What Sells: Scripophily (Stock Certificates) & Stamps (Philately)
Many of the same rules for selling coins apply to stock certificates and stamps; some rare items are worth hundreds of thousands of dollars and are heavily counterfeited. Many stamps and stock certificates have little or no value to collectors, but there are always exceptions; some stocks are collected for their elaborate artwork or for the signatures on the documents, and some gain popularity when a scandal hits or the company goes out of business.
- Original stamps and certificates (no restoration of printing or glue)
- Rare stamps and certificates (i.e. of unique quality, subject matter, issuer, or signatory)
- Faultless stamps and certificates (perfect condition, no creases or stains, etc.)
- Stamps or certificates that have been authenticated
There are many reasons that contribute to the success of scripophily as a hobby. First, it is a worldwide phenomenon since almost all countries have issued stocks and/or bonds through their governments or businesses. Each certificate is unique. It describes the company, the type of instrument (usually stock or bond), the year, it includes signatures of officers or officials, and indicates who it was issued to, the printer used, due date for bonds and more. And, due to the electronic age, more and more stocks and bonds are issued electronically which means fewer paper certificates are issued as a percentage of actual stock issued. The hobby is a relatively new one — only 20 years old — so it is often very attractive to collectors entering the field since prices are still relatively low.
Stamp collecting has some similarities to scripophily — it’s universally appealing and each stamp issued has a story and a role to play in the period in which it is used. The most popular types of collectible stamps include:
- Definitive Stamps: the stamps most often used for ordinary, everyday postage. These stamps typically feature images of national flags or symbols, and current or former national leaders. Definitive stamps are printed in very large quantities and are available for long periods of time in multiple issues
- Commemorative Stamps: first class postage stamps usually issued only once in a small quantity to honor a famous person, historical event or important anniversary
- Airmail Stamps: stamps issued for use on mail to be transported by air. Few countries still issue special airmail stamps
- Charity Stamps or semi-postals: stamps sold at a price higher than the postal rate. The proceeds are donated to charitable causes like breast cancer research, veteran funds, etc.
- Postage Due Stamps
- Revenue Stamps (e.g., issued to prove payment of custom duties)
- Booklet Stamps
- Coil Stamps: stamps issued in rolls for sale through vending machines
- Plate Blocks: three or more stamps that are not separated, and that come from the corner of a sheet or pane of stamps, with the printing plate number shown in the margin
- Souvenir Sheets: small sheets or panes of stamps issued with a special inscription or decorative border that commemorate a particular theme, person or event
- First Day Covers: envelopes with a stamp affixed to them that is postmarked on the initial day of sale of the issue of a particular stamp
The value of an individual stamp varies widely based on its condition, rarity, type, age and origin.
If someone asks you to sell stamps, bonds or stock certificates, we recommend you do some preliminary research before accepting the items. The following are several websites to get you started:
American Philatelic Society. Visit the website at http://www.stamps.org/.
The “Yellow Boxes” website (compiled by members of the eBay Stamp Chat Board) has a lot of helpful information on identifying, collecting and selling stamps. Visit the website at http://www.dospalos.org/~eusc/yellow_boxes.html.
Scripophily.com contains information about stocks and bonds, including a search engine that will help you identify/authenticate and determine the value of certificates. They also offer a research service if you’re looking for information about a defunct company. Visit the website at http://www.scripophily.com.
Robert D. Fisher Manual of Valuable & Worthless Securities. Published by R.M. Smythe & Co., Inc., it is a multi-volume resource that is a particularly helpful guide if you are trying to trace the value of very old stock certificates. R.M. Smythe will also research your certificate for a fee. Visit the website at http://www.smytheonline.com/research/stocks_bonds_research.php.
The Professional Stamp Experts website contains an online pricing guide and a detailed explanation of the stamp grading system. Visit the website at http://www.psestamp.com/.
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 unissued, printers and type of engraving process. For stamps, the leading factors that determine the value of a stamp include soundness (presence or absence of faults), centering (the balance among the four margins), visual appeal (color, quality of impression, etc.) and gum condition for unused stamps. Each of these collectibles has its own grading systems that can be applied to describe their condition. You will need to reference the grading system used to evaluate the item if you communicate a grade in your listing.
If you don’t know the grade of a certificate or stamp, you should still describe any damage that you can see without a magnifying glass, including:
- Scratches
- Discoloration
- Rips, creases, faded spots and ink markings
- Avoid using the terms “mint,” “excellent,” “very good,” “fair” and “poor” when describing stamps or certificates, as these have very specific meanings in the grading systems.
Rare stamps and stock certificates are often forged, counterfeited or reproduced. If you aren’t comfortable with your own knowledge of these types of items, you might want to have the owner get a professional appraisal of an item. You are allowed to sell a forged, faked or reproduced item as long as the sale does not violate applicable laws or copyrights and the item is clearly marked as a forgery, fake or reproduction.
If you are interested in attempting the initial identification of a stamp, most public libraries have a set of Scott Standard Postage Stamp Catalogues which lists and values postage stamps. Alternately, a local dealer or club could provide an estimate of the stamp’s value. Basic domestic U.S. postal rates are also included in the Scott Specialized Catalogue of U.S. Stamps and many other books.
Include these details in your listing:
- Country/Company of Issue
- Date of Issue
- Amount (postage rate or number of shares)
- Type
- Design (colors or images appearing on the item)
- Number (if sold as a collection or lot)
Store items in a well-ventilated room or in a sealed bag, away from children, pets, sunlight, moisture, smoke and cooking odors. Do not place stamps or certificates next to heating vents or air conditioners, since temperature/humidity changes can cause damage. The most damaging factors to avoid include humidity, rough handling and exposure to heat and light.
If the stamp or certificate has not already been archived and placed in a custom sleeve or album, it is okay to place the item in a Ziplock bag. Consider placing the stamp or certificate in a glassine envelope prior to insertion into the plastic bag. Surround the bag on both sides with new cardboard cut to fit the bag and place the entire bundle in a bubble wrap envelope or a new box for shipment to the buyer.
