What Does Smq Mean In An Ebay Listing?

Not true IMO. If you attend any of those NY auctions, you know that many (maybe even "most") of the graded items hammer to dealers, who turn around & resell to collectors; i.e. there's room for mark-up.

SMQ isn't perfect, but (IMO) more accurately reflects the fair retail price of a certified, graded stamp than (for instance) Scott represents the fair retail price of an ungraded VF stamp, or Yvert represents the fair retail price of some French issue.

I do agree with stallzer that the SMQ values for imperforates don't make sense, especially on common issues. IMO, no 100J imperforate should ever be valued more than an "Average" block of 9...If I was buying those things, that would be my cap (and no doubt explains why I don't ever have any in inventory, LOL!)

But the market will adjust. Many common perforated issues graded Superb 98 have dropped 80%+ from their high. It wouldn't surprise me to see GEM 100J Scott 577's drop to around $8 some day, about what I could buy a mediocre block of 9 for.

Your statement is almost certainly true, but I think you're making a semantical argument. The dealers who are purchasing graded stamps at these prices already have customers in-waiting, if not customer money already in-hand.

Brian

Rileysan, that's not true either IMO. If you've been to the auctions, you know which dealers are buying all those lots. They don't have buyers lined up, nor do they have money in hand. You'll see those items in their next catalog, pricelist, or Linn's ad.

What they DO have is the knowledge that they can retail those stamps to "someone" at SMQ-type prices (because the SMQ values in general are "fair" retail prices.)

Are we talking about the same thing?

I cited examples of the over-priced 4th bureau issues that SMQ lists for hundreds of times Scott cat values. These stamps aren't rare or rarely found in high-grade - these stamps are inflated simply because few people are willing to spend $$ to expertize & grade because they are so common.

I implore you - show me a Linn's ad with a graded (used) 551 or 552 purchased at auction for SMQ Superb 98 prices. After advertising costs, etc. what kind of margin is a dealer going to make?

Brian

I'm not aware of any high-grade used 551's or 552's selling recently at any of the NY auction houses, so it will be impossible to find the specific example you desire. However, if you browse Ed's (century-stamps.com) or Gary's (garyposnerinc.com) websites, or any other big east-coast dealer (e.g. Bill Langs,) all of whom are major buyers at those houses, you'll find numerous examples of items being flipped at SMQ 98 type prices.




Don't know, but those guys have ALL been doing it for decades. Must be OK...



How 'bout this? I'll give you $75 (300x SCV) for every used 552 that you can get graded 98+. You should be able to find dozens in the penny box since they're so common. At $75, that'll make it worth your while to submit them all, and I'll make great money reselling at that level. Here's to your success (a "win-win!")

Your snide remarks regarding finding high grade stamps in a penny box is nothing more than an attempt to elude my question, but it actually makes my point ...

YOU made the claim that dealers were buying high-grade stamps at big auction houses (at SMQ prices) in response to my assertion that those paying SMQ prices - which, I think we agree, is a reflection of actual prices being paid at said auction houses - were collectors with no budget.

I contend that a dealer would not pay SMQ prices unless they had a customer already lined-up, NOT that they aren't buying high-grade stamps to resell.

Using your offer to buy all Superb 98+ 552s for $75/ea as an example, assuming you are a dealer, completely blows apart your contention that dealers are paying SMQ prices for common stamps. Why? Because a dealer won't purchase an item with no profit margin! Either they are buying stamps for customers with a want list (and charging a commission), SMQ undervalues high-grade (common) stamps, or dealers aren't paying SMQ prices for (common) stamps they intend to resell.

If you want to change the discussion towards UNcommon stamps, I contend that SMQ is even MORE imbalanced - but that is a different discussion ...

Brian

My offer is serious.

If you feel "few people are willing to spend $$ to expertize & grade because they are so common," then take me up on it. My $75 is low so we can both make a wonderful profit from the experience. BTW, the current census for used Scott 552's shows only one stamp graded 98 with none higher.

Again, the reason I'm participating in this thread is because pretty much everything you said in your first handful of posts was untrue: that the SMQ guide was just for high-graded stamps, the prices weren't "real world," the stamps were common/not rare, that graded 100's aren't worth 100x-1000x CV, etc. I simply wanted to help correct the record, which I think I've done. I've even given you the opportunity to prove your point with the issue you specifically called out; take a few months if you want to find those "common" gem used 552's - my offer will stand to pay 300x CV for each one graded 98 or better. If you want, I'll even pay 1,000x CV for one graded 100. Send as many as you can find!

As a 10 year graded U.S. collector, I can safely say that Ken Srail is absolutely correct in his posts about grading in this thread. Ken, thanks for correcting the record in such an insightful way. And thanks also to cjpalermo1964 for the comment "I don't think SMQ should be denigrated just because it represents a market segment in which some SCF members don't participate." Whether we collect graded U.S., Christmas Seals, covers, Canada, etc. is immaterial; dealers, expertisers, and collectors in all areas of our hobby should be appreciated for the value they bring to the hobby.

Since we ran a public auction for 25 years and most of that time they were held in NYC at the Collectors Club, I have a pretty good insight here. Every time we had an auction with a lot of high grade stamps (and it didn't matter if it was even before the "official" start of the Grading era we are now in), the majority of the bidding for these stamps was concentrated among 5-10 different dealers who bought the majority of the good stamps. They did then, they do now.

Ken is right, all you need to do to see this dynamic at work is pick up a Century Stamps catalog. The vast majority of the high grade stamps he sells were purchased in public auctions. And he makes a pretty good living and has been around for over a quarter of a century! Same with about 5-10 other high profile dealers I could easily name. And some of them have virtually NO retail outlet for the material, but rather simply resell it in different auctions, at different times. And they make fine livings too.

As one who is a bargain hunter for this type of material for the past few years (buying it generally in the rough - ungraded), I have to agree with Ken. This type of material is often a lot harder to track down than the catalog value would lead you to believe. You can go through hundreds of examples trying to find even one that potentially could grade 95 or higher. Of course
there are exceptions - there are now hundreds of each overrun countries issue in grade 98 or higher. As a result of that "glut" and limited current demand, the market price on graded overrun countries in MNH condition is really low.

Matt

Am having trouble following this. Which one is Ken?


-IBFS

Srailkb = Ken.

Thanks


-IBFS

I remember the big push around graded stamps- late 1990's? There was a lot of buzz in the general philatelic media, but I have not heard about them in a really long time. Are graded stamps still a growing interest and market?