Many elements must be considered in determining the condition, or "grade" of a stamp. I will attempt to run through several basic concepts relevant to grade in a series of articles. The first issue that I will tackle relates to stamps with physical defects.

Major Physical Defects
Perhaps the most basic issue to consider when grading a stamp is identifying whether the stamp has a physical defect. Examples of stamps with major physical defects include: when a portion of the stamp has been torn off; an internal tear exists; or if the surface has been scraped off of the stamp. These types of stamps are often called "space-fillers," "seconds" or "defective." A defective stamp may have some value depending on the scarcity of the stamp. However, as a general rule, the investment value of a defective stamp is low.

For example, most stamp catalogues state that the 5 cent brown US #1, used, in nice condition, has a value of between $550-700. Recently on eBay, two examples with major defects sold. The first example, with a tear that had been closed, sold for $115. The second example, with a medium size piece that had been torn away, sold for $111. Of course, US #1 is one of the most highly prized stamps in the world and is a centerpiece of many collections. Thus, as eBay pricing demonstrates, even a stamp with a major defect can sell for perhaps 15-20% of the value of a nice specimen.

On the other hand, the 3 cent blue 1869 pictorial issue, US #114 (picturing a locomotive), used, in decent condition, sells for less than $10. Notwithstanding the age of this stamp, it is relatively common. Thus, a badly defective specimen may in fact have no value at all.

Other Defects
Other common, yet less noticeable, physical defects exist. First, some of the perforated edges of a stamp may be missing. This condition is called "pulled perfs." Second, when a stamp is removed roughly from a letter or from a stamp album, a portion of the back of the stamp may rip off and be left on the letter or album page. This defect is termed a "thin." A collector can see if a stamp has a thin by holding the stamp up to a strong light; the light will shine more strongly through the area of the stamp where the thin exists. Third, the stamp may be creased. Fourth, the stamp may have a pinhole in it. Other physical defects exist as well.

While less noticeable, all of the above examples are physical defects. As a result, the grade of a stamp with such a defect will be adversely affected, generally depending on the severity of the defect. For example, a stamp may be so heavily or repeatedly creased that it falls in the category of major defect. Yet, a stamp may have a tiny thin that is nearly impossible to see; such a stamp, that is otherwise beautiful, may, depending on scarcity, be quite valuable.

One last point: defective stamps can be fun and collectable! Many stamp collectors are "snobs" when it comes to condition and would not think of purchasing or displaying a stamp with a major physical defect. However, as we have seen, such stamps may be obtained inexpensively compared to their defect-free brethren. Also, even when a stamp is not highly prized (such as that 3 cent pictorial discussed above), it may still be very meaningful. And you could consider donating your older defective stamps to a local stamp club for children to collect.

Next time I will talk about the physical appearance, including centering.