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If you’re gonna have your cards graded anytime soon, you might want to take a raincheck on that. After months of rumors, PSA has finally increased their rates this week and they’re more substantial than people expected.
This latest news comes after a huge surge in demand and popularity for sports cards that started last year. Since that time, PSA has received a massive number of cards that are set to be graded. In fact, right around May last year, PSA’s backlog exceeded one million cards, leading to a lot of delays in the months since.
PSA’s latest rates
To remedy this problem, PSA has decided to raise its rates. Their Economy service, which will be suspended indefinitely, will go up from $20 to $50. Express, which no longer has a guaranteed 15-day turnaround, see its rate jump to $150 from $75. Those sending in cards with a maximum value of $999, will have to pay $100 for a Regular service from its previous price of $50. Super Express, meanwhile, has increased from $200 to $300.
PSA’s Collectors Club Value service, which contributed greatly to the company’s backlog, is now priced at $20 per card from $10 with a minimum order requirement of 10 cards. The price for cards from 2018 to now will be $25.
As you can see, some of PSA’s services have effectively doubled in price. This move, according to PSA President Steve Sloan, will help the company reduce its backlog by limiting the entry of new orders.
Why you should worry about this increase
It seems that the days of getting your cards graded at an acceptable rate are over. Thanks to this development, customers will have to shell out more money, especially if they prefer a faster turnaround time. In effect, people will be more discerning about the kind of cards they send to PSA.
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This means there’s no sense in sending base cards or those with a large print population. Chances are, these cards won’t be worth grading because the new rates will just kill their value. As a result, those who send cards just to flip them will also be affected by this price increase.
Why PSA’s price increase is a good development
You might not believe it but PSA’s new rates can lead to something good. For starters, the value of their graded cards, especially the PSA 10s, will enjoy an increase in value as well. Those who have graded cards of hot commodities in the market, like LeBron James and Luka Doncic, will certainly command a premium when they’re sold.
I actually fall on the side of the PSA price increase being good for the hobby. We can't have every card slabbed and the hobby was heading in that direction. Grading should be for higher value cards and even at the new prices it will still be a good investment to grade those.
— David Rowaan (@Dave_Cards) March 1, 2021
Another welcome development to consider is that PSA’s price increase will help prevent the market from being flooded with graded cards. In the event this happens, the value of these cards will significantly drop, as the Law of Supply and Demand dictates. Thanks to these new prices, graded cards, and their corresponding value, will be protected in the market.
How will PSA’s new prices affect the card market?
In a nutshell, PSA’s recent move to increase its rates will affect both collectors and investors. The latter will feel the brunt of these prices as they will affect how cards are brought and sold in the market.
Investors will no longer rely on graded base and high-population cards to make a quick buck. Instead, those who invest in the market will focus more on valuable cards with a smaller population since they will generate a good return when graded. Collectors, on the other hand, will have to be more discerning with the cards they send for grading to make the most out of their money.
While this pice increase from PSA looks daunting at first, its long-term benefits far outweigh the short-term effects. It’s best to be strategic and wise with your card submissions so you can get your money’s worth with this grading company.
