What is Scripophily?

Part 2 part 1

There are many factors that determine value of a certificate including condition, age, historical significance, signatures, rarity, demand for item, aesthetics, type of company, original face value, bankers associated with issuance, transfer stamps, cancellation markings, issued or un-issued, printers, and type of engraving process.

Condition   -  The grading scale that could be used in stocks and bonds is shown below.  Generally speaking, however, the grading is not used in the hobby as strictly as it is in coins and stamps.  Most people acquire certificates for the artwork and history.  Fortunately, the hobby has not made it to the slabs yet.

• Un-circulated - Looks like new, no abnormal markings or folds, no staples, clean signature and no stains
• Extremely Fine - Slight traces of wear
• Very Fine - Minor traces of wear
• Fine - Creased with clear signs of use and wear
• Fair- Strong signs of use and wear
• Poor- Some damage with heavy signs of wear and staining

Age -  Usually the older the more valuable, but not always.

Historical significance    -  What product did the company produce? Was it the first car, airplane, cotton gin, etc. Did the company make it? Was it a fraud? What era was the item issued i.e. during a war, depression, industrial revolution?

Signatures -  Did anyone famous or infamous sign the certificate?

Certificate Owners Name  -  Was the certificate issued to anyone famous or a famous company?

Rarity -  How many of the certificates were issued? How many survived over the years? Is the certificate a low number?

Demand for item   -  How many people are trying to collect the same certificate?

Aesthetics   -  How does the certificate look? What is in the vignette? What color of ink was used. Does it have fancy borders or writing on it?

Type of company -  What type of company was it issued for? Does the industry still exist? Has the industry changed a lot over the years?

Original Face Value -  How much was the stock or bond issued for? Usually, the larger the original face value, the more collectible it is.

Bankers associated with issuance - Who worked on the fund raising efforts? Was it someone famous or a famous bank? Is the bank still in existence? - Who worked on the fund raising efforts? Was it someone famous or a famous bank? Is the bank still in existence?

Transfer stamps -  Does the certificate have tax stamps on it - imprinted or attached? Are the stamps valuable or unusual?

Cancellation markings -  Are the cancellation markings interesting to the item. Do they detract or add to its history and looks?

Issued or unissued   -  Was the item issued or unissued. Was the certificate a printer's prototype usually stamped with the words specimen? Usually the issued certificates are more valuable and desired.

Printers -  Who printed the certificate? Was it a famous printer?

Type of engraving process  -  How was the certificate made? By hand? By Wood engraving? Steel Engraving? Lithograph? Preprinted Form?

Paper   -  Was the paper use in the printing high quality or low quality. Has it help up over time? Does it have a watermark used to prevent counterfeiting?

As you can see,  Scripophily is more than just collecting another piece of paper. It is collecting history. It is something everyone from all ages and all parts of the world can enjoy. The more you see, the more you collect, the more you appreciate that stocks and bonds were the monetary fabric that built the world as we know it today. 

At Scripophily.com we hope you enjoy this hobby as much as we do!  It's not just a job for us, it's an adventure in financial history!

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