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Scripophily

Collecting Stock and Bond Certificates

Scripophily, or stock and bond certificate collecting, is a fairly recent hobby.

A division of numismatics, or coin collecting, scripophily traces the history of finance as well as the history of industry.

Many collectors focus on a single era, while others attempt to document the development of railroads, dot coms or other specific types of business.

Scripophily often overlaps with autograph collecting, as collectors search for certificates that were signed by now legendary figures.

Determining Worth

Judging the value of an antique bond or stock certificate is an imprecise science. Most collectors choose to focus on collecting those items that personally appeal to them, rather than collecting for perceived dollar value.

Nonetheless, if you are trying to determine the worth of a particular certificate, here are a few factors to take into consideration.

Condition

Grading is generally not as important in stocks and bonds as it is in coins and paper money. However, a grading scale has been developed and is used by many dealers.

Grades range from Uncirculated, which represents a clean and perfect piece with a clear signature, to Poor, which may be heavily stained or torn.

Most stock and bond certificates are canceled when sold or redeemed. This used to involve punching holes in the or stamping them. Sometimes the holes can cut right through the heart of a valuable signature.

While these holes have some effect on value, they do not diminish it to any great degree.

Age

In general, older certificates are more valuable. However, rarity generally plays a larger role.

Rarity and Demand

How common was the stock or bond? How many are currently available?

Low-numbered certificates are generally worth more than those with higher numbers.

Are collectors currently seeking the certificate?

Historical Significance and Signature

Was the certificate signed by someone famous? Does it represent the first company in a certain industry in a certain location? Was it issued during a war or other significant historical event?

Much sought after certificates have signatures like John D Rockefeller for Standard Oil and Eddie Rickenbacker for Eastern Airlines.

Aesthetics and Quality

Is the design of the certificate attractive?

Is it printed on heavy paper?

Is there artwork or other embellishment?

The best stock and bond certificates are heavily engraved on fine paper stock.

Above are just a few of the many factors that are considered when determining the worth of a stock or bond certificate.

Ultimately, however, the value of any collectible is that which someone else is willing to pay. More so than other numismatics, stock and bond certificate values are highly subjective and prone to variation.

Cleaning and Restoring Certificates

If you have come upon stock or bond certificates that are not in the best of shape, there are steps you can take to restore these pieces.

Keep in mind that alterations may affect the value of your certificate, however, and home restoration is not recommended for expensive pieces. Ask for professional advice from a dealer or seasoned collector before proceeding.

Displaying Stocks and Bonds

You should have these documents professionally framed on an acid free mat under UV protective glass.

A good framer can make certificates look like a fine piece of art. They are especially attractive displayed in professional offices.

Getting Started

The internet has been a boon to collectors of all types. Online communities can provide a link to certificate dealers, as well as a chance to share ideas and information with other collectors.

A quick web search will yield numerous communities, allowing you to find those that best meet your needs.

One place to start is the Professional Scripophily Traders Association which can refer you to reputable dealers and sends out a monthly publication dealing with collecting stock and bond certificates.

Take the time to learn more about the hobby before jumping in. Many certificates are reasonably priced, making it easy to accumulate a large mismatched group of various pieces.

Taking the time to craft a well designed collection will ultimately prove both more enjoyable and more valuable.

Stock and bond certificates are excellent collectibles for those who enjoy both art and history. The hobby can seem intimidating at first, but a bit of research will help you decide on a direction for your collection to take.

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