The Cost of a Grade

Or Collecting CGC

I might have to start this article with what is CGC? For decades, collectors wanted to buy the best possible comic book. Originally comic book enthusiasts would clamor for a pedigree because they were of the highest quality. I found out about these sought after collectibles from a list published in my first Overstreet's Price Guide. At one point the OPG was the be all to end all of comic book price gathering amongst trends, recorded sales, and even speculation. Since then, other magazines have come and gone. Wizard and CBG are some examples. 

Now with the internet, an up to date price guide is only a few short clicks away. EBay started to change the comic book industry in September of 1995 by allowing others to bid on comic books. A copy of Amazing Fantasy #15 could be found without ever having to leave home and at the price one is willing to pay. In 1999 the industry would greatly change once more, eventually escalating prices. 

CGC is a subsidiary of Certified Collectibles Group, or CCG. Comics Guaranty Company also known as CGC was surrounded by sister companies NGC (1987), SGC (1998), and followed by its younger sibling PMG (2005). CGC officially opened in 2000, but was created in 1999 amongst criticism, after all comic books were meant to be read. If you ask a fan of Marvel Comics who was mainly responsible for the creation of the Marvel Universe, the answer would be a resounding Jack Kirby and Stan Lee. If you ask who was responsible for CGC, the answer might be a little more difficult to come by.

Mark Salzberg, owner of the Certified Collectibles Group deciding to add grading comic books to his repertoire scoured the industry and found in more than humbled whispers that Steve Borock was the man to talk to. Steve was a knowledgeable collector originally setting up booths as a kid at local conventions. Over the years he acquired an “eye” to attain the best comic book possible and owned many of them. His love for the hobby had him questioning Mark, thinking this venture was only a way to scam the less knowledgeable; he met up with him anyway. 

After a dinner, set up by Steven Fishler, Steve Borock was convinced that it wouldn't destroy the hobby he loved, but level the playing field. Joining CCG was simply meant to be, but he couldn't do it alone. Some names that also show up when researching the origin of the most controversial topic to come along in comics since Dr. Frederick Wertham, would be Mark Haspel, Paul Litch, and later on Chris Friesen.

Originally starting with three graders, there were many nights the couch became the sleeping spot of choice for Steve Borock rather than take the trip home; besides, it got very cold in Parsippany, NJ. For CGC to work, a standard had to be created. How many flaws could each grade have? What if the book was restored? Could all three graders agree? Would the industry accept a third party grading company? And could the slab be fixed? These were Steve Borock’s first burdens.

The “slab” was the first problem to overcome. Both holders for NGC and SGC were solidly constructed to not only keep the cards and coins safe, but resistant to tampering. Comic books were a whole different avenue and they were three dimensional opposed to the two dimensions of their collecting counterparts. The sonic vibrations causing the slab to seal were only able to be opened by brute force, such as with a hammer. This could hardly be useful with a comic book.

  

At the 1999 New York Comic Con, the initial submissions were returned after it was realized the first version of holders were just not good enough. The possibility of the comic book being damaged inside what was supposed to protect it was just too overwhelming. Steve Borock wanted something that could protect the item and yet still be opened, if the owner of the comic book decided to read it. Once he was satisfied with improvements of the holder, CGC opened their doors and began grading on January 4th, 2000 with "Walt Disney Comics and Stories #1".

CGC doesn't merely slap a numerical grade to it; they also look for hidden defects, color breaks, chips, cracks, and missing pages. They search for tears, ink markings, foxing, water damage, and clipped coupons. There is also married covers, cockling, spine roll, indents, spine creases and in my case, Lucky Charms marshmallow stains. This list is unsurprisingly long. Most of us forget CGC looks for restoration first. I believe a way to protect the average collector was originally the main objective of CGC.  Steve Borock once called the internet the Wild West since you never knew what you were going to get and many times I am sure that was true.

Was that Amazing Fantasy 15 you just purchased over the internet not as good of a deal? Did the seller accurately describe the item or lie? Was it held together by tape? Was a page missing? Are the staples newer than the book? In fact a comprehensive detailed check and analysis on each comic book is performed by CGC. Two preliminary graders look over a comic book, each entering data without the other's knowledge. Once this is finished a senior grader looks over the same comic book and assesses it. Once the final grade is entered, all three entries are visible. If the grades match, the book is passed on to be encapsulated. If it doesn't, the three graders then discuss the condition before the final process.

This of course is for a fee. CGC is a business after all, one with ten plus years under its belt and over two million comic books graded. The cost and time involved is dictated by the tier of service involved. For example, an older Silver Age comic book will cost more to grade than a book just purchased off the shelf. After grading is completed, the book is encapsulated with two layers of protection. The first, or inner layer, is a soft plastic called Barex. CGC considers this as “The Well”. Afterwards this is secured in a thick hard exterior. Archival paper is placed inside the comic book between the front and rear covers to help reduce the damage caused by time.

The degree of restoration, signature placement, damage and numerous other probabilities are just a small amount of what goes into segregating the comic books and clarifying what grade and label a comic book should receive. The most popular and widely used is the Universal Blue Label. A restored book gets purple, CGC witnessing a signature gets yellow, and a restored comic book with a witnessed signature gets a dual color label with purple and yellow. The last label is green for any qualified grades, which deserves an article all by itself. Once in a while a discontinued red label can be found.

In 2007, at Wizard World Philadelphia, I picked up my first two CGC graded comic books. I purchased them originally as a novelty. I first heard of third party grading years before and I thought the idea of encapsulating a comic book away from ever being read again was ludicrous. As I walked around the convention floor purchasing various Daredevil issues to complete a run, almost every dealer had CGC graded comic books adorning their "walls". My curiosity piqued. My thought process changed from “never” to “why not?”

By the end of the show my growing comic book collection now consisted of two universal graded comic books. The first one was a 9.8 copy of Secret War #2 that I procured for $25. The second, also acquired from the same forgotten dealer, was a copy of a Daredevil #90 graded a 9.0 for the same price.  I thought the two that I picked up would be the end of it, and it was, until I walked into a much smaller convention, the Philadelphia Comic Con. It was at this smaller convention my addiction began with the first issue of my favorite title in the coveted 9.8 grade. 

Today CGC is the number one third party grading company for comic books with over two million graded. I predict they will reach four million in less time than it took to reach the first two, especially with the Signature Series popularity constantly growing and auction sites reporting record high sales, but why use CGC? Why have a book graded? Why get it checked for restoration? Is it worth it? And what could it cost?

Steve Borock originally created an idea for an ad still published in the OPG. The advertisement asked if you would buy a house without certification, a diamond, or even a car. And then asks why buy a comic book without the same peace of mind. I believe he meant for older comic books from the Golden and Silver Age and not so much with the newer Copper or Modern age. A new car should be flawless, much like a fresh comic book taken off the shelf. The back issue bin might be a bit more difficult to find a premium looking comic book, especially from the seventies or older.

As much as a car drops in value once removed from the dealership, a comic book has a chance to return on the cost, creating speculation. The craze in the nineties had comic books selling over a million copies each, on a few select issues. No such comic book has revisited those numbers and not one of those highly publicized books has yet to pay for a child's college tuition.

As things change, a six month transition period in 2008 occurred, this allowed Mark Haspel to take over the reins, changing from Vice President, a position he had since day one, and becoming the President of CGC. Steve Borock left CGC after this time and is now Senior Consignment Director at Heritage Auctions. In the same press release that announced Steve leaving and Mark taking over, it also announces Paul Litch becoming Vice President and Modern Primary Grader. Steve left knowing that CGC would be in good hands with someone who was there at the beginning with him. In 2011 Mark Haspel left on an extended leave of absence. Paul Litch is still at CGC as Primary Grader.

In the fifties comic books were currency into the world of make believe. A good neighborhood had friends trading them quickly after being read. At ten cents apiece, sales were staggering. I imagine one out of a hundred hoarded them, but with burnings in the fifties sparked by the book “Seduction of the Innocent” of these treasured items, their value seems to be guaranteed, hence why a majority of EC comics sell for hundreds of dollars in the poorest condition. In 1952 an industry high of over a billion comic books sold, that's over fifteen million a week.

Today, comic books are a bit more expensive. Who wouldn't want to purchase the best condition for their comic book collection? Any new comic book placed on the rack of any specialty shop I consider to be "Off the rack Near Mint". Once purchased there should be no problems with it getting a 9.4 if bagged and boarded and sent to CGC. A 9.6 is a meticulously nice book, while a 9.8 is easily the most sought after. Do I dare even mention a Mint 9.9, or its pure perfection counterpart, a Gem Mint, historically marked with a numerical ten?

A CGC 9.8 copy of Harbinger #1 which sold for $2550 in March of 2008, was the first comic book from the nineties to sell for over a thousand dollars in that grade. I heard a Spawn #1 in a 9.9 did the same, but yet to find proof of that transaction. The most popular one now from the same decade is the first appearance of DeadPool. The New Mutants #98 has over 4000 graded (4373), one reaching an incredible 9.9 signed by Rob Liefeld and more recently an unprecedented universal gem mint ten. More keep coming in as one of the most popular books of the modern age, next to the previously mentioned Spawn #1 (3551) and The Walking Dead #1 (1762).

     

Between 1991 and now The New Mutants #98 became a key comic book much like The Incredible Hulk #181, from the seventies did. The other issues to arise with interest from the same eighties title in a 9.8 are #1 (681), #16 (140), and #87 (2042). Including the three mentioned, issue #98 is probably graded more than the rest of the title combined, including the annuals. Some of these issues have only two graded in a 9.8.  Issue #58 (9.6 SS) and Annual #4 (9.6 SS) do not even have a 9.8 copy on the census, yet. Any of the Non Key issues could be found in any dollar or blowout box, but once graded a 9.8 by CGC those same books could become upward to a hundred dollars; signed a little bit more.

Grading by CGC greatly increases the purchase price of a book, although it does not guaranty it is worth that cost. It only guaranties the grade. There are instances where a comic book not graded by CGC outsells a comic book that was graded by CGC. I personally had many comic books graded purely because what they are worth to me. My New Mutants series is a testament to that. This also begs to ask again why send a book to CGC? Is money the objective? Are you planning to flip the comic book? Is it the pride and joy of your collection? And what can it do for the buyer knowing the grade?

I like CGC because of the community I became part of, but it also allows the buyer to feel comfortable with what they are purchasing, akin to purchasing a pedigree before CGC was created. A gem mint copy of New Mutants #98 sold through ComicLink.com reaching $15,449, a comic book that originally guided in the OPG for $4 in 1999, the same year CGC was stepping into the waters (this was dismissed as a coincidence). The most this comic book could have cost to get graded was the $18 charge for grading, an additional $10 to fast track it, $5 for the invoice fee, and possibly an additional $5 to have them scan it. Add a minimum of $10 for shipping it back to you and you’re looking at $48. Spending that on a non-key comic book priced at $5 is clearly not worth the financial cost.

If you purchased Deadpool’s first appearance when it first came out at cover price the chance of attaining a gem mint, however small, would give you a small profit of over $15,000, if the last recorded price was matched. A 9.9 could gain an approximate $3000 dollar profit, a 9.8 about $300, while a 9.6 could get you $50. Anything less isn't worth the cost of the grade. 

The New Mutants #99, a cover tribute to X-Men #138, would be even less. GPA’s highest recorded price for this book with a signature series 9.8 signed by Rob Liefeld was $125 (Dec 2013). A universal 9.6 copy was significantly lower, selling for $14 (Jan 2013). This clearly is not worth the cost to grade if making money is your only goal. So what if you’re trying to grade “The Human Fly”, “Captain Carrot and his Amazing Zoo Crew”, or” On a Pale Horse”.  Is it worth it?

Starting in any hobby can become addicting, I've been collecting since I was twelve and reading comic books since I was five. I don't know who gave me my first comic book although I have a strong suspicion it was my Pop-pop. Over time comic books became a huge part of my life. Every week I go to my LCS. I purchase the new comic books to add to my collection. What can I say; I enjoy the story, even once asking my dad for $300 to purchase what looked to be a near mint copy of Daredevil #1. His reply was along the lines “What are you, nuts?”, and yet my addiction is still held in check by believing what it all comes down to, much like the cost of a comic book, it's the love of owning the book which makes it worth the cost of a grade.

Thanks for Reading