PSA, the leading card grading company, is currently managing a backlog of 7.2 million items, down from 12.4 million in July. The surge in demand for grading services reflects a growing trend of treating trading cards as alternative investments.
Despite suspending cheaper submission options in June to address the backlog, many collectors still prefer PSA due to the higher resale values associated with its graded cards. For instance, a 1999 Base Set Charizard graded PSA 9 sold for approximately $3,440, while a CGC 9 version fetched about $1,890 on the same day.
This pricing disparity underscores PSA's market influence, as its decisions on fees and submission services can significantly affect resale values. PSA's parent company, Collectors, also owns other grading brands and has faced legal scrutiny over its acquisitions, which some allege reduce competition.
The company's recent fee increases and service restrictions have made it more challenging for sellers to justify grading lower-value cards, leading to a rise in ungraded card transactions. While PSA is investing to improve capacity, the dominance of its grading service may limit options for collectors, particularly overseas.
Competitors like CGC and Beckett are gaining traction, but PSA's established reputation and market presence continue to reinforce its leading position in the industry