Disclaimer: ClockOneDrawTwo is not a financial advisor by any means. Everything posted here is based on pure opinion. ClockOneDrawTwo takes zero responsibility for your actions following your reading of this article. The below references an opinion and is for information purposes only. It is not intended to be investment advice.
It has come to my attention that over the course of this year, 2021, from the time of which this article is written, there has been this growing negative sentiment with the topic of grading and scalping cards. I will try to cover and explain the issue to the best of my ability.
First off, what is scalping? Scalping is a trading style where individuals buy-out supply in hopes of forcing the market prices to change in their favour. What that means for card games specifically is essentially buying out official product (booster boxes, trial decks, cards, etc) in hopes of trying to resell later for profit. First off, let’s get something straight here. Scalping is not illegal. The basic premise of what scalpers do is not illegal by any means. They are simply buying product in large quantities legally. These are real transactions and products are being paid for (how they are paid for is of no concern, at least to the market’s view).
So what’s wrong with scalping? Well, the most obvious thing is that it takes away product from existing players and new players. When scalpers buy product, product is taken away from shelves, making it impossible for players to get new cards. Secondly, it raises the prices of product, making it pricier and even harder for players to get their hands on things. Contrary to some opinions, scalping does not remove the product entirely from being purchased. After all, scalping seeks to profit off the returns of the product when the scarcity forces the prices to rise to a higher point, much higher than the original pricing. Players are then forced to buy the product at its elevated, inflated price. Scalping is not illegal but rather just unethical.
So what can you do about it? Well, realistically there’s no way an individual can generally fight against scalping craze. Scalpers have more resources and find ways to grab stock right upon release. The best solution is to have the primary company release far more stock to the point that it becomes pointless for scalpers to buy since too much product will be floating around. Alternatively, awareness is key. Teach and let others know about “scalping” and the whole current situation. I am not suggesting that you point fingers at anyone who is purchasing a large amount of product nor create long speeches in public about it. But if people want to know or are interested, let them know. As for shops, they should be implementing purchasing limits to ensure that individuals have adequate access to supply.
What about grading? Grading is a process by which professional examiners look over a card and give it a quality rating based on a number of parameters. People normally send high rarity cards over to a professional grading service like PSA to get their cards graded. Grading is mostly a collector’s enterprise, hoping to add further value to their cards. There is nothing illegal or unethical about grading.
I’ve seen those hundred dollar postings or thousand dollar postings about these PSA 9s or 10s. Okay, but my question comes with what does that have to do with you? High rarities are high rarities, meaning they will always be in low circulation or supply. In terms of full playability, there is no need for you to purchase any high rarity card, graded or not. You only need the base rarities for your deck to function. That being said, a graded card’s value is not the same as the base value for the same high rarity card. The value of a graded card on the market will always be significantly higher than the price of that same card just pulled from a pack.
I can understand the frustration over the mixing of scalping and grading culture. They are independent actions, but assuredly, there are likely a number of scalpers who are also grading in hopes of driving up the prices of these high rarity cards. The fear is that they will forcibly raise the market value of high rarity cards to the point where only graded copies are realistically available. I cannot answer the probability of that happening for a number of reasons. Firstly, I have no understanding of the amount of circulating individual copies of these high value cards. Secondly, people still trade high rarity cards that are not graded around.
So what can I do as a player about it? Well, this answer is simple. Absolutely nothing. Grading is essentially a collector’s hobby. If you are purely a player, not looking to get a hold of those high rarity alternatives, then it doesn’t concern you. There is nothing people can do to stop people from engaging in this kind of activity. Scalping is a severe issue that is difficult to address, likely beyond the solutions that you or I can come up with. As for grading, there’s nothing wrong with it. Grading is just someone else’s form of fun or hobby activity. Just like players playing cards, collectors enjoy the fun from getting their cards graded. If you want the high value card, get ready to fork money over for it. If you don’t care about the grading and just want to buy a non-graded copy, then do so. No one will stop you. If you don’t want to buy a graded card, just don’t.
Scalpers will continue to scalp, and graders grading cards will continue to do so. Regardless of whether you are a collector or not, if you disagree with the pricing, don’t buy.