Frugal Choice On Gifts - Giving Stock Certificates

We discussed in a previous article, that when it comes to gifts our preference is to develop a culture of no gifts in the household. Yet, there are situations when giving a gift is the appropriate choice. As a frugal consumer, it is a challenge choosing gifts, as there is an inevitable loss in value when buying something material (including a gift certificate). Add to it confusion in choosing for other people and you end up with a double-whammy.


One strategy that compensates for some of the downsides with gift giving is to find items that have the potential to increase in value over time. An obvious choice is gifting a certain amount as a certificate of deposit (CD) or savings bonds. While such options are fairly popular especially among grandparents, they rarely beat inflation. A gift idea that sits well with us is giving actual stock certificates. As the holiday season approaches, this should qualify as one of the unique Christmas gift ideas for frugal consumers. Below are the benefits of opting for actual stock certificates:

• Since you own the stock represented by the stock certificate, you are eligible for the underlying appreciation in the share price over the years. Further, as stocks overall beat inflation by a wide margin, chances are good for your stock value to also beat inflation over the long-term, assuming some research is done on the company concerned before investing in any particular stock certificate.
• Stock certificates (bearer stock certificate, to be exact) are a dying breed in corporate America as the securities industry is slowly shifting completely to digital securities. This can serve as an opportunity for it is likely that some of these company stock certificates will eventually become sought after collector items and thus end up have additional antique value associated with them.
• Scripophily, the hobby of collecting stocks and bonds is fast-growing because of certain unique features associated with them:
• Historical Context – Stocks associated with the Dot Com mania is a recent example that is fast becoming popular among collectors,
• Value as an art piece – many are produced on hand-etched printing plates by artisans and provide excellent examples of engraving - as such, that paper has value as an art piece,
• One-of-a-kind value – each certificate is individually numbered and has the shareholder’s name etched in them, and
• Scripophilists also are on the lookout for signed certificates from famous personalities. Share certificates usually have signatures of three to four company executives including the Chief Executive Officer (CEO). If any of those personalities become famous or infamous, the certificate will enjoy additional value.

Giving stock certificates also comes with a certain amount of flexibility with respect to the amount and scope. As one of your unique Christmas gift ideas, you can choose to give any number of shares of a stock in a single certificate and you also can personalize it to an extent by opting for a business that has some personal connection to the receiver – for example, if your kid, grand-kid, or parent is a big Disney fan, giving Disney stock certificate helps personalize the gift to a certain extent.


Related Posts:

1. Frugal Living – Ten Great Gift Ideas for Frugal Families (Christmas Holiday Shopping Tips).
2. Frugal Living – Skiing Story.
3. Frugal Choice On Gifts - Giving Stock Certificates.
4. Frugal vs Cheap – A definition to go by.
5. Frugal Living - Top ten frugal living tips for families.
6. Reducing Expenses.

Last Updated: 10/2009.