Everyone dreams of finding something in an attic or flea
market that turns out to be valuable. That something could
be a stock certificate that is still valid for ownership in
a company. If you were to find one, it should be
researched (just in case).
But unfortunately, that rarely happens. However, it still
might be worth something as a collector's item. This
article discusses the collector value of antique stock
certificates.
Ultimately, of course, what makes a collectible stock
certificate valuable is someone's willingness to buy it at
a particular price. The more people who want it, the more
it is worth. That's the demand side of Supply and Demand.
But what about the supply side - the certificates
themselves? The following are some of the characteristics
of the supply side of certificates that help create more
value.
1. Aesthetic appeal - Is it pretty, powerful, soothing,
impressive, memorable, joyful, comforting, funny? Do I
like it? Is it "me?" You'll notice these are all
emotions of the viewer. That's what art does if it's good
- it evokes emotions. Here are some of the decorative
aspects of stock certificates that most people appreciate:
-The vignette(s). One or more of these pictures can be
found on most certificates. Vignettes are usually made
from original etchings and cover many different subjects
and scenes. Many are so detailed that they can show a
wide, complex harbor scene, a busy western town or the
individual feathers on an American Bald Eagle.
-The border. Borders are often quite ornate and "frame"
the certificate. They can be intaglio printed, which
results in a precise 3-D effect. Some may have extra
vignettes woven into the design or intertwined in filigree.
-The writing. In the old days, certificates were filled in
by hand. In that period, beautiful hand writing was a
source of pride, so older documents sometimes look like
practiced calligraphy samples.
-The extras. Certificates may have one or more of the
following: a company seal (embossed), revenue or transfer
stamps (stuck onto the front or back), redemption coupons
(for interest or dividend payments), an attached stub
(similar to a check stub for registration), under prints (a
light design seemingly in the background), sophisticated
color tone usage (gradients, realism, dimensional)
-The impression. This goes back to the emotions evoked.
Does the overall certificate strike you? Is it one you
would be proud to own or display?
2. Signatures - This is similar to the "writing" above, but
this is special. Who wrote it? Original, hand written
signatures of well known people (Rockefeller, Houdini,
Edison, Disney...) are usually in high demand. Even their
printed signatures can have incremental value because it is
a document from an organization they were affiliated with
at a certain time in history. If you research names on
certificates, you will find fascinating stories behind them
that you probably never learned in history class.
3. Scarcity - This is trickier than it seems. In general,
the rarer a document is the more valuable it is, but not
always. Take railroad certificates. There are,
relatively, lots of them. But there are also, relatively,
lots of railroad certificate collectors.
And there are people who collect other types of railroad
memorabilia and decide to collect a few railroad
certificates. And there are stamp collectors that also
collect certificates that have stamps on them.
There are also many people trying to fill in collection
themes (geographic, company lineage, varieties, vignette
subject...). So a certificate may have more samples
available than another, but still be more valuable because
the demand is higher.
4. Condition - Most of the time, as with any collectible,
the better shape a certificate is in, the more valuable.
Very old certificates almost always show some signs of
aging and wear (fold creases, fading, rough edges,
cancellation marks or punches...). After all, how would
you look after 150 years? But excessive marring (heavy
stains, splits, holes, tears...) diminish value.
5. Age - Usually, the older the better. Early certificates
are often rarer, have more character, have interesting
vignettes and have historical significance.
6. History - Every old stock certificate is literally a
unique piece of history. Many collectors become history
buffs in the process of researching the people and stories
behind their certificates. You can learn how towns were
named, the quirky way newspaper stories were written long
ago, why the mining labor disputes erupted, how railroads
became the arteries and veins of America, the trials and
joys of Old West living, the crazy inventor ideas that
birthed major industries, and lots more.
So these are six major stock certificate characteristics
that create value. Add in the overall fact that there is a
finite supply of antique stock certificates and, currently,
a growing demand, and you have a beautiful Supply/Demand
scenario - that's how value increases.
(Disclaimer: No one should promote stock certificates as an
investment. You should collect them because you enjoy
doing so, and if they happen to increase in value, that
just makes it more fun.)
Scripophily (the collecting of antique stock certificates)
only got its name and wide recognition as a legitimate
collecting field about forty years ago. So, while there
are plenty of high-value certificates, there are even more
that are very affordable. Enjoy them.
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Visit http://www.RealStockCertificates.com for images,
values and research tools for Scripophily (the collecting
of antique stock certificates). Visit
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