The grading of sports cards has become a widely accepted method for verifying a card’s condition and authenticity. Grading was first introduced to the hobby in 1991 by Professional Sports Authenticator (PSA) of Newport Beach, Calif. PSA is a company spun off from Professional Coin Grading Service. It was first thought having an independent firm grading sports cards would do more damage to the hobby than help. However, by now, many have found it to be the basis for trading all sports cards of value.

To grade a card, you send it to a third-party company for authentication and state its condition. This company does not buy or sell cards as a business and is independent and credible.

Grading has many aspects. If any type of alteration to a card is evident, the card will be either rejected or placed in a holder without a number grade. In the second case, it will be noted that while authentic, there is “evidence of trimming,” that it has been “altered” or something similar. Unlike other hobbies, where cleaning or restoration of the collectible is widely accepted, in the sports card area, there is no allowance for any type of modification to a card. It must be exactly as issued to be graded.

The sports card industry has four accepted grading companies and in order of recognition, are usually ranked PSA first, then Sportscard Guaranty (SGC), Global Authentication Inc. (GAI) and Beckett. All are independent companies that strictly grade and authenticate sports cards, other types of cards and sports memorabilia. PSA is the oldest and most widely known. They are experts in all areas of the field, but it is SGC that is widely recognized for its special expertise in 19th-century cards and collectibles. This isn’t saying the other companies aren’t good, but SGC is considered by many to be the most knowledgeable in 19th-century material. Beckett is popular for grading newer (1980-present) sports cards, and GAI is very reputable in all areas.

These companies vary in their philosophy, history and approach. PSA was the first on the market. Many people collect just PSA cards, so the company has that edge. Beckett was the first to use true half-point grading ranging from 1-10 and is one of the last to enter the grading market. New card collectors seem to like the half-point grading. SGC uses a 1-100 scale that is equal to the half-point system, though I just feel it took people a while to get use to that system, thus giving Beckett the edge in new-card gradings. PSA, because of its longevity, and GAI have strong expertise in pre-1969 cards. To go one further, if choosing 19th-century cards, SGC would be first, PSA second, GAI third and Beckett fourth.

Grading a card can add great value to your collectible. At first, most people assume that one would grade just the star players, such as Mickey Mantle, Babe Ruth, Ty Cobb and so on, but there is great potential for grading the common players in each set, too. Each of these companies have what they call a set registry. Collectors can register their sets and compete against others for top spots (highest-graded cards) in each year. Card sets have been produced since the late 1800s, so collecting everything would be extremely expensive. Some collectors pick a year and set out to get the best card in that set.

How does grading increase sports card value?

You may ask how can a card increase significantly if graded? Well, with all the online auctions, major auction houses and very strong prices of rare sports memorabilia and cards, third-party grading gives buyers confidence that they are getting what they are paying for. I notice a significant difference in prices realized when selling a graded card in comparison to a similar ungraded card. The reason, I think, for grading midgrade cards is that cards on a 1-10 scale will grade 3-6 because a buyer doesn’t have the card in front of him or her when bidding. But if the card is graded a 5 by a reputable company, the bidder would know what to expect condition wise and be confident there are no hidden faults with the card. In other words, peace of mind is usually why cards in these grades bring higher money at auction.

Meanwhile, for cards graded 7-9, especially 8s and 9s of cards pre-1969, the card grade adds value in that the buyers know they are not only getting a high-quality card, they are also buying cards that are considered investment grade and have potential to increase in value.

Cards graded 9 and 10 bring top prices because they are usually the best of the best and the population (another factor in prices) is very low. The population is the number of cards in a particular grade in comparison to all the cards being graded. One example is if there are 2,000 of a certain card graded, and there are 3 graded 9 and 2 graded 10 and the rest are 8.5 and lower. When a 9 goes up for auction, it is not only being sought after by investors, but by people seeking to get the highest graded for their set in that year.

Ultimately, though, it comes down to supply and demand. I have seen common players from 1955 (and many other years) that would have a value of $15 if not graded, sell for as high as $4,000 graded as a 9 or 10. It isn’t because the producer made fewer such cards, it is just because getting one in a high grade is very difficult.

The most popular example of this I can use is a 1952 Topps Andy Pafko, card #1. Usually cards #1 and the last card of a set are tough to find in good condition because they are damaged from being on the top or bottom of a pile, have rubber-band marks and so forth. This particular card is worth about $500 in midgrade condition, and if graded up to the equivalent of a 4.5 grade, would sell for about the same price of $500. It’s when you get into high-grade examples that the price soars. Recently, this particular card graded an 8 sold for $81,000. It is a tough card in high grade, and set collectors along with investors are aggressively after it.

There are many cards that sell for 20-100 times their value when graded and in high grade. I could list hundreds of cards, but the main factors in determining high values for cards of players that aren’t major stars is the population of the card in the grade desired, along with the number of people collecting that set or player. You can have a very low-population card in high grade that won’t necessarily get a very high price if the set the card is from is one that is not popular with collectors. In that case, even though there is a low supply, there is just as low, if not lower, demand for it.

Again, while many star players in high grade bring high prices, it isn’t just the major stars that are increased in value by grading. The same is true for many common player cards. As with all hobbies and investments, investing in sports cards should be thoroughly researched before jumping in with two feet. Pick the areas of collecting and having your cards graded that suit your needs and desires.

Grading has many variables

To sum it all up, grading has many variables—the card, population of the card once graded and credibility of the grading company. I am not saying any one company is better than any other. Still, overall results show that if you take a pre-1970 card in the same grade but in the four different holders, chances are the PSA would get the highest price, SGC second highest, GAI third and Beckett fourth. Meanwhile, on post-1970 cards, it would be a close call between PSA and Beckett for top prices, SGC would be next and GAI last. I think this is just a matter of grader preference.

I have included pictures of miscellaneous cards that have been graded by the top four grading companies so that you can see what they look like in the various holders. There are more than these four companies, but the value of other companies’ high grades in comparison to these vary greatly. These four are considered the most credible companies in the industry. So saving a couple bucks and getting cards graded elsewhere will reflect greatly on the prices you can realize.

I noted the ratings by era not to confuse people but to show the different types of collectors and their preferences. This is an arbitrary rating, but I feel most would agree with the order I placed them by era.

While grading your cards can greatly increase your collection value and give it much more appeal to a potential buyer, it can also be very costly if you don’t get the grades you expect. So as noted above, proceed with caution, and always consult a professional for assistance so you don’t end up spending money on grading and not get any benefit from the service.

While prices for the basic living necessities keep rising faster, the market for high end baseball cards seem to be growing more and more. Unlike when times were tough back in the early 1980’s when high end sports cards prices were at their lowest, this time around the baseball card market is just the opposite.

Then and Now

In the early 1980’s, when economic times were tough, prices of the highest valued cards fell and caused many dealers of that time to go out of business, or not see enough profit to afford to stay in business. The market right now in comparable economic times is booming. Recent major auction house prices for some of most recognized baseball cards continue to set record prices. To use 1 prime example, the 1952 Topps Mickey Mantle card #311 (see image); back in the late 1970’s/early 1980’s, this card in near mint/mint condition sold for $1,500. It wasn’t easy to find a buyer at that price either. Recently a PSA graded near mint/mint 1952 Topps Mickey Mantle sold at auction for $98,177.13 , passing one previously sold for $96,000.

A Sound Investment

The market for high-end baseball cards has grown to the point of being a sound investment and I think that is why we are seeing the opposite effect from the early 1980’s in the sales of quality cards. Back in the 1980’s it was almost impossible to name three cards that would sell for over $10,000. Today, you can come up with thousands of cards that would sell in excess of $10,000 in this market.

Of the cards for players that are recognizable (Babe Ruth, Lou Gehrig, Joe DiMaggio, Honus Wagner, Ty Cobb, Mickey Mantle, Roberto Clemente, Willie Mays, Hank Aaron, etc), all have cards of value in excess of $10,000. There are many other cards that are not recognizable by most that come from early production, such as various tobacco cards produced in the late 1800’s where you got a baseball card in a pack of cigarettes or chewing tobacco. Many of these cards have not survived the course of time, thus making them rare.

Paying Top Prices

Collectors and investors have been paying top prices to obtain the rare and big name player cards in the best condition possible. In my opinion, this is part of the reason for the sound investment in baseball cards. Their track history of value has proven to increase, plus the fact that you have a hard asset in your hand. If you invest in 10 shares of a companies stock you have a piece of paper that says you own 10 shares, not really something you would want to display in your house, but if you have Babe Ruth card (see image), it is something you not only invest in but take pride in showing to others. Aside from the investment factor having cards of favorite player’s fuel interest in the history of the game, it may bring back childhood memories, and keeps an ongoing interest in the current players for future investment.

Collecting Types

Many people do not see how collecting high-end baseball cards are an investment, but as long as there is some type of sentimental value attached with certain cards/players, the desire to own their favorites will never die. True card collectors who want to own many cards usually steer more toward mid-grade cards, by that I mean they buy cards that would rate 3-6 on a scale of 10, that way they still get a reasonably nice looking card and can afford more of them. Generally, the true collector is not looking for investment, then the true collectors with the ability to own the best will buy cards from the 7-10 range, but more likely the 9-10 range if such cards are available to them. It is the collectors that love the hobby, but just can not afford to buy much due to everyday living costs eating up their budget, they usually buy the cards graded 1-3 range, they still have the card they desire and surely not looking for investment purposes.

The investor on the other hand strictly is looking for the highest graded cards of the best sets on the market, for example a 1933 Goudey Babe Ruth card (pictured PSA 4) would be an investment card but more so in grades 8-10, they are very hard to find in that condition and highly sought after. The one pictured is a nice clean card, still has investment potential but will not see huge increases in price as would one graded 8 or even a 9.

As economic times get tough I see collecting cards to be a good solid investment because of the emotional attachment to the hobby/sport, the fact that you have an item you can display and still holds a good value. You will know that a particular card, what ever it may be, will not be filing for bankruptcy. The board of directors will not be producing more of them, and as time progresses other copies will be destroyed due to natural disasters and people not knowing what they have and discarding them. Just like in other collectibles markets like coins, comics etc. baseball cards produced in 1933 are just that, from 1933 and not reissued as authentic, as more and more disappear from circulation, the value has kept rising and given the track history of the last 20 years baseball cards have seen major increases in value far exceeding that of most stocks, bonds, and commodities.

With the investment history being sound and the fact that you have an original card in your possession when the stock market or economy is not allowing investors to increase their portfolio’s investing in hard assets has become very popular. As stated above, when a specific card is destroyed the value of the surviving ones increase, when a stock certificate is destroyed, another original can be obtained, additionally any board of directors can vote for more shares to be made available, sports cards are only replaceable by purchasing another copy but it still leaves one less available in the market

Any Market is a Good Market for Collecting

I am not saying for everyone to go out and buy baseball cards and look to get rich or that they all go up in value, like all hobbies and investments the card market has its ups and downs. Thorough research and education should be obtained to insure you are buying items that meet your needs, if for investment be sure you consult with experts to assist you, if for collection purposes an experts assistance is always good, collecting cards in both booming and staggering economic times can still be fun and rewarding, you just need to proceed with caution and enjoy the hobby. My next article will focus on grading sports cards and what it has done for the hobby, till then enjoy the hobby.

One of the first questions that might come to mind is “if the cards are virtual and accessible to everyone, how do they get their value?” Topps solves this problem by offering certain collectibles for a short time and in a limited number. This prevents the market for cards from becoming flooded with too many of the same piece. After all, if an unlimited number of Joe DiMaggio rookies could be created, why would anyone pay more than a few cents for it? Limiting the number of downloads preserves the market for Internet baseball cards.

Collectors wishing to sell their virtual baseball cards can do so through online auctions. Of course, potential buyers must have an account at eTopps so the card can be sent to their online portfolio after purchase. All eTopps auctions are monitored by the staff at Topps, and the final prices are averaged to determine the current value of each card.

If owning a card that you can never physically touch doesn’t sound good to you, eTopps has a solution. For the price of shipping and handling, eTopps will physically print your cards and send them to you in plastic sleeves. Printing is typically done at the end of each season. Of course, after you have the physical card, you can no longer sell its virtual version online.

As far as investing in eTopps cards goes, it can be a dicey proposition. (My story on baseball-card collecting as an investment is filled with useful information.) The online market hasn’t quite found its footing yet. There was a period when Topps was producing too many e-cards, and the market fell flat on its face. Recently, eTopps corrected this problem by limiting the run of cards. Some rookie cards, such as that of Albert Pujols, have seen dramatic increases in value. Other cards, such as an Alex Rodriguez eTopps, have flattened or declined in value.

It’s difficult to tell the future of virtual card collecting. I think it’s certainly a novel idea and a fun hobby, but until the market finds itself, I’ll probably stay away from investing in it too heavily.

What do you think of these collectibles? Do you think virtual card collecting is the future of sports memorabilia? Or will this idea fade away in the upcoming years?

If you are just beginning your collection, you might want to start by reading my earlier posts:

“How to Start a Baseball Card Collection”

“Where to Find Baseball Cards”

“How to Store Your Baseball Cards”

Identifying the Cards
The first step to cleaning out your baseball-card collection is identifying the cards that don’t suit your needs. Whether it is a duplicate or perhaps a card that just doesn’t flow with the rest of your cards, you should set all of these items aside. Keep in mind, a few good cards surrounded by a bunch of filler is not a worthwhile group. Much like the exercise programs we all start at the beginning of each year, the goal of your spring-cleaning should be to trim the fat.

Know the Price
After identifying the items you no longer need, it becomes necessary to research their value. The Worthopedia guide helps collectors identify the worth of all of their collectibles. Just because a card doesn’t fit into your collection doesn’t mean you shouldn’t get full value for it. For this reason, you should make a list of all the cards you no longer need and the value you expect to receive for them.

Trading Baseball Cards
One popular method of cleaning out a baseball-card collection is trading the unwanted cards with friends or other collectors. It’s like the old saying goes, “One man’s junk is another man’s treasure.” In other words, the cards that you no longer want might be the perfect fit in another’s collection. Likewise, the person you are trading with could have some cards that are more suitable for your set. For instance, I prefer collecting older cards, so I could trade my newer cards to someone whose collection focuses around modern items.

– Find Your Desires When beginning the trading process, the first step is to identify cards in the other collector’s set that you desire. These should be cards that you can incorporate seamlessly into your collection. You don’t want to acquire more cards that you will end up not wanting in a few months from now.

– Negotiate Until You’re Happy Trading baseball cards is a long process that involves a lot of negotiation. It’s similar to the trading procedure that takes place in the sport. Teams bargain with one another until they arrive at a deal that satisfies both parties. This is why it is necessary that you research the value of your items that are up for trade. You want to ensure that no one takes advantage of you. Both traders must add in the right pieces to sweeten the deal for the other because negotiation is a two-way street. You have to be willing to give to receive.

– Finish the Transaction After you arrive at a deal that you are happy with, it is time to finish the deal. Exchange the cards, and make sure that you and the other collector are both satisfied. Take the steps necessary to store your cards in a safe manner. You should also organize them in a manner that is consistent with the rest of your collection.

Enjoy Your New Collection!

Doesn’t it feel good to have a nice, clean collection? I always enjoy sprucing up my collection by trimming the fat and injecting some new life into the set. Trading cards really makes the whole collecting process much more fun, and it can create some new bonds with other collectors.

The first step to beginning a baseball card collection is determining the amount of money you want to devote to the cause. Children obviously have much more limited funds than adults, so the scope of their collection might be a bit more limited. The good news is that a collection can be started with even the smallest sum of money. Baseball cards can be found at very affordable prices, if you know where to look. For instance, I acquired the bulk of my collection from a local flea market and from trading cards with my friends at school. Baseball cards are everywhere; you just have to keep your eyes open.

As a child, the growth of my baseball card collection was directly proportional to the allowance I received from my parents. Take note parents- a good way to teach your child the value of money is to give them an allowance and encourage them to pursue a hobby. If they are passionate about that hobby, they will go to extraordinary lengths to protect their valuables. While I was taught the importance of financial prudence at a young age, as all children should be, my parents also understood the significance of being devoted to a hobby. A hobby requires commitment, teaches children the value of money, and provides an alternative to mind numbing video games and troublesome friends.

Therefore, every week, whether it was at a flea market, a garage sale, or a card shop, I sought out baseball cards, within the boundaries of my budget, that I could use to supplement my collection. Access to a pricing guide is a good thing because you want to ensure that you don’t overpay for a card. If a dealer thinks you are a novice who has no concept of a card’s value, he will try his best to get a large amount of money out of your pocket. Purchasing baseball cards is a process that requires knowledge and the ability to negotiate. Don’t ever be intimidated by one of these so called expert dealers. Remember, they are trying to maximize their profits. If you don’t feel comfortable with a price, let them know.

This leads to the second step of beginning a baseball card collection, choosing a focal point. Rather than sporadically acquiring baseball cards that have no relation to one another, most collectors prefer to build their collection around a central theme. Sometimes collections are focused on individual players, teams, or time periods. My collection began with a strong focus on Nolan Ryan. Since I lived within walking distance of his hometown, it was only natural that he was my favorite player.

Anytime I saw a Nolan Ryan card that I didn’t already own, I would do everything in my power to acquire it. I would trade cards with my friends, do extra chores around the house, and beg for advances on my allowance so that I could get that card bearing Nolan Ryan’s image. Whether it was cards from his early days, special editions commemorating a no-hitter, or the Nolan Knows Bo series, I slowly acquired everything I could. Note the word “slowly.”

Baseball card collecting is a slow process that takes a long time to develop. Just keep your eyes open and remain committed, and you will find the right cards to enhance your collection.

Part 1 “How to Start a Baseball Collection”

Part 2 “Where to Find Baseball Cards”

In this third part of “Starting a Baseball Card Collection,” I want to discuss how you can store your cards in a way that will preserve their integrity and keep them organized.

Many of my cards are stored in baseball card albums. These albums are similar to photo albums, and are popular because they provide an easy way to display your collection. These binders are full of plastic sheets that hold 9 cards a piece. You can simply turn through the pages and view the cards in your collection.

It is worth noting that I do not keep my most valuable cards in these albums. I use the baseball card albums to hold my lower/mid-level cards. The reason for this is that the pages are handled and flipped through so often that you run the risk of a card being damaged from excessive handling and overexposure. Maybe I am a little overprotective, but I don’t like to take chances with my more valuable cards.

I also have a large number of cards stored in individual plastic sleeves. There are 2 main varieties of these plastic sleeves: soft and hard. I like to place my more expensive cards first in a soft sleeve and then into a hard plastic covering. These hard plastic sleeves, also known as top loaders, are an excellent choice for protecting your mint cards because they protect the fragile corners from getting bent.

Serious collectors may wish to take their protective measures even further by using screw down cases. These cases are typically reserved for the most expensive baseball cards as they can be fairly expensive. A screw down case consists of 2 thick plastic sheets that screw together to hold the card firmly in place. If you have a rare, pricey card that you want to make sure no one ever touches, a screw down case will provide you with the security that you require.

Using all of these plastic sleeves leads to the obvious question: What do I do with all of these cards in sleeves? In order to best protect your investment, you need to buy special baseball card storage boxes. These boxes come in a variety of sizes to meet your collection’s storage demands.

In addition to providing protection for your collection, these boxes also help you keep your cards organized. You can organize your cards by year, team, brand, or price range. What is important is that you organize it in a way that makes sense for you. An organized collection is easier to preserve and manage because you always know where all of your cards are.

There are a variety of ways to store your baseball cards. The method you choose is determined by the value of your collection, the space you have for storage, and your budget. The main thing is that you do not leave your cards exposed to damage from outside forces. Store your investment in a cool, dark place so that they do not lose their value from heat and light damage. Remember, an organized collection is a happy collection!

Online supply sources:

BCW Supplies – online source for purchasing albums

Pro-Mold Direct – online source for purchasing screw down cases