The 4 Most Important Factors that Determine Stamp Collection Value

Since the first modern postage stamp was serialized in 1840, a wide range of unique collectible stamps detailing a specific person, place, and historically relevant moment in time. As so many stamps have been produced worldwide, avid stamp collectors, look for the rarest stamps that hold significant value. Experts carefully study factors such as condition, age, and rarity to determine stamp collection value. Below are ways in which you can briefly identify and evaluate the significance of your stamps.

How to Identify Stamps15 Cent, Abraham Lincoln

Understanding the context for which a stamp was issued is crucial in determining where you should be placed in terms of value and date within the entire collection. There are a few key components to look for when assessing a stamp.
  • Find country and date: The first step is to find out the country that your stamp came from, and what time period it is from. Most stamps should have this information printed on them. 
  • Look for an inscription: While some stamps don’t display the country and currency, they have inscriptions, or letters, words, and numbers that are part of the stamp design. 
  • Pay attention to the watermarks: Watermarks often appear on the paper used in stamp printing, and they can be easily detected using watermark fluid. Simply place your stamp face down into a watermark tray, add a few drops of fluid, and wait for it to dry. Once it does, you can study the designs, letters, numbers, and pictorial elements of the watermarks to help identify your stamp’s origin. 
Not all stamps are printed on watermarked paper, and those issued after 1917 do not have watermarks. The last U.S. postage stamps to bear watermarks were issued in 1938, so those with act as a valid determinant of the age of your stamp.

Determining Your Stamp Collection Value

Once you’ve identified your stamp, you can look through various stamp catalogs that display photographs and price valuations, sorted by date of issue. You can also refer to price guides, which are usually sold at philatelic shops. While these guides provide a great estimated value, they generally refer to stamps that are above average condition, so it’s important to evaluate stamp collection value based on the criteria below.

Centering

The first step in assessing your stamp is evaluating the centering. You want stamps that have close to equal

1 Cent, Benjamin Franklin

 margins as they are considered to be more appealing and are worth more. The design should be balanced in relation to other parts of the stamp such as the margin and vignette.On the other side of centering, a slightly misaligned sheet may result in perforations being close to the design on one or two sides. It’s important to note that stamps from 1857 were originally designed as imperforates, and because the margins are virtually non-existent, the perforations often touch the design even on well-centered examples.

Condition

Next, you will observe the condition of your stamp, many collectors and stamp appraisers believe that the condition of a stamp is the most important aspect of a stamp’s value. Collectors need to look for perforations missing, faded colors, paper flacks, and other imperfections that greatly diminish stamp value. Stamps are generally graded on a scale from superb to below average in reference to the stamp design.

Gum

Stamp gum is the glue found on the backside of the stamp. Stamps that have perfect gum that is still original, undamaged, and in the same state as when it left the post office to have a higher value. This is often referred to as “mint, never hinged.” Generally, the following conditions describe the grade of a stamp’s gum:
  • Mint: Stamps with full, undamaged original gum, as sold by the post office.
  • Unused: Stamps whose original gum has been damaged, often through the use of stamp hinges.
  • Unused without gum: Stamps that have lost their original gum.

Rareness

There are various factors that determine the rareness of a stamp, which often require an expert opinion. Stamps that have errors in printing, content, and perforation are considered rare, as are those limited-issue stamps where only a small number exist. Auction price databases are helpful sources in determining how often a stamp appears on the market. Rare stamps are becoming increasingly hard to find since collectors are continually adding them to private collections.