grading. Some companies have started to explore the use of artificial intelligence (AI) to assist in the grading process. By using computer algorithms to evaluate a card’s centering, corners, and surface, AI could help eliminate some of the subjectivity and human error that currently impact grading consistency. However, the introduction of AI also raises new concerns, such as whether it can accurately account for the nuances of vintage cards or potential alterations.
In conclusion, card grading remains a vital yet controversial part of the baseball card hobby. From debates over the legitimacy and consistency of grading to the rise of untrustworthy companies, collectors must navigate a complex landscape when submitting their cards for evaluation. As the industry evolves, grading companies must address these issues to preserve the integrity of the hobby.