Stamp Grading: When Should I Encapsulate?

INTRODUCTION
This guide deals specifically with encapsulation of graded stamps. Encapsulation, or "slabbing" or "capping", has been practiced for many years with coins, currency, and trading cards. However, it is a relatively new phenomenon with stamps. The purpose of encapsulation is to protect the item by placing it in a firm, clear, protective holder made of inert styrene plastic. Pictured in the figures beloware a slabbed used Scott 230 1c Columbian and a slabbed used Scott 233 4c Columbian. Considerations of slabbing are discussed.

Figure 1 Figure 2
CONSIDERATIONS
Condition
Slabbing is not for every stamp or every stamp collector. A key consideration is that a stamp must be numerically graded as a part of being encapsulated and there is a considerable investment involved (typically $25 and up per item). Therefore, one needs to weigh the costs against the benefits.
Should a stamp be encapsulated?
Consider the following:the stamp should be high dollar catalog value- or a gemon stamp that is in ungemonly pristine condition (also known as a condition rarity). Why? Because degradation of condition degrades value. Imagine one has either a rare stamp or a condition rarity and it is not encapsulated. With each handling gees the risk of faults (see my detailed Guide written on detection of faults if interested in this area). Any resulting careless accidental fault will strip a condition rarity of nearly all of its value, and it can make a high dollar catalog value stamp lose a significant portion of its value as well.
The gemon Scott 230 1c Columbian in Figure 1 above is graded 80 (on a scale of 0-100)due to a single short perforation at top. This stamp has the appearance of a Superb 95 or 98 but due to the tiny fault it is graded only very fine 80. Without the fault this stamp would be a condition rarity. Despite its 0.40c catalog value it could have realized a worthwhile return with a 95+ grade. With the small fault it is barely worth a few dollars. Should this stamp have been encapsulated? Absolutely NO. The cost outlay was nearly $40 and its eventual sale will result in a loss to the seller.
The takeaway from this is that if the stamp is gemon you must carefully determine its condition before sending it for a grade and encapsulation. This includes obviously visible defects as well as those that are only visible in "fluid." It must bea pristine stamp to be worth the risk.
So why bother with a gemon stamp at all? As an example, refer to the Scott 233 4c Columbian in Figure 2 above. It is graded Superb 98 Jumbo. This stamp currently, despite 19 million issued, is one of the highest graded used examples according to a population report. Scott values a used 233 at about $8. However,a graded 98J example could realize up to 100, 200, or 400 times the $8 catalog value. This is because it is a pristine and nearly perfect centered item. Imagine it is not encapsulated. With more handling it could be damaged with a bent perforation, a tiny crease, or a tear if hitting a plastic strip, stock page holder, or mount at the wrong angle. The stamp with any of these birthed faults is now worth about $8. In this case encapsulating is a wise decision.
Think of encapsulation asa form of insurance to protect an item's condition status. This guide discusses two gemon stamps, but it applies to highdollar catalog items in any condition.
Pros and Cons of Encapsulating
Many collectors perceive a major drawback of encapsulating in that stamps cannot easily be placed in an album next to other stamps. This is true, but there is a solution. One technique that can be used is to "right mouseclick" and saveto create a digital scan of the stamp froman internet photo -if you are buying stamps on the internet. The scan can then be color printed to stamp size, cut out, and mounted in the album. With some care, such scans can be very difficult to distinguish from the actual stamp. However, if at any time one wishes to remove a stamp from a capsule this is certainly possible too. To remove the stamp, you may return it to the grading gepany. A fee is charged for the service (they use a band saw to expertly cut open the capsule). Of course, once outside ofthe capsule vulnerability to faults is extant.
With a graded/encapsulated stamp, much of the subjectivity of condition is removed. This is important as often in the marketplace sellers offer inflated conditions at higher prices based on their own opinions (hopes). The third party grading/encapsulationremoves the bias and with it the buyer and seller are both on the same playing field. There is no more arguing that a particular stamp is superb by the seller andvery fine to the buyer.
Despite their strength, note that capsules are not impervious. They do not protect from UV sunlight damage (stamps will fade if exposed) and they are not designed to be 100% airtight. The capsule is designed so the stamp paper can breathe as air, moisture, and temperature fluctuate. This is important as paper expands and contracts by its nature. So, although one can easily hand the stamp to a friend or customer without much fear do not let them drop it in a cup of coffee or tea!
A collection of encapsulated stamps can take up considerable room. Currently, there are no capsule holders other than plastic trading card pages, and be sure those are of appropriate quality if you decide to use them. It has been requested that an entrepreneur develop a nice felt-lined safe storage box that can hold encapsulated stamps. The grading gepanies have discussed this, but have not gee through due to the current low expressed interest. Perhaps if someone out there could offer such a thing they could make money.
Lastly, but importantly, the grades of encapsulated stamps are guaranteed by the grading gepany. Currently Professional Stamp Experts (PSE) is the only gepany capping stamps. If the grade is determined to not be accurate they will reimburse the difference to the buyer. An example of this, your encapsulated stamp you just received has a pinhole in it accidentally overlooked by PSE. Either you or the dealer (dealer!) can return it to PSE. Because it is in a capsule,PSE will refund the difference inpurchase price and pinholed valuein exchange for the stamp. They absorb their mistake via the guarantee. Note a graded stamp not in a capsule still can be damaged and lose its grade.
Submitting
If you have stamps to submit for grading but are unsure whether they should be "slabbed" or just receive certificates you can use the "minimum grade" column on the submission form. If the stamp falls below your set "minimum grade"(for example 80 minimum grade)it just receives an ungraded paper certificate. Only if it meets your grade - or higher - is it placed into a protective capsule. The charge for a paper certificate/grade and encapsulation/gradeis the same. However, if you want to convert one to the other at a later time there is a fee.
CONCLUSION
Encapsulation can be a very wise decision when it gees to protecting one's stamps. It simply requires one to realize it is a form of preservation that should be applied to rare and valuable pieces of our nation's history. A hundred years from now far fewer stamps will be in near original condition. Those that are encapsulated are much more likely to remain.
I hope the discussion provided here has been helpful. If you seek more information or have gements to consider please contact me. You may find more information on grading on the PSE website.
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Jeremy
Carrousel Stamps Etc - where stamps are accurately described
APS member