2008 Baltimore Philatelic Show
70th Annual Stamp Edition
Mariott's Hunt Valley Inn
August 29 -31, 2008

Friday: 10am-6pm
Saturday: 10am-6pm
Sunday: 10am-4pm

Admission: $4.00

Stamp Appraising

Recently I was asked to appraise a collection that a gentleman had purchased for investment purposes. The total amount he spent was $38,500+. He was not a stamp collector and had no idea about collecting stamps such as condition, catalog value, etc. In other words, he spent a lot of money for stamps that have major faults including re-gummed, no gum, very poor centering, creases, printers waste, common miss-perforations and unauthorized issues.

He began purchasing material in February 2003 and made his last purchase in May 2007. About a month later he passed away. The material was purchased from four different companies. Sometimes they would change their address even in the same state. Every company is nothing more than a fraudulent company scheming to sell to non-collectors. In fact, while doing research on the Internet, I found 12 more such companies. Each one is or was controlled by the same group of people using different names.

Here are the names of 16 other fraudulent companies. There maybe more.

This above information was culled from sites with complaints on the activities of the above. Only one listed a website. It is closed. Three listed phone numbers. They are no longer available.

How this gentleman and many others found out about the "Stamp Investment" is not clear. One or two have a connection with one the home shopping networks. They may have been listed in a newspaper or phone book. I am still researching that subject. Each item purchased was sent in an expensive Oxford folder either in dark red of black. The front page contains the following: "The Rare and Investment Grade Quality Stamp Market from Classic to Modern.' The next page states: "Dear Client, Welcome to. . . ." Some folders include a small, cheap, magnifying glass. There are five or six additional pages describing various other stamps to invest in such as C3a, Bangladesh postal stationery, they only show stamps, The $1.00 "CIA" invert, Princess Diana information, the “Nixon Miss-print.” Also included a photocopy from Linn’s Stamp News - Market Index - January 2006 and another article originally printed in Linn’s about stamp values, please note, there is no date for the latter article.
Here are some items:

	Item A)  United States - Scott #63 Issued in 1861. Poor centering, mint never hinged. However, the stamp has been doctored. It is re-gummed. The current catalog value for this stamp in perfect condition is $375.00. Purchase price was $1,000.00. Here is a scan of the reverse side showing where the gum did not cover the full back. [Look at the arrow.] In fact, with a good magnifying glass you can spot the tiny threads of paper when the stamp was separated from the full sheet that show. Each thread is covered with shiny new gum.
Item A
This item was purchased from the Franklin Philatelics, LLC. Another interesting fact, the folder contains a “Certificate of Authenticity” with the following statement “ . . . issued by the United States Postal Service . . . ” The USPS was founded in 1971. Prior to that date it was the United States Post Office.
	Item B)  United States - Scott # 68 - Issued in 1863. Centering poor (see below), mint with no gum, hinge remnant and has a crease through the middle of the stamp. Catalog value for this item in perfect condition is $400.00. It was purchased for $1,020.00.  There is also the certificate, etc.
Item B
	Item C)  Confederate States, Scott #12 Issued in 1863. Block of four with good centering, mint never hinged, very dark gum. This item also comes with a “Certificate of Authenticity” with the following statement “This is to certify as issued by the United States Postal Service in 1863 (ed. ???) and in unused condition.” Of course, the USPS did not issue any Confederate stamps. The current value of the stamps is $18.00 or $72.00. However, the block has a very heavy crease through two of the stamps. Purchase price: $1,000.00.
Item C

	Item D)  United States, Scott #806 - Issued in 1938. Blocks of four of the 2-cent Adams stamp part of the Presidential Series. Block A: block of four - current value: $.80, Block B) “genuine  block of miss-perf stamps” - current value: $2.00 - 3.00. Purchase price: $1,000.00. See below.
Item D)

In addition to the four shown items in this article there are twenty other folders containing “investment grade stamps.”

Moral: Do your homework first. Check out all offers by stamp catalogs, consult another collector,  contact a stamp club or contact a stamp dealer. This investor did nothing and now his estate is worth a lot less. Caveat Emptor - Buyer Beware!

R. E. G.