PSA Suspends Card Grading Services Amid Record TCG Interest

PSA, the largest card grading company in the world, has suspended most of its card grading services through July 1st. This is an unprecedented move for the company.

The sheer volume of orders that PSA received in early March has fundamentally changed our ability to service the hobby. The reality is that we recently received more cards in three days than we did during the previous three months… Given our growing backlog, it would be disingenuous for us to continue to accept submissions for cards that we will be unable to process in the foreseeable future.

On March 1st, PSA announced their card grading services would essentially double in price. Its grading services have been strained by the demand created by the pandemic, which has lead to severe delays and a steep backlog.

As lockdown orders went into effect in March 2020, the company predicted the pandemic would create a surge in hobby interest:

Tangibles tend to get even more attractive during volatile economic periods. There’s a flexibility that tangibles offer. They can be bought, sold and traded more easily than other kinds of assets, such as real estate.

What no one could predict in March 2020 was just how much cards would increase in value, as PSA acknowledged in their announcement today.

As we reported last year, much of the interest in modern product has been driven by a lack of supply. This was caused by factories shutting down last year, which lead to shortages and backlogs for all trading card games printed in America. Interest in hobbies also surged as people stayed home.

Although some fans blame scalpers and even YouTubers for the scarcity of Pokemon products, they are merely symptoms of the supply problem, not the cause. It’s analogous to the rush for toilet paper in the early days of the pandemic.

PSA also announced they are continuing to expand their workforce and floor space to accommodate the increased demand.