Breaking Down the Grading Process: How Grading Impacts Card Values

In the world of sports card investing, few factors carry as much weight as the grading of a card. For both novice collectors and seasoned investors, understanding the intricacies of card grading is essential for making informed decisions. A high-quality grade can drastically increase a card’s market value, while a lower grade can limit its investment potential. In fact, even a half-point difference in grading can translate to thousands, if not millions, of dollars in certain cases. As the sports card market becomes more sophisticated, investors are paying closer attention to grading as a critical aspect of their investment strategy.

In this blog, we’ll dive deep into the grading process—what it involves, how grading companies like PSA, BGS, and SGC evaluate cards, and the impact a grade has on the market value of your sports cards. We’ll also explore several examples of high-profile sales that demonstrate the enormous value differences tied to a card’s grade. By the end, you’ll have a comprehensive understanding of why grading matters and how it can be a pivotal factor in building a profitable and stable sports card portfolio.

The Role of Grading in Sports Card Investing

Grading plays a central role in sports card investing because it offers an objective, standardized way of assessing a card’s condition and, by extension, its market value. Grading companies, the most prominent of which are Professional Sports Authenticator (PSA), Beckett Grading Services (BGS), and Sportscard Guaranty (SGC), evaluate cards based on key factors such as centering, edges, surface, and corners. The final grade, typically on a scale from 1 to 10, serves as a benchmark that collectors and investors use to determine the card’s rarity, desirability, and monetary worth.

For investors, the significance of grading cannot be overstated. The difference between a card graded PSA 9 and PSA 10 can be immense, often meaning the difference between a card being worth thousands or millions of dollars. For example, the highly coveted 1952 Topps Mickey Mantle card provides a stark illustration of how a small difference in grade can have a profound impact on value. In 2018, a PSA 9 version of this card sold for $2.88 million, while a PSA 10 version (of which only three exist) sold for an astronomical $12.6 million in 2022. Clearly, the quality of a card’s grade can make or break its investment potential.

How the Grading Process Works

To appreciate the significance of card grading, it’s important to understand how the process works. While each grading company has its own slightly different criteria, the primary factors they evaluate are centering, edges, surface, and corners. Each of these elements plays a pivotal role in determining the card’s final grade and, consequently, its market value.

Centering
Centering refers to how well a card’s image or design is aligned within the card’s borders. For example, a card with perfect centering will have equal borders on all sides, with no portion of the design leaning heavily toward one side or the other. Poor centering can significantly lower a card’s grade because it detracts from its aesthetic appeal.

Grading companies like PSA or BGS evaluate centering using precise measurements. For vintage cards, slight off-centering may be tolerated because production methods in earlier decades weren’t as exact as they are today. However, modern cards are expected to have near-perfect centering to receive higher grades. Even a small centering issue can mean the difference between a PSA 9 and PSA 10, which, as mentioned earlier, can result in thousands or even millions of dollars in value difference.

For example, consider the 1986 Fleer Michael Jordan rookie card, one of the most iconic and valuable basketball cards ever produced. A PSA 10 version with perfect centering sold for $738,000 in 2021. However, a PSA 9 version of the same card—often downgraded due to minor centering issues—might sell for closer to $40,000 to $50,000. Such a stark contrast in price demonstrates how crucial centering is in determining value.

Corners
The condition of a card’s corners is another key grading criterion. Cards with sharp, crisp corners will receive higher grades, while those with rounded or dinged corners will be marked down. Corner wear is common in older cards, especially those that have been handled frequently or stored improperly. Even for modern cards, mishandling or manufacturing defects can cause slight imperfections in the corners, which may affect grading.

Corner grading is particularly important in vintage cards like the 1951 Bowman Willie Mays rookie card. In 2023, a PSA 8 version of this card sold for over $500,000, in part due to its remarkably sharp corners for a card over 70 years old. In contrast, cards with softened or damaged corners, even from the same set, can see dramatic drops in their grades and values. A PSA 6 version of the same card, with less-than-perfect corners, might sell for less than $100,000, illustrating how corner quality directly impacts value.

Edges
Edges refer to the quality of the borders around the card. Clean, unmarked edges indicate that the card has been well-preserved, while frayed or damaged edges—often the result of improper handling or storage—can significantly reduce a card’s grade. Edge issues are especially problematic for modern cards, where collectors expect near-perfect conditions for high-grade cards.

For example, in the case of a modern card like the 2009 Topps Chrome Mike Trout rookie card, edge damage can severely impact its grade. A PSA 10 version of this card can fetch upwards of $40,000, but a PSA 9—often downgraded due to slight edge issues—might sell for around $15,000 to $20,000. Even minor flaws in the edges can cost thousands of dollars in value.

Surface
Surface quality is the fourth major component in card grading. This includes evaluating the card for any visible scratches, creases, or print defects, such as ink smudges or print lines. For modern cards with glossy finishes or foil details, surface issues can be particularly glaring and result in significant downgrades.

A card’s surface is especially important when dealing with refractor cards or cards with special finishes, like Panini Prizm cards. For instance, a 2018 Panini Prizm Luka Dončić Silver Prizm rookie card in PSA 10 can be worth over $4,000. However, even a small surface defect like a printing line or a scratch could lower it to a PSA 9, where it might only fetch $1,500 to $2,000. Surface quality is often the hardest aspect for collectors to maintain, as cards can suffer from these issues straight out of the pack.

Grading Scales

PSA, BGS, and SGC
Now that we’ve explored the key elements of grading, let’s take a closer look at the major grading companies and their grading scales. Each company uses slightly different criteria and methodologies, and understanding these differences can help you choose the right grading service for your cards.

PSA (Professional Sports Authenticator)
PSA is the most widely recognized grading company, and their graded cards generally command the highest market values. PSA uses a 10-point grading scale, with PSA 10 being Gem Mint, meaning the card is virtually perfect in every aspect—centering, edges, surface, and corners. A PSA 9 is classified as Mint, indicating a card that has no more than a tiny imperfection, such as minor centering issues or a slight surface defect.

PSA has become the gold standard for grading vintage cards, and their population reports (which indicate how many cards of each grade exist) are heavily relied upon by collectors and investors. For example, there are only three PSA 10 1952 Topps Mickey Mantle cards in existence, which is a major reason why they command such astronomical prices.

BGS (Beckett Grading Services)
BGS is another top-tier grading company, and they are known for their more detailed approach to grading. BGS assigns separate sub-grades for centering, edges, corners, and surface, and the overall grade is an average of these sub-grades. This can give collectors a more nuanced view of a card’s condition.

BGS is especially popular for modern cards and autograph cards. Their BGS 10 Pristine grade is extremely rare and reserved for cards that are essentially flawless. A BGS 9.5 is considered Gem Mint, similar to a PSA 10. However, BGS’s use of sub-grades can sometimes make it easier to understand why a card did not receive a perfect score, and this transparency is appreciated by many collectors.

For example, a 2003-04 LeBron James Exquisite Collection Rookie Patch Auto graded BGS 9.5 with sub-grades of 10 for centering, 9.5 for edges, 9.5 for corners, and 9 for surface can still sell for millions of dollars, but understanding the slight imperfections on the surface helps explain why it didn’t achieve a perfect grade.

SGC (Sportscard Guaranty)
SGC is known for its expertise in grading vintage cards, and it has been growing in popularity in recent years. SGC uses a 1 to 10 grading scale, but unlike PSA and BGS, they also employ half-point increments to provide a more granular assessment of a card’s condition. For instance, an SGC 9.5 would be comparable to a PSA 10 or BGS 9.5, while an SGC 9 would be closer to a PSA 9.

SGC’s strength lies in their quick turnaround times and reputation for grading rare vintage cards, especially pre-war baseball cards. For investors in vintage cards like the 1933 Goudey Babe Ruth, SGC is a trusted name that offers an alternative to PSA and BGS.

How Grading Impacts Card Values

The impact of grading on a card’s value cannot be overstated. The difference between a PSA 9 and PSA 10, or a BGS 9.5 and BGS 10, often results in a dramatic price disparity. This is largely due to the concept of scarcity within scarcity—while a particular card may be rare overall, cards in mint or gem mint condition are even rarer, making them significantly more desirable to collectors and investors.

The 1952 Topps Mickey Mantle Example
One of the most famous examples of how grading affects card values is the 1952 Topps Mickey Mantle card. As mentioned earlier, a PSA 9 version of this card sold for $2.88 million in 2018, while a PSA 10 version sold for $12.6 million in 2022. The difference between a PSA 9 and PSA 10 is minimal in terms of the card’s physical condition, but the scarcity of PSA 10 copies adds tremendous value.

There are only three PSA 10 examples of this card in existence, while there are 6 PSA 9s and many more graded lower. This scarcity drives up the price for PSA 10 versions, making them some of the most coveted items in the entire sports card market.

Modern Card Examples
Grading can also have a massive impact on modern cards. Take the 2017 Patrick Mahomes National Treasures Rookie Patch Auto as an example. In 2021, a BGS 9.5 version of this card sold for $4.3 million, making it one of the most valuable modern football cards ever sold. Had this card been graded lower, even by just a half-point, the value could have been hundreds of thousands of dollars less, highlighting how crucial high grades are for premium modern cards.

Why Grading Matters for Investment Strategy

For investors, the importance of grading extends beyond simply ensuring authenticity and condition. A high-grade card is far more liquid in the market, as it is easier to sell and often fetches a premium price. Graded cards provide buyers with confidence, knowing that they are purchasing an asset that has been professionally authenticated and assessed. In turn, this increases the pool of potential buyers, making it easier to sell or trade high-grade cards.

Furthermore, as population reports become more detailed and accessible, investors can track the number of cards in each grade, which directly impacts market value. A card with a low population of PSA 10 or BGS 9.5 examples will likely appreciate over time as demand increases and supply remains limited.

Conclusion

Grading as the Foundation of Sports Card Investing
Grading is an essential pillar of the sports card investment landscape. Understanding how centering, corners, edges, and surface impact a card’s final grade, and how that grade influences market value, can significantly enhance your ability to make informed decisions. Whether you’re investing in vintage cards like the 1952 Topps Mickey Mantle or modern cards like the Patrick Mahomes National Treasures RPA, the quality of a card’s grade will often determine its investment potential.

By focusing on high-quality grades and choosing reputable grading companies like PSA, BGS, or SGC, you can build a sports card portfolio that is both valuable and stable. Graded cards offer transparency, authenticity, and liquidity, making them the cornerstone of a successful long-term investment strategy in the world of sports cards.