Scripophily is an enchanting area in the field of Numismatics. It is the hobby of collecting old stocks and bond certificates. Hobbyists from all over the world preserve these documents and value them for their antiquated features, ornate beauty, engravings, historic relevance and popularity. It is incredible how these enthusiasts realize the value of these stocks and bond certificates.
In case you are wondering how it is done, here are the 10 aspects that help to estimate the value of these certificates.
1. The most basic test to check the value of a stock certificate is to have a good look at its physical condition. Collectors follow a grading system to have a consensus on the physical condition of the document. A stock certificate can be categorized according to its quality as uncirculated, extremely fine, very fine, fine, fair and poor.
2. Like an antique, the value of a stock and bond certificate depends upon its age. It is not a hard and fast rule but usually, the value of the older certificates is higher.
3. Factors of historic relevance such as the scandals associated with the company, a stock that was first of its kind or news that made waves during that era, act as value adding factors.
4. Just like precious stones and metals, the rarity and demand of a stock certificate increases its value.
5. The stock is valuable if it has an association with a famous name like an influential personality, a famous person who printed that particular certificate or a famous bank.
6. Sometimes, the cancellation markings on a stock certificate act as an asset to its physical appearance making it seem more interesting to the enthusiasts.
7. Presence of valuable transfer and tax stamps on a certificate hikes its charm.
8. The type and quality of the engravings and paper used to print the certificate is also significant. Watermarks add a fascinating touch to the authenticity of these certificates.
9. Signatures and names of the owners have their own value-adding contribution.
10. The value of the issued stocks is higher that the unissued ones.