Purchasing “raw” vs “graded” sports cards is a personal choice. One pro of graded cards is that they are much easier to sell. This is because they have already been assigned a grade, and there is no guessing about its condition.
But if you develop a good eye for grading companies’ guidelines, you unlock the possibility of making smart raw purchases that could be intelligent investments. Buying cards raw and sending them in for grading can be lucrative if you intend to sell them for a profit.
Grading is the process of having an independent third party evaluate the condition and/or authenticity of a card or piece of memorabilia. PSA, BGS, and SGC are the three most common companies.
There are lots of companies that grade cards. Some of these companies are better than others. Cards graded by PSA will hold the most value. The second best is BGS (Beckett Grading Services), and the less popular is SGC (Sportscard Guaranty Corporation). These companies have the same general model and process to grade cards, but keep in mind that PSA grades hold more value in the industry.
The three-step grading process involves authentication (checking for signs of doctoring such as recoloring or trimming), grading, and encapsulation.
The process of sending cards in for grading is covered extensively in my book. Click the link to learn more!