Sep 4, 2012 | bullion, gold, markets, news, platinum
Unrest continues in the mining communites of South Africa as the National Union of Mineworkers (NUM) ups their efforts to calm the rank and file. The NUM, an ally of the ruling African Nationa Congress (ANC), have rejected calls to exploit the termoil for the benefit of the workers.
The strike has virtually shut down the Lonmin mine that supplies 19-percent of the platinum to the world.
Gold One is reporting that the wildcat strike that caused four injuries yesterday was open on Tuesday. However, the nearby Aurora mine also owned by Gold One remains closed.
Worker unrest is happening during the campaign for control of the ANC. Former youth leader Julius Malema has been travelling to the effected mines blaming President Jacob Zuma for anti-worker policies and accusing the NUM of partnering with the ANC not in the benefit of the workers.
Malema was expelled from the ANC for “ill discipline.”
Lonmin and Gold Fields stock, already depressed prior to current events, are down even further on the United States and South African markets. Trading on Gold Fields stock in South Africa has been halted on market trading rules.
Currently, gold and platinum prices are trading based on current economic conditions with futures looking at December delivery of these metals. An analyst interviewed for this story said that if the unrest continues, the futures prices will not be affected until late January or early February deliveries are traded—which could begin later in September.
The Coin Collectors Blog will continue to monitor the international reporting and market reaction for their effect on metals prices. Stay tuned!
Sep 3, 2012 | gold, markets, news, platinum
An unidentified mine worker sits on a rock at the Lonmin mine near Rustenburg.
Unrest continues as police used tear gas and rubber bullets to turn back a group of about 60 mineworkers at the Gold One mine at Modder East near Johannesburg who was blocking the roads and throwing rocks at vehicles trying to enter the mine area. Four miners were reported hospitalized by police actions.
Fear of national mining disruption continues as strikes spread to gold mines in South Africa. Local business leaders are afraid that the strikes will hurt South African mines in the long term causing a ripple effect in the economy. South Africa is the world’s third leading producer of gold behind China and the United States.
Market analysts have been reporting that since they see South Africa as an “investor-unfriendly” country that most investments are in exchange-traded funds (ETF) that helps balance the risks.
Gold futures for December delivery rose $9.60, or 0.6-percent, to $1,697.20 an ounce in electronic trading today. London Gold Fixing PM price was $1,691.50, up $5.50 from the AM fix or 0.3-percent. U.S. markets were closed on Monday for the Labor Day holiday.
AP Photo/Themba Hadebe of striker courtesy of IOL Business Report.
Gold Production graph courtesy of ZeroHedge.
Sep 2, 2012 | bullion, gold, news, platinum
Mourners carry the casket of Andries Motlapula Ntsenyeho, one of the 34 striking platinum mineworkers shot dead at Lonmin’s Marikana mine, at his home town of Sasolburg in South Africa’s Free State province on Sept 1, 2012.
“The murder charge against the current 270 suspects, which was provisional anyway, will be formally withdrawn provisionally in court on their next court appearance,” acting national director of prosecutions Nomgcobo Jibo told a news conference.
The move to drop the charges occurred as funerals are being held for those killed during the strike.
Unrest continues in Marikana and other South African mining towns as police are being investigated after admitting to firing on striking mineworkers. Some of those officers are on administrative leave but no arrests have been made. This has put pressure on current president Jacob Zuma, who is seeking re-election this December.
Lonmin is the world’s third largest producer of platinum accounting for 12-percent of the world’s production. Lonmin’s primary market is the use of platinum in catalytic converters in cars.
The Marikana mine has been closed since the massacre and was set to re-open after this weekend’s funerals. There has been no report as to whether the wildcat sympathy strike at the KDC East mine owned by Gold Fields will allow that mine to open.
Weak demand has pushed down the market price of platinum leaving mining operators slimmer margins as costs have been rising. The price of platinum has risen only 8.3-percent ($117.00) since August 16, but only up 7.8-percent in 2012.
Gold closed at $1648.50 in London on Friday, down $17 from Thursday (0.7-percent). The price of gold closed at $1691.60 on the New York market, rising after Federal Reserve Chairman Ben Bernanke hinted that the Fed could introduce a “fresh, unconventional U.S. monetary policy stimulus will be implemented at some point.”
There have been no reports from market analysts as to how the South African unrest will effect metals prices.
Image courtesy of Reuters via The Sunday Times of Singapore
Sep 2, 2012 | coins, commemorative, news, policy
The following is a summary of the coin-related legislation whose status was changed in August 2012:
Public Law No. 112-169: National Infantry Museum And Soldier Center Commemorative Coin Surcharges
H.R. 3187: March of Dimes Commemorative Coin Act of 2012
H.R.4104: Pro Football Hall of Fame Commemorative Coin Act
S.3517: Panama-Pacific International Exposition and Panama Canal Commemorative Coins Act
H.R. 6331: Panama-Pacific International Exposition and Panama Canal Commemorative Coins Act
Sep 1, 2012 | gold, news, platinum
Location of the Gold Field’s Kloof-Driefontein Complex (KDC)
According to Gold Fields, KDC East produces 1,660 ounces of gold per day.
The Association of Mineworkers and Construction Union (AMCU) has said that they are not involved with the strike and claims the strike was caused by a dispute between National Union of Mineworkers (NUM) branches. AMCU is working with the South African government over the shooting deaths of 34 and wounding 78 striking minders by police at the Lonmin Platinum mine on August 16. The South African National Prosecuting Authority charged 270 miners with murder and attempted murder.
Striking platinum mineworkers gather for a report back on negotiations at Lonmin’s Marikana mine in South Africa’s North West Province, August 29, 2012.
NUM workers have been on strike since August 10, primarily in a dispute with their own union claiming that the union leaders are more interested in politics than the needs of the miners.
Lonmin reports that a 6.6 average attendance in all shafts of the mine following the shootings. The mine is located in the city of Rustenburg, northwest of Johannesburg.
London Gold Fixing closed at $1,648.50, down $9.25 from the morning price. Platinum closed at $1,517.00 up $9.00 from the morning price. Prices were posted prior to the statement issued by Gold Fields. London markets are open on September 3 while the United States markets will be closed for Labor Day.
Map of KDC courtesy of Gold Fields, Ltd.
Image of striking workers courtesy of Reuters/Mike Hutchings
Jul 26, 2012 | counterfeit, news, policy
Maybe you have seen them or have heard about them, but counterfeit coins primarily from China is a problem in the numismatic industry. But collectible coins are not the only problem. Great Britain has been having problems since the issue of new £1 coins entering circulation starting in 2010. Even though arrests have been made, there remains an undetermined amount of counterfeit coins in circulation.
Recently, counterfeiters were arrested in Greece and Turkey for producing fake 2 Euro coins. These counterfeits look very similar to the standard 2 Euro coin with the standard Greece reverse. A real 2 Euro coin is a bi-metalic coin that does not separate. The counterfeits will separate and are lighter than the real version.
Canada recently made a move to prevent counterfeiting of their new $1 (Loonie) and $2 (Toonie) coins. New Loonies and Toonies produced by the Royal Canadian Mint will have micro-engraved images of a maple leaf and a virtual image using an angled design. The RCM hopes these fine details added to the Loonie and Toonie will prevent them from being counterfeited.
While the United States does not have a problem with counterfeit circulating coins yet, it is a problem for collectible coins. Why counterfeit a quarter when you can make more money counterfeiting a Morgan or Trade dollar by selling it online to unsuspecting online buyers?
The problem perpetuates itself when the buyer looks to cover the money spent turns around and tries to resell the coin. Some people will purposely buy better counterfeit coins that will begin to fool dealers and try to resell them in the United States using a U.S. address to try to give the coin an air of credibility.
Currently, the Hobby Protection Act (15 U.S.C. §§2101-2106 and 16 CFR 304) does not allow for enough protection for the buyer. Aside from requiring the word “COPY” to appear on a copy, it does not allow for buyers or the government to take action against resellers, only the manufactuers.
When the Hobby Protection Act was first enacted in 1973 and updated in 1988, the online world did not exist the way it does today. It was easier to trace the manufacturers and the overseas sellers than the distribution channels are today. By the time a counterfeit coin reaches the United States, it could have been bought and purchased several times before being noticed. Then there is no remedy for those who have been duped.
Another problem is that the counterfeiters are learning to counterfeit slabs. Both NGC and PCGS have seen their slabs counterfeited or altered holding counterfeit coins. Both NGC and PCGS have the same problems with trying to protect their brands against counterfeiters.
A significant step forward would be to update the Hobby Protection Act!
Last month, H.R. 5977, the Collectible Coin Protection Act was introduced in the House of Representatives by Representatives Lamar Smith (R-TX) and Fred Upton (R-MI). Since then, Representatives Pete Sessions (R-TX), Henry Waxman (D-CA), and Bill Cassidy (R-LA) has signed on as co-sponsors.
The introduction of the bill is the result of the work of the Industry Council for Tangible Assets (ICTA) and Gold and Silver Political Action Committee (GSPAC), and the numismatic community working with key representatives to craft an effective legislation. It is also written to ensure support from congress. Benefits of the new law are as follows:
- Include the distribution and sale of items not properly marked as being a COPY
- Expands the provisions to include “any person who provides substantial assistance or support to any manufacturer, importer, or seller” who knowingly engages in any act or practice that violates the Act;
- Expands the ability for those who were sold counterfeit items to include the counterfeiter, their agent in the United States, or anyone who knowing “transacts business” in violation of this Act;
- Extend trademark violations and remedies to help third-party certification services protect against counterfeit holders.
These new provisions 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 apporpriate.
WE NEED YOUR HELP
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.
To contact your representatives, visit house.gov and enter your Zip Code at the top right of the page. When you contact your representative, you should mention that H.R. 5977 is revenue neutral and will not require additional appropriations. The bill will go a long way in combating counterfeit rare coins in the marketplace, saving collectors and investors millions of dollars in fraudulent transactions.
DISCLAIMER; I am working as Political Coordinator for the Gold and Silver PAC.
Images courtesy of the Gold and Silver PAC.
Jun 29, 2012 | Baltimore, news, shows, web
I will be attending the Whitman Coin & Currency Expo today at the Baltimore Convention Center. I will be getting a start later in the morning because of previously scheduled engagement. But I should be there for most of the afternoon. Those following me on Twitter (@coinsblog) can read my realtime thoughts on the Expo. Those following me on Pinterest can watch the board “Whitman Baltimore Expo 29-June-2012” for any images I can capture during my time in Baltimore.
While at the show, I will be attending the MSNA Distinguished Lecture to be given by Don Kagin about the bank notes of the War of 1812.
Jun 28, 2012 | apps, Baltimore, coins, news, shows, technology, web
Although I usually do not post press releases verbatim, timing and relevance to the Whitman Baltimore Coin & Currency Expo this weekend makes this an exception. Besides, it is about technology and I am for any personal tech that will improve numismatics. I will be attending the show on Friday and will provide a full review thereafter.
Find Coins Fast With Collectors Corner CoinSearch™, m.collectorscorner.com, at June 2012 Baltimore Expo
(Baltimore, Maryland) – The first mobile application of its kind for collectibles, Collectors Corner CoinSearch™, will be available free during the upcoming Whitman Baltimore Coin & Collectibles Expo. The unprecedented mobile app will let collectors instantly locate specific coins they’re looking for at the show, June 28 – July 1, 2012.
The free Coin Collectors Corner CoinSearch™ mobile app lets users see photos and information about specific coins available at the Baltimore Expo.
Collectors and dealers can use the free Collectors Corner CoinSearch™ mobile app to instantly locate Baltimore Expo dealers who have specific coins in inventory.
“The app was successfully beta tested with great results at the recent Long Beach Expo, and we’re now offering it for collectors and dealers at the Baltimore show,” said Cassi East, President of CCE, a division of Collectors Universe, Inc. (NASDAQ: CLCT).
“Coin buyers will be able to use their smart phones, iPads or other mobile tablet devices to find the exact coins they’re seeking during the Baltimore Expo, and even prior to the show. They»ll also be able to immediately pinpoint the exact bourse floor locations of the dealers who have those specific coins in their inventory.”
Before the show, dealers can list coins in their Collectors Corner inventories that they’ll have at their Baltimore tables. Collectors and other dealers then can use the Collectors Corner CoinSearch mobile app to easily locate any coins they’re seeking.
The ability to post Collectors Corner listings in the Baltimore Expo CoinSearch data base at m.collectorscorner.com will be available for all CCE member dealers at no additional charge as part of their CCE membership.
“CCE members can call us at (800) 733-6623, and we’ll walk you through the easy download mechanics,” explained East.
“This is an incredible, free service for collectors to locate exactly what they’re looking for. Everyone can use it,” said David Hall, President of Collectors Universe. “Mobile apps are the future, and this is a great collaboration between dealers, collectors and show promoters to bring together buyers and sellers.”
Additional information about the Whitman Baltimore Expo is available at www.whitman.com/expos.
Additional information about the Collectors Corner CoinSearch app m.collectorscorner.com is available by calling Collectors Corner at (888) 469-2646 or by visiting www.collectorscorner.com/marketnews/?name=CoinSearch.
Images courtesy of Collectors Universe, Inc.
Mar 23, 2012 | news, personal
Please excuse me while I allow my ego to write this post!
If you are subscriber to Numismatic News and received your copy of the March 27, 2012 edition, there is a story with an interesting by-line featured on front page. Yes, this is the article about the 2012 Star-Spangled Banner Commemorative Coin launch that was written by your favorite blog host!
I had a lot of fun covering the launch event. I will be covering other numismatic-related happenings in the Washington, D.C.-area so that I can report about them here on the blog and, hopefully, in a fine publication like Numismatic News.
Mar 9, 2012 | commemorative, news, US Mint
The following is the full version of the article that appeared in Numismatic News.
Eighty-one years (and two days) after President Herbert Hoover signed he law that make “The Star-Spangled Banner” the United State’s official national anthem, the U.S. Mint and Maryland dignitaries came to Fort McHenry to launch the 2012 Star-Spangled Banner Commemorative Coin Program. The commemorative coins are designed to honor the role of the fort in the Battle of Baltimore and Francis Scott Key’s composing the poem after seeing the 15-star and 15-stripe flag still flying after an evening of bombardment by the British Royal Navy.
During the march to Baltimore after the British attack on Washington, D.C., the British took Dr. William Beanes as a prisoner for his role in capturing British stragglers and deserters. 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 the fort and surrounding areas of Baltimore. As the smoke cleared on the morning of September 14, 1814, after 25-hours of bombardment, Key was able to see the U.S. 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.
Tina Orcutt, Superintendent of the Fort McHenry National Memorial & Historic Shrine, led the attendees in the Pledge of Allegiance to open the launch ceremony. After her welcome message, Baltimore’s WBAL reporter Sarah Caldwell took over as master of ceremonies to introduce the dignitaries. Senator Ben Cardin spoke on how he helped push the bill through the senate with the chiding from Rep. C.A. “ Dutch” Ruppersberger who sponsored the original bill. Rep. John Sarbanes, whose district includes Fort McHenry, spoke next and Maryland Governor Martin O’Malley followed. The program concluded with a few words from U.S. Mint Chief Counsel Daniel Shaver to open the sale of the coins.
Waiting in line to purchase the silver proof coin following the ceremony was Melissa, a paramedic from Orlando who was in Baltimore for training. She was with her family visiting Fort McHenry not knowing about the launch ceremony. When asked about the ceremony, she said, “I thought it was very professional. It was awesome. It was moving very moving.” After purchasing the coin Melissa and her family toured the new Visitor Center before visiting the fort.
Richard Hughes came to the ceremony from Annapolis, the state capital for the launch. He was asked about the silver coin he was about to purchase and said, “I like it. It’s provocative. I think they did a good job.” Several people standing nearby in the line agreed.
Also attending was Shaun Butcher who came from Frederick, Maryland “to be one of the first to buy [the coin] when it was released,” noting Frederick was Francis Scott Key’s hometown. “I think the design is unique in terms of highlighting the War of 1812 and the Star Spangled Banner,” Butcher said. “We should be proud a Marylander wrote the National Anthem.”
Butcher is a member of the Frederick Arts Council and is an elected board member of the Frederick Tourism Council. He boasted how Frederick is part of the War of 1812 Bicentennial celebration organized by the state and that Frederick is planning an additional celebration to honor Key’s writing of the poem to take place in September 2014.
The 2012 Star-Spangled Banner Commemorative Coins are available as $5 gold coins and $1 silver. Both can be purchased as uncirculated or proof coins from the U.S. Mint. Surcharges collected from sales of these coins, $35 for the gold coin and $10 for the silver coin, will be paid to the Maryland War of 1812 Bicentennial Commission to support the celebration that will last through 2014.
Image of original manuscript of “The Defence of Fort McHenry” courtesy of Wikimedia.
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