Grading Of Low Value Stamps.

Question - would you pay $5 for a stamp that had a CV of $0.20 if it was graded XF 95? How about $500 for a $20 stamp?

I'm about to embark on a new era in my stamp collecting - collecting US stamps. I've been collecting Australian stamps for most of my life, but I know virtually nothing at all about US stamps. But that's probably the subject of another post, this one is about grading.

Grading hasn't really caught on in Australia. Obviously a stamp's value is dependant on its condition, centreing etc, but in general stamps are not graded with a number, except perhaps rare high value stamps. Even then it's usually just a certificate of authenticity rather than a grade.

But now I'm looking to make my first ever purchase of a US stamp, and I find that even common low value stamps can be graded and some extraordinary price asked. Lets take a look at a real life current example: Scott #891, a common 3c bright red violet Cyrus Hall McCormick. Scott CV (2008) is US$0.30 for MNH. That's 30 cents folks.

Stampwants. You can pick up a very good looking 891, excellently centred (to the naked eye), for US$0.25. Sounds about right... But wait. Here's one that's been graded by PSE, XF 90, for US$8.00. That's a fair mark up on a 30 cent stamp. Oh, here's another one, graded XF 95 for US$20. A CV 30 cent stamp we're talking about. But that's nothing! Graded XF 98 - US$100! OMG! And the pièce de résistance - graded GEM 100... US$285

Clearly a GEM 100 stamp is rare compared to the "normal" issue, but worth that much? Do people really pay these prices? In Australia a retail shop might charge 100% premium for a superb example of a stamp, and that's about it. I mean catalogue value is already for a good copy, badly centred or other faults and it's worth less than CV.

Now I'm not against the grading of stamps, and yes I would perhaps pay more for a graded stamp - maybe I would in fact pay $5 for a 0.20 stamp, but I wouldn't pay hundreds, or $300 for a $100, but not thousands.

So what's your view on the grading of low value common stamps? In effect making a rare stamp of a common one by giving it a certificate. Without the certificate if you were to sell it, it'd probably go for slightly higher with the excellent centreing, but nowhere near the graded prices.

Sorry for the long post. Now I must go rumage through my collection and see if can find something near a GEM 100, so I can get it graded and make it worth 1000 times more.

i don't see a stamp collector doing that..perhaps a crazy investor..whos going to give you the price back when its time to sell ?

Hello MmmmBalf.......


.......grading is a statement concerning centering only.

If you feel it's priced too high........keep looking.

Some people are willing whatever it takes to acquire only stamps with perfect centering. I believe in time the extreme high values/prices given to graded stamps will fall apart and those that spent a fortune on them will be forced to sell at a loss.

Anything that was produced in an extreme volume (to the point where mint examples are still plentiful) isn't worth grading, nor is it worth buying graded. The main reason for this is that well-centered examples are the norm.

Anything from, say, the '20s on back were printed on much more primitive presses, and in a lot of cases, bad centering is the norm. I can understand why someone would want to grade a well-centered example from this era, because well-centered examples are not the norm.

I think that anyone who would pay extra for a graded 3 cent commemorative obviously has more money than brains.

A stamp is worth what a buyer is willing to pay for it. In sales there is an old phrase, "if you put enough lipstick on the pig, someone will kiss it."

I suppose someone who absolutely positively has to have the most pristine copy of a stamp for their collection will pay a high premium.

However, I agree with Nr that the market for most high graded stamps will fall apart. We older collectors have seen this before.

I can't think of more than a dozen US stamps that I would consider "investment grade." None of them were made after 1940.

From european point of view it's complete maddness. Like you say, catalogue value is already for good (better than average) quality item.

What goes up, comes down at some point...]But without a doubt it's good moneymaking scheme before the fall

Everything said above was also said about third party grading of coins. The problem is not with stamp collectors, its with investors. Once the idea gets out that a stamp is worth big bucks if it recieves a high rating the investors will start buying them up. The problem with investors is that they attract more investors and soon you have more investors than collectors. Hopefully this won't happen with stamps.

Richard

I kind of like to do my own grading. Color, centering, hinged, unhinged, etc. I've seen a lot of stamps for sale right on this screen that I wouldn't touch that literally have the perfs invading the stamp area, that the seller trying to rave about how rare it is. I keep my Scotts current catalog at hand. Check the price. Start my thinking at about 20% of the listed value, and go from there. It's really not that spooky.
Allan

Madness. I'd rather have 100-1000 20c stamps that I like that are somewhat off-center than a single ultra-perfectly centered 20c stamp, even of a stamp I love. I still have yet to fully convince my wife that stamp collecting is fun/worthwhile; I can only imagine how hard that task would be were I to think otherwise on this issue!

Clark

the people have spoken ! I think we are getting a better class of posts lately...much better than "i inherited a stamp collection whats it worth ?"

I inherited a stamp collection that I found hidden behind the wall of my grandfather's barn. It has stamps from waaaaaaay back in the 1950's and they aren't stuck to the page of the Sears Catalog too bad. Do you think they could be worth anything?

I agree with everything posted above. It is insanity to pay those outlandish prices for a stamp that every dealer has in stock by hundreds or thousands.

That said, there are a special few issues that are worth more money than I will ever be able to spend.

The only purpose to grade my own stamps is that at my age I'm beginning to see the end of the road. Since I don't intend to sell my own stamps ahead of that time, someone else is going to be stuck with that exercise. What I'm doing is making a copy of each page of my albums (U.S.)and entering an honest value of each stamp, along with, based on my 20% bit, what the stamp should bring at a sale. I don't intend to stick my survivors with a bunch of volumes of pretty pieces of paper having to say "Now what do I do with them?" As far as my other hobby, Model Railroading...they're going to have to figure that out for themselves!
Allan

Allen, thanks for the idea..i do not relish the thought of selling myself..but I could leave my son a thumbnail idea of what each book is worth....some things actually will retain or appreciate in value..like 100 year old postally used Guatemala postcards..but I can give a rough idea of what I think each album should bring...now only to do it !!

Ah Greg, I wanted that old Sears catalog.


Butch

I like the idea of penciling in a value next to the stamp in the album, but my question is what about those that are sealed in "commemorative sheets"? I have a USPS album of the Commemorative issues of the 1920's and a "50 years of Commemorative issue" album. Would that increase or decrease their value?