Graded Stamps A Scam?

Although my examples are U.S. stamps, I suppose my comments apply everywhere.

I understand supply and demand, popular trends, investment strategies, etc. But I'm beginning to believe, more and more, that the "graded stamp" craze is just a scam - much like the MNH vs MH issue of a decade ago. I submit the following as proof of my argument. These are currently on sale on StampWants.

$257 - #627 2c Sesquicentennial Exposition PSE Superb 95J (Mint...


$2.75 - #627 Mint VF 2 Cent Sesquicentennial Exposition OG NH

Too bad it didn't grade out at 2007 PSE Certificate Graded Superb 98. it would of brought another $200 more.

I understanding grading and I accept it. I just get the best that I can afford and what makes me happy. Pretty much great centering, good perfs and flawless gum with fresh vibrant color.

The secret is getting it so it looks like the $400 dollar stamp but accepting some faults that knocks it down to the $2.00 price. Who knows maybe some day mine will grade higher since grading can be subjective.

Does anyone collect expensive stamps which have small flaws, thus bringing the cost way down? I have several and the flaws are for the most part not noticeable--a thin for example--even a small tear, as long as it is not visible on casual examination. I don't like pulled perfs.

YES!

But rather than repeat, see my comments in these threads...

https://goscf.com/t/1277

https://goscf.com/t/3224

I remember when grading consisted of such tried-and-true
terms as F, F-VF, VF. The rest is nonsense created by
market-makers who sell the services. Kind-of like global
warming.

Thing is, everyone is capable of grading without being an "expert".

Is it well-centered? What perf is it? Does it have undisturbed gum on the back? Is the gum original?

Most collectors can easily answer the first three just by looking. The fourth may be a little trickier, but is nothing a collector with any experience can't determine.

If one cannot trust their own eyes, whose can they trust?


*

Grading at best is subjective and the number system can be confusing. I could go into a in depth discussion on how these grades are developed but then again if your like me that is too much information.

Let just say it is a combination of Soundness (condition & faults), Centering, eye appeal (cancellation, color, impression and overall freshness), Gum Condition.

So how does this grading work with the price of the stamp? A good question.

For example, lets say a certain US stamp worth in the $10 to $20 range would fall into the "Good" category, one that might sell in the $30 to $40 category would be "Fine," a $50 to $70 copy might be graded "Very Fine" and a $150 example would likely qualify as "Superb.

100 Gem
98 Superb
95 Extremely Fine - Superb
90 Extremely Fine
85 Very Fine - Extremely Fine
80 Very Fine
75 Fine - Very Fine
70 Fine
50 Very Good
40 Good - Very Good
30 Good
20 Fair - Good
10 Fair

I understand the grading, etc. I still question whether the top stamp is worth $254 more than the bottom stamp. I think the bubble will burst on the "graded" boom sooner or later. But then, what do I know?

I don't know that is a good question. I guess as long as people must have to best stamp the market will remain strong. I'm waiting on the used US stamp with selvage market to bubble. Then I can make a killing.

But when three cent commemoratives from the mid 1950's go for $300, something ain't right. That's the difference between twenty cents for a very fine, never hinged example, according to Scott or an 80 on your scale and $300 for the gem fish? Someone got hooked. I mean, what's that, like a 150,000 percent between an 80 and 100!

Larry. Maybe a guy named Madoff is in charge!

That may be Larry but the point is that people are buying them for that price.

http://www.gradedstamps.com/gallery...tem_id=14548

Now I didn't say these people had all of their marbles either.

I am not a fan of grading services and registries for either stamps or coins. I agree that there is a lot of hype from the people who stand to profit the most from them. However "collect what you like" is the first rule of collecting. If some people choose to collect graded stamps, then that is their prerogative. Let them pay whatever they think they are worth and get a kick from owning them. They are just not worth that much to me.

I agree. People can buy manufactured collectibles from Franklin Mint, Hallmark, and various collecting societies, too. Just know the market for them is pretty much the market created for them and they may not be worth as much or anything outside that circle.