My kneejerk takeaways from the price hikes.
1. Unremarkable PSA graded cards (think those worth say < $40) will be harder to find as fewer collectors will roll the dice on grading non-star cards given the higher cost. So the existing supply of unremarkable cards may slowly come off the market. That said, they may now fetch a premium as the grading, which is now pricier, is already done.
2. The priciest cards may experience pricing pressure but I am less sure of this. If someone is paying a lot to slab a card, they will save it for the best cards with the most upside, so money ordinarily earmarked for lesser cards may be redirected to top cards. If the higher price is not a deterrent for grading then more supply could pressure prices.
3. I don't believe any other grader will meaningfully threaten PSA. Collectors are stuck in PSA's web.
4. If and when PSA ever can make grading as simple as having it done while you wait and lower the price, the hobby could become far more popular and dynamic. For long-term collectors, there is no pressing need to grade cards when they cost an arm and two legs to grade and take an eternity to receive.
5. I think one day, pricing, helped by technology, will come down. Over time, as volume rises, prices can come down. But for now, though the fees are confiscatory, the rationale for raising prices given a heavy backlog makes sense as a deterrent and to slow submissions. My hope is that if and when they get their act together that they can in tandem speed the turnaround process and lower prices.
|