scripophily, the collection of old share and bond certificates

Why collect old stock and bond certificates?

Although the number of scripophilists is small (about 100,000) in comparison to stamp collectors (about 15-20 million) and coin collectors (about 2 million), the hobby is growing as more people come to appreciate the historical significance and aesthetic value of old certificates. Antique stocks and bonds share collectable qualities in common with stamps, currency, and coins. In addition, some certificates are highly sought after because of the individuals who have signed them (e.g., Thomas Edison, John D. Rockefeller, J. P. Morgan, Charlie Chaplin, Harry Houdini, etc.). To view a certificate signed by William Mellon Click Here. This image is larger and may take a little longer to download so be patient.

Enthusiasts trace the birth of scripophily as a serious hobby to just 24 years ago. In 1976 two German bankers conducted doctoral research that led to the publishing of two catalogs on Chinese and Russian bonds. It is estimated that there were only about 300 collectors at that time. Today's collectors appreciate the fact that this is a relatively new hobby and has great growth potential. At the same time, the financial system is moving away from using paper transactions in favor of electronic file transfers. This latter factor will lead to a tighter supply of collectable material. Most collectable certificates have been canceled or are obsolete and no longer have any value as a negotiable instrument. Many canceled certificates are destroyed by the issuers. Those that survive find their way into the collectables market from estates, deposit boxes, and the storage vaults of banks and corporations.

Factors that can affect the value of an antique certificate are: topic, attractiveness (color and graphics), rarity, demand, and condition. Other things being equal, the older the certificate, the more desirable. But, there are some contemporary or modern certificates that are fine examples of certificate engraving and design. The following are links to some examples of modern classics. (These images may take a little longer to download.) Apple Computers , Chart House, Cleveland Indians , Disney , Fingerhut , Mattel , Odwalla , Planet Hollywood , Playboy , Scheid Vineyards , Trump , and Orbital Sciences.

One can appreciate the artistic engravings, elegant signatures, and the financial history behind a certificate. Framed certificates make interesting additionals to the walls of a business office, library, or study. Some individuals approach the collecting of certificates as an investment and hope to see significant appreciation of their collection over the years. But, for most collectors, it's the fun of locating some piece that one has never seen before or one that will add to a collecting theme (railroad, telephone, autographs, nude vignettes, etc.) that makes this hobby worthwhile and entertaining. Continue to learn more about scripophily, please visit Stock and Bond Auction.

Investment Puzzler - All your questions answered

How can I get started in "scripophily", the collection of old share and bond certificates?

"Scripophily" is little known outside of its field, but it probably deserves more interest than it gets. Scripophily is a pretentious name for the collection of old share and bond certificates for their own sake, rather than the investment in companies they once represented. Each collector's rationale is different - certificates can be sought-after for their beauty, historical interest, or as part of a wider collection of memorabilia - and the certificates are getting more valuable all the time.

"Dematerialisation" of share trading means that transfers are more and more being made between computers rather than through an evidence of title on a piece of paper. As a result, fewer and fewer paper share certificates are being issued by companies. And as the number of people chasing a limited number of share certificates increases, the sourcing of them becomes increasingly more difficult. Scripophily has been practised in the UK since the 1970s at least, and has an older pedigree in Germany and the US.

Why do it?

For some, the certificates offer the opportunity to own a piece of history and a chance to chart the progress of some the greatest events in economic history. Bonds and shares have been issued from the companies and people behind the world's greatest railway networks, the dawn of the aviation industry and the earliest cars. There are even bonds available that financed the American Civil War.

Sometimes beautifully illustrated, gilded and signed by the financial movers and shakers of the day, older certificates are perhaps the most exuberant. And can be stunning in their own right. But recent and modern certificates - although less picturesque - also have their followers. These too tell a tale, although often history has yet to decide its importance.

There are, for example, already collectors of the leading players in the recent dot com hysteria - the modern day equivalent of the South Sea bubble of the 18th century, when "investors" also convinced themselves that something could be made from thin air. Indeed, selling your dot com certificates to a specialist collector may be the only way to get any money out of that half-baked internet scheme that caught your imagination at the height of the dot.com mania of a few years ago!

Even certificates of the now-bankrupt US energy giant Enron and WorldCom, once that nation's second-largest long-distance telecoms group, are becoming sought-after commodities. They are symbols perhaps of the accounting scandals and corporate greed that rocked the foundations of the financial world in the aftermath of the great bull market. History is being written all the time.

What to collect

Financial history is a driver for some, but for others the collection of share and bond certificates is more personal - a reminder perhaps of places, companies or occupations of members of the family or a collector's past. For others the purchase of share certificates represents just part of a wider collection or are just a thing of beauty to put up on your wall. Whatever the motivation, many base a collection around a theme.

From US gold mining shares, state bonds of Imperial China, to worldwide collections of individual tobacco companies - many themes are possible to create. Some collectors specialise in periods of history, geographic areas, or individual financial backers. Some even collect share and bond certificates based on the style of the design or because famous - or infamous - people's signatures appear on them. The possibilities are endless - but pick one, find out about it, read about it, and stick with it. Continue to learn more about scripophily, please visit Hemscott.