Weekly World Numismatic News for December 30, 2018
While considering the news of the past week, the one thing that sticks out is the press release from the Professional Numismatic Guild. The release touts the strength of the high-end, rare coin market with a throwaway line that notes there may trouble for the general collector.
Prices for collector coins are driven by two principles: the spot price of silver and other metals that were used to strike the coins; the ability for the supply to meet the demand.
Primary spot price that drives the general collector coin market is silver. Silver opened on January 2, 2018, at $17.06 per troy ounce. On Friday, December 28, the price of silver was $15.29. This is a decline of $1.80 for the year or 10.55-percent decrease. This is not something that has occurred in the last month as the stock market had problems. Silver reached its highest price on January 15 when it reached $17.325. The spot price of silver dropped below $17.00 on February 5 and has been on a steady decline all year.
There has been a steady decrease in the spot prices of silver in 2018
(chart courtesy of Kitco; this is a static chart and will not update)
But the price of silver alone is not enough to drive collector coin prices down to get PNG’s attention. The problem is the other part of the equation: supply and demand.
The supply of collector coins is not changing. The coin market is relatively stagnant since the U.S. Mint is no longer making Mercury dimes, Walking Liberty half dollars, or Morgan dollars. There may be an increase in those coins coming to the market as collectors liquidate or the families of deceased collectors liquidate, but is this more than usual?
The number of people collecting may not be enough to drive the market simply because numismatics is not as popular a hobby as it once was.
PNG notes that the success of their high-end business may be coming from investors, not collectors:
While it is good that the PNG touts the work of their members in the Top 10% of the market, the general public is not buying. PNG can pat themselves on the back all they want but if they are not helping the entire industry, they are losing the opportunity to turn a general collector into one of their customers.
Further, the American Numismatic Association, which is dominated by the same dealers who are members of the PNG, seem to have a blind spot that prevents them from seeing the general collector as a viable business model to cultivate.
There are only so many times that the industry can claim successes by selling the same 1913 Liberty Head Nickel before everyone, including investors, consider this a market with stale inventory.
This is not to say that the PNG dealers are bad people or have bad intentions. This is saying that the PNG needs to look beyond the top 10-percent of the market to ensure the other 90-percent is just as healthy. Without a market balance and without market diversity, the hobby will be in trouble. Even in the equity markets, low volume low capitalized stocks can cause harm to the market.
And now the news…
December 24, 2018JEDDAH: The Kingdom’s fiscal trajectory in many ways mirrors the tribulations it endured before emerging as one of the world’s foremost trade and financial hubs. Before the Kingdom was unified by its late founder, King Abdul Aziz, the Arabian Peninsula had suffered its fair share of economic woes thanks to war and political strife within tribal factions. 
→ Read more at arabnews.com
December 25, 2018Coinages issued in Maharashtra dating back to 2600 BCE on display → Read more at thehindu.com
December 25, 2018Gold prices advanced for a second straight day on Tuesday and rose Rs 125 on higher demand from local jewellers → Read more at livemint.com
December 27, 2018In a sign of precious metals demand, sales of U.S. Mint American Eagle gold and … → Read more at reuters.com
December 27, 2018Earlier this month, my friend Hugo Salinas Price emailed an interesting story about a single gold coin that that he still holds dearly. As I was shuffling papers in some old files, I came across a slip of paper on which I had written down the price I had paid for a Mexican $50 gold peso coin: 717 Mexican pesos. → Read more at moneymaven.io
December 27, 2018Israel Antiquities Authority, JNF and Border Police stopped a band of thieves from stealing ancient coins from the Hukuk Synagogue archeological site in northern Israel on Thursday. "A quick response prevented damage to the magnificent and important treasures of the site," Nir Distelfeld, the antiquities theft inspector, said. → Read more at jpost.com
December 28, 2018Operators of the historic Coin Press No. 1 inside Carson City's Nevada State Museum began striking silver medallions Friday with a commemorative Abraham Curry design created just for the occasion. On the last Friday of each month, the Nevada State Museum runs the coin press, which now mints unique collectible medallions. → Read more at carsonnow.org
New Constitution Dollar Design?
During my run around the Internet, I followed some links to a libertydollarbill.com, a site promoted out of Liberty Middle School in Ashland, Virginia (a suburb of Richmond). The program, sponsored by teacher named Randy Wright, has been lobbying congress since 1999 for the Bureau of Engraving and Printing (BEP) to change the back of the $1 bill to be printed an abridged version of the US Constitution. The abridging would include the entire preamble, the names of each Act, and the title of each amendment. The Christian Science Monitor and Ralph Nader have endorsed the bill.
According to their website, the claim is that not enough people know and understand the Constitution that governs their lives. By putting a representation of the consititution on the most common piece of paper currency, the concept would be available to everyone. It is an interesting concept that may be looking at the wrong way to educate the masses.
First, I am amongst a growing number of people that believes that the $1 and $2 bills should be discontinued in favor of coinage (I will explain why in a future entry). But if congress does not eliminate this currency (which seems the likely scenario), then just a one-line summary of the constitution is really not enough. What about having a series of currency issues with either the text or summary of each Article and Amendment? In the same spirit as the 50 State Quarter® program from the US Mint, not only would the currency serve as a learning tool but would generate seigniorage for the BEP by creating new, circulating collectibles.
The US currency has really gotten stale in its designs. Even the recent upgrades can only be classified as “putting lipstick on a pig.” Maybe this would be a good idea if it can bring new designs to the currency.
NOW OPEN: Collector’s Pride Store
Since the beginning of the 50 States Quarters® Program, coin collecting has become one of the hottest hobbies around. Why now show the world you are a proud coin collector with items from the Collector’s Pride Store. At this store, you will find t-shirts, mugs, and caps that will help you show off your hobby. With the holiday season around the corner, here’s the gift for that collector who has almost everything else. When you visit the store, bookmark that page because we will be adding more items soon!
Why No World War II Commemorative from the US?
The United States and nations within the British Commonwealth celebrate the contribution of the military on the anniversary of the armistice that ended World War I in 1918. The armistice called for the cessation of hostilities on the Western Front on “eleventh hour of the eleventh day of the eleventh month.” Following World War II, the United States changed the name of the holiday from Armistice Day to Veterans Day to honor all Americans who served in the military.
Veterans Day is an important patriotic holiday for this country. We must remember the all veterans who served and currently serve in protection of our freedoms. We must remember those who they gave their lives for this freedom and honor those who returned home to celebrate with us. Unfortunately, the politics of the military has its numismatic casualties. In this case, the Mint was not authorized to produce a commemorative coin honoring the 60th anniversary of the end of World War II.
Sixty years after one of the worst wars in world history, we need to remember. We must remember those who died and those who survived to shape a great nation. There isn’t much time to honor those who served. World War II veterans are aging and dying at an estimated rate 1,100 every day. It is a travesty that the United States did not issue a commemorative coin to honor those who served. Why? Would it have been so difficult for congress to set aside partisan bickering to properly remember the contributions of our veterans for their service during World War II? What does this say to those fighting in current wars? Rather, congress tries to micro-manage the Mint’s activities for their own agendas instead of doing what is essentially the right thing. (I will explore congress’s handing of the Mint in future blog entries)
For those who would like to add a commemorative issue to honor those who serviced in the victory of World War II, you can find very nice issues from the Royal Canadian Mint, British Royal Mint, and from other countries of the British Commonwealth who use the service of the Pobjoy Mint.
I salute the protectors of freedom, past and present!
Are the 2005 Uncirculated Sets worth the hype?
At least once per week, I make a stop at the Online Catalog at the US Mint to see what’s new. Since the start of the 50 State Quarter program, the US Mint has been improving its relationship with the collector community and has come up with new products to keep the excitement going. Although there is room to get better when comparing the offerings to the Royal Canadian Mint or the British Royal Mint–which will be the subject of future articles–I am impressed with their effort.
When I visited the site this week, I found a notice that they will be limiting the number of set of the 2005 United States Mint Uncirculated Coin Set® can be ordered. The 2005 Uncirculated set are being produced with a special satin finish that will only be available in the Mint produced sets. Apparently, there is a high demand for these sets.
Why? Why is there high demand for the Uncirculated set? There have been mixed reviews as to whether the satin finish adds or detracts from the coins–reviews are running about 50/50 in my unscientific survey. And historically, uncirculated sets do not sell as well as proof sets.
So is this a case of something new causing a buzz? Are the sets really worth $5 over their $16.95 cost at the mint that dealers are asking? I wonder if I should grab ten sets and put them away. Who knows… prices can go up like the 1999 Silver Proof Set.
Welcome to the Coin Collectors Blog
After spending some time to unpack and decorate, I am ready to welcome all readers to my blog on Coin Collecting. I started this blog to share my passion for coin collecting, share some news, and allow other collectors to converse about collecting and even brag about their collections. So let me start…
My primary interest are the coins of the 20th Century. I feel the 20th Century was an exciting 100 years with many advances in all areas. The 20th Century saw some of the most beautiful coin designs in US History. My favorites include Adloph A. Weinman’s Walking Liberty Half-Dollar and Liberty Head “Mercury” Dime, James Earl Fraser’s Buffalo Nickel, Augustus Saint-Gaudens’ $20 Double Eagle, and Bela Lyon Pratt $5 Half-Eagle. The Pratt Half-Eagle is very intriguing because of the incuse design. If you have never seen one, visit your local coin shop and ask to see one.
I am trying to complete a date/mint-mark set of 20th century coins. The prizes amongst my collection are a 1909-S VDB Lincoln Cent and 1928 Peace Dollar. Both were gifts from my fiancée! She is a wonderful woman who encourages my collecting and even helps to enjoy my finds.
As time goes on, I will write more about my collection, interesting things I find, and some of the news I hear. Feel free to comment on whatever I write.
Happy Collecting!!
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