Weekly World Numismatic News for July 14, 2019

Counterfeit 1803-dated dollar found in Hong Kong for $3. It is not part of the story but makes for a good accompanying image.

According to news reports, Barry Ron Skog, a coin dealer in the suburbs of the Twin Cities in Minnesota, pleaded guilty to selling counterfeit coins. He was last week to 30 months in jail.

Skog, 68, advertised in Numismatic News sending lists of available coins to interested collectors. Reports say that Skog, who used the alias Ron Peterson, sold $57,000 worth of counterfeit coins. On his arrest, his list contained 275 counterfeit coins which would have sold for over $200,000.

A source said that Numismatic News cooperated with investigators when a reader alerted them about the problem.

I am reporting this in very stark terms so that if anyone is searching the Internet for information about coin collecting, I want you to know that this situation is not typical of the hobby.

Like any industry, there are a lot of outstanding people and a few that ruin the reputation for others. Skog is not typical of the vast majority of the dealers I have met. Although there are dealers I disagree with on many different issues when it comes to numismatics, the state of the hobby, or their approach, I do not think they are bad people.

Not all mail order dealers are bad people either. For some, it is a hobby. They use the proceeds from buying and selling through ads placed in the numismatic media to enhance their collections. The same is true of some of the people who sell on eBay. Sure, there may be issues with some eBay sellers that give the rest a bad name, but there are more honorable people than those trying to scam you.

Finally, Numismatic News is an outstanding publication and an excellent source for stories about the hobby. While its future is uncertain, while it is still publishing, I have no problems recommending it as a reliable source. A scammer like this could have done this using any other publication. There is nothing about Numismatic News to place them at fault.

Unfortunately, stuff happens. When it does, it was nice to hear that the community banded together to stop someone from hurting other members.

And now the news…

 July 8, 2019

HISTORIANS are baffled after a mysterious African coin that could date as far back as the 8th century was found in Australia. The copper coin could mean Captain Cook – famous as the first Eur…  → Read more at thesun.co.uk


 July 8, 2019

Scientists are perplexed at the origins and provenance of two very ancient and unusual Roman coins that turned up like a bad penny in the 20th century. A Quincussis – the correct scientific name of this strange find — has thus far only been mentioned in texts dedicated to the coinage of ancient times and at most only a drawing was reported, but no one has ever seen one, until one was presented to Dr Roberto Volterri of the Rome University for analyses and then its twin surfaced.  → Read more at ancient-origins.net


 July 9, 2019

A Burnsville coin dealer who admitted selling counterfeit coins was sentenced Tuesday to 30 months in prison. Barry Ron Skog, 68, pleaded guilty to the counterfeit coin scheme Feb. 21.  → Read more at twincities.com


 July 9, 2019

Greek customs officers caught a Turkish citizen attempting to smuggle 1,055 ancient coins across the border from Turkey on Tuesday, the Greek Reporter news site reported. The coins were hidden in seven water bottles concealed at the bottom of a bag containing food, it said.  → Read more at ahvalnews.com


 July 9, 2019

A federal judge in St. Paul sentenced a former Burnsville coin dealer Tuesday to 2½ years in prison for fraud in the sale of bogus collectible coins. Barry Ron Skog, 68, owned the Burnsville Coin Co., which advertised the sale of collectible “numismatic” coins.  → Read more at startribune.com

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Weekly World Numismatic News for June 30, 2019

Price of Gold for the 2nd Quarter of 2019
(Chart courtesy of GoldSeek.com)

News of the week is not happening on the pages of the non-numismatic media but in the precious metals market. Specifically, the rise in the price of gold. While this news makes the gold bugs happy, it is a bad indicator for the rest of us.

With the price of gold opening at $1,279.00 on January 2, 2019, it saw some bumps in its price but has largely averaged a modest gain until the price closed at $1,271.15 on May 21. Then it started to climb and climb rapidly by market standards. On Friday, June 28, the end of the second fiscal quarter, gold closed at $1,409.00. The rise is a 10.8-percent gain since May 21.

Gold is considered a safe bet for investors. It is a way of investing in cash or cash equivalence. Investors buying gold will purchase bullion, gold bullion coins like the American Eagle, or shares in a fund that maintains large stores of gold. There are many types of funds and ways to purchase shares in these funds, but it is not the same as owning the physical gold. Most reports are claiming that investors are interested in purchasing physical gold with bullion coins being the preference.

Investors make money by investing with what they consider a manageable amount of risk. If the risk pays off, they can make a lot of money. The risks that fail must be made up elsewhere. Investors diversify their portfolios to mitigate these risks. However, if the institutional and large investors are moving their monies to safe harbors, like gold, they sense a problem.

This relatively sharp jump in the price of gold is being driven by the major investors who are worried about the future of the U.S. economy. They see the various trade wars being detrimental to the economy. One economist said that the recent hike in soybean tariffs to China is going to have long term effects long after this president leaves office.

Although the United States is no longer an agrarian economy, agriculture plays a significant role in the country’s economic health. Upsetting that role that agriculture plays will cause long-term damage to the economy. The soybean tariffs are believed to be the driver that is scaring investors.

You may ask how are soybeans causing gold to rise?

As part of foreign policy in Africa, the government has been supplying countries with the proper climate the means to grow soybeans. It was a way to make the countries self-sufficient by helping create an economy. In many cases, the United States did not follow through on commitments to help with the infrastructure that is needed to create access to the markets. Countries needed irrigation and road improvements. Rather than helping with the upgrades, the United States government concentrated on the military aspects of these country’s problems. A policy of one-problem-at-a-time.

For at least 15 years, China has ignored the military issues and began to supply the money, supplies, and labor to fix the infrastructure. The Chinese government helped build irrigation systems, roads, and provided transportation to build these economies with the promise that China would buy their products.

Although there was significant Chinese investment in Africa, it was still cheaper to buy soybeans from the United States. That situation changed with the 25-percent tariffs placed on soybean exports. The tariffs raised the price of U.S. soybeans beyond what the Chinese would pay to the African exporters. Now China is importing soybeans from Africa while U.S. farmers are provided allegedly short-term subsidies from the federal government.

Now that the infrastructure is in place for China to import soybeans from Africa, the costs have reduced and is projected to have the long-term effect of lowering the U.S. market for soybeans in China. One economist said privately that even if the tariffs were reduced to pre-trade war levels, it might not make it economically viable for China to buy as much from the United States as it did in the past.

Institutional investors see the loss in revenue from China, the increased deficit in providing welfare to soybean farmers, and the danger of the business not returning to the United States. They also see the reduction of tariffs to Russia for wheat and that Russia is also looking to African and South American countries for wheat sources. The competition is making trade prices drop and is making it look like agriculture trade is in trouble.

If exports of United States agriculture are in trouble, then it will hurt the economy. With the uncertainty added to the risk profile investors and fund managers have to manage, they have turned to gold as the natural, safe harbor.

The rise in gold prices always helps numismatics. It helps boost the prices of gold and, by association, other rare coins. However, if the gold prices go up because of economic stress, it will not matter what happens to numismatic prices. Fewer people will be in the market to buy coins.

And now the news…

 June 26, 2019

Gold is a hedge against financial risk, and coins offer convenience.  → Read more at marketwatch.com


 June 26, 2019

COIN collectors can now get their hands on a Toy Story 4 50p piece – but you can’t use it in shops. The commemorative coin features popular character Woody in colour with the cowboyR…  → Read more at thesun.co.uk

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Weekly World Numismatic News for September 23, 2018

David Hall
(PCGS Image downloaded from the Internet Archive)

Although this weekly posting tries to cover the news that does not appear in the numismatic media, this week there has to be something said about a bombshell reported by Coin World.

In a surprise announcement, Collector’s Universe, Inc. (NASDAQ: CLCT) announced the termination of David Hall as president and CEO as of September 18. No reason was given for his termination.

Hall remains on the Collector’s Universe board of directors.

Hall was one of seven co-founders of Professional Coin Grading Service in 1985. In 1999, PCGS expanded to Collector’s Universe to provide grading and authentication services to other collectibles. Professional Sports Authentication and PSA/DNA are considered the gold standard in the sports collectible industry. He has held several leadership roles in PCGS and Collector’s Universe over the years.

When contacted by Coin World, Hall did not provide additional details.

In the article, it said that Hall plans to remain prominent in the industry and will be more active with David Hall Rare Coins, a firm he founded in the 1970s.

We here at the Coin Collectors Blog wish Hall well as he begins the next phase of his professional life.

And now the news…

 September 17, 2018

Rock musician Rory Gallagher represented the “very best aspirations of our republic”, President Michael D Higgins has said. Mr Higgins was presented with a €15 commemorative coin featuring an image of the late guitarist who died in 1995, aged just 47.  → Read more at irishtimes.com


 September 17, 2018

THE Royal Mint is selling a GOLD Kew Gardens 50p coin which could be worth up to £800. Only 1,000 of these rare coins were made and only 629 of them were actually bought by the public, making them even more valuable to collectors.  → Read more at thesun.co.uk


 September 17, 2018

Law enforcement officers are urging the public to be on the lookout for scam artists trying to sell fake coins in the Cameron, Missouri, area. The DeKalb County Sheriff's Office issued an alert showing plastic sleeves of old coins that were passed off as valuable silver to one business.  → Read more at newspressnow.com


 September 22, 2018

The Royal Mint has increased its production of collectible coins in an attempt to appeal to a wider market as the use of cash declines across the country.  → Read more at telegraph.co.uk

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