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 Wednesday, August 06, 2008
I’m not ready for a beard
Posted by dave

Abe-Harper_3-converted.jpgI met Honest Abe himself at the American Numismatic Association convention in Baltimore last week. It was quite an experience.

The 16th President was spending time at the Whitman booth next to ours on the bourse floor. I couldn’t resist the opportunity to meet him. Dennis Tucker was kind enough to take a photo of the event.

Mr. Lincoln asked me where I was from and I replied that I hailed from Wisconsin. He then launched into a story about his experience in the Black Hawk war in the state in 1832 and the fact that his horse was stolen and he had to walk all the way home to New Salem, Ill.

Not bad.

He asked me what I did for a living. I said that I was a journalist. Then followed another anecdote about a newspaper editor in 1864.

I’m sold.

I had so much fun with it that I personally introduced ANA Executive Director Larry Shepherd to him so I could get a photograph for Numismatic News.

I couldn’t stay long, though, on either occasion. I had to get back to our booth, which was separated from Mr. Lincoln by the width of the entry point to the exhibit area.

Perhaps subconsciously I admired the presidential beard. I rushed to work this morning, feeling somewhat behind where I want to be, in order to get all of the ANA material into this week’s paper. I discovered when I arrived at my desk that I had not shaved this morning. No wonder I got here 10 minutes early.

Oh well.

Instead of time saved, I am slightly more behind as I went back home, shaved and returned.

Sure, my anecdotes can’t compete with Mr. Lincoln’s, but I can keep trying.



8/6/2008 12:06:48 PM (Eastern Daylight Time, UTC-04:00)  #  Comments [0]
 Tuesday, August 05, 2008
Winner on both sides of market
Posted by Dave

One lucky institution is benefiting from the recession. It is the U.S. Mint. In the inflation panic that started about this time last year gold and silver sales rode higher and higher on the back of rising bullion prices.

Precious metals are supposed to be a hedge against inflation.

A year later, the recession fears seem to be taking over and the prices of base metals are declining. This is important for the Mint because it lowers the costs of the metals it uses in its coinage.

I have been writing for more than two years about the threat to the cent and the nickel because of the rising prices of the metals that go into them. The House of Representatives even acted earlier this year to mandate coated steel as a replacement for the current copper-coated zinc cent planchets and copper-nickel alloy planchets of the nickels.

Well, guess what? The nickel is very nearly worth a nickel of metal again. I checked the Coinflation.com Web site and the 75 percent copper, 25 percent nickel alloy now has a melt value of 5.118 cents. This certainly removes any danger of anyone trying to illegally melt the coins. The price of nickel peaked at about $24 a pound in the spring of 2007 and the value of the metals took the content up to almost 10 cents a coin.

The news is even better for the cent. It is now worth less than half its face value in metallic content, or .477 to be more precise.

The Coinflation.com Web site is even more precise than that. Check it out at http://www.coinflation.com/ Zinc is roughly 80 cents a pound now and copper is $3.50.

Gold and silver might get most of the collector headlines, but it pays to look at the base metals from time to time to understand what the Mint may be thinking.

Bottom line: will these lower prices likely delay any changes in compositions? Probably. The Senate would need to act to press the coated-steel issue, but with everything else on its plate, why would it choose an issue that seems to be solving itself?




8/5/2008 9:03:02 AM (Eastern Daylight Time, UTC-04:00)  #  Comments [1]
 Monday, August 04, 2008
Back at my desk, oh my
Posted by Dave

The American Numismatic Association convention in Baltimore is over. I am back at my desk for the first time in over a week. I haven’t figured out just how far behind I am yet, though my telephone message light is flashing red and reads that there are eight messages for me.

It was a great convention. It was not the best one ever, but it was good on several levels that we have not enjoyed for a while.

Dealers were happy to be in a town known as a good place to do business. ANA members were pleased to see the problems of prior years being put behind them, so the political environment was relaxed rather than poisoned.

One contentious issue, the location of the 2011 summer convention, was dealt with promptly. At the Professional Numismatists meeting one week ago today, the members let ANA board members and officials know that they thought Indianapolis, the site selected in March, was not a good place to be for business and travel security reasons. Their objections were given forcefully, but often with good humor.

ANA Gov. Cliff Mishler responded to the gathered PNG members as did ANA President Barry Stuppler. The result was action was taken at the Friday ANA board meeting to reverse the previous board decision. Chicago now will be the 2011 convention location.

One longtime dealer present at both meetings said this was the best ANA board he has seen in his professional career.

Whether it is or isn’t the best board ever is less the point than the fact that business is getting done again without rancor and everyone can get on with convention activities that they all look forward to.

Kudos to the Central States board for its generous donation to support this year’s Summer Seminar, which was held for two weeks in late June to early July.

An outright donation of $50,000 was great. The challenge donation was inspired. Dealers and collectors quickly rose to meet it and came up with more than the needed $25,000, so CSNS matched $25,000. That means ANA collected over $100,000. It is necessary for an organization that is still running a large deficit.

Kudos also to Larry Shepherd, the new ANA executive director. His public report was forthright and factual. Employee count is down from 36 to 29.5 due to retirements and natural attrition. Employee morale is up. This year’s deficit has been cut by one-third so far to just over $900,000. It is a large number to be sure, but it demonstrates a certain momentum that we all can hope will be sustained.
That’s enough for today.



8/4/2008 8:58:03 AM (Eastern Daylight Time, UTC-04:00)  #  Comments [1]
 Friday, August 01, 2008
Good art? Bad Art? Process better
Posted by dave

Is it really Friday? Convention events make time just fly by. Since the ribbon was cut Wednesday morning, it has been just an incredibly hectic show for me.

The Mint came up with an unveiling of the ultra-high-relief double eagle Wednesday. This was the first opportunity for collectors to see the new coin. Next year they will be able to buy one. Back in 1907 Theodore Roosevelt wanted coins of this kind of be used again just as in ancient Greece. That proved to be impractical because the ancient Greeks didn’t have banks with marble counter tops that required gold coins to stack neatly.

So, next year, 102 years after the first attempt at fulfilling Roosevelt’s dream, will come a second act. The coins still won’t circulate, but collectors will certainly appreciate the artistic qualities of a coin that has the depth of a medal rather than the nearly flat surfaces of a coin.

This is kind of a roundabout way of getting to the meeting of the Citizens Coin Advisory Committee at 9 a.m. today. This body helps the Mint sort good ideas from bad. It is part of the recognition that has been given in recent years to the artistic qualities of coinage.

We don’t know what Roosevelt would make of today’s coin art. Would he consider it something worthy of the ancient Greeks? I don’t know. But I expect he would approve of the importance that is being attached by the government to the artistic factors that he considered so important for American coinage. As a politician, he also would have loved to know how many times his name has come up this week.



8/1/2008 9:04:52 AM (Eastern Daylight Time, UTC-04:00)  #  Comments [1]
 Thursday, July 31, 2008
Ambassador Award gets makeover
Posted by dave

Today at 8 a.m. is the Numismatic News Numismatic Ambassador breakfast in Baltimore. A group of approximately 100 Numismatic Ambassadors and spouses or guests, have a chance to break bread together and catch up with each other.

Part of the catching up will be information that I will provide about changes that are afoot.

Since the first award was given to Charlie Colver in 1974 in California, the award has been given to recipients at various conventions and club meetings by members of the Numismatic News staff.

I myself happened to give two awards in March at the Mansfield Numismatic Society annual show in Willimantic, Conn. One of the recipients, C. John Ferreri, is the founder of the show and it was thought appropriate that he should be recognized among his peers there.  Tom Rockwell, an active hobbyist with Boston area clubs, was also attending. He got the other award I had that day.

This morning this method changes. Because of the escalating costs of travel, winners from this point forward will be announced annually at the Ambassador breakfast.

Five new names were added to the roster this morning, bringing the 2008 total to eight.

Honored this morning were M. Remy Bourne, former American Numismatic Association governor; Jeff C. Garrett, immediate past president of the Professional Numismatists Guild; Lawrence Gaye, a tireless worker for the ANA, whose duties included chairing the 2004 Portland, Ore., convention; James W. Hunt, a hobby stalwart in California, and Bob Hurst, the current president of Florida United Numismatists.

Holders of Ambassador Awards vote on each annual slate of award recipients. A ballot is prepared and the top vote getters receive the award.

In case you are counting, the eighth recipient this year was Myrna Lighterman, whom I had the pleasure of surprising with the award back in January at the FUN convention, where she has left her mark as a tireless volunteer.

Congratulations to all.



7/31/2008 10:27:37 AM (Eastern Daylight Time, UTC-04:00)  #  Comments [0]
 Wednesday, July 30, 2008
PNG gives awards
Posted by dave

Last night at the Professional Numismatists Guild dinner, John Dannreuther of Memphis was given the Lifetime Achievement Award.

I was interested to discover that he has been a PNG member for 30 years, the same number of years that I have been on the staff at Krause Publications. I couldn’t remember a time when he was not active, and now I know why.

Dannreuther was recognized as one of the founders of the Professional Coin Grading Service. Most people think of David Hall first, and that is fair, but Hall could not have done everything alone.

In addition to awards, Patti Finner took a few minutes to tell the assembled guests that she was a candidate for president of the American Numismatic Association in next year’s election. She is now the first declared candidate for any elective position in the 2009 election.

Another award, the Abe Kosoff Award, was given to Mark Salzberg, the CEO of Numismatic Guaranty Corp., the second of the two major grading services in both time and chronology (ANACS, though older, was founded as an adjunct to the American Numismatic Association.)

The two commercial services became the first of a number of businesses set up to grade coins.

PCGS was the first to encapsulate  coins in what are called slabs. This was in contrast to ANACS holders, which were not sealed shut. ANACS coins were also photographed.

The Art Kagin Numismatic Ambassador Award was given to John McCloskey. Anthony Swiatek was given a Significant Achievement Award.

Michael F. Moran was recognized with the Robert Friedberg Award for his book, Striking Change: The Great Artistic Collaboration of Theodore Roosevelt and August Saint-Gaudens.



7/30/2008 9:12:15 AM (Eastern Daylight Time, UTC-04:00)  #  Comments [0]
 Tuesday, July 29, 2008
Former co-worker visits show
Posted by dave



Today is Professional Numismatists Guild Day. I am fresher than I was yesterday (read “awake” here). I was able to have a nice visit with Chris Batio last night. He used to work on staff of Numismatic News. He arrived at the convention at supper time.

It has been a number of years since I have seen Chris. He is very interested in politics. That topic naturally came up.

I remember well the 1992 election year. It was a time when he and I had numerous discussions about the presidential race.

I’m still in Iola. Chris went on to other jobs and is now working in Washington, D.C., which is a perfect location for someone as interested in political events as he is.

Today I should have a great opportunity to walk the bourse floor and do some radio interviews for Coin Chat Radio today.

Later on, PNG Day ends and it becomes set-up time for the Krause booth. I expect Bob Van Ryzin, George Cuhaj, Robbie Cain and Debbie Tischendorf will make it in by that point to give me a hand. More importantly, either Bob or George will possess the diagram as to how things are supposed to be arranged. It wasn’t ready when I left.



7/29/2008 9:39:05 AM (Eastern Daylight Time, UTC-04:00)  #  Comments [0]
 Monday, July 28, 2008
Baltimore dominates this week
Posted by dave

The start to my day came jarringly soon. I had a 6 a.m. flight to Baltimore to attend the American Numismatic Association’s summer convention, which is called the World’s Fair of Money.

My day’s schedule was constructed a couple of months ago when it was time to buy an airline ticket at a reasonable price. Sometimes the ANA board meets in open session on Monday. Sometimes it does not. I had to make a guess. I lost.

This turned out to be one of the years it will not meet in open session today. The entire day is taken up in closed session.

On the other hand, this gives me the opportunity to scope things out early and especially to attend a meeting of the Professional Numismatists Guild at 4 p.m. I am an associate member, but usually I am not around early enough in a convention to attend its meetings. This time it worked out.

That is the nature of an ANA convention. You may plan, but events take over and you make adjustments.



7/28/2008 9:12:21 AM (Eastern Daylight Time, UTC-04:00)  #  Comments [1]
 Friday, July 25, 2008
Collectors beat Obama to Berlin
Posted by Dave

When I saw the news coverage yesterday of Sen. Barack Obama delivering a speech at the Victory Monument in Berlin, it seemed to be one more indication of the growth in importance of the German capital city.

I have visited the city twice. The first time was in 2005 while on vacation and the second time came earlier this year to attend the World Money Fair.

The monument is impressive. I made it a point to see it in 2005 and climb the stairs to the top. I liked it so much, I returned a second time. It was one of the least expensive tourist sites in the city. With the euro as expensive as it is compared to the dollar, that meant something to me, especially as my trip was coming to an end and I had made as much of a dent in my wallet as I wanted to.

I stood where the presidential candidate stood and the vistas shown yesterday are familiar to me. The difference is yesterday there were 200,000 people thronging the avenue that also leads to the Brandenburg Gate, while when I saw it, it was a pretty routine September day, traffic was light and the number of human beings around could fit into several average urban buses.

I hope to return to the city again someday, especially if it includes another visit to the World Money Fair. World politicians may be claiming the city as their own now, but it should be remembered that the promoters of the World Money Fair found it first and made it a capital of numismatics in a great nation at the heart of the European Union.



7/25/2008 9:14:09 AM (Eastern Daylight Time, UTC-04:00)  #  Comments [0]
 Thursday, July 24, 2008
Past editor dies
Posted by Dave

One sad bit of news that came in this week was of the death July 18 of my first boss here. Arnold Jeffcoat was 72 years old when he passed on. He was editor of Numismatic News when I arrived 30 years ago to start my first professional job out of college.

He was irascible and smoked like a chimney. It was so bad that when he left in 1982, my first comment was that after five years my lungs would be like I had never smoked at all. This was a period before the dangers of second-hand smoke were well known.

His cubicle had higher walls around it and when he was at work it looked like a volcano throwing up a cloud of ash. His temper could erupt that way also.

Numismatic News, then as now, went to press on Thursday. He golfed Thursday afternoon.

Friday was the beginning of the next cycle.

“I’d rather eat a bug than read a Bailey,” he would declare loudly that day.

This was the Coin Clinic column, then written by free-lancer Clem Bailey who still lived in Iola. Bailey later went on to be editor of CoinAge magazine.

Jeffcoat knew his stuff. If you could get by the off-putting qualities and pay attention, you came out the better by working with him.

Jeffcoat had a terrible cough even when I first met him. In his last years, he was married to an oxygen bottle. He often declared that trying to quit smoking would kill him faster than the cigarettes.

Until his passing, I believe, no former editor of Numismatic News has ever died.

Obviously that happy state of affairs could not last.

Rest in peace, Jeff.



7/24/2008 9:05:00 AM (Eastern Daylight Time, UTC-04:00)  #  Comments [0]
 Wednesday, July 23, 2008
Local gold buyers worth watching
Posted by Dave

Gold is meandering lower today, which it often does the day before a Coin Chat Radio guest is forecasting record highs coming. The nature of markets is to fluctuate. That is certainly what it is doing around the present $938 a troy ounce.

However, a pause in the uptrend does not mean it is over.

But one year ago, who would have thought $938-an-ounce gold would represent a pause? To forecast it would have sounded almost wildly bullish, yet here we are.

One thing we tend to forget about high prices is their economic function. Gold prices might signal out-of-control inflation or out-of-control issuance of paper money by the Federal Reserve and the central banks of the rest of the world.

But another function of a high price is to signal to potential suppliers that more gold is needed. This signal doesn’t go to just central bankers or mine executives. It goes to the corner jewelry store too.
Judging by television ads that I see and news stories that I read, local shops are attracting a lot of sellers of what is termed “scrap gold and broken jewelry.”

Whatever you call it, it is new supply. How much is coming into the market? It is probably too soon to tell. However, Coin Market columnist Harry Miller says that silver refineries are backed up. True, that is not gold, but the pair tend to run in tandem.

At the 1980 high, the refineries were so backed up that the price of 90 percent silver coins were vastly lower than the market price would indicate.

With silver at $50 a troy ounce, any pre-1965 dime, quarter or half dollar was worth 36 times face. The highest market buy price that I saw was 24 times. This was in a market that at one time had paid a premium for 90 percent silver.

There was a hefty supply in the pipeline and prices came down in 1980. Is that happening now? It is probably too early to say, but the phenomenon bears watching.

Don’t forget to visit http://www.coinchatradio.com. There is a new program every Thursday at 11 a.m. Central Time.



7/23/2008 9:02:06 AM (Eastern Daylight Time, UTC-04:00)  #  Comments [0]
 Tuesday, July 22, 2008
When the price is right
Posted by Dave

For gold bullion coin buyers, the object should be to purchase the most gold for the least cost.

Often, buyers of the coins do not look at bullion coins as some sort of budgetary item that they used to get more cheaply years ago. They wax poetic over designs, or are indignant over the source of the precious metal. These elements not directly related to the intrinsic worth of the metal play a huge role in public perception.

However, price is never entirely ignored. When the 2008 gold Buffalo one-ounce coins and the new fractionals go on sale today, collectors and investors will begin making calculations based on prices.
Is $1,199.95 too much for a one-ounce proof coin when gold is $968? That’s a mark-up of almost 30 percent. But it is a proof coin.

Would the answer be different if it weren’t the Mint offering the coins for sale?

I had an e-mail inquiry from an individual who wanted to know if he had received a fair offer for two 14-karat gold rings. I calculated the gold value yesterday at roughly $162. The dealer apparently offered the e-mail writer $126. I said that seemed in line with the present market. The gold value was approximately 30 percent more than the offered price.

A follow-up e-mail from the writer suggested that the difference was too great. The dealer should be satisfied with five percent.

With almost identical profit margins, it is fair to say there will be a lot of happy buyers of the new Buffalo gold coins from the Mint and unhappy sellers of what is called scrap gold wondering why dealers don’t work on a narrower margin?



7/22/2008 9:10:30 AM (Eastern Daylight Time, UTC-04:00)  #  Comments [0]