One of 50 coupons from an 1909 Erie & Union Railroad Co bond.

In my opinion, absolutely NOT!

I personally think that collectors and dealers alike should do everything in their power to stop the selling of individual coupons.

Since 2004, correspondents from around the world have alerted me to online sales where people are attempting to sell individual coupons from railroad bonds as collectibles.

It appears that people are destroying perfectly good coupon bonds for one purpose, and one purpose only - to get money from unsuspecting beginners.

I think coupon-chopping is very bad for the collectibles hobby.

Here's the maneuver. Take ordinary coupon bonds that still have coupons attached. Remove the coupons, and sell coupons individually for one or two dollars. Conceivably, if sellers can trick enough beginners, they can take a bond worth $10 to $50 and make a couple hundred dollars profit.

Never mind that they have lowered or destroyed the value of original certificates!

Sheet of 40 coupons still attached to a 1902 Pueblo & Suburban Traction & Lighting Co. bond.

I get many inquiries about coupons. Most inquiries seem to come from people unfamiliar with the stock and bond hobby. Most of these beginners think these coupons are "bonds" or some form of currency.

It hurts me to be tell them that individual coupons have limited value as collectibles.

Admittedly, some coupons might have value to more advanced collectors IF they came from bonds that are no longer in existence. In twenty years of tracking stock and bond prices, however, not a single experienced collector has reported to me that they have ever bought individual coupons or consider them to have value. Even though I have asked, not a single major dealer tells me they think individual coupons have collectible value.

My deepest concern is that once beginners realize that they have been tricked into thinking coupons have value, they are going to blame the hobby.

We can argue all day long that the stock and bond hobby is not responsible. And strictly speaking, that is true.

But if the hobby does nothing to discourage this practice, then it is complicit. It is essentially nodding and winking, saying it is okay to trick beginners.

I disagree in the strongest possible way. It is NOT okay!

Let's face it. There are excellent opportunities to help beginners get off to good starts. Every experienced collector and every experienced dealer is willing to help.

If YOU have ever bought (or are considering buying) coupons, please consider that purchase a low entry fee for learning about the hobby of collecting genuine, historic stocks and bonds.

I feel very, very strongly that this is a terrific hobby with genuinely scarce certificates still available at great prices. Before you buy more coupons, I beg you to explore the hobby and decide for yourself whether spending more money on coupons is in your best interest.

Also, please visit the many wonderful dealers I list at:
http://www.coxrail.com/links-dealers.htm.