future of grading companies

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Posted By: scott

nobody can predict the future but i think its safe to say 5,10,20 years from now different grading companies will be the major "players".i noticed that auctions with cards by defunct grading companies tend to be avoided.do you think this may happen if any of the big 3 closes shop.not to make this into a raw vs. graded but with that in mind if an individual plans to keep the card,maybe selling years down the road,and is confident in what he's buying,it seems better to pay less $$ for the ungraded.i guess i'm asking two questions here.
opinions...
thanks,
scott

[Archive]

Posted By: identify7

Although I prefer ungraded cards because I do not want to be isolated from the card, I recognize that graded cards are here to stay for several good reasons.

To me the foremost value in a graded card (other than the grade and authentication) is that the card is protected. With regard to grading companies leaving the field, I believe that the top two are firmly entrenched in grading and authentication for other collectibles, including coins, and therefore appear likely to be around for the long haul.

I wish grading standards could be changed, but I doubt that will happen. Therefore, purchasing a graded card now, imho, will still be a valid assessment years from now.

[Archive]

Posted By: scott

actually what i'm asking is what happens to cards graded by a particular company when that company goes out of business.for example BVG, nobody seems to touch.what happens in 10 years if SGC goes out of business?do you think people will avoid their cards on ebay like the previously mentioned company?i know this question is pure speculation.
thanks,
scott

[Archive]

Posted By: T206Collector

And basically, it depends on the reason a grading company goes out of business. For example, SCD no longer grades cards, but the cards in their holders are still more or less respected. If SCD got out of the business because they had no idea what they were doing, well then the story would be different.

The real question is are PSA, SGC and GAI going to be the Big 3 forever. The answer is, of course, no. And the next question is, well, what is forever? After all, Polar Bear is no longer the best scrap tobacco, notwithstanding the advert on the reverse of their T206 cards. What you want from a grader is respect in the industry at the time of grading. That is why I grade with SGC, because they have the highest respect among vintage card graders. If SGC goes out of business tomorrow, collectors will still trust their stuff, so long as the reason SGC went out of business is not fraud or poor grading.

At the end of the day, I collect SGC cards. But I am comfortable in the knowledge that 10 years from now I may have to have my entire collection crossed over into GCG (Google Card Grading), ICG (iPod Card Grading), or (most likely and frightening) ECG (eBay Card Grading) holders. I recently had 40 PSA graded cards crossed over into SGC holders, because I like consistency in my collection.

So long as transactions are being done over the internet, there will always be a need for independent third party grading and standards. And since the internet isn't going anywhere--

Finally, unlike modern cards, there are a limited number of vintage cards available. Eventually, every vintage card that is going to get graded will be graded (while some will invariably stay in family collections ungraded for hundreds of years). For this reason, a card grading company that grades only vintage cards has a short shelf life. That is why you see SGC trying to break into the modern card market and why that is the only real battle ground for PSA, GAI and SGC. Grading companies aren't banking on vintage cards for longevity. Although there are short term gains to be had in this market, it's more of a status/good will thing for them.