PSA grading and encapsulation services are more expensive compared to competitors for several key reasons:
- PSA‘s reputation as the industry leader allows it to command higher premiums. Collectors will pay more for PSA graded cards due to perceived value.
- Extensive grading process with strict standards makes achieving high grades very difficult. Rarity of PSA 10s drives demand.
- Surging submission volumes increases costs related to grading capacity, labor, authentication etc.
- Quick turnaround times are convenient but require extra resources to accelerate workflow.
- Grading price tiers based on card age and value. More important vintage issues cost more to grade.
- Lack of supply for iconic cards. Raw PSA 10 candidates are becoming scarce.
Now let‘s explore these factors in more detail so you can understand the value of PSA grading and decide if it makes sense for your cards.
PSA‘s Reputation as the Industry Leader
Having your cards encapsulated by PSA boosts their prestige and market value. PSA graded cards routinely sell for higher multiples compared to other companies:
- PSA 10s sell for up to 4x more than BGS 9.5s of the same card
- PSA 10s can sell for 3x to 5x more than SGC 10s
- This premium applies across vintage, modern, Pokemon, Magic and other collectibles
Collectors are willing to pay more for PSA not just because of population rarity, but due to perception. PSA encapsulation provides an air of authenticity and value according to the market.
There is a trust factor that comes with the leading grading company – PSA has authenticated and graded over 40 million cards since 1991. It‘s hard to match this cumulative experience.
Difficulty Achieving High Grades
Let‘s look at some population data that shows how truly scarce PSA 10s and 9s are:
- 1989 Upper Deck Ken Griffey Jr. Rookie – Nearly 150,000 graded, but only 1824 PSA 10s.
- 1986 Fleer Michael Jordan Rookie – Over 57,000 graded, but only 326 PSA 10 examples.
- 1979-80 O-Pee-Chee Wayne Gretzky Rookie – Out of over 31,000 graded, a mere 22 have received the perfect PSA 10 grade.
We see the same story across countless iconic cards – less than 2% achieve PSA 10, and only 20-30% reach PSA 9.
Such small populations for the top grades make those slabs extremely desirable. Combine that with PSA‘s brand recognition, and you have a recipe for high prices.
PSA‘s stringent grading process and lack of grade inflation keeps populations tiny. That rarity allows the market to drive extraordinary prices.
Surging Submission Levels
In 2020, PSA saw card submissions jump nearly 300% compared to 2019 totals. 2021 was also a record setting year by volume.
Keep in mind it takes skilled authenticators and experienced graders to handle such capacity. Add in shipping, insurance, labor, facility and technology costs. Plus PSA has major investments in anti-counterfeiting measures.
This spike in demand and resulting surge in grading costs led PSA to raise prices in 2020 and 2021 across all tiers. Prices for bulk submissions actually doubled.
There are also massive opportunity costs involved – PSA sacrifices short term revenue by shutting down lower profit areas like autograph authentication temporarily.
They are allocating finite resources to the most profitable grading, which means passing those costs to collectors.
Premium Quick Turnaround Options
PSA offers expedited services that yield much faster turnaround times, but at premium prices:
- Regular service tiers take 200-300+ days for modern cards.
- Express service drops that to 45 calendar days at over 3x the cost.
- Super Express grades your card in 5 business days for $600 per card!
These accelerated tiers improve collector liquidity and convenience but require PSA to re-engineer their processes. Additional costs arise from speeding up each stage – intake, authentication, grading, encapsulation, shipping etc.
Super Express also gets special handling directly upon arrival, bypassing the normal queue. Such white glove service for the utmost convenience inevitably leads to higher fees.
Grading Cost Basis on Card Age and Value
More important vintage cards have higher grading price tiers:
- Modern cards newer than 1981: Base tier from $20 to $50 per card
- Vintage cards older than 1981: Starts at $150 per card for the basic tier
- Ultra rare cards declared over $10k value are a massive $10,000 to grade!
This sliding scale reflects the importance and value of vintage cards. Grading and authenticating a 1952 Topps Mickey Mantle requires more expertise and scrutiny than a 2018 Prizm card.
Rarer vintage issues also have less supply available for PSA to purchase and authenticate against. Less supply equals higher costs.
Of course, collectors are willing to pay much more if grading a rare Honus Wagner card versus a modern rookie. PSA aligns prices tiers to the market value of cards.
Lack of Supply for High End Cards
Iconic cards are becoming harder and harder to find in top condition as existing supply dwindles. But at the same time, more collectors are entering the hobby and competing for that scarce inventory.
Let‘s use the 1952 Topps #311 Mickey Mantle as an example. PSA has already graded over 6,500 copies. Yet only a few dozen have scored PSA 10 status, with less than 100 at PSA 9.
Finding another pack-fresh, high grade example that hasn‘t already been graded is increasingly unlikely. But when one surfaces, many deep-pocketed collectors will vie for it.
That supply-demand imbalance leads to skyrocketing prices for the prized PSA 10s. So grading costs are just the price of admission for a chance at big returns.
Is the Value Worth the Costs?
Raw vs. graded pricing shows PSA encapsulation adds immensely more value than it costs:
- LeBron James Rookie PSA 10 – $200,000+ (Cost ~$300 to grade)
- Ken Griffey Jr. Rookie PSA 10 – $4500 (Cost ~$50 to grade)
- Michael Jordan 1986 PSA 10 – $90,000 (Cost ~$200 to grade)
The boost in worth vastly exceeds grading fees. Even modern bulk submissions at $20 a card can yield 5-10x returns for PSA 10s.
This makes grading a no-brainer for vintage HOF rookies, key short prints, PSA 10 contenders – situations where perfect grades command insane premiums.
But modern base common cards may not justify the cost if huge ROI upside is missing. Evaluate each card‘s potential carefully.
Maximizing Your Submission Value
Here are some tips to get the most bang for your PSA grading buck:
- Only submit your best condition cards that have a shot at PSA 9 or 10.
- Use cheaper authentication services like PSA DNA for lower value cards.
- Take advantage of bulk submission discount pricing when possible.
- Utilize regular service tiers unless you need urgent liquidity.
- Cherry pick important vintage cards and key rookies over modern base cards.
- Check recent PSA sales to identify cards where PSA 10s command the highest premiums.
- Avoid excessive handling to prevent deteriorating card condition prior to submission.
Following these guidelines will help ensure your PSA grading investment pays maximum dividends!
