In for a pound

The old Round Pound and the new 12-sided £1 coin

By the time the sun rises on the east coast of the United States, the Royal Mint, on behalf of HM Treasury, will have released the new 12-sided £1 coin. Billed as the most secure coin in the world, the Royal Mint touts the following security features:

  • 12–sided — its distinctive shape makes it instantly recognisable, even by touch.
  • Bimetallic — it is made of two metals. The outer ring is gold coloured (nickel-brass) and the inner ring is silver coloured (nickel-plated alloy).
  • Latent image — it has an image like a hologram that changes from a £ symbol to the number ‘1’ when the coin is seen from different angles.
  • Micro-lettering — it has very small lettering on the lower inside rim on both sides of the coin. One pound on the obverse heads side and the year of production on the reverse “tails” side, for example 2016 or 2017.
  • Milled edges — it has grooves on alternate sides.
  • Hidden High Security Feature — with a patented High Security Feature to protect it from counterfeiting into the future.

Of course, the Royal Mint is offering collectibles for the new pound that includes a “farewell” to the one being replaced nicknamed the “Round Pound.”

Design and production of the new pound coin have been nearly three years in the making following the discovery of a large number of counterfeit £1 coins. Sources estimated that about 3-percent of the £1 coins in circulation are fake amounting to more than 45 million counterfeit coins. These fakes are so convincing and very well constructed that they can be successfully used in vending machines for payment including in London’s Underground.

The coin-operated businesses in Britain began complaining three years about the changes with reports that only a small fraction of all vending machines will be able to accept the new coin. Each coin-operated machine will have to be reprogramed and recalibrated to detect a coin that will have a different weight, specific gravity, and the electromagnetic signature.

Amongst those systems not ready include the London Underground and several major supermarkets.

While watching the news, I found that British supermarkets charge for people to use their trollies, which are called shopping carts on this side of the pond. I do not know if it is a deposit similar to the carts available at the airports, but could you imagine having to pay to use a shopping cart at your local supermarket? I do not think that would go over well in the United States!

Back in October 2016, the Royal Mint published education material and test coins that the coin-operating machine companies could use to test their equipment. Some of these test coins have appeared for sale on websites like eBay. Since then, there have been weekly stories about the new coin and stories have appeared daily in the British media.

Now that the new £1 coin has been released, it will co-circulate with the round pound through October 15, 2017. Banks will only distribute the new £1 coins while stores and other businesses will be allowed to accept either. During that time, it is expected for coin-operated equipment to be converted as soon as possible.

On October 16, 2017, the round pound will be demonetized and lose all legal tender status. Once the round pound loses legal tender status, they may be exchanged at some banks and the Post Office. The plan is to end the exchange of the round pound by March 27, 2018.

For collectors, this is an opportunity to collect something that was once a real circulating coin. The current round pound came into existence in 1971 when the UK transition from the pounds, shillings, and pence (£sd) system based on the power of 12 to a decimal system, called decimalization. Of course, when this happened in 1971 the web did not exist and real paper newspapers were the primary means of spreading the information about the new currency. Based on reports, there were some issues during the one-year transition but there were no stories of tragedies once the new money was issued.

Somewhat like the end of the Canadian cent, this is the end for a significant circulating coin. Except the Canadians did not replace the cent while the British are exchanging coins.

The Trade Dollar

Before you write to me to explain about the Trade Dollar, I know it was demonetized in 1876. However, it gained legal tender status again as part of the Coinage Act of 1965.

For those concerned over proposals that the United States change composition of various coins, including the one-cent coin that costs 1.5-cents to produce, watching how the UK handles the change will provide an insight as to how it might be handled here. Except for one problem: The United States does not demonetize coins (see the note in the box to the right). Every coin produced by the U.S. Mint can be used as legal tender at their face value, although it would be foolish to spend a Saint-Gaudens Double Eagle for its $20 face value since its gold content would be worth more!

It will be interesting to see how stiff those proverbial stiff upper lips hold up during this transition.

All images, videos, and British-style English text courtesy of the Royal Mint.

And now, the news

Astute observers might have noticed minor changes to the blog. While the look has been the same, I add a News menu item and a Recent News feature to the sidebar. These were added along with the soft launch of the Coin Collectors News.

Following a number of years writing the blog, I have been added to many mailing lists that send press releases and announcements from around the numismatic industry. Usually, I only publish these releases on the blog when I have something to add. When I do not, they end up being deleted. Since most have good information for the community, I decided to publish them.

Rather than add the press releases to the blog, I created a microsite called Coin Collectors News at news.coinsblog.ws. Although the microsite has the same look and feel of the blog (it’s now my brand), it is separate from the blog. Since it is separate, there is a different RSS feed for the site. If you use an RSS reader, you can find the feed here. For those who want to receive updates via email, you can sign up at here. Later on, if you decided you want to subscribe to the feeds, see the signup fields on the top and bottom right of any page.

When news items are published, an alert will be posted to the @coinsblog Twitter feed, the same account as the blog.

The items posted on Coin Collectors News will be press announcements only. No comments or commentary will be allowed, including by me.

Subscribers of the Numismatic World News Newsletter were the first to know about this service. It was announced to them about two weeks ago as a perk for subscribing. Last week, I added the links to the microsite to the blog and now I am ready to let everyone else on the new resource.

Behind the scenes, I am working on a numismatic bill tracker. Currently, I manually keep a list that I update monthly. After doing this a while I decided to put my technical background to good use and write programs to search for new bills, maintain their status, and produce a formatted report. With that work done, the next step is to create a microsite to share this with everyone. When it is ready for the soft launch, the subscribers to the Numismatic World Newsletter will be the first to know.
 

Real life overtakes other news

There are times that while we are having fun collecting coins, currency, exonumia, and the like, there is a real world out there with real issues. For some, this hobby can be an escape from that reality.

On Wednesday, the Bank of England announced that they were looking into the issue where their new polymer notes contain traces of tallow. According to the supplier of the pellets that are used to make the polymer substrate, tallow is used in the resin it sources from a supplier to make those polymer pellets. It was a low-key response to an issue that was made bigger by the British vegan community.

While writing a snarky response, my Twitter feed blew up with the news of the attack on the Westminster Bridge and near Parliament Square in London. I stopped writing and turned on the news. Having once walked on that bridge there was a sinking feeling I could not shake.

We know that five people have died, including a police officer and the attacker. One was a man from Utah on the last leg of a 25th Anniversary trip with his wife. She was amongst the reported 50 people injured and one of the 31 requiring hospital treatment. One woman was so scared she jumped off the bridge and into the Thames River

MI5, the United Kingdom’s internal security force, arrested seven men and four women on terrorism charges. One of the women posted bail, the other 10 are still in custody. They have collected over 2,700 pieces of evidence that they will be studying.

Although I am not a “run-and-hide” type, I find it difficult to be snarky given the recent events, even if the story deserves that type of treatment. I am sure that the heartbreak of tallow will return to the news and will give me a chance to have fun at their expense. But for now, let’s wish the best for the people who were injured and the families of those who are mourning.

Image courtesy of the Government of London.

Hooking a big one

A recent purchase: 1897 Barber Dime

Although I have been writing about something other than coins, I continue to expand my collection. Most of the items I have been buying are ordinary like the uncirculated National Parks quarters struck in San Francisco. I also have been filling some of the holes in my albums. Nothing really extraordinary. I did pick up a 1915-S Barber quarter and an 1883-S Morgan dollar, both in about extra fine (XF) condition. I like the coins but these are not something to write about, until now.

Almost every series has at least one key coin. The one coin that is not that difficult to find but if you are trying to stay within a budget, it is something you hope to find at a good price. For these coins, I am just looking for a coin that appeals to me regardless of the grade. Sometimes, if it is a good buy, I can drop my standard just a little. After all, I love bargains.

In this case, I dropped my standard a little to pick up a coin that would only grade very good (VG) to fine (F). Not only did I get a good buy but when I received the coin it had a nice look that the online images could not convey.

My new purchase is a 1932-S Washington Quarter.

Between the 1932-D, which I own, and the 1932-S there were fewer Washington quarters struck in San Francisco (408,000) and Denver (436,800). Granted, it is easier to find higher quality quarters struck in San Francisco, but to find a decent quarter that survived from having only 408,000 minted is a very good thing.

And I paid less than the value listed in various price guides!

With this purchase, I can now say that I have a complete set of silver Washington quarters in my blue albums. Next, I will work on completing the Standing Liberty quarter set so that I can say I have every quarter of the 20th century.

Finding error dies

Lincoln Cent Dies from the Denver Mint

In the hunt for something interesting, I stumbled across two listings on eBay for a two error dies from the Denver Mint being sold by noted error expert Fred Weinberg. These Lincoln cent dies are not dies with errors but dies with part of the design still visible.

Dies from the U.S. Mint makes for an interesting collectible. Standing about 2½ inches tall and about 1¼ inches across the base where it is loaded into the coining press, it is really an unremarkable piece of metal. Weighing 192 grams (about 6.8 ounces), the only distinguishing marks on the die is the serial number stamped on the base.

Before being discarded, workers at the U.S. Mint are supposed to completely grind off the design so that it cannot be used to strike counterfeit coins. Even though it is not cost effective to flood the U.S. economy with counterfeit Lincoln cents, the U.S. Mint does not want to take the chance someone will try. Once the design is removed from the die it can become a collectible.

Close-up images of the dies make the visible design look more dramatic than in person. After all, the images were likely taken with a macro lens on a die used to strike a coin 19.05 mm (0.750 inches) in diameter. Even so, the idea was fascinating enough for me to submit bids high enough to win both dies.

The first “error” die was used to strike the obverse of 1993-D Lincoln cents. This die is not completely filed down since it does show some of Lincoln’s hair. Although not a large area, there is enough of the incuse portion of the die’s section to be able to identify it as hair and providing a good guess as to where it would be on the coin. The sticker in the image was placed there by the seller. I decided to leave the sticker.

The other error die was used to strike the reverse of 1994-D Lincoln cents. In this case, the “error” is very subtle. There are two lines that would have been where the bottom two steps of the Lincoln Memorial would have been. Based on the placement, these would be to the center-right of the Lincoln statue in the monument. In the image, it is at the bottom of the “R.” I do not know why the “CR” is written on the die but I am not removing it, for now.

I do not know how Fred Weinberg finds these items but they are fascinating. The next time you go to a show you should check out his inventory. He finds some really interesting errors that have to be seen to be believed.
 

Looking down on the Lincoln Cent “error” dies. The 1994-D reverse die is on the left, The 1993-D obverse die is on the right.

Single images courtesy of Fred Weinberg & Co.
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