Whenever I hear the terms "stock certificate" and "bond certificate," I picture ornately engraved pieces of paper, somewhat like our pre-redesigned currency, only larger. Well, it now appears that those certificates are going the way of index cards and carbon paper.

Since 1975, Congress, the SEC (Securities and Exchange Commission), and the Securities Industry Association (SIA) have pushed to eliminate the issuing of paper certificates in favor of electronic transactions. In fact, the number of certificates has been steadily declining. Today, less than 13% of all shares traded on the New York Stock Exchange are held as paper certificates.

In addition, the SEC has proposed that it "mandate the destruction of old (i.e., canceled) certificates." Historians and collectors have vociferously objected, but the suggestion, in conjunction with the already dwindling number of old-style certificates issued, has helped to fuel interest in the collectibles market, and certificates have quickly begun to increase in value. As of this writing (09.08.01), there are 622 active auctions listed on eBay under "stock certificate", with a 1907 W. M. Mining Co. certificate leading the way with a current bid of $317. And in case you think that high prices apply only to OLD paper, there is currently a certificate for egghead.com stock that is up to $152.50. (Not bad for a bankrupt dotcom!)

A check of the completed auctions (1,930 of them at this time) revealed that the top-selling certificate was a 1938 Bicardi at $350, though it has been reported that one 1898 bond certificate with artwork by Alphonse Mucha recently closed at $399.

If any of this has piqued your interest in scripophily (the hobby of collecting stock and bond certificates for their artistic or historical value), you can find much, much more information at the following Web sites: http://www.stocksearchintl.com

Stock Search International, Inc. Comprehensive site with gallery, tips on grading and care, Old Certificates Collectors' Club, lots more!

http://www.scripophily.net/index.html

Scripophily.com Superstore. Has pics and histories for hundreds of certificates. http://www.epfl.net/slrc/bst/OldStockCertificates.html#Company

The Enoch Pratt Free Library. Has a nice introduction to scripophily along with help for research into company histories.

The following books are also recommended:

The Art of the Market : Two Centuries of American Business as Seen Through Its Stock Certificates. Bob Tamarkin and Les Krantz. New York : Stewart, Tabori & Chang, 1999. http://www.amazon.com/exec/obidos/ASIN/1556709382/auctionbytescom

Scripophily : Collecting Bonds and Share Certificates. Keith Hollender. New York : Facts on File, 1983. Out of print

Scripophily: Art of Finance. by Keith Hollender (Hardcover - November 1994). http://www.amazon.com/exec/obidos/ASIN/0964263009/auctionbytescom