Is It True That Encapsulated PSE Stamps Sell Less Than Non-Encapsulated For The Same Grading?

I notice that many encapsulated PSE-graded stamps were sold at only about 10%~20% of the SMQ, while those were not encapsulated with a separate cert and with the same grading can be sold at 30%-40% of SMQ. Is that true that people do not like the encapsulated stamps?

I forgot to mention that I am not talking about the expensive stamps. I am talking about cheap stamps which are sold almost at face value (after 1930's).

If it makes a difference - I do not have any use for encapsulated stamps. But then I stay away from graded ones also.

Peter

While it is true that the encapsulating idea from PSE for stamps never gained any real traction, the grading idea certainly did. So yes, encapsulated PSE-graded stamps sell at a slight discount to non-encapsulated PSE-graded stamps, about 10% to 20% less. But those percentages of SMQ you were told are laughable for graded stamps, assuming you are talking about retail prices for classic U.S.. I mean really laughable. The cost to a collector of a classic U.S. graded stamp from a dealer or auction house, factoring in the buyer's fee for auctions, generally runs about 75% - 110% of SMQ. There are of course exceptions at both ends, from the occasional ebay bargain on the low end to the auction duel between two bidders who want the stamp no matter what on the high end.
By the way, I believe PSE-encapsulated stamps can be de-encapsulated and issued a regular certificate by PSE for a fee.

@Rhett

Sorry. I forgot to mention that I am not talking about the expensive stamps. I am talking about cheap stamps which are sold almost at face value (after 1930's). I understand for classic scarce stamps, the graded stamps are sold at very close to SMQ.

Hi,




If comic books can sometimes be described as "never read" and old LP albums as "never played," is the next logical descriptor for stamps "never encapsulated"?



Jim

Tang, thanks for the clarification. Although I don't collect the stamps you are talking about, you are probably right about the retail values of the post-1930s encapsulated graded stamps.

As most collectors prefer their stump un-encapsulated, it is no surprise encapsulated one would sell for less. There is a risk of damage when opening the capsule (not to mention the cert becomes voided)

Hi all

Being a stamp collector, if I am thinking about buying a stamp, I want to be able to properly examine the stamp in question to ensure it meets my requirements.

So I would think encapsulated stamp would sell for less.

Collectors - not encapsulated
Investors - encapsulated (treated more like a commodity)

The idea of encapsulation goes back to the numismatic side of thinking. Coins generally are enclosed in some type of holder, whether it is a 2x2 vinyl flip or a hard case shell holder. When coin grading began, the coins were encapsulated. This worked well for that field.

When the idea of grading stamps began, PSE believed there would be a similar market for encapsulated stamps. Unlike coins, though, stamps are mounted by collectors in albums.

The idea of protection for stamps sounded like a viable idea, but I don't believe there are many collectors of these encapsulated stamps. Hence, the lower prices.

When you are talking about graded modern material (post 1920s) there is not much market for them. As you pointed out, most of these are available for face value or less, so why would someone want to pay $10-$20 for a stamp they could find in a dealer's discount postage box?

Again, at first, it may have seemed there was a viable market for these, but especially with the softening of the U.S. market, even as reported in Linn's, the market for these modern graded gems is likely to drop even further as more and more material becomes available.

I was wondering why my albums were getting so thick and turning the pages so difficult.

I can understand why a organization would want some way to protect the items they are certifying. But it does not take Einstein to figure out that using a thick plastic enclosure would be a non-starter for most stamp collectors.

Any tamperproof enclosure would have to be designed to be closer to a stamp mount than a coin holder for any kind of stamp collecting market acceptance. Frankly it is not rocket science to design something like that nor is it extraordinary expensive. You can buy tamper proof labels for pennies; using some of that technology and existing production capability doing a 'tamperproof stamp mount' is within reach.
Don

The same would be true for slabbed coins and even heavier.

Currency graders use what is more or less a sealed mylar packet as a "capsule" rather than hard plastic. Might be a viable alternative in the stamp world though still heavier than a mount.

For my own part, I've never purchased an encapsulated stamp and I don't intend to. The encapsulated product might work for investors or nontraditional collectors who want a few things to play with, but I really don't think it works for traditional collectors.