The Cost of Grading Baseball Cards
Grading baseball cards is a popular way for collectors to verify the condition and authenticity of their valuable cards. The process of submitting cards to professional grading companies comes at a cost that collectors need to be aware of before starting the grading process. In this article, we will explore the various costs associated with grading cards through the major third-party grading companies and provide tips on how collectors can minimize expenses.
Upfront Submission Fees
All major grading companies like PSA, BGS, SGC, and HGA charge submission fees per card to cover the costs of grading. Fees vary depending on the turnaround time and service level selected but generally range from $10-$20 per card for bulk submissions. Expedited service or single card submissions are more expensive, often $30 or more per card. Collectors need to budget for these upfront costs which can add up quickly depending on how many cards are being graded. Larger bulk submissions do provide some economy of scale savings compared to single card prices.
Shipping Costs
In addition to submission fees, collectors are responsible for the shipping costs to transport their cards to and from the grading company. USPS First Class Mail or Priority Mail are typically the cheapest options and can cost $5-$15 each way depending on the number of cards shipped. Insured shipping with tracking is recommended, adding to expenses. Expedited shipping for faster turnaround times is significantly more costly. Proper packing materials like sleeves, toploaders and boxes are also needed to safely ship cards, all adding to initial out-of-pocket costs.
Upgrade & Customization Fees
While the basic grading service examines authenticity and condition, collectors can choose to upgrade with additional customization and authentication options for an extra fee. Popular upgrades include sub-grade details, auto-authentication of signatures, and special label customization. Fees range from $8-$50 per card depending on the specific upgrade. While not required, these value-added services allow for a more comprehensive grading experience and resale appeal for high-end cards. Upgrades are another expense to budget for during the submission planning process.
Resubmission Fees
If a card comes back from grading with a lower grade than hoped or with qualifiers like “damage”, collectors have the option to resubmit the card for another review. Resubmissions are not free – companies charge resubmission fees which are usually a percentage (often 50%) of the regular submission price. Multiple resubmissions can add up quickly and eat into any potential profits from a card. Careful initial submission is important to avoid these additional costs.
Annual Storage & Insurance Fees
Once graded, most collectors will store their valuable cards long-term in the protective holders issued by the grading companies. This comes at an annual cost that must be paid to maintain the integrity and security of the grading. PSA charges $15-25 per year per card depending on value, while BGS and SGC charge $20 per year. Non-payment can result in cards being returned ungraded. Insurance for high-value cards also adds $1-5 per $1000 of declared value. Long-term holders need to budget for ongoing annual storage and insurance costs.
Resale Fees
If a graded card is eventually sold, most grading companies charge a small fee (usually 3-5% of sale price) when transferring ownership records to the new buyer. This protects authenticity but does cut into potential profits. Factoring in these transfer fees is important for collectors looking to eventually flip cards for monetary gain post-grading.
Taxes
Collectors need to be aware that profits from the sale of graded cards may be subject to capital gains taxes depending on how long the cards were held. Consultation with a tax professional is recommended to understand any potential tax obligations from monetizing a card collection through third-party grading over time.
While grading provides authentication and long-term protection for valuable cards, there are substantial upfront, ongoing, and potential resale costs collectors must budget for. Careful planning of submission strategies, turnaround needs, and future goals can help minimize total expenses over the life of a graded card collection. With the right expectations set, third-party grading remains a worthwhile investment for serious baseball card collectors looking to verify and preserve their prized pieces of sports history and pop culture memorabilia.
