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 Thursday, May 22, 2008
In the air again
Posted by dave

By the time you read this I will either be in the air on the way to San Antonio, Texas, or already there.

The Harper clan is gathering for the wedding of a cousin of mine and those family members who are able will be in the heart of the city that is the historical home of the Alamo to witness the exchange of vows.

I have not been in San Antonio since the American Numismatic Association convention there in the spring of 1985. It was the heyday of Bob and Betty Medlar, both of whom have now passed on.

Courtney Coffing, a retired co-worker, reminded me when I saw him at the Numismatists of Wisconsin convention May 17 that he had lived there in 1961. It seems that an awful lot of people have a connection to the city.

Even though I have no plans to get numismatically involved, can I really spend three whole days without looking for a coin shop or otherwise dipping a toe in the numismatic waters?

We’ll see. Fortunately for me, I don’t have any formal role. I just have to look happy, which will be easy because I am not footing the bill for the festivities.



5/22/2008 9:05:39 AM (Eastern Daylight Time, UTC-04:00)  #  Comments [0]
 Wednesday, May 21, 2008
Different sizes coming?
Posted by Dave

 Yesterday’s ruling in favor of the blind by the U.S. Court of Appeals for the District of Columbia means changes could be coming to American paper money.

Because current notes are all the same size regardless of denomination, the court said the Treasury was violating the Rehabilitation Act.

The Treasury can appeal the decision to the Supreme Court. It may do so, but the collector in me begins to speculate about notes of different sizes or notes with Braille characters.

My mind says different sizes is the preferred option, perhaps as a result of my experiences with euro notes in Germany, but even that isn’t without its bumps. Euro countries don’t have a 1. They have a coin. Will this occur in the United States as a result of a court ruling?

Europeans don’t like the 5 because it is too small. It certainly is small, but I am more worried about notes being too big rather than too small.

Braille strikes me as too easily subverted either by fakers putting Braille for high denominations on low-denomination notes, or by crushing the raised areas.

Even if not deliberately crushed, how much wear can a note take before the Braille is not recognizable?

The gears in my mind are still turning. I am sure other collectors have other thoughts. We’ll see over time how this all plays out. Of course, it might not be too long before we’ll be spending gas ration coupons rather than paper money.



5/21/2008 9:00:16 AM (Eastern Daylight Time, UTC-04:00)  #  Comments [8]
 Tuesday, May 20, 2008
Don't need to cry for Argentina
Posted by Dave

It is springtime in Iola. It is colder than normal, but it still is spring after a rough winter. Life always looks better as nature greens things up.

It may be springtime for the U.S. dollar, too. It had a rough winter. Like Rodney Dangerfield, it got no respect, but now perhaps things are changing and the world may be returning to the traditional verities.

I read yesterday that middle class people in Argentina are rushing to convert their pesos into – you guessed it – U.S. dollars. They fear the wheels are about to fall off their country’s economy.

After a year and a half, Costa Rica’s colon is depreciating against the U.S. dollar. Officially measured inflation is running at more than 10 percent a year. The U.S. rate is consistently lower. Basic economics says the colon must fall and in the last couple of weeks, it has.

Even the mighty euro is wobbling a bit. It was reported that the euro area’s monthly trade balance has swung into deficit. That by itself doesn’t mean much, but it does mean there is a net European demand for imported goods, which is a good thing for countries outside its borders that worry about an economic slowdown.

What does it mean for collectors? Well, too much stock shouldn’t be placed in short-term currency fluctuations, but for gold buyers whose sole argument for buying is U.S. dollar weakness might need to find something else to hang their hats on.

Far better to buy collector coins, the demand for which is long-term and whose prices tend to rise with American incomes and inflation. Collectors get the gold and silver content as a kicker. Buying collector coins means you don’t really have to worry about the dollar or how the people of Argentina view it. You will have more fun, too.



5/20/2008 9:10:27 AM (Eastern Daylight Time, UTC-04:00)  #  Comments [0]
 Monday, May 19, 2008
Collectors find a haven
Posted by Dave

The Numismatists of Wisconsin show in Iola, Wis., is over. As shows go, it is not at the top of the standings, but shows like this are what make numismatics tick.

It is a bread and butter show of a kind that sends you away thinking things are going to be just fine. I saw a couple looking at multiple examples of a 1914-D Lincoln cent to find just the right one.

I saw several elderly women each with a handful of silver coins selling them off to dealers at current prices. They seemed pleased to be able to do so.

I saw George Cuhaj and Howard Quimby and 10 Boy Scouts head for their merit badge clinic.

I saw American Numismatic Association vice president Patti Finner conducting a treasure hunt for young collectors as well as conducting state quarter quizzes.

I saw an 8-year-old boy and his 6-year-old sister sorting through every single coin in a friendly dealer’s junk box. They were supervised by their mother.

Chet Krause, the founder of Numismatic News, was there to reminisce about 48 years of NOW from his perspective of someone who has collected for roughly seven decades.

It was the type of show that fills the weekends of collectors across the country. It was grass roots.

 It wasn’t ostentatious. It was collectors being themselves.

Perhaps the best comment was from Jerry Koepp of Coins, Stamps ’n’ Stuff, Des Moines, Iowa.

“It’s surprising they can bring so many people into this little town.”

That’s a tribute to the organizational skills of Joel Edler as bourse chairman and ANA governor Cliff Mishler, who should be called the social director.

Am I prejudiced? Of course. I am always prejudiced in favor of collectors. Collectors go where they are wanted and where they feel at home.

This past weekend that home was Iola, Wis.



5/19/2008 8:59:58 AM (Eastern Daylight Time, UTC-04:00)  #  Comments [0]
 Friday, May 16, 2008
Knocked off sale
Posted by Dave

They just went on sale May 5, but already the frisky price of platinum has forced the Mint to suspend sales of the four-coin 2008 platinum proof Eagle set. The set contains 1.85 troy ounces of the precious metal. At today's closing price for platinum of $2,132 an ounce, the four-coin set contains $3,944.20 in precious metal.

Individual proof platinum coins are still available from the Mint.

Gold narrowly missed the $900 mark and closed the week's trading at $899. Silver closed at $16.904.

Does this mean the downward correction in precious metals prices is over?



5/16/2008 5:08:42 PM (Eastern Daylight Time, UTC-04:00)  #  Comments [0]
Show comes to me
Posted by Dave

Tables are turned for me today. Usually I have to leave Iola, Wis., to attend a coin show. This time, the show is coming to me.

Numismatists of Wisconsin gather just a few yards from the Krause building here for their annual convention.

There are 55 dealer tables, so it is a fairly cozy show, which gives me the opportunity to have some nice conversations with show attendees.

I will not be rushing off to cover a board meeting or perform some other must-do task. I simply can be a part of the show and watch the public come in at 1 o’clock this afternoon.

In addition to not traveling, show hours at 1 p.m. to 6 p.m. today and 9 a.m. to 6 p.m. tomorrow recognize the habits of the area. We will not see an empty bourse floor Sunday morning while many people are in church. There simply will be no Sunday hours.

This pattern is not something that I am making up, either, nor is it something unique to coin shows. We have an annual Old Car Show in Iola that attracts 140,000 people over the course of four days. This year the dates are July 10-13.

I have been a volunteer worker at the car shows for the Lions Club and before that the Jaycees since 1978.

In recent years, the migration away from Sunday hours is very clear. It is so clear that no admission fee is charged on Sunday to encourage a few extra people to visit and to prevent any sense that those who do visit are not getting their money’s worth.

The heart of the car show is now Thursday through Saturday, which is very much like a coin show.

If you can make it, come to Iola for the coin show and the car show. Admission to the coin show is free.



5/16/2008 9:02:23 AM (Eastern Daylight Time, UTC-04:00)  #  Comments [1]
 Thursday, May 15, 2008
Opportunity knocks at auction
Posted by Dave

Are there any rare coins left in collections?

Seems like a silly question, but I was paging through auction catalogs for the sales that will be held in the last week of May both before and during the Long Beach show.

Wow. It is amazing what is going on the block.

Collectors at certain levels of achievement find that it is very difficult to carrry on to a logical conclusion because certain rarities come into the market only infrequently. That can stymie many a hobbyist with large sums at his disposal. This is their time. Act now. It is a limited opportunity.

The present market environment seems to be at that rare point in time when generational shifts, profit-takers and routine business factors all seem to be working in favor of bringing coins to market.

The generational shift means none of us is getting younger and sooner or later prudent financial planning means selling off beloved coins. That certainly seems to be the case with the April sale of the David Queller Collection. It was apparent how emotionally bound up he was in his coins. He is not alone. We all feel it, but we all aren’t going to have an auction catalog with our name on it.

Profit-takers who bought coins a few years ago, even six months, ago might decide now is the time to take money off the table in view of the uncertainties in the economy and in the rest of the world.

For regular dealers it has been conventional wisdom since the present market got truly hot that the absolute best way to get the highest possible price for quality coins and bank notes is to consign them to a public auction.

How long this happy confluence of factors will remain is anyone’s guess, but boy oh boy do I enjoy seeing what is coming up for sale.



5/15/2008 9:01:47 AM (Eastern Daylight Time, UTC-04:00)  #  Comments [0]
 Wednesday, May 14, 2008
Treasures make the news
Posted by Dave

Treasures seem to be making a lot of news these days. It is not just one but three that have come to my attention in the last several days.

The dispute between the Spanish government and Odyssey Marine Exploration goes on over what is claimed to be $500 million in Spanish silver coins taken from what Spain says is the wreck of a naval vessal, the Nuestra Senora de las Mercedes, sunk in the Atlantic Ocean in 1804.

Hobbyists may be cheering for one side or the other, but the fact is that sooner or later the coins will enter the market.

The legal dispute could stretch on for years in the Florida court handling the matter, though if the coins are indeed from a warship, then Spain would seem to have a very strong case under admiralty law.

A recovery team that planned ahead and got legal title to a wreck in the Gulf of Mexico 60 miles off the Louisiana coast has yielded U.S. gold coins struck at the Southern mints and a nearly complete set of Capped Bust half dollars.

This treasure is smaller. It is valued at $1 million, but U.S. collectors who collect Dahlonega, Charlotte and New Orleans gold will be interested to see the census of the coins recovered even if they don’t want to buy them when they become available.

The wreck is of a sidewheel steamer called  the SS New York that sank in 1846.

And a subcontractor of the Mel Fisher Center in Florida claims to have found some jewelry from the treasure fleet of 1715 that sank in a hurricane. Not numismatic, but interesting and it puts a name back in the spotlight that has been coming in and out of numismatics for decades, though Mel himself is no longer living.

Stay tuned. Treasure always seems to attract buyers who are willing to pay too much.



5/14/2008 9:05:21 AM (Eastern Daylight Time, UTC-04:00)  #  Comments [0]
 Tuesday, May 13, 2008
Variety is the spice of collecting
Posted by Dave

Tuesdays are generally busy days for me but the second Tuesday of the month tends to be the worst.

"Paper Money Market" price guide goes to press this afternoon. The "Coin Market" price guide and Numismatic News have their ad deadlines this afternoon. Today is also the final full day of work before World Coin News goes to press tomorrow and Bank Note Reporter has its ad deadline.

It keeps me jumping from topic to topic and task to task as everything gets finalized. It is all very engrossing work, but the necessity of interrupting one task to complete another as the multiple deadlines near keeps me hopping.

And naturally, events don’t stop happening. There is the need to check things out. I see gold is down $11 this morning and the Mint puts more Presidential dollar coin products on the market.

Numismatics is a fascinating field. To look at it from the perspective of a collector of U.S. coins or a collector of U.S. paper money or world notes or world coins, there is no better day for me to see the variety than today.

It reinforces my perception that the hobby is a lifetime undertaking. No matter what area you pick, it will be a good one. It will challenge you to learn and improve yourself.

All the while it also serves as a vehicle for blowing off steam and forgetting routine cares.

And there is nobody scolding you, except me perhaps, that you haven’t taken your coin time today.

Don’t forget. It is good for you.



5/13/2008 9:03:01 AM (Eastern Daylight Time, UTC-04:00)  #  Comments [0]
 Monday, May 12, 2008
Adams again
Posted by Dave

I have not purchased any First Spouse gold coins. The sixth one, which honors Louisa Adams, comes up for sale May 29 and I won’t buy that one either.

I decided at the beginning that putting together a set of half-ounce gold coins was going to require more money than I was willing to put into it.

However, that does not mean the series has not been beneficial to me – or could be.

I bought a book on my last vacation. It is called “Ladies of Liberty” and it is written by Cokie Roberts, a television reporter and personality.

It is a book that I doubt I would ever have picked up were it not for the existence of the First Spouse series. Vacations being vacations, I did not get very far into the book.

The book is not solely about First Ladies, but they feature prominently among the gallery of personalities that helped establish the norms and practices of the early days of our republic.

My start got me through Abigail Adams. I will finish it, but I am not quite certain when.

History is important and Robert’s chosen topic helps the reader to remember that the Founding Fathers were not sitting out on a mountainside somewhere gazing down on us mere mortals, but were husbands and fathers doing their best for their families and their country with a lot of help from their wives.

Perhaps it was fate that would have me stuck at Abigail Adams. I wrote a column last year in Numismatic News taking a poke at her husband, John Adams. I received a letter of rebuke from Brad Karoleff who urged me to read the David McCullough biography. I did so.

That topic came up again at the Numismatic News table during the Central States convention last month in Chicago when another reader wanted to dispute my take on John Adams.

Even though he disagreed with me, I take it as a compliment that almost a year after I wrote something, he was still treating it as a current event.

Such is the power of our history. Such is the power of a coin series that makes us think about our history.



5/12/2008 9:09:28 AM (Eastern Daylight Time, UTC-04:00)  #  Comments [0]
 Friday, May 09, 2008
Steel yourself for new cent
Posted by Dave

It looks like a steel cent has moved closer to reality and a steel nickel is a definite maybe after the House of Representatives passed H.R. 5512 yesterday.

Passage came after it was caught up in two days of political infighting on Capitol Hill. The bill calls for a copper-colored steel cent. The new composition would come into use 270 days after the Senate passes an identical bill and the President signs it.

The House wording provides an escape clause if the Treasury can find an alternative composition in 90 days to achieve the same goals of lowering production costs to less than one cent for each cent produced.

That isn’t likely.

Steel nickels may be in our future, too. There is mandate language but the time frame is longer and the Treasury is asked to jump through a number of hoops that could easily prevent any action.

The mandate language is two years after enactment of the legislation into law a nickel-coated “primarily” steel 5-cent coin will be produced, but the there is also a very big sticking point. The House mandates a new composition that can “co-circulate with the existing supply of 5-cent coins and work interchangeably in coin handling machines.”

Good luck with that.

Steel is magnetic and copper-nickel is not. The use of magnets is a common form of vending discriminator mechanism. Steel is also significantly lighter.

The legislation also provides a list of exceptions to allow the Treasury to wiggle out of the mandate language, but these include consultation with the vending machine industry and other coin users, and other hurdles that make reaching any kind of consensus and conclusion difficult if not impossible.

Mint Director Ed Moy is not buying the steel mandate even for the cent. He issued a statement yesterday looking for better legislation to come out of the Senate.



5/9/2008 9:09:43 AM (Eastern Daylight Time, UTC-04:00)  #  Comments [0]
 Thursday, May 08, 2008
New tax problem heads our way
Posted by Dave

Are we about to see the end of Internet commerce as we know it?

Sure the question sounds apocalyptic – it could be.

New York State will begin taxing transactions on the Web at the end of the month. This is in the form of requiring online merchants to collect sales taxes from sales to New York buyers.

How long will it be before other states, starved for tax revenue because of the recession and the real estate bust, implement a similar policy because they view online sales as the only ripe melon left to squeeze?

The Industry Council for Tangible Assets, which has led the fight against state sales taxes on numismatic and bullion coin sales, should once again be commended for the work it has already done and perhaps plan to gear up for yet more undertakings.

Take Wisconsin, my home state, for example. There are no reliable statistics as to how many coins Wisconsin collectors purchase online. The sales tax applies to their purchases.

Currently, the onus is on the individuals themselves to self report on their annual state income tax return in the form of the parallel use tax, which is basically the name given to the sales tax when it is paid by the buyer rather than the retailer doing the selling.

Compliance is not high. What happens when the Internet retailers get a letter telling them to collect the 5.5 percent (state and county) sales tax on future transactions involving Wisconsinites?

There have been silly alarms online for years about taxing e-mails, but this is a very real problem that could be coming at us.

Time to prepare.



5/8/2008 8:58:49 AM (Eastern Daylight Time, UTC-04:00)  #  Comments [1]