Weekly World Numismatic News for March 22, 2020
As the COVID-19 crisis expands, news outlets have been asking how life will change once we medical science can catchup and conquer this disease. Numismatically, there is a question as to whether the currency will survive.
There has been concern about spreading the virus on our currency. According to the Associated Press, “Experts say cash does carry a risk of transmitting the virus, but the risk from cash so far is small compared with other transmission routes.”
Is it possible that a virus-contaminated banknote could transmit the virus? Scientists are not sure. Even considering the studies that show currency could be as dirty as your smartphone, there is no definitive answer.
“It’s not impossible that there might be traces of virus on dollar bills but if you wash your hands it should provide adequate protections, you shouldn’t need anything else,” said Julie Fischer, a professor at the Center for Global Health Science and Society at Georgetown University, on C-SPAN according to the AP.
While countries like South Korea and Poland have withdrawn paper money and has gone as far as burning it, banks in the United States are reporting the opposite effect. Fear has led some customers to make substantial cash withdrawals at banks and ATMs. Some banks are raising withdrawal limits.
The run on the bank is similar to the experiences in 2001 following the attacks of 9/11. Banks reported that customers were withdrawing cash at a higher rate than before the alleged Y2K crisis. Although reports have not reached that level, it is possible to exceed the 2001-2002 withdrawals if the COVID-19 crisis continues for very long.
The Bureau of Engraving and Printing publishes its production numbers monthly. It will be interesting to see if they had to increase production in March to meet increased demand. It proves that cash is still king, and the thoughts of a cashless society can be put away for a while.
And now the news…
March 15, 2020
→ Read more at qz.com
March 19, 2020 → Read more at apnews.com
March 21, 2020 → Read more at marketoracle.co.uk
March 21, 2020 → Read more at standard.co.uk
TV Sales Pitch: Just Say NO!
At least once every month a reader will send an email note asking about the worth of coins they bought from a television shopping channel or from a company that advertises on cable television. Last week, someone asked specifically about coins bought from a company that sells gold on the show of a nationally known cable television personality.
I was surprised to learn what was being sold as investment quality coins. The person who I was corresponding with was sold Swiss and French gold coins whose values are a few percentage points over the melt value of the coin. My correspondent paid much more than the coins value. Unfortunately, the spot price of gold would have to climb over $1,500 per ounce for this person to break even on these coins.
Another email asked about the worth of State Quarter sets purchased from a television shopping channel. This person bought these sets as part of a subscription and paid three-to-five times the numismatic value for these coins. Even though the coins had nice presentation packaging, I was able to show the user online auctions where the coins are not selling for a premium that would allow him to break even.
Over a month ago, someone wrote to ask about a coin set sold by a large mail order coin dealer. As with other coins sold by this dealer, they were quality coins but were overpriced when compared to other dealers and price guides. Although the coins were in special packaging creating the illusion of a set, the price of the coins was 15-25 percent above the retail prices published in price guides.
The common denominator in these stories is that these people bought the sizzle and not the stake. They bought the special packaging or the promise of value trust the person on television, the other end of the telephone, or the pretty advertisement in a magazine. It breaks my heart to tell these people they overpaid!
Each of these people would not have made these mistakes if they had done a little research. Research is not that difficult. It starts with some basic questions: What is this coin really worth? Is this a good investment item? Who is this person I am buying from?
Over the last 10 years, there has been a surge in the publication of numismatic resources, whether it is in print or on the web. Books are being published by traditional hobby publishers and other general purpose publishers that can teach you about any coin type, how to invest in coins, and now there is a book that discusses how to sell the coin collection your grandfather left for you.
Other resources include online price guides, hobby magazines, and various websites that can help you in almost any topic in numismatics.
If that is not enough, ask questions. No question is too basic. When I taught college courses, I would remind my students that there is no such thing as a stupid questions—the only stupid question is the one not asked! Ask your favorite blogger. Ask your favorite dealer. Ask your question in a public forum that caters to coin people. Just ask!
The axiom that if the deal sounds too good to be true, it probably is not true. If you talk with someone about purchasing coins and they try to pressure you into buying immediately, do not give in to the pressure. It is your hard earned money and it is your prerogative to understand everything about how you spend that money.
Before I make any significant purchase, I will analyze the cost of the item before attempting the purchase. I select specific vendors to negotiate with and then contact them to open the conversation. When I negotiate I remember that I have the power. I may want the item, but it is my money the vendor wants. If the vendor wants my money then that person has to work with me. Otherwise, I am prepared to walk out.
If the vendor cannot answer my questions, I walk out unless they say they will find the answer. If the vendor will not answer my questions, I will walk out. If they negotiate in bad faith, I will walk out. If they treat me like they are doing me a favor, I stand up, shake their hands, thank them for their time, and then will I walk out.
Remember, you can say “no” as often as necessary. You can say “yes” only once. Make it count. Do not let the slick talking sales person sell you something that is not in your best interest. Know what you are buying and know how to just say NO!
Cash Is Still King
“Cash is expensive, we need to be using it less.”
This self-serving quote was made by Steve Perry, executive vice president of Visa Europe, in an article that appeared in the Telegraph in the United Kingdom. To justify this statement Perry says that supermarkets in the UK are introducing cashback, a program to promote the use of credit and debit cards over cash because cash is more expensive to handle.
It may be the case in the UK that cash is more expensive to handle, but in the United States, we are seeing consumers and some small businesses moving in the opposite direction. This past week, credit reporting agencies and the credit card companies reported that the average credit card debt has fallen to its lowest point since 2002. Delinquency rates fell by 17-percent to the lowest point since the start of the current recession. Americans are buying fewer items on credit and using what income they have to pay off credit card debt.
With the economy in a stall, the U.S. Mint exceeded its 2009 output in July 2010. And even before the August Federal Open Market Committee meeting, it was speculated that the Federal Reserve would order more paper notes from the Bureau of Engraving and Printing. Since the FMOC meeting, Federal Reserve Chairman Ben Bernanke said that the Fed will do whatever it takes to stimulate the economy.
Aside from the economy another factor turning people away from credit cards is the environment created by the banks prior to the implementation of the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Public Law No. 111-24 [TXT] [PDF]), also know and the Card Act. Between the bill’s passage and recent enactment, the banks have been raising fees on consumers and businesses in order to make up for what they saw as a potential loss of income. Rather than make it better for the consumers in the spirit of the Card Act, the banks showed their bald-faced greed making the using of credit cards more expensive than cash.
Even though Canada is debating on eliminating its 1-cent coin and others are pushing credit card technology onto the smart phone, small businesses are looking to save the cost of credit card handling by offering a discount for paying with cash. Credit card processing costs from three to five percent per transaction plus account fees. Some small businesses are offering their customers a discount of their credit card processing fee if they pay in cash.
Receiving a discount for paying using cash is not a new idea. There was a time, before the Card Act, when gas stations used to offer one price for cash purchases and another for credit card purchases. However, the convenience of using credit cards at the gas pump made this option unattractive. Even though the costs for using credit cards have been added to the price of gas, the elimination of this dual pricing was welcome. Recently, some independently owned stations have been offering a discount for using cash or for using the company’s credit card. The psychology of receiving a discount may make dual pricing more palatable in this environment.
As people are pulling away from credit cards, small businesses are looking to cut costs by offering discounts for paying with cash, and even with the rise in savings rates, it appears that the report of cash’s eventual demise appears to be greatly exaggerated. For numismatists, this means that our hobby will continue to grow with new, fresh material for years to come. And considering the bad economic news, this is good news. Happy collecting!
Printing Stamps and Money Was His Line
While surfing around YouTube, I came across an interesting video of a segment of the old television show What’s My Line? In this segment (of Episode #478 airing on August 23, 1959), J.A. Conlon (James A. Conlon), the Assistant Chief of the Currency and Stamp Production department at the Bureau of Engraving and Printing appeared on the show attempting to stump the panel. Watch how he does…
At the end of the segment, Conlon gives the panel members samples of the new 4-cent stamp with multi-color printing. The stamp features the flag with 49 stars since it was designed before Hawai’i became a state and the 50th star that was added to the flag on July 4, 1960.
J.A. Conlon became the Director of the Bureau of Engraving and Printing in 1967 serving until 1977.
How To Detect Counterfeit $100 Notes
Last week, the Bureau of Engraving and Printing, Federal Reserve Board, and the U.S. Secret Service jointly announced the next step in educating the public to protect themselves against counterfeit currency with a new video “How to Detect a Counterfeit.” The video was created to demonstrate the security features of the new $100 note.
The $100 United States Federal Reserve Note is the most counterfeited currency in the world. To stay ahead of counterfeiters, the BEP redesigned the note with security features designed to prevent digital duplication. In addition to the security thread, color shifting ink, microprinting, and portrait watermark that has appeared on other notes, the new $100 note includes a new 3-D Security Ribbon embedded in the paper and the additional use of color shifting ink by embedding a bell within the inkwell on the front of the note.
“In the video, Kelley Harris, U.S. Secret Service Supervisory Counterfeit Specialist, discusses how to identify the security features in the redesigned $100 note, including the new 3-D Security Ribbon and the Bell in the Inkwell. Viewers will also learn about common tricks counterfeiters use to fool businesses and consumers, what businesses and consumers should do if they suspect someone is trying to pass them a counterfeit note, and the U.S. Secret Service’s work to combat counterfeiting operations.”
The video is available to view on the BEP’s New Money website or for download from the multimedia page. You can find it there in case the following stops working:
Multimedia elements courtesy of the U.S. Bureau of Engraving and Printing.
Star-Spangled Commem Coming in 2012
After a rare case of bipartisanship (Senate passed it by unanimous connect and it passed the House of Representatives on a 419-1 vote), the President signed H.R. 2097, Star-Spangled Banner Bicentennial Commemorative Coin Act which become Public Law No. 111-232 ([Text] [PDF]).
Some historians call War of 1812 the United State’s second revolutionary war. The primary reason for declaring war on Great Britain was after years of the Royal Navy harassing or capturing merchant ships bound for France. At the time, England was in the middle of the Napoleonic Wars and was trying to prevent France from getting the supplies it needed. This lead to President James Madison to give a speech to congress explaining England’s actions. Although Madison did not call for a declaration of war, the Democrat-Republican lead congress voted to declare war on Great Britain (79-49 in the House, 19-13 in the Senate). Madison signed the declaration on June 18, 1812.
During the march to Baltimore after the British attack on Washington, D.C., the British took Dr. William Beanes as a prisoner. Beanes was imprisoned in Baltimore as the Royal Navy gathered forces for their attack on Fort McHenry in Baltimore Harbor.
Word of Beanes’s capture reached Francis Scott Key, an accomplished lawyer, prosecutor, poet, and friend of Dr. Beanes. Key, who was known as a skilled negotiator and a very temperate man, was asked by the Army to accompany prisoner exchange agent Colonel John Stuart Skinner to Baltimore to secure the release of Dr. Beanes. On September 7, 1814, Key and COL Skinner dined with British officers abroad the HMS Tonnant to negotiate the release of prisoners. ALthough Beanes was released, the British would not let the men leave the ship because they had heard about the British plans to attack Fort McHenry.
That night, Key, Skinner, and Beanes watched as the Royal Navy bombarded Fort McHenry. As the smoke cleared on the morning of September 14, 1814 after 25-hours of bombardment, Key was able to see the American flag still flying over Fort McHenry. Key was so moved by the sight that after returning home, he wrote the poem “The Defence of Fort McHenry.” The poem was published in the Baltimore Patriot on September 20, 1814.
When the poem was published, it was noted that it could be sung to the music of The Anacreontic Song, the official song of the Anacreontic Society. Shortly after publication, the music and words were published together by Thomas Carr and renamed the Star-Spangled Banner.
Throughout the 19th century, it became popular to sing this poem on July 4th to commemorate Independence Day. Its first official recognition came in 1889 when Secretary of the Navy Benjamin F. Tracy signed an order making The Star-Spangled Banner the official tune to be played at the raising of the flag.
Although it was popular that The Star-Spangled Banner be played when raising the flag, it did not receive an official declaration until 1916 when President Woodrow Wilson signed an executive order saying that it be played at all military and other appropriate diplomatic occasions. President Herbert Hoover signed the law making The Star-Spangled Banner the official national anthem of the United States on March 3, 1931.
The Star-Spangled Banner Commemorative Coin Act commemorates the bicentennial of the War of 1812 and the Star-Spangled Banner by issuing commemorative coins in 2012. These coins are to have a design “emblematic of the War of 1812 and particularly the Battle for Baltimore that formed the basis for the Star-Spangled Banner.” The program will include 100,000 $5 gold coins and 500,000 $1 silver coins.
Sales of these coins will include a $35 surcharge for the $5 gold coin and $10 for the $1 silver coin (a total of $8.5 million if the coins sellout), that will be paid to the Maryland War of 1812 Bicentennial Commission “for the purpose of supporting bicentennial activities, educational outreach activities (including supporting scholarly research and the development of exhibits), and preservation and improvement activities pertaining to the sites and structures relating to the War of 1812.”
The Maryland War of 1812 Bicentennial Commission is planning quite a few events through the anniversary of Key writing “In Defence of Fort McHenry.” Check their website for schedule and plan a trip to help celebrate.
Support the Coin Collectors Blog
Buy me a coffee
Thank you for your support!
Let Me Know What You Think
Are you going to the World's Fair of Money
Total Voters: 17
Loading ...