New Rarities Class?
by John F. Dunn

“Purists will always have their rare types, but it will be interesting to see if the ‘Gem USD’ collectors emerge to create another class of philatelic rarity which challenges today’s Scott-based rarities.”

With those words, the lot describer concluded a lengthy description for the 1851 1¢ Blue (Scott 9) shown here as well as in full color on our front cover. Offered in the 2008 Siegel Auction Galleries Rarities of the World sale, this stamp, with a VF Scott Catalogue value of $850, sold for $80,000—$92,000 if you add in the 15% Buyers’ Premium.

Is this the start of “another class of philatelic” rarity, as the auctioneers wondered in advance of the auction?

Before the “purists” shout “NO!” it should be noted that this June 7 Rarities Auction comes just over three years to the date after a C3a sold for the then-astounding sum of $577,500 including Premium, in the June 3, 2005 Siegel Rarities Sale. The realization for that lightly hinged stamp—with a Professional Stamp Experts grade of XF-SUP 95 and a statement by the auctioneer that “perhaps one other might qualify for this coveted high grade”—was met with considerable skepticism by “purists,” but subsequent realizations for C3a singles have kept pushing up the price, with the latest record being $977,500 for a stamp in very similar condition to the $577,500 stamp.

Back to the Scott 9, there is considerable justification for the stamp’s earning a high realization based solely on its philatelic merits. Here’s the portion of the Siegel lot description that pertains:

“Extremely Fine Gem. This Magnificent Mint Never-Hinged example of the 1851 One-cent Type IV has been graded Gem 100 Jumbo by P.S.E., which is the highest grade attainable by any stamp in any period. It is by far the highest grade awarded to an unused imperforate or perforated classic issue, and, in fact, this is the only unused stamp prior to Scott 212 to reach the
Zenith of the grading system.”

Even the most jaded “purists”—whether or not they agree with this realization—will have to acknowledge that this is a magnificent mint single.

But the philatelic aspect is only the start of this story. For the other, equally important, aspect, let’s go back to the lot description:

“Professional Stamp Experts recently introduced a new system for numbering basic United States stamp designs. The U.S. Design (USD) numbering system identifies the denomination and design at its most fundamental level….The USD system completely ignores production variations and traditional philatelic classification (printing method, shades, watermark, paper type, perforations gauge, coils, types, etc.) to create a simplified approach to collecting U.S. stamps, which P.S.E. hopes will encourage growth in the number of entry-level collectors. P.S.E. believes that once these new collectors build USD sets, some of them will develop an interest in the more traditional Scott Numbering System, yet others will still feel a sense of achievement in completing a basic USD-based collection.

“What does this have to do with the stamp offered here?…If the USD system has the desired effect of creating a new approach to collecting, then the demand for the most common 1¢ 1851—Type IV, Scott 9, the stamp offered here—will increase at a far greater rate than the demand for other types, which have characteristics outside the scope of the USD numbering system. Taking this one step further, if collectors want to assemble a set of 1851s according to USD number in the highest possible grade, then the significance of a Mint Never-Hinged Scott 9 in P.S.E. 100 Jumbo grade increases exponentially.

“We mention all of this in connection with this stamp, because the stamp market is changing. [In this Gem 100 Jumbo Scott 9]…you have what may become future philately’s ultimate classic stamp. Purists will always have their rare types, but it will be interesting to see if the “Gem USD” collectors emerge to create another class of philatelic rarity which challenges today’s Scott-based rarities.”

P.S.E. had previously issued their own announcement of their new USD numbering system (and the availability of a free copy of their Guide), as follows:

“To attract new stamp collectors and assist novices who may be confused by a huge number of complicated, nearly-identical, minor varieties, Professional Stamp Experts (PSE) of Newport Beach California has created a simplified system for building a basic collection of United States postage stamps by major design type.

“‘It is hoped this fresh approach to U.S. philately will open the door for thousands of new collectors to enjoy this fascinating and time-honored hobby,’ said Michael Sherman, President of PSE, the philatelic authentication and grading service…

“Entitled, ‘A Guide to U.S. Design Numbers (USD),’ the new collection-building structure focuses on 435 regular-issue U.S. postage stamps that were issued from 1847 to 1947 and intended for use on letters or parcels.

“PSE has produced a full-color, 56-page booklet with photos of the stamps and a cross listing of the USD numbers and their corresponding numbers in the Scott Standard Postage Stamp Catalogue.…

“Free copies of the booklet now are available to collectors, stamp clubs and dealers.
“Beginners and even intermediate collectors can sometimes get frustrated and confused when confronted by 5, 10 or even 30 different varieties of stamps that at first glance all look alike. Varieties are wonderful, and an important part of philately, but you don’t have to be an advanced specialist to enjoy stamps,’ said Sherman. ‘The USD system is based on clarity and simplicity It’s a 435-stamp ‘type set’ representing the major designs, denominations and the most commonly encountered colors of the first century of U.S. stamps. Acquiring one nice example of each type is a realistic, sufficient collecting goal for many beginning to even advanced collectors. It’s a fresh look at a classic hobby. We need more young collectors, and reducing the hobby’s overall complexity with a streamlined roadmap is an inviting and attractive way to do it.’…

“…In addition to the booklet, PSE plans to soon publish a USD system album printed on acid-free paper. ‘It’s the same successful way the coin collecting hobby has encouraged budding numismatists to find enjoyment building ‘type sets’ of 19th century or 20th century coins by date, denomination and major design. After collectors are attracted to the hobby by starting to assemble basic collections, they can always expand their collections if they are intrigued by special issues…. It certainly can work the same way to attract and encourage new stamp collectors…Assembling a ‘traditional’ collection of U.S. stamps, heretofore, required the acquisition of a substantial number of nearly identical issues where the differences between stamps were often subtle, such as confusing color shade variations, invisible-to-the-naked-eye watermarks or a tiny difference in the gauge of the perforations. A collection based on the simplified USD Number system will be truly interesting to assemble and colorful to view, yet still will be a challenging set to build, particularly in high grade.’

“For a free copy of ‘A Guide to U.S. Design Numbers, 1847 – 1947,’ contact Professional Stamp Experts, P.O. Box 6170, Newport Beach, CA 92658. Phone: (949) 567-1346. E-mail: PSE@collectors.com. Online: www.PSEstamp.com.”