If It’s Saturday It Must Be Fredericksburg

Sep 30, 2012 | coins, fun, medals, shows, tokens

On Saturday I had the pleasure of attending the Virginia Numismatic Association Annual Show in Fredericksburg, Virginia. Fredericksburg is about half-way between Washington, DC and Richmond. After a late morning start, I ate a quick breakfast and climbed into the old X3 and hit the road to make my first stop to honor National Coffee Day at a nearby coffee shop.

With hot java in the accessible coffee holder, the X3 was pointed to the highway and we headed south to Fredericksburg. For the most part, it was a pleasant trip except for the last 12 miles where I found myself in what was called a usual traffic delay to the Rappahannock River. Along the way, I was able to use the new iOS 6 maps program with GPS capabilities with no issue. For those who heard the alleged “horrors” of Apple’s map program, I found that for daily use I have had no problems. I think most people who do not try to find obscure addresses (i.e., like trying to map an weird address near a park) will find that it is a quite adequate app.

Relieved of the frustration caused by I-95 traffic, I exited at Route 3 and let the GPS guide me to the Fredericksburg Expo & Conference Center. It is a nice facility with nearby hotels and a large shopping area. Travelers who might have forgotten something would not have to travel far to find a replacement.

Interestingly, the USA Fencing Virginia 2012 KickOff Classic Circuit Fencing Tournament was being held in a different part of the center. It made for a good mix of numismatists and fencers walking in the parking lot. However, it was a little disconcerting when a gentleman was walking toward me in the parking lot carrying four fencing foils!

I registered at the front door and spoke with a number of the VNA people. I met a few of their officers and talked while I wrote my name on a few raffle tickets. Each hour, the VNA raffles of something. There were books, coins, tokens, and medals in the case that showed what was part of each hour’s raffle. You do not have to be present to win, but I did have to write my name and telephone number on 11 tickets which I purchased for $10. Once done, I walked by a Stafford County police officer and entered the bourse floor.

The show was in a pretty large hall with about 50 tables. There seemed to be a slight din of activity but nothing too overwhelming. As I walked around the floor looking at the items on a number of tables, I spoke with quite a few people. There were even a few I had met at other shows like the Whitman Baltimore show. Some said that Saturday was a bit slow, especially as compared to previous years. After a while, I asked some of the Virginia-based dealers if the nice weather and the college football games, specifically the Virginia Tech-Cincinnati game that was played at FedEx Field in Landover, Maryland (home of the Washington Redskins) and the Virginia-Louisiana Tech game in Charlottesville (both Virginia schools lost).

It has been a long time since I have been to a smaller show (under 100 tables). Even with the large venue, the fewer tables and with dealers I have never met before from areas of Virginia and North Carolina, it made for a relaxing atmosphere. Many of these dealers also had a different way of handling their inventory such as currency dealers who did not have everything graded and many of their lower quality but desirable series in books in the table for collectors to browse. For the collector on a budget who wants to consider notes with character, being able to flip through a book of these notes is a great idea and, even if you are not a currency collector, a lot of fun just to look. I liked having this type of accessibility and it was refreshing.

There were not many exhibits at this show. I did capture two pictures of exhibits I thought were interesting (see my Pinterest board), but I wish there were more.

At the end of the aisles in the center was an exhibit of philately (stamps) along with pictures that were about Virginia and the its role in the Civil War and after. This exhibit has a few great, vintage pictures of General Ulysses S. Grant (before he became president) including one where his portrait is aside one of General Robert E. Lee. Unfortunately, the pictures had take did not come out well (and I forgot to try again after being distracted).

After four hours of looking and schmoozing, I went back to the X3, plugged in my iPhone, and found that the game was being streamed by CBS through their iPhone app. After a stop to make sure I supported National Coffee Day again, I plugged in the iPhone and listened to the broadcast during the drive home. I am not sure which was worse, the traffic or the lack of defense during the game!

I arrived home in time to see the fourth quarter and make sure the final score was at least in my favor. Feeling better for the win, I was able to reflect on the good time I had at the VNA Convention while having dinner with my wife.

Congratulations to the Virginia Numismatic Association for putting on a good show.

A Thought as the Government Ends Its Fiscal Year

Sep 28, 2012 | BEP, coins, currency, economy, Federal Reserve, legislative, policy, US Mint

Those of us here in the Washington, DC area who work with or for the Federal Government knows that this week is the home stretch to the end of the fiscal year. Many of us who work for the government are not directly involved with the political infighting that makes the national news. Federal employees are prohibited to be involved with politics by law and contractors usually have employer policies that limit their political activities.

One thing we worry about is the funding issues that have not been resolved. Although the news reported that congress has passed a continuing resolution to fund the government for six months, what the reports did not say is that the continuing funding are only at the levels negotiated last year which rolled back funding to Fiscal Year 2007 (FY07) levels. FY07 dollars do not have the same buying power as today’s dollars and the amount of work required by the laws passed by congress have increased.

You might have heard about the budget “sequestration.” Sequestration is the mechanism that was instituted as part of the Budget Control Act of 2011 to force congress to negotiate a budget or automatic, across the board cuts totaling $1.2 trillion will go into effect on January 1, 2013. Sequestration has made a lot of people in the DC area nervous because it will cause contractors to cut jobs. In fact, with the uncertainty of sequestration, large contractors, like Lockheed-Martin, are providing 90 day layoff notices they are required to give employees when defense and other security-related contracts are ended early.

For the money manufacturing operations under the Department of the Treasury, there should not be any problems from sequestration because the U.S. Mint and the Bureau of Engraving and Printing are profitable agencies that uses their profits for operations. If there are shortfalls in providing funding for operations, the Secretary of the Treasury is allowed to withdraw funds from the Public Enterprise Funds (the accounts where the profits are deposited).

Problems remain for both agencies. The most significant of the issues are the problems with printing the new $100 Federal Reserve Notes. BEP continues to report that the new notes have folding issues that have delayed their release for two years. Inquiries by numismatic industry news outlets have reported that the problems are still under investigation and that no new release date has been set.

The U.S. Mint recently reported striking problems with the First Spouse Gold Coins. Apparently, the design caused metal flow problems in trial strikes that caused delays in releasing the coins. While the U.S. Mint has said they rectified the problems, the coins have not been issued.

In addition to the coining problems, the U.S. Mint also suspended its attempt to update its technology infrastructure. After receiving the responses from a formal Request For Information (RFI), the U.S. Mint pulled back on its attempt to update its infrastructure and online ordering services to re-examine the requirements and the business processes that would be part of that contract. The U.S. Mint press office said that they had no further information other than what has been published. They did confirm that the RFI responses will not be released because they contain proprietary information that is protected from public release.

It is difficult to know whether the federal budget situation will effect the U.S. Mint and BEP or whether the attempt to reduce costs in order to ensure they do not access more money from their respective Public Enterprise Funds. This is because money in excess of budgeted operations plus a reserve must be withdrawn from these Public Enterprise Funds and deposited in to the general treasury accounts at the discretion of the Secretary of the Treasury (31 U.S.C. § 5136 for the U.S. Mint and 31 U.S.C. § 5142 for the BEP). It is reasonable to question the management of these funds in the light of the federal budget situation.

Right now, the way the BEP and the Federal Reserve has handled the situation with the new $100 note suggests there is more to that issue than meets the eye. Nether the BEP or the Fed are answering question and the BEP did not issue an annual report for 2011 which would have to report on the production of the $100 notes. Inquiries to the BEP were returned with a reply that the report “is not ready.”

The annual reports for both these bureaus will make for interesting reading, if the BEP produces one for 2012.

ANACS Revelation Shows We Continue to Have Counterfeit Problems

Sep 24, 2012 | advice, coins, counterfeit, legislative, policy

It was reported that the third-party grading service ANACS has found a counterfeit 1934 Peace Dollar. Although the coin appears to be made with a genuine planchet, indications of heavy polishing and other flaws seen under high magnification has ANACS questioning the coin’s authenticity.

Senior ANACS Numismatist Michael Fahey was interviewed for the Coin World article does not believe that the counterfeiters used a previously struck coin and that the dies were made using a transfer process.

NGC discovered the “Blundered O” not included in the VAM references.

However, not everyone agrees with some of the diagnostics. Numismatic Guarantee Corporation commented that the tooling inside the “O” in the motto may indicate that a specific die variety may have been used. NGC pointed an auction of an known authenticated coin that shows what they called the “Blundered O.”

Regardless of whether one point is valid or not, the fact of the matter is that the ANACS staff who examined the coin found a lot of evidence that leads them to believe the coin is counterfeit. Finding counterfeit coins that get by experienced dealers and nearly fools the graders is a serious matter for the hobby. This is why the Hobby Protection Act needs to be strengthened so that we can stop something like this from hurting the hobby.

I will remind everyone that it is not too late to write to your representative and ask him or her to support H.R. 5977 the Collectible Coin Protection Act. In short, the Collectible Coin Protection Act will allow collectors, dealers, and grading services to bring legal actions that are much more effective, with much stronger remedies than previously existed. It will allow those harmed to work with the Justice Department to bring criminal actions, where appropriate.

The only way to ensure that H.R. 5977 becomes law, especially since we are approaching the end of this session in an election year, is to contact your member of congress will let them know that the numismatic community supports this Act and that their support is important. It can be worked on during the lame duck session and members of the Industry Council for Tangible Assets (ICTA) and the Gold and Silver Political Action Committee are working to see this law passed.

WE STILL NEED YOUR HELP!

There are only 11 co-sponsors of this bill as I write this post. We need more co-sponsors to get the attention of the House leadership.

First, see if your member of congress is not a sponsor of this legislation. The best way is to visit govtrack.us, scroll down and and select the “show cosponsors” link. If your representative is not there, here is a sample note to send them (complements of the ICTA):

As your constituent, I urge you to sign on as a co–sponsor of HR 5977, “The Collectible Coin Protection Act.” The bill was introduced on June 12 by Representatives Lamar Smith and Fred Upton, chairs of the Judiciary and Energy & Commerce Committees, respectively.

HR 5977 provides a means whereby US citizens can take legal action against purveyors of the high-quality counterfeit US coins entering our marketplace from China by expanding enforcement power of the Hobby Protection Act. The Hobby Protection Act has been in effect since its passage in December, 1975, but lacks enforcement power that HR 5977 now provides.

HR 5977 is revenue neutral and contains no controversial issues.

Please contact me if you have any questions or if I can provide any additional information. Thank you for your action on this.

Even though the House is not in session, members can still contact the Clerk of the House and ask that their name be added as a co-sponsor. The more names added, the better the chance that the bill will see action in the lame duck session.

Please take this opportunity and contact your representative today!

ADDED: If you do contact your representative, please leave a note here and let me know who you contacted. THANKS!

Image courtesy of NGC.

Bibiana Boerio Nominated as Director of the U.S. Mint

Sep 21, 2012 | news, US Mint

Bibiana Boerio as Managing Director of Jaguar, was appointed by President Obama to be the Director of the U.S. Mint.

The White House announced on September 20, 2012, that President Obama is nominating Bibiana Boerio of Pennsylvania to be the 39th Director of the U.S. Mint.

Boerio is currently Special Advisor to the President of the Detroit Regional Chamber of Commerce. Prior to working with the Detroit Regional Chamber, Boerio was Chief of Staff to Congressman Joe Sestak (D-PA).

For the 31 years prior to her entry into politics, Boerio worked for Ford in corporate finance where she became the Chief Financial Officer of Ford Motor Credit in 2000. In 2004, Boerio was named Managing Director of Jaguar Cars Ltd., then a subsidiary of Ford.

Boerio, who is a native of Latrobe, Pennsylvania, earned a Bachelor of Science from Seton Hall University and an Master of Business Administration from the University of Pittsburgh.

Boerio succeeds Edmund Moy who resigned in January 2011. Since Moy’s departure, Deputy Director Richard Peterson has been capably running the world’s largest coin manufacturing agency. If Boerio is confirmed, Peterson will return to being the full time Deputy Director.

Moy announced his resignation in December 2010 and left in early January 2011. For 21 months the U.S. Mint has been without a permanent director. With a little more than a month to go until the election and the results in doubt, it is curious as to why this appointment was made now. It is doubtful the Senate will take up this nomination before adjourning next week to allow members to return to their states to campaign.

Image courtesy of the Pittsburgh Post-Gazette

Is There Really A Favorite Modern Commemorative Coin?

Sep 18, 2012 | coin design, coins, commemorative, poll, US Mint

Every week, Heritage Auctions sends out an email newsletter from their various auctions. Saturdays, they send out a newsletter about their coin auctions. While the newsletter is mostly about their upcoming auction and tips for using their website, there are some interesting tidbits that make it worth reading. One of the interesting features is the interactive section toward the end of the note.

Up until recently, the interactive section was more of a numismatic trivia-type of section where they asked two questions. You selected your answers and clicked through to their site to see how you did compared to others. Recently, Heritage changed the section to be a poll. This week’s question (copied so you can participate):

Which is your favorite Modern Commemorative coin design?

A) 1999 Washington $5
B) 2001 Buffalo Dollar
C) 1992 Olympic (Baseball) Dollar
D) 1999 Dolley Madison dollar
E) 2000 Library of Congress $10


This got me thinking as to why were these coins chosen out of all of the possible modern commemoratives. Two are based on classic designs: 1999 George Washington Commemorative $5 gold coin was based on the design that Laura Gardin Fraser submitted for the design of the 1932 Washington Quarter that was turned down by then Secretary of the Treasury Andrew Mellon, a known misogynist; the 2001 American Buffalo Commemorative Silver Dollar was based on James Earle Fraser’s Type 1 Buffalo Nickel design. James Earle Fraser and Laura Gardin Fraser were husband and wife.

The 1992 Olympic Silver Dollar features a baseball pitcher that is similar to the image of Nolan Ryan that appeared on the 1991 Fleer baseball card. Although designer John Deecken denied the connection, the coin is sometimes referred to as the “Nolan Ryan Commemorative.”

One of the significant attributes of the 1999 Dolley Madison Silver dollar is that the coin was designed by Tiffany & Co., the famous jewelry company, whose moniker “T&Co” appears on the coin as the designer. It marks the first time that a private company’s name appears on a United States coin.

Finally, the 2000 Library of Congress $10 Bimetallic Commemorative Coin is the only coin featuring this type of bimetallic composition. The coin features an outer ring made of gold surrounding a center made from platinum.

As I looked at the list, I knew that the 2001 Buffalo Dollar would be the most popular even though I think the 2000 Library of Congress Bimetallic commemorative is the most unique. But why these coins? The U.S. Mint has issued a lot of commemorative coins with great designs since restarting the commemorative coin program with the 1982 George Washington Half Dollar with the 2012 Star Spangled Banner coins being the most recent.

Since I am not a collector of commemorative coins, I was thinking that if I had to choose five coins what would I have chosen and why. Here is my list (in date order):

  1. 1982 George Washington Half Dollar because it is the first of what we consider the modern commemorative period.
  2. 2000 Library of Congress $10 Bimetallic Commemorative Coin because it is the only bimetallic coin of its type made by the U.S. Mint.
  3. 2001 American Buffalo Commemorative Silver Dollar because it is similar to the design of the Buffalo nickel, one of my favorite coins.
  4. 2008 Bald Eagle Half Dollar with the obverse showing two baby eaglets and an egg in an eagle’s nest with the reverse an image of the Bald Eagle “Challenger.” This coin shows the continuing of the Bald Eagle like the continuing of the nation. I love the symbolism.
  5. 2012 Star Spangled Banner Silver Dollar screams “United States of America!”
Scott's Silver Proof Coin

I do own a 2012 Star Spangled Banner Proof Silver Dollar.

NGC Goes Retro

Sep 12, 2012 | coins, dollar, grading

Numismatic Guarantee Corporation will go retro with a limited edition 25th Anniversary Holder to celebrate “25 years and 25 million coins.”

The announcement made on September 11, 2012 said that NGC will offer the Limited Edition holder with a black core and special label for Silver Eagles, Sacagawea, and Presidential Dollars for coins submitted between October 1 and December 31, while supplies last. Coins submitted for retro holders must be submitted at the Modern Special tier or higher ($20 per coin, five coin minimum) with no extra fee for special holder. Invoice must be marked “RETRO HOLDER” and no cross-overs allowed. Please read NGC’s announcement for more information.

NGC was founded in 1987, by John Albanese after co-founding Professional Coin Grading Service. For their first month, NGC encased coins they graded in a holder with a black core (see image to the left). The black core was only used for about a month before NGC switched to the white core we know today. Because coin grading was very conservative in 1987 as compared with today, it was common for the coins in the black holders to be cracked and the coins resubmitted in hopes to have the coin grade higher. As a result, fewer coins have survived in those black holders making the holder a collectable unto itself.

This is an interesting gimmick by NGC. Not only have they found another way to get around the “buy the coin, not the holder” sentiment, but without announcing how many holders they will release, could be fueling speculation on the value of the holder as a premium over the coin. No doubt it will add to the continuing discussion as to collectibility of special holders and labels from the third-party grading services.

Always Remember

Sep 11, 2012 | commemorative, silver, US Mint, video

As we look at remembering those who died 11 years after the attacks on New York, Washington, and those who brought that plane down in Shanksville, Pennsylvania, the U.S. Mint published a video where they interviewed members of the die and polishing department about their part in the making of the 2011 September 11 National Medal.

As you heard in the video, you can still purchase the medal from the U.S. Mint with either the “P” or “W” mintmark for $66.95 each. The medals are one troy ounce of fine silver and the price includes a $10 surcharge that will be paid to the National September 11 Memorial & Museum at the World Trade Center in lower Manhattan.

It may also be time for congress to do something bipartisan and create a medal to raise funds for the Flight 93 National Memorial that will be erected in Shanksville. With the museum in New York and The National 9/11 Pentagon Memorial, it will complete the honor of those who died on that day. Then we can work on a memorial to honor the military who have shouldered the burden since.

Scott’s 10 Most Desired Coins Within Reason

Sep 8, 2012 | Carson City, cents, coins, errors, fun, gold, silver

I was reading the article “How to follow the money in rare-coin collecting” at MarketWatch.com about the basics of collecting rare coins when I noticed that it pointed to a page withe a slideshow, “The $1 million penny and 7 more famous coins.”

The list has only one “reasonably priced” coin—that is a coin that someone with a little means could afford. It lists the an 1850 Double Eagle at $13,000. That started me to think about the potential to actually owning a few rare collector coins with value and something more align with my tastes. After thinking about this I came up with a list of my “10 Most Desired Coins Within Reason.” In this case, I defined reason as not being so rare that it could only be bought with the help of a good dealer and would not require bidding on it at a once-in-a-lifetime auction. I also set a limit of $5,000 on the price of any coin. I know this may limit the inventory to lower grade for some coins, but those lower grades could give the coin character.

Mostly in denomination and date order, here are Scott’s 10 Most Desired Coins Within Reason:

  1. 1793 Flowing Hair Chain Cent with AMERI. in Legend is basically amongst the first legal tender coins produced by the U.S. Mint. I know that there was an earlier run of half-dismes, but they were not real production runs. If I am going to produce a list like this, I am going to pick the coin I like and break one of my rules because even at its lowest grade, the coin will probably cost more than $10,000.
  2. 1909-S Indian Head Cent in Mint State Red. Even though the 1908-S was the first Indian Head cent struck in San Francisco, I am choosing the rarer of the two S-mint Indian Heads in Mint State Red. Of course, this may also break my budget but it would be no fun otherwise.
  3. 1909-S VDB Lincoln Cent may not be the most expensive Lincoln Cent (the 1914 is), but it is the first of the iconic series and part of the controversy started because of the “V.D.B” initials on the reverse. Fortunately, I already own one graded as VF-30BN by NGC.
  4. 1955 Double Die Obverse Lincoln Cent is the coin that sparked the interest in error collecting. It is remarkable to think that one coin, a mistake, created a new segment of the hobby. For me, I already own one graded AU-58BN by NGC that I really like.
  5. 1937-D 3-Legged Buffalo is a very cool coin. Aside that the Buffalo Nickel is one of my favorite coin designs, there is something intriguing about the story behind this coin. Fortunately, the one I own was graded VF-25 by NGC and the last of the ones I already own on this list.
  6. 1917 Type 1 Standing Liberty Quarter is a compromise because the 1916 would be too expensive. In order to add a type 1 design (with breast exposed), the 1917 version is more reasonably priced in higher grades.
  7. 1921 Walking Liberty Half Dollar would be the coin I would point to on this list as being my favorite design. For me, only the Saint-Gaudens Double Eagle come close to Adolph Weinman’s design. It should not surprise anyone that Weinman was one of Saint Gaudens’ students. The 1921 half dollars were almost an afterthought as the U.S. Mint was rushing to produce silver dollars and the 1921 fits the criteria to buy one in higher grades.
  8. 1878-CC Morgan Dollar in the GSA Holder because it is interestingly historic. The Morgan Dollar was authorized by the Bland-Allison Act that required the Treasury Department to buy silver from western mines and put them into circulation as silver dollars. It was passed after the Coinage Act of 1873, sometimes referred to as the “Crime of ’73,” demonetized silver and set the standard for gold as the backing of the national currency. Not only do you get the collectible from a western state near a western mine, but the GSA Holder is from the historic sales of the 1970s after the GSA started pulling coins out of storage in buildings long forgotten.
  9. 1908 Indian Head Gold Half-Eagle because if you make a list like this, there has to be some gold on it. If I am going to do a gold coin, I want the only coin whose design is incuse to the coin. Bela Pratt Lyon’s incuse Indian Head design is unique and nicely available in its first year of mintage.
  10. 1907 No Motto Saint Gaudens Double Eagle because this list cannot be complete with the other of the two most iconic designs ever made for a circulating coin. Since 1907 is the first year, this is the most affordable of the three types made that year and is more available than the high-relief versions.

Do you have a similar list? Add it to the comments below.

PNG Warns Consumers About Non-Gold “Tribute Coins”

Sep 5, 2012 | advice, gold, investment, news

Gold Buyers Beware: Experts Caution Coated Tribute Coins Are Not “Gold Coins”

PNG Press Release: Temecula, California—With the price of gold recently increasing, people who want to invest in the precious metal should be cautious about the potential investment value of gold-plated “tribute coins,” according to the Professional Numismatists Guild (www.PNGdealers.com), a nonprofit organization composed of many of the country’s top rare coin and currency dealers.

Frequently advertised on television, the tribute items are replicas of popular United States Mint gold bullion coins, but are privately produced and often contain only a tiny amount of gold.

“These tribute replicas may be fine souvenirs and mementos as inexpensive medallions, but should not be considered an actual precious metal investment because they have only a razor-thin coating of gold and virtually no secondary market value as gold. They’re also not a United States Mint product, so they’re not even U.S. legal tender coins even though their designs may be similar to actual U.S. coins,” cautioned Jeffrey Bernberg, PNG President.

“Some of the look-alike tribute ‘coins’ are advertised as containing 14 milligrams (mgs) of 24 karat gold. That equals a minuscule .00045 troy ounce of gold; less than one-thousandth of an ounce. So, if the price of gold is at $1,690 an ounce, then 14 milligrams would be equal to only about 76 cents worth of gold,” he explained.

The Professional Numismatists Guild was founded in 1955. PNG members must adhere to a Code of Ethics that prohibits use of high pressure sales tactics and misrepresentation of the value of items being sold. PNG members also must demonstrate knowledge, responsibility and integrity in their business dealings, and must agree to binding arbitration to settle unresolved disagreements over numismatic property. A complete list of PNG member-dealers can be found online at www.PNGdealers.com.

For a copy of the informative pamphlet, “What You Should Know Before You Buy Rare Coins,” or a printed directory of PNG member-dealers, send $1 to cover postage costs to: Robert Brueggeman, PNG Executive Director, 28441 Rancho California Rd., Suite 106, Temecula, CA 92590. Phone: (951) 587-8300. Email at info@PNGdealers.com, or visit the web site at www.PNGdealers.com.

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