Sports Card Grading: Why It Matters for Investors

Who would’ve thought that our old sports cards would be worth thousands of dollars one day? Certainly not 13-year-old us. 

Oh yes, sports trading cards have transformed from our nostalgic keepsakes to highly sought-after investment assets, drawing the attention of savvy investors worldwide. 

But what separates a casual collectable from a high-value asset? The answer lies in sports card grading. This process boosts a trading card’s appeal and market value, turning a “mere” collectable into a valued investment. 

So, whether you're new to the exciting world of sports card investing or looking to sharpen your strategy, understanding the basics of grading can unlock the true potential of your sports card investments. And that’s what we focus on today. 

Understanding the Basics of Sports Card Grading

Let’s start from the beginning: what is card grading? 

The simple answer is that it’s the process of assessing a card’s condition and authenticity. Professional grading companies examine key features of a card – such as its centring, corners, edges, and surface – and assign it a grade based on its quality. This grade is typically given on a scale from 1 to 10, with 10 being mint condition.

For investors, graded cards offer a layer of assurance; a graded sports card:

• confirms authenticity, eliminating the risk of counterfeit purchases;

• provides an objective evaluation of its condition;

• enhances its desirability and value in the market.

Whether you're a collector or a novice investor, understanding the grading system can help you navigate the sports card market more effectively. 

Why Grading Matters for Investors

Grading offers significant benefits to both collectors and investors, making it an indispensable part of the sports card market. Here’s why it matters and how it can enhance your investment strategy:

Boosted Market Value

Unsurprisingly, graded cards command higher prices than ungraded. A PSA 10 (Gem Mint) card can sell for several times the value of the same card in raw, ungraded form. The grade acts as a seal of approval, assuring buyers that the card is authentic and in mint condition.

From an investor’s perspective, grading is an essential step to maximise a card’s market value. Whether you’re planning to sell now or hold for future gains, grading ensures you’re always tapping into the card’s full potential. 

Guaranteed Authenticity

Counterfeit sports cards are a common issue in the market. Moreover, spotting fakes has become almost impossible, with even experienced collectors falling victim to counterfeits. 

Professional grading services eliminate this risk by verifying the card’s authenticity as part of the grading process. With a professionally graded card, you can invest with confidence, knowing that the item you’re holding is genuine. 

Condition Assurance

Grading provides a consistent, unbiased evaluation of a card’s condition. A raw card’s value can vary greatly depending on its state, but grading removes the guesswork. By examining factors like centring, corners, edges, and surface, grading companies assign a numerical score that reflects the card’s quality.

For investors, this means greater transparency. You’ll know exactly what you’re buying, and future buyers will have the same assurance when it comes time to sell.

Easier Sales

Grading will also come in handy when it’s time to cash in on your investment. Buyers trust the grade as a reliable quality indicator, which can potentially reduce negotiation time and ensure you get a fair market price.

Graded cards also tend to attract more interest from serious collectors and investors. A PSA, BGS, or SGC grade adds credibility and professionalism, making the sale process smoother and faster.

How Are Sports Cards Graded?

Sports card grading isn’t just about eyeballing a card and assigning a random number. It’s a detailed, methodical process conducted by experts who evaluate the card's condition against strict criteria. The result of this process is an objective and standardised assessment. Here are the key factors that professional grading companies analyse:

Centring

Centring refers to how well the card’s design is positioned within its borders. A perfectly centred card will have equal margins on all sides, while an off-centre card may appear lopsided or uneven. Poor centring can significantly impact a card’s grade, even if the rest of the card is in great condition.

Corners

The corners of a sports card are a critical factor in grading. Sharp, clean corners indicate that the card has been well-preserved, while rounded or frayed corners suggest wear and tear. Damage to corners often occurs from improper handling, storage, or age.

Edges

The edges of a card are another area prone to damage, especially during manufacturing, handling, or storage. Graders carefully inspect the edges for signs of wear, chipping, or uneven cuts. Cards with flawless, smooth edges are more likely to receive high grades.

Surface

The surface is arguably the most complex aspect of grading. It involves examining the card for a range of potential issues like scratches, stains, print defects, or fading. Graders also check for any fingerprints, creases, or dents that might diminish the card’s overall appeal.

The Grading Scale

Once the card’s centring, corners, edges, and surface have been evaluated, it’s assigned a grade. Most grading companies use a 10-point scale with the following key benchmarks:

• 10 (Gem Mint): Perfect condition. The card has no visible flaws, with excellent centring, sharp corners, smooth edges, and a pristine surface.

• 9 (Mint): The card is in near-perfect condition but may have one or two minor imperfections, such as slightly off-centred borders or a faint surface blemish.

• 8 (Near Mint): The card is in great condition but has minor flaws, such as soft corners, light edge wear, or less noticeable centring issues.

• 7 (Excellent): Noticeable wear is present, but the card is still in good condition. This may include some soft corners, moderate edge wear, or slight surface issues.

• 4–6 (Very Good): The card shows obvious signs of handling and wear, including rounded corners, edge chipping, or surface scratches. Despite the wear, the card remains intact and presentable.

• 1–3 (Poor): Cards in this range have major flaws, such as heavy creases, tears, stains, or significant surface and corner damage. These are typically only valuable for very rare or historically significant cards.

Understanding the grading scale ensures you know what to look for when buying or submitting cards, helping you make informed investment decisions.

While top grades like PSA 10 and PSA 9 are the gold standard, even lower-grade cards can hold significant value, especially for vintage or rare editions. When evaluating a card, consider both its grade and its broader market demand.

PSA vs BGS vs SGC

The major companies that dominate the sports card grading market are PSA (Professional Sports Authenticator), BGS (Beckett Grading Services), and SGC (Sportscard Guaranty Corporation). Here's a closer look at what each company offers:

Professional Sports Authenticator (PSA)

PSA is recognised as the gold standard in sports card grading. Its long-standing reputation and trusted grading scale make it a favourite among investors and collectors alike.

• Reputation: PSA is the industry leader, with its graded cards typically commanding the highest resale values in the market.

• Grading Scale: PSA uses a straightforward 1-to-10 scale with half-point increments for more precise grading.

• Best For: PSA is ideal for grading high-value cards, both vintage and modern, due to its strong brand recognition and the premium prices its graded cards often achieve at auction.

• Downside: PSA’s popularity can lead to longer turnaround times, especially during periods of high demand.

Beckett Grading Services (BGS)

BGS is best known for its detailed grading reports, which include subgrades for centring, corners, edges, and surface. This level of detail appeals to collectors who want more insight into their card’s overall grade.

• Reputation: BGS has earned a strong reputation for its modern card grading, with collectors valuing the transparency of its subgrades.

• Grading Scale: BGS uses a 1-to-10 scale with 0.5 increments, providing a highly precise grading system.

• Best For: BGS is particularly popular among collectors of modern cards, where the subgrades help distinguish slight differences in quality.

• Downside: While BGS grades hold high value, their resale prices are generally a step below PSA’s, particularly for vintage cards.

Sportscard Guaranty Corporation (SGC)

SGC is often the go-to choice for grading vintage cards, thanks to its expertise in evaluating older and rarer collectables. Its distinctive black slab design also sets it apart visually.

• Reputation: SGC is trusted for its focus on vintage cards, making it a favourite for collectors of early sports cards and pre-war issues.

• Grading Scale: SGC uses a 1-to-10 scale but employs unique labels for additional precision in some cases.

• Best For: Vintage cards, especially those from earlier eras, as SGC’s grading is well-regarded within this niche.

• Downside: While SGC is gaining traction, its graded cards often have lower resale values compared to PSA and BGS, especially for modern cards.

Choosing the Right Grading Company

For novice investors, selecting the right grading company comes down to the type of card you’re grading and your goals:

• If resale value is your priority: PSA is your best bet, as it consistently offers the highest premiums in the market.

• If you want detailed subgrades: Choose BGS, especially for modern cards where every detail counts.

• If you’re working with vintage cards: SGC is the ideal choice for older, rare collectibles where authenticity and expertise matter most.

Understanding the strengths and differences between PSA, BGS, and SGC ensures you can make informed decisions when grading your sports cards, ultimately maximising their value in the market.

Invest In Sports Cards with Splint Invest

Grading is the cornerstone of sports card investing, offering clarity, consistency, and confidence to investors. By understanding how grading works and choosing the right cards to grade, you can maximise your returns in this growing market.

At Splint Invest, we make it easy to dive into alternative investments like sports cards. Our platform allows you to buy shares in expertly curated investment funds, including PSA-graded cards and other premium collectables.

Start your investment journey today with Splint Invest!