I write this blog from the perspective of a collector. I champion the collector. I think that collectors are the most qualified to determine the direction of the hobby. The collector is the consumer and the consumer is almost always right.
When it comes to helping with the direction of the hobby dealers should also have a say. Their input is important. But they should be there to support the collector because without collectors the dealers have no business. Dealers should not be dictating the direction of the hobby.
Recently, I was listening to The Coin Show podcast hosted by Matt Dinger, a dealer in Indianapolis, and Mike Noodle, a collector that says he works in a coin shop (I think he said it was a part-time gig), and became very concerned when Matt said that the U.S. Mint was hurting the hobby.
Are these sets hurting the hobby? Should the U.S. Mint stop producing them? (U.S. Mint image)
Regular listeners to The Coin Show knows that Matt is not a fan of modern coins and the products of the U.S. Mint. In fact, during the last show, he admitted to not carrying American Eagle coins because he does not want to support the U.S. Mint in damaging the hobby.
During the podcast, Mike came to the defense of U.S. Mint collectors but that defense was tempered when he said that collecting U.S. Mint products was for beginner collectors and that it was a way to start before the collector “graduate” to other collectibles.
I have questioned Matt and Mike in the past on Facebook but this time I felt their statements crossed a line. My regular readers know I can get hyperbolic but I try to remain respectful. As it happens on Facebook and anywhere else on the Internet, people cannot take the words at face value and have to read something into them.
This time I emphasized that not only do I collect U.S. Mint items but have not “graduated” to the type of collectibles Mike and Matt proclaim to be real collectibles. New readers can go through this blog and see how my collection can be classified as normal to eclectic.
After a lot of angry discussions (you will see a sample below) and some churlish responses from others (not Matt or Mike), I finally coaxed out the reasons for Matt’s hatred of modern U.S. Mint products. Unfortunately, it seems his reasons have more to do with the industry than the U.S. Mint.
According to Matt, the U.S. Mint is harming numismatics by selling annual sets like proof and mint sets at the prices they set. During the Facebook discussion, Matt and Sam Shafer, another Indianapolis-area dealer, said that they believe the U.S. Mint’s prices are too high.
From their perspective as dealers, they claim it is the U.S. Mint’s fault for the differences between the manufacturer’s suggested retail price the secondary market.
Using that logic, can I blame Chevrolet for the secondary market price of the 2014 Silverado I just purchased? If I tried, General Motors would laugh me under the tonneau cover of the truck! Yet, coin dealers are applauded for applying the same logic. This does not make sense.
How can you blame the manufacturer for the secondary market’s reaction?
Matt wrote, “I feel like the depreciation seen in modern sets is much more harmful to potential collectors or beginning collectors.”
I guess if General Motors followed that logic, they would stop making trucks!
But we are talking about collectibles. In that case, Topps, Fleer, and Upper Deck should stop producing baseball cards.
This is only an argument by dealers who would rather sell what they like and not take a broader view of the collecting market. In my new life, I am a collectibles and antiques dealer. The items I buy are either from the secondary market or I buy new items from manufacturers such as comic book and baseball card publishers.
I have been in antiques and collectibles market as a part-time dealer for 10 years. During that time I have been selling at antique shows, flea markets, and online. I have met and spoken with dealers about the market and its volatility. Everyone I speak with survived the Great Recession of 2008. What I learned in these discussions is that ONLY the numismatic industry demands that its collectibles rise in value. If the coin does not increase in value it is not because the market has spoken. It has to be someone else’s fault. After all, these dealers have to be right so it must be the U.S. Mint’s fault.
This 1901 $10 Dollar Lewis and Clark Bison note (Fr# 122) was sold by a dealer at an antiques show by a dealer not complaining about the collecting market.
The vast majority of dealers are very good and very reasonable. Many do understand the view of the collector and work with them. However, there is a subset of dealers that can be some of the most stubborn business people I know. They refuse to change with the market. Even if the market is not looking for their niche, they will not adapt to the market. Their mind is made up do not confuse them with facts.
They are also the most vocal in their opposition to market forces. Their usual retort is “you don’t understand, you’re not a dealer!”
With all due respect, I do not need to be a dealer to know that not changing with the times is doing more to hurt the hobby than the U.S. Mint is by doing its job.
Another argument is that the U.S. Mint has too many programs. Are they kidding me? Have they looked at the offering by the Royal Canadian, New Zealand, and Royal Mints? When was the last time they looked at the websites of the Perth Mint or the Pobjoy Mint? Comparatively, the U.S. Mint’s catalog looks bare!
Did you know that the Pobjoy Mint struck this coin under the authority of the British Virgin Islands. Is this good for the hobby? (Pobjoy Mint image)
The U.S. Mint does not offer dozens of non-circulating legal tender (NCLT) coins. U.S. Mint coins are struck and not painted. The U.S. Mint does not offer piedfort version of circulating coins or even coins guilt in gold or palladium. The U.S. Mint does not make deals with movie production companies, comic book publishers, or soft drink manufacturers to issue branded coins.
Every coin that the U.S. Mint offers for sale has an authorizing law limiting what they could produce. According to those laws, the U.S. Mint has to recover costs and is allowed to make a “reasonable” profit.
But what is reasonable? This is a question that has a lot of valid arguments on both sides. However, the U.S. Mint is subject to oversight by the Treasury Office of the Inspector General (OIG) and, occasionally, review by Congress’s Government Accountability Office (GAO). Neither oversight agency has produced a report saying that the U.S. Mint’s prices are unreasonable.
The U.S. Mint is selling what they manufacture at a price that the competent oversight agencies have not complained about. The only one complaining is by the dealers in the secondary market.
Why are these dealers complaining?
We get to the crux of the problem when Sam Shafer responds, “I would rather sell a customer a Morgan dollar than a set of glorified shiny pocket change.”
It does not take a rocket scientist to understand why a dealer would write that. A dealer makes more money selling Morgan dollars than modern coins. It is about business, not about what the U.S. Mint is doing. It is also a very reasonable response if the dealer would own up to the fact that it is about the impact to their business. Blaming the U.S. Mint is like crashing into a wall and blaming the wall for being there!
But Sam must have had some bad experiences: “How about you come down from your pedestal, put your loudspeaker up your rectum and work in a shop for a few years where you can witness the devastation of families first hand for a few years.”
This is a strong statement, even if you discount the placement of inanimate objects into bodily orifices they do not belong. What has the U.S. Mint done to cause “devastation?” The U.S. Mint sells products to those who want to buy them. You are not forced to buy from the U.S. Mint.
Sam continues, “While your [sic] at it maybe you can take up your glorious cause of finding homes for the 50 billon [sic] sets the government produced and bulk sold over the years to the collectors who assumed that 5 sets would better than 1.”
By Sam’s logic, it is the U.S. Mint’s fault that someone speculated and the investment did not pan out? Whose fault is that? Who told someone that buying these sets would be a good investment? Not the U.S. Mint! Where does the U.S. Mint say in any of its publications or website that coins make a solid investment? How could these speculators have come to this conclusion?
The U.S. Mint goes out of its way to avoid participating in the investment market. They do not represent any of their products as investment grade instruments. This is why the U.S. Mint does not sell investment bullion directly to the public. The government sells these products to distributors who will then sell to the dealers that will sell them to the public. The government is not involved in the price speculation of numismatic items.
2018 Fiji Coca-Cola Bottle Cap-shaped coin is not a U.S. Mint product. It contains 6 grams of silver (about $3.20) and costs $29.95. Is this good for the hobby? (Modern Coin Mart image)
The U.S. Mint does not even acknowledge historical and aftermarket pricing for the items they manufacture.
The U.S. Mint sells collectible coins. They do not sell investments.
Over the years, I have received more complaints about dealers than allegedly worthless State Quarters or the U.S. Mint’s annual sets. But why are coins allegedly worthless?
Did the U.S Mint make claims that these one-time-only coins are really special and that they would be the greatest thing since sliced bread?
Did the U.S. Mint create rolls in sonically sealed plastic holders and tout them as the next great collectible?
This is not a U.S. Mint Product! (Danbury Mint image)
Did the U.S Mint create books, boards, folders, albums, maps, touting this as a once-in-a-lifetime way to collect?
All this came from the secondary market. Who runs the secondary market? DEALERS!
DEALERS set the values for the coins based on what they sell them for.
DEALERS take coins and entomb them in sonically sealed plastic holders saying that this is how you should be collecting. They tell you one encapsulating service is better than another and then make you pay different prices if you use a service they do not like even if the number assigned as a grade is the same on both pieces of plastic.
DEALERS have convinced an entire class of collectors that if they do not have a plastic holder with this new, whiz-bang label that their collection is not complete.
DEALERS have also complained about whose name and image have appeared on some of those labels.
Tragedy grips the industry when a Pawn Star is featured on a plastic holder’s label! (NGC image)
DEALERS genuflect when someone puts a shiny green sticker on a plastic holder as if it was blessed by some deity. They prostrate themselves if the plastic holder is granted that divine gold sticker! After preaching this gospel to their flock, you are considered a heretic if you question the validity of the sticker and the motives of the sticker maker.
While the U.S. Mint is not perfect, the problems with the numismatic market have not been created by a tightly regulated government bureau. The problems come from the secondary market whether they are overstating the values of these items or demeaning collectibles that they cannot make a hefty profit on.
Maybe it is time for dealers to look in the mirror and ask whether the U.S. Mint is hurting the hobby or maybe they are refusing to recognize the problem is right in front of them.
The American Numismatic Association and Numismatic Guarantee Corporation recently issued press releases notifying the public that there have been attempted phishing scams by trying to impersonate a hotel service or someone who works for NGC. Since this is back in the news, I am taking an article I had previously written on the topic and updating it to be more current.
Phishing is the term used to describe the attempt to convince someone to reveal personal information by sending them an email that looks like it came from a legitimate source. Unfortunately, it is so easy to spoof (trick) the Internet’s email system that all it takes is someone with attention to detail to get past spam and other security filters.
Last year, I retired as an information security professional where, for the last 25 years, was contracting to the United States government. I saw many attempted and successful attacks against both government and commercial systems. However, the one attack that is the most difficult to defend is those where humans are convinced to act against their own best interest. The technical industry calls them phishing attack but they are forms of social engineering.
A social engineering attack tries to use something about you or something you care about to convince you to do something that could potentially harm you. For example, an attacker looking to scam someone who collects rare coins may know about NGC’s business. Knowing that the people who might be using NGC’s services are collectors with a lot of disposable income, they could use the weaknesses of the email system in order to fool the recipient into a situation where they can be taken advantage of.
To help you stay safe, the following are rules you can follow to keep safe online:
Rule #1: Unless you are 100-percent certain that the email is legitimate, do not click on the link!
You will be never 100-percent certain that any email you receive is legitimate. Thus, make sure that you are as close as 100-percent certain as possible. One thing you can do is to move your pointer over the link, stop, and wait for the tooltip to show you the address.
Tooltips are those balloon-like popups that will tell you something about the link or element before you press the mouse button. One way to tell that a link is bad is that if the address is not what you think. For example, if the link is supposed to send you to the ANA website, the tooltip better say that it will send you to money.org. If it does not, then do not click on the link.
Place your mouse pointer over the link and let the tool tip appear. What does it say?
When you check the link, the address of the server is the first part of the address. If what should be the server name is not in that area at the beginning of the address, do not click on the link.
One trick the phishers use is to show you what looks like a complicated address in the message, but the link behind it will send you to another website. This is where tooltips can help. If you hover over the address and they do not match, it is an attempt to trick you and you should not click on the link.
If you are using a web-based email client, such as Gmail, you can check the address on the status line at the bottom of your browser window. Check to see if the address makes sense. For example, if the email claims to be from Amazon, the link should say “amazon.com” and nothing else. Sometimes phishers will try to write a link using something after the address like “amazon.com.anothersite.co” to fool you. Do not be fooled. A link like this is trying to send you to “anothersite.co” and not Amazon.
Understanding the part of a typical URL and what to look for
If you are unsure about the link, then go to your browser and type in the address yourself.
As with everything in life, there is an exception to the rule. Organizations, like the ANA, will use mailing list services to send out notices to members and anyone else who have signed up for these emails. Unfortunately, the URL you will click on will be one associated with the mailing list service. The service uses this to provide engagement statistics to whoever is sending out the email. For example, for the service that the ANA uses all of the links are to r.listpilot.com.
Mailing list services are great resources for many organizations and their tracking service is necessary to understand the effectiveness of the communication. If you are not sure, continue to visit the organization’s site without clicking on the link.
An example of an email message showing what to look for to understand how to identify it as a phishing attempt.
Examine the envelope information, also referred to as the headers of the message, for signals that this could be a phishing attempt.
Even though a lot of email contains grammatical errors, businesses have proof readers that will prevent the most egregious errors. Look for bad spelling and even using numbers instead of characters, such as using a zero instead of a capital “O.”
Rule #2: No legitimate company or organization will ask for information to be sent via email
One of the tactics that the phishers use to try to trick you into giving them your personal information is to create a form that looks like it is legitimate. Just as it is easy for someone with moderate skills to fake a web page they can also create a counterfeit form. Not only will the form be counterfeit, but they could also embed programs in that form to steal your information.
Embedded code in documents is called macros. Macros are used to command programs to do something for the user. When used in productive environments, macros can be a wonderful tool to create dynamic documents and provide input validation. But the same instructions that can make macros a productive tool can also be used to do bad things.
Unless you are certain about where the document came from, do not open a document. If you open the document and the program asks if you should enable or run macros, do not enable macros.
This is not just a problem with word processing document. PDF documents can also deliver very nasty malware (malicious software). Not only can an attacker add macros to a PDF document, but someone can embed Flash in those PDF. Flash is the technology that helps you watch online videos and add enhancements to the visual interface of some websites. But Flash can be used to attack your computer system. Opening a PDF file sent by someone you do not know can be as dangerous as a word processing document.
Rule #3: Do not open suspicious attachments
Another trick the attackers try to use is adding an attachment named in a way to entice you to open the file. File names consist of the name of a file followed by a period followed by a file extension. The file extension is used to tell the computer the type of program to execute to allow you to work with the file. There are three file extension that very dangerous and should never be opened unless you are absolutely sure who sent them: .zip, .exe, and .dmg for Mac users.
The .zip file extension tells the computer that the file is something called a Zip archive. A Zip archive is a file that is formatted to allow it to store many files that are compressed. Zip files are used for many legitimate purposes including being the default format of Microsoft Word’s .docx file. Unfortunately, it can contain programs and files that can be used to attack your system.
One of the types of file that can be included in a Zip archive is a .exe or executable file. Simply, these are programs in the same way that Microsoft Word is a program. Once an executable file is opened, it will do whatever it is programmed to do. Among the things that the program can do is keylogging. A keylogger reads what you type on your keyboard, what you click on the screen, and in some cases, what is displayed on your screen. The keylogger will be able to capture the username and password you entered when you visit any website including your bank’s website. The problem is that when a key logging program is run, you do not know it is watching what you type. Nor do you know that it connects to a server somewhere on the Internet to send the information to the attacker. Keyloggers and other malware can infect your system in a way that allows it to continue to exist, even if you reboot the computer.
You may ask about anti-virus software helping stop malware. Anti-virus software is programmed to understand what is known about attack vectors. It cannot protect you if it does not know how the virus works. Remember that the government warned that last year’s flu vaccine was not effective for the version of the virus infecting people? Anti-virus software is similar that if it doesn’t know about the strain it cannot protect you. Hackers are always looking for ways to fool anti-virus software.
For Windows user, you should consider running Windows Defender. Windows Defender is built into Windows but cannot be run if you have another anti-virus software. I use Windows Defender and have been happy with the results. If you want more information about Windows Defender visit this page on Microsoft’s support site.
While Macs are more difficult to attack they are not immune. Mac users should never open a file with a .dmg file extension unless you know who sent the file. The Macintosh .dmg file is a disk image stored as a regular file. A disk image file is formatted to look and acts like a disk so that when you double-click the icon, it will mount on your computer as if you plugged in an external disk drive. Because .dmg files are commonly used to install legitimate software, sometimes the installation can be automatically started. If you allow the installation to continue, you can install software as dangerous as what I described for the Windows .exe file.
OS X is a different type of operating system where if you are careful you can get away without running an anti-virus program. However, if you want to be paranoid (along with me) you might want to run the free anti-malware software from Malware Bytes.
Regardless of the operating system and software you use, ALWAYS KEEP IT UP TO DATE! Patching your computer may be an annoyance but the dangers, if you do not apply security patches, will hurt more and last longer!
Rule #4: When in doubt, throw it out!
While all this seems simple to me after having worked in this industry for nearly 40 years, I have seen how these concepts are confusing to the non-technical user. The problem with email is that it was developed as a way for researchers to communicate by plain text across Arpanet, the forerunner of the Internet. Email, as a text-based service, \ has been extended in so many ways that it has created a complicated series of standards that require a degree in computer science to analyze. While these complications make it easier to communicate via email it also makes it difficult to secure.
Even if you cannot fully analyze whether the message is spam or legitimate, if you have any doubt, then just press the delete button. If the message came from a source you know, contact them off-line and ask if the mail is legitimate. If you think the email is from your bank, call the bank and ask. If you think the email is from your credit card company but not sure, call the credit card provider and ask. If you think the email sent from the ANA or NGC is suspicious, call them and ask.
A little intuition and some due diligence can be of great help in these circumstances.
Stay safe online!
Last week, I posted an article about online resources that I use when I want to begin research on a numismatic topic. The list provided a number of resources but a reader wrote to me and noted that I forgot to include paper money resources beyond the Bureau of Engraving and Printing.
Paper Money Sources
When it comes to searching for information on paper money, I always start at one of the following three sites:
The opening line at USPaperMoney.Info says that it is the “home of everything you ever wanted to know about U.S. currency. (Well, almost….)” This is truth in advertising. Even with the page of unanswered questions, the site has everything you could ever want to know about U.S. currency. I just wish the author would organize the site better.
Don and Vic’s World Banknote Gallery is one of those sites that looks like it was created by a seventh grader in 1998 but has a tremendous amount of very useful information. It is one of the best sites I have found to identify world banknotes.
They have a companion site named World Coin Gallery that is similar. I have used this site and have added it to the original bookmarks file. If you downloaded the original bookmarks then right-click (Control-click for Mac users) and select the option to add worldcoingallery.com to your bookmarks.
Last, but definitely not least, is Banknote News by Owen Linzmayer. If you want to know anything about the production of world paper money, this is the site you need to read. In addition to the information, which a lot of it is in blog form and consistently tagged for easy navigation, Linzmayer has also compiled one of the best references on world paper money called The Banknote Book. He said he did this because he and other collectors were frustrated with the “many errors, omissions, and poor-quality images” in the Standard Catalog of World Paper Money.
The Banknote Book can be purchased as a physical book as a three-volume set complete through 2014 or you can buy individual chapters corresponding to the country of your interest.
If you want to check it out for yourself, download 17 Free Sample Chapters and judge for yourself.
Do you want to add these links to your browser’s bookmarks? Right-click (or Mac users can CTRL-Click) on the following button and select whatever option your browser requires to save the file to hard drive. Import the file as an “HTML Bookmark” file to add these links to your bookmarks.
I am often asked what resources I used for online research when writing articles for the Coin Collectors Blog. For more than 12 years of writing this blog, I have found hundreds of websites that I have used to various degrees. However, there are a few that have provided the best information.
No single website can provide all of the information available. This is why I keep many sources at hand. The problem is that I do not keep them in one neat location. Some of them I remember and then there are snippets of text, bookmarks, and even computer code that I refer to when I have to start looking up information. Not only will this provide you with research starting points but it also gives me a chance to organize my bookmarks!
Before I list my sources, there is one tool that must be included in any online reference: Google. Google is a great search tool because it is the only search engine that really tries to add context of the search. For example, if you are searching for something to do with coin dies you will get related items and not information about games with dice or something about death.
When searching for information using Google is to try to be as exact as possible with the search term including using characters with diacritic (accent) marks. Using the proper diacritic marks will help find foreign language sources that could provide additional information not found in English. Also, Google can search using terms that are entered using non-Latin characters including Arabic, Cyrillic, Greek, Hebrew, and Asian languages.
If you find a non-English site or a site in a language you are not familiar with, Google Translate (translate.google.com) is a great tool for translating this information. You can either enter phrases into Google Translate or enter a URL for it to download and translate pages.
When it is time to find information about modern coins, currency, production totals, and images, the primary source are the government bureaus that manufacture the money.
United States Mint: www.usmint.gov
Bureau of Engraving and Printing: www.moneyfactory.gov
There is a lot that goes into the money manufacturing process in the U.S. An overview of the bureaus and other agencies can be found the U.S. Coin and Currency Production page.
Although there is quite a bit of numismatic information available online, one of the biggest benefit of being a member of the American Numismatic Association is to have access to The Numismatist in electronic form. The $28 per year basic membership gives you access to this resource electronically.
For other historical publication and a lot of information, consider using the Newman Numismatic Portal at Washington University in St. Louis. Aside from being a rich source of information, many of the publications they index are located in the Internet Archive. Clicking through to the site will allow you to download many of the publications as a PDF or ePub for your tablet reader.
Another archive you may also want to search is Google Books. The advantage of Google Books is that they offer more formats for the books that have been imaged including a version that has been processed using an optical character recognition (OCR) program. While the OCR versions are far from perfect, it is wonderful if you are looking to copy-and-past quotes into your own writing. Google Books may not have the full text of every reference found because of copyright restrictions but once you find the book you can either buy the book or borrow it from a library making it a great for doing index searches.
ANA members can borrow books from the Dwight N. Manley Numismatic Library. There is no cost to borrow books but you will have to pay for shipping. The Library can also provide research and copy services for a fee. Although research services are fee-based and open to anyone, the fees are lower for ANA members.
Archived Publication Sources
Online guides are resources for individual coins. Each of the resources listed have their strengths and weaknesses making it important that you consult more than one when looking for information. The following list are the guides I consult in alphabetical order:
Whether you are a casual collector, more expert, or someone looking at coins, the one question that is always ask is “What is that coin worth?”
Coin values are subjective and based on a lot of factors. It can be so confusing that I wrote a two part series How Are Coins Priced (Part I and Part II). Even if you understand the principles, there is a need for price guides.
Price guides are not perfect. They have their own formula and their own biases for what makes up prices. For example, the price guides sponsored by the grading services are the prices for coins in their holders. This is why I consult a few price guides when doing research. The following are the price guides I have used:
One of the key aspect of pricing is the level of conservation or the grade of the coin. When it comes to be able to judge the grade of the coin there is only one website I use:
Another aspect of pricing is the value of the coin’s metals. There are many sites that can provide spot prices, I have found the following very helpful:
There are quite a few online communities that discuss numismatics. Some of them are very good while others can be a bit harsh for the average collector. For general knowledge and access to a wide range of knowledge I recommend the following:
The E-Sylum has been called the best free numismatic resource on the Internet. After being a subscriber for the last five years, it is difficult to argue with that statement. Many of the contributors are a Who’s Who of the numismatic industry. While you can read the E-Sylum online, you should subscribe. Better yet, if you are an ANA member you will receive a copy in email. Do not delete it! Read it! It gets a PR-70DCAM rating from this reviewer!
If we are talking about online access to sources there has to be a mention of mobile apps. Since I am an Apple iPhone user, I use the iOS version of these apps. However, all of them have Android equivalents. Some also have versions the run on Windows Mobile. Here are the apps I have installed on my iOS devices (in alphabetical order):
▸ Universal Apps (iPhone and iPad)
- PCGS Coin Cert Verification
- PCGS CoinFacts
- PCGS Photograde
- PCGS Price Guide
- XE Currency
▸ iPad Only
- The Numismatist HD (2009 – present)†
- The Numismatist Magazine (All editions)†
- Kcast Gold Live! (Kitco)‡
▸ iPhone only
- CDN Coin & Currency Pricing
- EyeNote (BEP)
- Gold Live!+ (Kitco)‡
- NantMobile MoneyReader
† Both apps are available for the iPhone
‡ Note that there are different versions for the iPhone and iPad. The “+” is not a typo.
▸ Website Links
Website Links are bookmarks on the phone’s Home Screen. On the iPhone open Safari and go to the page you want to bookmark the press the sharing icon (the box with the arrow pointed up). In the popup select “Add to Home Screen” from the set of icons on the second line.
Do you want to add these links to your browser’s bookmarks? Right-click (or Mac users can CTRL-Click) on the following button and select whatever option your browser requires to save the file to hard drive. Import the file as an “HTML Bookmark” file to add these links to your book marks.
It is difficult to turn on the television, read the news, or visit social media without the tragedies of the day smacking us in the face. Although crime statistics are the lowest it has been in generations, there are some crimes that have seen a rise. Those are the crimes that are given the headlines and the most airtime on the news.
Unfortunately, the news extends beyond the mainstream but extends to Main Street.
Numismatics has not been a stranger to the criminal element. If it is not embezzlers using coins to defraud people and governments, there are the counterfeits primarily coming from China. Now there are two new scams that the industry has to watch.
Counterfeiting currency is definitely not a new issue. Counterfeiting the currency that is supposed to be the most secure is something that is now hitting the mainstream, especially in countries that have adopted the use of polymer notes, is important news.
Police in Saskatoon, Saskatchewan has reported the confiscation of 72 bogus Canadian banknotes. Counterfeiters are using a combination of printed plastic sheets and physical cut-and-paste of lower denomination notes to mimic higher denomination notes.
Image released by the Saskatoon Police showing the counterfeit currency (Image courtesy of the Saskatoon Police via the Saskatoon StarPhoenix)
Within the same news feed, the Bank of England issued warnings and additional guidance after counterfeit notes were used for purchases at pubs in Lincolnshire. Many stories from the U.K. suggest that the people do not seem to like the new polymer notes, but this does not seem to help.
Bank of England wants people to watch for the color shifting ink in the quill (Bank of England image)
The Reserve Bank of Australia (RBA), Australia’s central bank and the primary developer of the polymer substrate used around the world, has found that their currency is under attack by industrious forgers. One particular forger found a plastic substrate similar to the polymer developed by the RBA. The forger bought one high-quality commercial printer from the used market and rented two others to print Australian $50 notes.
According to the reports, the $50 note was picked because it provides is common enough to be used in daily transactions (AU$50 is equivalent to US$39.06 as this is being written) and high enough of a denomination to be cost-effective for the forger. Remember, forgery may be a crime but it is a business.
A counterfeit Australian $50 note has the wrong security stripes and the star field on the right is supposed to be clear (Image courtesy of The Sydney Morning Herald)
Although these issues have not directly affected the collectible currency market, it has had an effect on the dealers when their customers pay in cash. Even with the rise of electronic transactions, many European dealers continue to do over-the-counter sales using cash. In some countries, like Germany, cash is still king even when purchasing rare coins.
While discussing these issues with a dealer based in Germany, it was reported that he will not accept large sums of cash from customers he has not done business with in the past. This dealer does not accept credit card payments over 200€ or for any bullion-based transactions. His regular customers can directly wire the funds to a special account the dealer set up. Others must use certified bank checks.
This is not to suggest wire transfers are safe. In a blog post on Kovels.com, they have been contacted by antique dealers that reported money stolen by wire transfers. According to the blog post:
The fraudsters hack your emails and insert their own email, cloned to look like an email from a trusted person, into your email stream. They then request a wire transfer — providing all needed wire instructions — for something that looks legitimate. Once a bank wire is sent, it is extremely difficult, if not impossible, to get the money back. If you need to send a wire, be sure to use “old” technology and confirm on the telephone with someone that you know!
Even though I am no longer in the information security business, it is still my obligation to remind you that EMAIL IS NOT A SECURE FORM OF COMMUNICATION! Email is the electronic equivalent of a postcard. Any message you send, unless it is encrypted, can be read, scanned, snooped, and even altered by anyone, anywhere, at any time.
“Oh, it cannot happen to me!”
I used to hear that line when I taught a senior-level college class on information security. Using a laptop connected to an overhead projector, I was able to show the class how easy it was not only to create spam but to make it look like an email was sent by someone else. I was also able to demonstrate how to read the email traffic on the local network with a few keystrokes. Are you using wireless connections? You just made stealing your information easier for the hacker.
Counterfeiting and wire fraud are not just problems for dealers. When dealers are defrauded by these criminals, they have to recover the money in some way. Insurance does not cover all losses or the extra security that will be required to protect their transactions. Prices will have to go up to cover the losses and the future costs of doing business.
The cost of doing business in this environment is not a trivial subject. While dealers of all types of collectibles want you business, fraudsters are making it difficult for dealers trust the off-the-street buyer. This makes counterfeiting and fraud a problem for everyone.
There are many ways to collect numismatics and there are many places that a collector can find items to add to a collection.
Collecting can be an expensive hobby regardless of what is collected. Whether it is numismatics or comic books, one piece is never enough and there is always a desire to collect an entire set regardless of the parts that make up the set.
When collecting numismatics, we know about the coin dealer, coin shows, and online auctions from the major auction houses and eBay. But did you know there were other online auctions that you can tap into to find collectibles with better prices?
There is an entire community of resellers working with estates, relocations, downsizing, and liquidation that offers a way to find bargains.
Estates are an easy concept to understand. Someone dies and the family, executor, or personal representative of the estate has the responsibility to clean out the home, apartment, or condominium of the decedent so that everyone else can move on. Regardless of how gentle we try to be, everyone dies and something has to be done with the stuff left behind.
This is where estate sale companies are a help. These companies are contracted to whoever is trying to sell off the estate and hold a sale of the goods. Some estate sales are held over one or two weekends. Buyers go to the house to see what is for sale and buy what they want.
Over the last few years, there has been a growing number of online estate auctions. Rather than holding a sale, the items are either staged in the home or in a warehouse and people bid online. Estate auctions have been extended to relocations, downsizing, and liquidation of seized properties and even commercial assets.
Online estate auctions work like any other online auction. You bid for the item you want and hope you win. When the auction is over, you pay for the item plus a buyer’s premium, similar to what you would pay if you were buying from an auction house. In most cases, the buyer’s premium ranges from 10-15 percent of the selling (hammer) price. In most cases, local sales tax is charged.
Although you can find bargains at these auctions, it is not always an easy process.
First, not every company works the same. Unlike eBay where there are consistent rules sellers have to abide by, estate auction terms and conditions can be very different than what you are used to. Before you bid, read the terms and conditions. If you cannot abide by them, do not agree to bid on the auction.
How do you agree to the terms and condition? Register on the auction site and click the button for that auction. Registration requires you to identify yourself including entering a valid credit card. When you agree to the terms and conditions of the auction, most companies will put a hold on your credit card for a set value to determine that the credit card is valid. These holds can range from $1-100. Remember this if you use a debit card. In most cases, your credit card will be charged for the purchases immediately up the close of the auction.
The auction platforms may be very different than what you are used to. These auction platforms take their cues from services offered by major auction houses and not eBay. Their catalog is a list of lots for sale that includes pictures an additional information. Not every item includes good pictures or descriptions and not every auction service uses their software to its best capabilities.
Some companies offer a live preview. If the auction is being staged onsite, then you can go to that site during the designated time and examine the items up for bid. Auctions held from warehouses usually hold multi-day previews. If you cannot attend a preview or if there is no preview offered, you have to rely on the pictures. If the picture does not give you the confidence you need to bid, pass on that item.
These auctions allow you to enter a maximum bid and will raise your bid price until someone outbids your maximum, similar to what you may be used to on eBay. One big difference is that most of these auctions use a soft close system. A soft close happens when a bid is received at the last minute of the auction. When a bid is received the end of the auction is extended. Most auctions will extend the end time 3-5 minutes to prevent sniping.
Most of these estate and liquidation auction services set their lots up with a low starting price. Usually, the opening price is $1.00 and sell with no reserve. Some have other practices that they use to protect the seller of higher-priced items. But this scenario can be a recipe for finding bargains. In one auction, I was able to purchase three Carson City Morgan Dollars in GSA holders for about 75-percent of than their Greysheet value even after sales taxes and buyer’s fee were added. I was then able to sell the coins to a client who paid their Greysheet value giving me a nice profit for the day.
Another issue you will have to work around is that many of these auctions do not provide shipping. If you read their terms it will say that if you win you will have to pick up your items at a specific place during the designated pickup time. If you want your items shipped you will have to work with a third-party shipping service such as the local Parcels Plus or UPS Store.
There have been mixed reports using third-party shipping services. Some are very good, contientious, and will take care of you but at a cost. There are others that are not very good and have been known not to pack the items well and pilfer from your winnings. There is no way to know the rating of the auction service’s recommended shipper. You may want to try to find online reviews of that shipper.
A few of these estate auction companies will provide shipping services. If you require shipping, you may have to do this as part of the registration or contact the company immediately following the close of the auction. Those companies that provide shipping will charge a service fee in addition to the postage.
Remember, the larger and more expensive the item, the more will be required for it to be shipped.
When purchasing anything from an estate auction, it is important that you read and understand their terms and conditions before you bid and buy. Each service has different terms and conditions that could turn your purchase into a nightmare. If you are careful, you can find bargains.
Where can you find these bargains?
This is where I give up the secrets that have allowed me to build a collectibles business. I have used these resources to travel the region to find cool items that have made a lot of people smile.
My first go-to resource is EstateSales.net. I have found no other resource with the most complete listing of every estate sale and auctions for whatever region of the country I am located. It is a free service for buyers. Either select your state or enter your zip code to find all of the sales in your area. Even if you are visiting your relatives out of town, enter their zip code and see if you can find some bargains.
Listings on EstateSales.net include the address and hours of the sale. If it is an online auction, it will provide a link to the auction site. Each sale page can include photos of the items for sale. While photos are not required, most listings include them. You can get a preview of the items for sale to help you decide whether it is worth the trip or the effort to bid.
They also have a mailing list you can sign up for that will send you sales in your selected region.
Using the listing on EstateSales.net, you will learn who some of the local auction companies are. You can either watch for their sales on EstateSales.net or go to their website and sign up for their mailing list. Some of these auction companies continue to have live, in-person auctions and it may be something you will consider attending.
Another place to find estate auctions is on the site that provides the auction services to the various companies. One of the largest services is HiBid.com.
HiBid is a great site for finding a lot of auctions in a lot of places and supports a few different auction formats including online only, live webcast auctions, absentee bidding, or just catalogs for auctions that will be live or even on another platform. They will allow you to search across auction companies and regions.
As I am writing this, there are 1,134 open auctions with 794 being internet online-only. Of those online-only auctions, there are 3,607 lots in the Coins & Paper Money category.
AuctionZip.com is another auction hosting service that is very auction company-centric. While you can search across auctions its model is to try to protect the propriety of the companies that use its site. Once you see the difference in the interface between HiBid.com and AuctionZip.com, you will understand why the former is more popular.
One nice feature about AuctionZip.com is that when you do a search it lets you look at the auctions open for a particular day. If you have time restrictions, it will allow you to better tailor your bidding times. This is good if you are traveling so that you do not have a conflict with the end of the auction.
LiveAuctioneers.com is a similar service but serves a more upscale audience. Their service has stricter requirements as to who can list auctions on their platform. What this does is provide better assurances for the buyer that they are dealing with a more established company. Currently, there are 7,780 items listed for auction in the Coins, Currency & Stamps category.
A feature of LiveAuctioneers.com, aside from its clean interface, is that they have a consignment service that helps connect you with an auctioneer that will help sell your items. If you have something that you want to sell at auction but do not know who to speak with, this is a good service to help get you started.
One of the oldest services is icollector.com. They are a strictly collectible market auction service. Although their catalog is smaller than the others listed, their listings are comparable in the collecting categories. iCollector.com may not be as elegant as other services, but they do have the inventory for you to look at. There are just under 15,000 lots of various numismatics. Their strength is that the numismatic categories are divided by country and type. Where other auctions make have a general category, iCollector.com has categories to allow you to narrow your search down to what your interest.
Last, but definitely not least, is Invaluable. Auction companies that use Invaluable are what could be classified as mid-to-upper range companies. These companies are more concentrated around art and furniture but have added collectibles and other categories likely to facilitate sales from companies that buy higher-end estates in order to keep them as clients. Most of the auctions on Invaluable are absentee bid auctions with some items available for immediate sale. As I write there, there are 20,485 lots available in the Coins, Money & Stamps category. In fact, over the last few weeks, gold and silver bars dominate the listings on the first page of the category.
Invaluable is also a site with a very clean interface that is very welcoming. They also divide their larger sections into individual categories so whether you are interested in US Coins or Ancient Coins, you can browse that section without clutter.
Since I started writing this article, I won several silver Chinese Panda coins from an online estate auction. Most of the coins were purchased at or below the spot price of silver even when adding the buyer’s premium. One of those coins that were purchased a little over the spot price is the very popular 2000 Panda that can sell for a lot of money. There are other coins that I purchased at less than market value.
Even though I am not a fan of third-party grading services, especially for modern coins, I will send these coins to one. Although I think all but one is genuine, and it is possible it was a pocket piece, as long as the 2000 and amake up of the pre-2000 silver Panda coins are genuine, I will more than makeup for the cost of the entire purchase plus the grading fees.
Now go out and find your own bargains!
Over the last few weeks, I have been working on a few writing projects that include primers about collecting numismatics. While some of these articles have allowed me to repurpose blog posts, I have had to create some content not posted before.
In the past, I posted a few including the series on small dollars and about Seated Liberty Dime Varieties. They were posted as regular articles because I thought they would be of general interest.
A few may not make for exciting reading but could be used as a reference for those interested. Last week, I added one of those articles rewritten for the blog and posted it under the Collector’s Reference menu.
“A Collector’s Guide to Understanding U.S. Coin Grading” is a simple overview of coin grading. It starts with a short narrative that explains the origin of coin grading and its standardization. It is not an extensive overview. It is just the basics to give a collector an idea of the evolution.
This is followed by three tables:
- Coin Grading Scale correlates the words with the expected grade that might be printed in an advertisement or on a grading service label along with a definition of what that grade means. These definitions were adapted from The Official American Numismatic Association Grading Standards for United States Coins edited by Kenneth Bressett. I own the 6th Edition but I am sure it has not changed much between then and the 7th Edition!
- Strike Quality is the attributes of a coin that signifies the strike and the wearing of the dies. Each of these designations begins with “Full” like “Full Bands” or “Full Steps.”
- Surface Quality is those grade attributes assigned to the quality of the coin’s fields. These are for proof coins designated as “Deep Cameo” or a business strike exhibiting “Proof Like” surfaces.
It ends with a section on a summary of the “eBay Coin Grading Policy.” There are aspects of their grading policy I did not know until I read eBay’s rules carefully.
If you find these types of write-ups helpful, let me know. I can convert some of the other guides into posts for the community.
This is second article of a 2 part series:
A variety is a coin that differs from its basic design type in some distinctive way and is thus differentiated by collectors. Varieties are not errors. They are deliberate changes to the design whether it is to better define the design, adjust the design to strike better, or to add or change elements like dates and mintmarks.
A key difference between a variety and an error is that varieties are replicated for multiple strikes. Die changes, repunched mintmarks, repunched dates and over polishing of dies can reproduce the variety for the life of the die or until it is detected by Mint workers.
Nearly every series of coins has its own traceable die varieties that have been studied and catalogued by researchers. Researchers assign the varieties a number that is used by the third-party grading services to provide attribution to the variety on their holder.
Bicentennial Dollar Type 1 (1975) Reverse
Bicentennial Dollar Type 2 (1976) Reverse
1979 Susan B Anthony Varieties
Variety collecting is a very specialized subject. If you are going to collect varieties, you should read the references to understand the characteristics of the varieties. Some of the more well recognized and documented varieties include:
||Main or Initial Reference
||Half Cents (1793-1857)
||American Half Cents – The “Little Half Sisters” by Roger S. Cohen, Jr.
||Large Cents (1793-1814)
||Penny Whimsy by Dr. William H. Sheldon
||Liberty Seated Dimes (1837-1891)
||Liberty Seated Dimes – Die Varieties, 1837 – 1891, by Gerry Fortin
||Half Dollars (1794-1836)
||Early half dollar die varieties, 1794-1836, by Al C. Overton and Donald L. Parsley
|Van Allen-Mallis (VAM#)
||Morgan and Peace Dollars (1878-1935)
||Comprehensive Catalog and Encyclopedia of Morgan & Peace Dollars, by Leroy Van Allen and A. George Mallis
||Varieties from the Cherrypickers’ Guide
||Cherrypickers’ Guide to Rare Die Varieties of United States Coins, by Bill Fivaz and J.T. Stanton
Arguably, the most collected series by varieties are Morgan Dollars. VAM varieties and catalog numbers were introduced to the hobby by Leroy Van Allen and A. George Mallis who discovered the varieties while examining Morgan and Peace Dollars. Their book, Comprehensive Catalog and Encyclopedia of Morgan & Peace Dollars began a hunt that has seen hundreds of more varieties found and cataloged.
Most VAM varieties cannot be seen without magnification and detailed knowledge of what to look for. The primary resource for VAM collectors is the VAMworld website. Aside from listing the identified VAM varieties, there are instructions how to identify VAM varieties.
1878-P VAM-169 Quadrupled Stars (courtesy of VAMworld
1886-P VAM-1A Line in 6, Slightly Doubled Ear (Image courtesy of VAMworld
1921-S VAM-6A Doubled Stars & Motto & Upper Reverse, Die Scratch (Image courtesy of VAMworld
The third-party grading services have an optional service that will identify VAM varieties on their holders. However, they do not recognize all VAM varieties. There are three sub-lists of catalogued VAM varieties that are recognized. These varieties are as follows:
- TOP 100: The 100 most significant VAM Varieties known
- HOT 50: A list of additional 50 VAM Varieties that collectors are interested in finding. Many of these varieties are scarce and have sold for significant premiums
- HIT LIST 40: A list of 40 new VAM Varieties that have been discovered since the publishing of the HOT 50 list
General searching for varieties and errors should consider picking up a copy of Cherrypickers’ Guide to Rare Die Varieties of United States Coins by Bill Fivaz and J.T. Stanton. The book comes in two volumes. Volume 1 covers die varieties of half cents through nickel five-cent pieces. Volume 2 covers everything else including gold and bullion issues.
This is first article of a 2 part series:
Over the years, I have been asked what are the differences between errors and varieties. While some errors are distinctive, some wonder why some errors are not varieties and some varieties are not classified as errors.
FDR dime struck on a nail (stand in for Festivus Pole)
A basic rule of thumb is that even though errors and varieties represent changes to the basic design of the coin, they differ in how they occur and the resulting appearance of the coin.
A Mint Error is the result of an issue with the manufacturing processes causing the coin to be damaged in some way. Errors can be the result in malfunction of the equipment, imperfect coining materials, or created by human error.
Even though modern equipment is supposed the make the striking process more consistent, when the manufacturing process involves striking billions of coins, there are bound to be a few errors. Coining machines have so many moving parts and everything has to work in concern, one variation in speed, force, vibration, or tilt can make the coins look very different than intended.
Then there is the human factor. Humans are imperfect beings subject to making mistakes. Even though the machines are supposed to help guide the humans to reduce mistakes, something can go wrong, especially in an operation that involves making billions of the product.
To help understand where some of the mint errors come from, they can be categorized as three different types: Planchet Errors, Die Errors, and Strike Errors.
Planchet Errors are defects of a coin that was caused by the planchet, the coin blank, being imperfect prior to the coin being struck. Planchet Errors occur prior to striking the coin but in ways that could sometimes not be detected. Types of Planchet Errors include:
1943 Lincoln cent struck on a copper planchet (Courtesy of CoinTrackers)
clipped planchet: Term used to describe a planchet that may have been cut incorrectly from the metal sheet. The clipped area may be curved if cut into the area where another planchet was cut out or straight if cut beyond the edge of the metal strip.
delamination: A form of planchet flaw caused by imperfections in the metal whereby a thin strip of the metal separates itself from the coin.
lamination or planchet flaw: Lamination is a type of error in the planchet that occurs when a thin layer of the metal splits or peals away from the surface of the coin.
off metal or wrong planchet: A type of error that occurs when a coin is struck on a planchet that it is not normally struck, such as striking of a quarter on a planchet that was supposed to be for a nickel.
A Die Error describes a defect caused by a flaw in the dies used to strike the coin. Types of Die Errors include:
cud: The area of a coin struck by a die that has a broken area across part of its surface. The result appears as a blob of metal on the surface of the coin.
die break or die crack: Fine raised lines can appear across the coin when something causes the die to break or crack. A cracked die opens a fine line in the design allowing the flow of metal to fill in the space when struck.
filled die: A type of error that appears on a coin when a foreign substance, such as grease, fills the elements of a die used to strike coins. A filled die error can also occur when the dies are polished to remove debris during the striking process. Modern minting processes have eliminated the polishing of dies but the problems with filled dies continue.
hub doubling: Refers to the doubling of the elements on a coin that was caused by the hub being pressed more than once into a die in different angles. Hub doubling occurs prior to the striking process when the dies are created. Master hubs are pressed into the dies to create working dies for the coining process. Mistakes in this process can result in the production of many coins with the error struck into them.
mule: A mule is a type of mint error that occurs when a coin is struck with two dies that were not intended to be used together.
1955 DDO Lincoln Cent
Two of the most famous dies errors are the 1955 Double Die Obverse (DDO) Lincoln cent and the 1937-D Three-Legged Buffalo nickel. The 1955 DDO Lincoln cent and is known as the King of Errors. It is the result of hub doubling that created the double-looking lettering on the coin. It is the coin that really started the error collecting segment of the hobby.
1937-D 3-Legged Buffalo Nickel
The 1937-D Three-Legged Buffalo nickel occurred when a mint worker polished the reverse die of the Buffalo nickel too aggressively without checking his work. The result was the front-right leg of the buffalo being eliminated from the die. A few thousand were created before the Mint officials figured out they had a problem.
The strike occurs when the top die, usually the obverse, is pushed with such forced on a planchet sitting in a position on the anvil dies, usually the reverse, that will make the impression on the coin. Strike errors are the result of a mechanical problem that occurs during this process.
Off-center 50 States quarter struck in Denver
broad strike: A coin that is struck in a way that expands beyond the boundaries of the collar. A broad strike can give the coin n flat or elongated look.
brockage: A type of striking error when the coin is not ejected properly from the press and causes the mirror image of the exposed design to be struck on the next coin.
capped die: An error in which a coin gets stuck on a die and remains stuck for successive strikes. Eventually, the coin forms a “cap” on the die and imparts its image on coins it strikes. When the cap falls off, it usually resembles a small bowl.
clashed die: One of the more interesting errors occurs when during the striking process, a malfunction prevents a planchet from being in place when the dies are forced together causing them to crash into each other. This leaves the design from either side on the other. Subsequent coins are then struck with the latent image of the other side pressed into the coin.
cracked die: An error that occurs when during the stress of striking coins, the die cracks across its face. When a cracked die strikes a coin, the metal flows into the crack that impresses a raised area in the coin that is not part of the design.
filled die: A type of error that appears on a coin when a foreign substance, such as grease, fills the elements of a die used to strike coins.
incomplete strike: A coin that is missing design detail because of a problem during the striking process.
misaligned dies: A striking error caused by one or both dies not set properly in the coining machine or worked loose during striking.
multiple-struck: A type of mint error when the coin was struck more than once. A multiple-struck coin can show the design as it is struck in multiple places.
off-center strike: During the striking process, the coin is not seated in the right place in the area over the anvil (lower) die causing the coin’s design to not be properly centered on the coin.
overstrike: A type of minting error when a coin, token or medal is struck on a previously struck coin, token or medal.
partial collar strike: A type of striking error where a planchet does not enter completely into coining position and is struck partly within the collar and partly outside.
rotated dies: A type of mint error caused by the dies not being aligned when striking the coin, token or medal.
1999-P Georgia state quarter double struck and off center.
strike doubling or doubled strike: A coin that is struck more than once while in the coining machine resulting in doubling of design elements. Double strikes are different from hub doubling in that this type of error is a mechanical failure within the coining machine whereas hub doubling happens before striking. Double strike errors are rarer than hub doubling.
weak strike: refers to a coin that does not show its intended detail because of low striking pressure or improperly aligned dies.
When going to coin shows you can see some of the most fantastic errors. Some boggle the mind how they were done and how they escaped the U.S. Mint. Dealers whose concentration are errors do not reveal their secrets but I have been told that some have contacts with some of the security companies that haul money on behalf of the banks.
This topic is not complete until we talk about varieties. That will be the next post.
As I am working on a manuscript about counterfeiting coins and currency, I started to search the internet for the location of some information when I stumbled on The British Museum’s website. Rather than find something about counterfeiting, searching the term “defacing coins” lead me to the most recent Curator’s Corner blog entry by Thomas Hockenhull, the curator of Modern Money for The British Museum.
For this entry, Hockenhull found a 1903 large penny with the words “VOTES FOR WOMEN” engraved over the head of King Edward III. It was done as part of the suffragist protests in England prior to World War I. Although not much of a presenter, The British Museum recorded a video featuring Hockenhull describing the coin and his research into how it might have come into existence. Rather than rehash what he said, you can watch the video here:
I have not to been to London for many years, but I remember spending a day at The British Museum was a highlight of the trip. It is one of the great museums of the world and worth setting at least one day touring the museum. There is so much to see that if you love to see the living embodiment of history, consider spending more than a day.