Actually, I would prefer that they do NOT try and look over the cards for damage after they’ve been encapsulated. Especially when they do something like what happened to @cinnaminhbun (www.elitefourum.com/t/3-13-cards-submitted-to-psa-ruined/19349/1). His card was already graded, damaged while being encapsulated, PSA noticed the damage, removed the card’s grade and replaced it with a submission grade of N9 (no grade). PSA was then able to contact him about damage to try and negotiate reimbursement based on his declared value rather than the market value of the graded card.
What I find most troubling in all of this PSA damage issue is that damaged cards no longer have the same future value possibilities as the original graded card, but that future value is not part of the possible compensation.
For example, when I brought up my damaged PSA 8 shadowless charizard to PSA’s attention in Nov 2017, the reimbursement calculation went a little like this.
PSA 8 Market Value (Nov '17): $650
PSA 5 Market Value (Nov '17): $150
Reimbursement value: $650 - $150 = $500
But wait a minute, what if we fast forward to November 2018, or November 2027? Do you think the value of a PSA 5 is going to rise at the same rate as a PSA 8 over time? Hell nah. And even their growth rates do stay the same, the 4x greater starting amount (650 vs 150) means the future value of the PSA 8 is going to be much larger than the PSA 5.
Let’s take a look at the price differential between these two cards in 10 years. I’ll assume 10% increase in price per year for the PSA 8 and a 5% increase in price per year for the PSA 5 (which I think would be low for both, especially when you compare year-to-year increases from last year to this year). I’ll be using a standard compound interest formula (A = P(1 + r)^n):
Estimated PSA 8 Market Value (Nov '27): 650(1 + 0.10)^10 = ~$1700
Estimated PSA 5 Market Value (Nov '27): 150(1 + 0.05)^10 = ~$250
2027 Reimbursement Value: $1700 - $250 = $1450
So I missed out on approximately $1000 (minus inflation) by redeeming my financial guarantee in 2017 rather than waiting ten years and redeeming the financial guarantee in 2027. That number might be insanely different depending on the market. Then again, maybe PSA goes out of business or decides to no longer honor any sort of Financial Guarantee. Regardless, my collectible, which was damaged by them now has much less earning/investment potential than it would otherwise. Part of me thinks this should be factored in when they discuss damage reimbursement.