Today we’re going to discuss CSG grading… I know I know… I’m a month and a half late to their grading scale change party… but it turns out that having 3 kids under 4 puts a dent into a dad’s free time.

So why discuss this month old news? What unique bent can we share from CSG’s decision to abandon it’s Beckett-like 9.5 Gem Mint grade for the more standard 10 gem mint scale? 

Shall we discuss why it all matters… and how we can possibly profit from it?

No. Please keep talking about your kids, Freddy. We’re totally here for you to discuss your cards.

Get it… and the sarcasm.

It’d be pretty hard not to.

Touche.

First I must share an important disclaimer before discussing any grading companies. I have not received any compensation from CSG for access to my tens of viewers.

Are you sure you need to disclose that lack of influence?

You guys are on one today.

We should have our own blog.

You’d all miss me.

Not really. We’re just too lazy to set everything up.

Whatever your reasons, I’m glad you’re all here. As I was saying, I own cards from PSA, BGS, SGC, and CSG and think they all do a fine job. All of them under grade and over grade from time to time, but overall they grade quite similarly.

If you’ve watched my videos on sports card grading or read my blog posts, you know I feel that anything more than a 10% premium for any grading company makes absolutely no sense.

The 12 cents of plastic holding our commodities should not dramatically alter the value of the commodity if graded accurately by any of the 4 major grading companies. The differing scales employed by Beckett and formerly by CSG, led to confusion of a 9.5 gem mint being equal to a PSA or SGC 10. 

A confusion… and contention that continues unabated today.

It only took CSG a little over a year to grow tired of explaining how their 9.5 is a gem mint grade and therefore equal to a PSA or SGC 10. 

So they grabbed the bull by the horns and went ahead and modified their scale to better mirror the standard numerical scales used by PSA and SGC.

They also scrapped their unpopular green flips for a more sleek black, gold, and silver look. Both good moves in my humble opinion.

But why does any of this matter? Why are we even discussing the market’s #4 grading company?

Get to it, Freddy.

Because CSG is new, but legit. They are part of the Certified Collectibles Group, which is already home to the leading authenticators and graders of money, coins, and comics.

Bottom line: They are grownups that know what they’re doing.

But it’s not just simply CSG’s exacting grading standards. Last July Certified Collectibles Group was purchased by a consortium that includes Michael Rubin, founder and executive chairman of Fanatics.

You know… the new king of the card world who envisions a future one stop Fanatics card shopping and grading experience.

PSA is king now, but never underestimate the ability of rich, powerful, smart businessman and woman to become richer and more powerful.

Discount CSG’s exacting standards and strategic industry relationships and focus on their poor short term resale value or relative lack of a track record in the space at your own peril.

In less than a year they’ve already reacted to hobby feedback and dramatically improved their slab and grading scale to become more market friendly. 

Industry expertise, underpriced slabs, and the backing of the king of sports cards who’s stated intention is to be an end to end one stop sports card destination to buy, rip, grade, sell, and vault… sounds like the perfect recipe for an arbitrage opportunity IF you have the patience.

Not our strength, Freddy. But go ahead.

But the window of opportunity closes at the end of June… when CSG’s offer to reslab green 9.5 gem mint holders into their new sleek gem mint 10 holders for $5/card will end.

The Arbitrage Play

1. Instead of buying a PSA 10 of the card you are looking for, buy a gem mint 9.5 CSG version of it in the green holder for 1/2 to 1/4th the cost.
2. Send it in to CSG for a $5 reholdering fee.
3. Hold for 2 to 3 years as Fanatics and CSG ramp up and formalize their alliance.

My guess is that CSG gem mint 10 cards in the new flips will be at least 75-80% of a PSA 10 within 3 years.

3 years, Freddy! You want us to wait 3 FREAKIN’ years!?

It’s an option. If it’s not the right option for you and you don’t want to wait, you can crack and submit to another grading company knowing the cards are graded with similar and in some cases tougher standards.

As always, I’m Freddy… this should most definitely not be considered financial advice… and you’re welcome.