Value

Prices of defunct certificates vary from a few cents to tens of thousands of dollars. Many of the most interesting pieces are in the range $50-$500.

How does a collector know what is a fair price for a certificate? As with everything else, prices are determined by the supply and demand. So what influences supply and demand?

DECORATIVE QUALITY
HISTORICAL IMPORTANCE
AUTOGRAPHS
AGE
ISSUED OR UN-ISSUED
CONDITION
RARITY

DECORATIVE QUALITY
Over the last few years the premium on very decorative pieces has risen sharply, particularly in Europe. Many people wish to frame pieces and will seek out attractive material. To the average collector, too, a piece with a good vignette (illustration) will be preferable to one without a vignette. It vastly adds interest to a railway share to have a picture of one of the company's locomotives on the certificate.

HISTORICAL IMPORTANCE
Many certificates were issued to finance events of historical importance, or by companies of great significance in their field. Examples of such bonds include those issued by the Confederate States of America, to finance their side of the American Civil War. The 18th century certificates issued by the English South Sea Company, the great East India companies and the Spanish colonial trading companies are much sought after. The very early railroad companies and the first manufacturers of cars and aircraft are generally valuable.

AUTOGRAPHS
An original signature of a famous person on a certificate greatly enhances its value but note that some signatures are printed in facsimile, and others may be signed by clerks on behalf of their employers.

AGE
'Early' certificates are generally worth more than later certificates of the same or similar type. Most certificates on the market date from the 19th or 20th centuries, and 'early' is a relative term. An 'early' aviation share might be from about 1910, an 'early' automobile piece from the 1890s, railway certificates from before 1850, canals from the 1790s, and so on. Great age suggests rarity and adds historical interest, sometimes throwing new light on the earliest days of our industry and commerce.

ISSUED OR UN-ISSUED
Many collectors feel that unissued and partly issued material is less 'valid' than issued certificates, and the prices are generally lower. Nevertheless, unissueds are sometimes the only examples available of a certificate, or a rare form of a common issued piece (in particular, Chinese bonds). Specimens and proofs, especially of famous printers such as the American Banknote Company, can command prices well above issued examples. They are usually in immaculate condition.

CONDITION
It is wise to collect only certificates in the best condition available. They will cost more than poorer examples, but, apart from being nicer to own, they are a better investment and will be much easier to sell later.

RARITY
Many factors determine rarity. Among them are:-

Number issued
Redemptions and cancellations
Age

Bear in mind that "unique" usually means "the first one seen"!
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These pages About Scripophily are based on extracts from the forthcoming
I.B.S.S. publication, Scripophily Guide. Copyright is retained
by the International Bond & Share Society, London, 1998.

(C) Copyright 1998 The International Bond & Share Society. All rights reserved.
www.scripophily.org       IBSSociety@aol.com