Restoring a vintage wooden sign
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It's really hard to answer without seeing what you have - please upload a photo.
A lot of people love the worn look of old signs and don't do anything to them. Rather than taping around the letters and repainting maybe coat of polyurethane will bring some of the color back. You can test this by using a cloth dipped in mineral spirits and dab over the letters. I use this technique to see whether I want to leave wood natural or stain it.
You don't restore them unless you want to ruin the value of this piece. Not in any way.. If you do restore it, you might just as well not have an old sign.