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On Cover refers to a stamp being on an envelope, canceled and used for postage. In many cases stamps are worth more on cover with special cancellations then they are mint. You should always consider carefully before removing a stamp from an envelope. It could be a First Day of Issue, or a commemorative cancellation. It might also be a special date that is related to the stamp or a historical event.

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Q: What does 'on cover' mean in stamp collecting?
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