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 Thursday, June 26, 2008
Memphis attracts paper fans
Posted by dave
I’m on the road again, heading to Memphis, Tenn., to attend the International Paper Money show that has been held there annually since 1977. I will not be alone. As the premier paper money event in the nation, it will attract a large group of avid paper money collectors. They will not be deterred by the high price of gasoline or the level of inconvenience at the airports. The market remains hungry for fresh material and the only chance of finding it is to be the first one in line as your favorite dealer source sets up today on the bourse floor at the Cook convention center. Lyn Knight’s auction also begins tonight and it is not short of desirable material. Currently, the paper money market is suffering from the problems of success. There are more buyers with money than ever before and they are chasing a limited supply of notes. Perhaps the irony in this is that when the show was founded, it was located in Memphis as a cheap and easily driveable venue for people who were engaged in an activity that was then coin collecting’s poor relation. Anyone who bought any significant pieces in 1977 can now add a couple of zeroes to the price. What will collectors in 2039 be saying about the notes purchased this year?
6/26/2008 9:02:32 AM (Eastern Daylight Time, UTC-04:00)
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 Wednesday, June 25, 2008
People's needs don't square with art
Posted by Dave
The Mint gives collectors another reason to attend the American Numismatic Association World’s Fair of Money in Baltimore at the end of July. It will put on display an example of the Ultra-High-Relief $20 gold piece that will be sold to collectors next year. The coin will be 27 millimeters in diameter and be about 50 percent thicker than current one-ounce bullion coins. It will contain one-troy ounce of gold. This generation of collectors grew up with stories of Theodore Roosevelt’s commitment to give the United States a coinage worthy of ancient Greece. His chosen instrument was Augustus Saint-Gaudens, who came up with a completely impractical design in 1907 that met Roosevelt’s standard but couldn’t stand up to the demands of mere commerce. Bankers didn’t like high relief because the coins would not stack properly. With much business conducted with gold coins, the artist simply provided bankers with something to hate on a daily basis. Roosevelt believed that low commerce was no place to invoke the name of God and asked that the motto be omitted from the new $20. It was, causing another uproar from average Americans. Now in this age of subprime loans going sour we can see how unusual a coalition of bankers and average Americans is. This peculiar coalition saw to it that the coin was modified. The relief was massively lowered and “In God We Trust” was added. America ended up with a coin unworthy of ancient Greece, but it satisfied the American people. This is kind of like the story of the Wisconsin state quarter. Whatever you say about the cow, the corn and the cheese, it was the choice of the people. The people don’t always choose art. To see an example of real coinage art, go to the ANA convention. No doubt Roosevelt would approve.
6/25/2008 9:04:57 AM (Eastern Daylight Time, UTC-04:00)
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 Tuesday, June 24, 2008
Waiting builds character
Posted by Dave
Commemorative silver dollars are on my mind this morning. The Mint is going to unveil the new 2009 Louis Braille silver dollar July 2 at the National Federation of the Blind’s 2008 convention in Dallas. It is an appropriate venue. It is appropriate to promote the upcoming commemorative coin, but my fear is that with all the hullabaloo in the news media that is likely to result, there will be an awful lot of people who will want to buy one. The coins will not be available until the spring of 2009, nearly one year off. That is probably going to frustrate not a few would-be buyers. We live in an age of instant gratification. Desires that are not rapidly met are replaced with other desires and the original impulse can be lost. Even longtime collectors can get revved up by coins recovered from sunken ships and want to buy right away. I have had not a few inquiries over the years from readers who want to know how to buy a specific coin mentioned in a specific article and are disappointed to learn that it is not available at all times from the dealer community. In short, the thrill of the hunt is not necessarily appealing to one and all. When the coin is unveiled at 8 a.m., July 2, at AT&T Plaza at the American Airlines Center in Dallas, I will be prepared to wait. I hope others will be, too.
6/24/2008 9:06:22 AM (Eastern Daylight Time, UTC-04:00)
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Waiting builds character
Posted by Dave
Commemorative silver dollars are on my mind this morning. The Mint is going to unveil the new 2009 Louis Braille silver dollar July 2 at the National Federation of the Blind’s 2008 convention in Dallas. It is an appropriate venue. It is appropriate to promote the upcoming commemorative coin, but my fear is that with all the hullabaloo in the news media that is likely to result, there will be an awful lot of people who will want to buy one. The coins will not be available until the spring of 2009, nearly one year off. That is probably going to frustrate not a few would-be buyers. We live in an age of instant gratification. Desires that are not rapidly met are replaced with other desires and the original impulse can be lost. Even longtime collectors can get revved up by coins recovered from sunken ships and want to buy right away. I have had not a few inquiries over the years from readers who want to know how to buy a specific coin mentioned in a specific article and are disappointed to learn that it is not available at all times from the dealer community. In short, the thrill of the hunt is not necessarily appealing to one and all. When the coin is unveiled at 8 a.m. at AT&T Plaza at the American Airlines Center in Dallas, I will be prepared to wait. I hope others will be, too.
6/24/2008 9:02:43 AM (Eastern Daylight Time, UTC-04:00)
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 Monday, June 23, 2008
Letter from Dave Bowers a treat
Posted by Dave
I had a pleasant surprise in my mail on Friday. It was a short note from Q. David Bowers and a section of the June 16 Union Leader newspaper located in Manchester, N.H., was enclosed with it. Mail from Dave is always welcome. His Coins and Collectors published in 1964 was one of the earliest books I ever read about numismatics and it taught me that numismatics was more than just dates, mintages, grades and values. Every coin has a story to tell and Dave Bowers is the consummate storyteller. His urge to share these stories has made his career as a coin dealer and lately as the most prolific book author in our business. The story he wanted me to see was of an 81-year-old friend of his named Murray Clark who made a purchase at a newly reopened Fadden’s General Store in North Woodstock, N.H. In the story Clark told of having been sent by dogsled to make purchases for his father in 1933. His purchase at the general store was a milestone in that he has done business with five generations of Faddens. To mark the occasion, he gave Jim Fadden a large-size 1923 $1 Silver Certificate. It is now considered the first dollar earned at the reopening. What Dave didn’t tell me in his letter was where Murray Clark got the Silver Certificate. They are not particularly scarce, but even 81-year-olds don’t routinely have them lying around the house for special occasions. Perhaps Dave Bowers helped his friend out. Perhaps he didn’t, but knowing Dave has an eye on things like this is perfectly in character for the man I truly respect. Thanks, Dave.
6/23/2008 9:00:50 AM (Eastern Daylight Time, UTC-04:00)
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 Friday, June 20, 2008
Still collect Lincolns?
Posted by Dave
I never found a 1909-S VDB Lincoln cent in the coins I searched during the circulation finds era in the middle 1960s. I didn’t find a 1914-D, 1931-S, or even the lesser 1910-S, 1911-S, 1912-S or 1914-S. The 1915-S I found was so awful looking that the sense of accomplishment I had at filling the hole in the Whitman album was almost overcome by the knowledge that no other collector would ever want it. But then at my age and budget, much of the fun was in the Bingo approach to coin collecting. Keep filling those holes and the rest would take care of itself. I tired of looking for Lincolns. The lack of anything interesting was pretty obvious and as soon as my paper route budget could get me the funds to finance searches of the higher denominations, I had much more fun and the searches were somewhat more fruitful. All of these Lincoln memories are starting to come back as I look at the calendar and begin thinking about its centennial year next year. Nostalgia among collectors will be high. While all collectors basically know that most of their fellow hobbyists began with Lincoln cents, the question remains how many actually stayed with Lincoln cents? Those albums that I filled and partially filled in the 1960s I still have, though I haven’t purchased a single individual Lincoln cent since I splurged for a BU 1931-S in 1969. The exceptions, of course, are the cents I get as part of the proof sets and mint sets I usually buy from the Mint. Am I still a Lincoln cent collector? Are other collectors in the same boat? If a pollster asked them if they collected Lincoln cents and they hadn’t found or bought one in many years but still retain the old albums, would they answer yes or no? Give it some thought. Are you still collecting Lincoln cents?
6/20/2008 8:58:59 AM (Eastern Daylight Time, UTC-04:00)
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 Thursday, June 19, 2008
No, not the initials
Posted by Dave
The job of education is never finished. I had another example of the truth of this statement yesterday from a phone call. Now, when I receive a phone call, I do not know whether the caller has some numismatic knowledge or no numismatic knowledge. I don’t know if he asked for me by name or just somehow got to me because an operator decided I was close enough. Yesterday’s call started out with a fellow talking about Jefferson nickels and wondering if he could find “FS” on “65” nickels. OK, my brain kicks in. This guy is a collector who has some knowledge and he just misspoke. The designer initials for Felix Schlag were first put on a the Jefferson nickel in 1966 and you could indeed find “FS” at the base of the bust. I replied that yes indeed you could find “FS” below the bust on nickels from 1966 going forward. Wrong answer. That wasn’t his question. We had begun an Abbott and Costello “Who’s on first?” routine. He continued to seem puzzled and continued to speak. I asked him what book he was using and what edition. He was using the 2008 Coin Digest. He was on Page 83. So I went there. It came to be that the “FS” he was referring to was part of the grade head “-65FS.” So then we get into a discussion that it stands for Full Steps. He didn’t know Monticello had six steps. But still we conversed in puzzlement. He saw all the high prices that “-65FS” coins commanded and he asked how you could tell if the coins were “-65FS” or not. That got into a grading discussion. I began speaking of the 70-point scale and MS-65 coins. He asked if “MS” appeared on the coins anywhere. He also wondered why nickels from 1959 and later had no prices below MS-65 listed in the book. I replied that they basically do not trade for more than face value and so are not priced. He responded that the earlier listings had more prices. I said that was true but the prices were for the scarcer dates. He wondered why some dates had prices and others simply had dashes. The coins with dashes don’t have collector values in those grades. We never reached a satisfactory meeting of the minds. He was trying to determine the value of 20 sets that he said his neighbor, who is now ill, had put together. I suggested that it might help if he read Chapter 4 on Page 37, which explains how grading works. He said he would take a look at it. I hope he does, but I came away from the conversation knowing that we had not reached any common reference points in the conversation let alone any understanding. There is definitely more work ahead for me and for the hobby.
6/19/2008 9:04:56 AM (Eastern Daylight Time, UTC-04:00)
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 Wednesday, June 18, 2008
Mint holds the line
Posted by Dave
Just when you think everything is going up in price, it is nice to come across the news that 2008 clad proof sets will be the same price as the 2007 sets when they go on sale June 24. The $26.95 price is steady. For collectors who have been in the hobby for many years, the price might still seem on the high side as they recall the $2.10 price of the last silver proof set of 1964 and $5 for the first clad proof set in 1968, but it must be remembered that there are many more coins in the set this year. In both 1964 and 1968 there were just five coins in the set, the cent, nickel, dime, quarter and half dollar. This year the set has nearly three times as many coins at 14. There are five $1 coins. There are four Presidential dollars and the Sacagawea dollar. There are five state quarters. And, of course, there are examples of the cent, nickel, dime and half dollar. Face value in 1968 was 91 cents. Face value this year is $6.91. By one metric, this year’s set is cheaper than the 1968 set. Where the cost of the 1968 set was 5.49 times face value, the cost of the 2008 set is 3.90 times face value. I suppose another metric, which may not be universal is my personal “what could I afford with my paper route income” metric. It is far easier today for me to buy a proof set for $26.95 than it was for me to get the $5 in 1968. Actually, the first set I ever ordered from the Mint was the 1969 set, but it was the same price and the same income situation when those sets went on sale Nov. 1, 1968. This latter personal metric may not always feel true because there are many more claims on my income now than there were four decades ago. Nevertheless, the Mint holding the line on the proof set price is most welcome news.
6/18/2008 8:54:49 AM (Eastern Daylight Time, UTC-04:00)
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 Tuesday, June 17, 2008
King size prices
Posted by Dave
There is an old phrase used when something is very valuable, “It’s worth a king’s ransom.” But what is a ransom worth? We have an idea now that Heritage has sold some of the $20 Federal Reserve Notes that were used to pay off skyjacker D.B. Cooper, who jumped out of a passenger jet Nov. 24, 1971, somewhere in the Pacific Northwest. Cooper was never found, but some of the ransom money he was paid was. It turned up in 1980 on the banks of the Columbia River near Vancouver, Wash. It was found by Brian Ingram, who was eight years old at the time. Fifteen Series 1969 (and other then current series) $20 Federal Reserve Notes that no collector would even look at in less than uncirculated grade realized $37,433 combined in a Heritage Auction Galleries Americana memorabilia auction June 13. Though they were certified by PCGS Currency, they were in tatters. Prices include a 19,5 percent buyer’s fee. Ingram still has 70 more of these notes, so at that rate they would be worth almost another $175,000, which is interesting, because the full ransom at the time of the hijacking was $200,000. Obviously, in light of the high prices, none of the current buyers would like to see the rest of the ransom turn up – as historically interesting as such a possibility would be.
6/17/2008 8:58:48 AM (Eastern Daylight Time, UTC-04:00)
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 Monday, June 16, 2008
Three stars for Tennessee
Posted by Dave
I had a telephone call from a helpful Numismatic News reader on Friday. He had the answer to a question asked by a writer in the June 17 issue. In that particular issue, Phillip M. Lo Presti begins his two-part commentary on the designs of all of the 50 state quarters. Most readers have opinions about the various designs and Lo Presti decided to jump into that pool and share his. Perhaps other readers will then follow suit and share their opinions. The question Lo Presti asks has to do with the Tennessee quarter design on which appears a guitar, trumpet and violin and the words, “Musical Heritage.” Also, toward the top are three five-pointed stars. Lo Presti asks what they stand for. A helpful caller wanted to let me know that they stand for the three states of Tennessee or grand divisions as he also called them, the east, middle and west. I asked the caller if he would send me an e-mail or a letter to run as a letter to the editor, but he did not want to do so. We don’t normally transcribe phone calls, but this information is worth sharing, so I use this space to pass the information along. Sharing these tidbits of information and history are a part of what the state quarter program was supposed to be all about. On that score, and on many others, it is working.
6/16/2008 8:58:15 AM (Eastern Daylight Time, UTC-04:00)
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 Friday, June 13, 2008
Niche in time
Posted by Dave
It is easy to get caught up in the fluctuations of gold, silver and platinum. Or is it? Are we in just a small niche? My first bullion boom was in the 1960s. The federal government controlled the price of silver until it set it free in 1967. Then it was real control. There were no hints in investment newsletters about something unprovable. There was an official price of $1.2929 per ounce. It could not hold because the Treasury had to sell in the open market to keep the price there and it was rapidly drawing down its holdings of the precious metal. The price was freed and before year end, it had hit a high of $2.17. In 1968, the high point was $2.56. In those days, everybody could play. There were still $1 Silver Certificates in circulation. Can you imagine that virtually all the $1 bills in circulation up until 1963 were Silver Certificates? It was in that year that $1 Federal Reserve Notes were authorized. Since Silver Certificates were backed by real silver, first silver dollars and later bullion and they were redeemable, their price rose with the price of silver bullion. Numerous buy ads appeared from issue to issue in Numismatic News and Coins Magazine. The redemption deadline was June 24, 1968, so the activity really got frantic as the clock ticked down the final moments of real commodity backed money that the public could redeem. Anybody could check change for 90 percent silver coins. There were buy ads for these, too. Nowadays, there seems to be a feeding frenzy, but it has not ever achieved the widespread involvement of the 1960s. Times and conditions change. We are in a niche. It is a quiet boom.
6/13/2008 9:06:48 AM (Eastern Daylight Time, UTC-04:00)
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 Thursday, June 12, 2008
Mint tries new Presidential tack
Posted by Dave
Complaints by collectors that their banks do not get examples of new Presidential dollar coins as they are issued seem to have resonated at the Mint. Yesterday, it announced a new program that allows banks and retailers and even members of the public to bypass the normal banking coin distribution system to get the coins directly from the Mint. There are limitations. The quantity is limited to 500 coins per Presidential dollar issuing period, the coins will not be separated by mintmark, and I presume, no special care will be taken to keep the coins looking good. The initiative is called the $1 Coin Direct Ship Program. The coins are packaged in box quantities of 10 rolls totaling 250 coins. The minimum order is one box and the maximum is two. Would be buyers are directed to the Mint’s Web site at http://www.usmint.gov/$1coin. The boxes may also be ordered by telephone at (800) USA-MINT. The Mint pays standard shipping costs. It will charge buyers for shipping only if special handling is required. This program is not intended to run around special collector issues, though undoubtedly some individuals might give these boxes a whirl precisely for that reason. Also, it will be interesting to see how many banks take advantage of the opportunity now that their standard excuse of not getting Presidential $1 coins from their armored car service is removed. Kudos to the Mint for the effort.
6/12/2008 9:02:37 AM (Eastern Daylight Time, UTC-04:00)
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