The "Buzz" Coin Blog with Dave Harper

How many sets will be sold?
Posted by Dave

Are you pawing the ground to get your order in to the U.S. Mint for the four-coin set of 2009 Lincoln cents when they become available next week on Aug. 26?

The price is just $7.95 each, making it one of the most affordable offerings this year.

However, there are only four cents in the set. If you figure the relationship of face value to price, you get a staggering 198.75 times face value – and that is without figuring in the $4.95 per order handling charge.

Will anyone be making that calculation?

Who am I to ask?

I didn’t think that so many people would think $8.95 was too much to ask for a two-roll set of Lincoln cents. Now I know better.

Perhaps mollifying that crowd is the fact that the cents in the set will be made of the historical bronze alloy that was used in 1909. That is 95 percent copper and five percent tin and zinc.

Even Alan Herbert, who is a purist in his description of bronze in his Coin Clinic column, will be happy with the return of the historical alloy as opposed to the more recently used 95 percent copper five percent zinc alloy that is brass.

See, Alan? You have managed to teach me something after all these years.
But now I have to go figure out how many sets of those proof bronze cents I want next week.

Friday, August 21, 2009 2:07:08 PM (GMT Daylight Time, UTC+01:00)

Comments [1]

Thursday, August 20, 2009

Stamp those Polk dollar coins
Posted by Dave

Remember the Presidential dollar? You would be forgiven if you said you don’t. They have definitely been put in the shade by the Lincoln cents this year.

We are suffering from the third-year curse of lack of interest and a run of Presidents who few remember, but that doesn’t mean they didn’t do important things.

Today, the James K. Polk Presidential dollar is formally introduced at 10 a.m. at the former President’s home in Columbia, Tenn.

Remember what he did? No?

Well, it was a little matter of leading the country in a war with Mexico 1846-1848 that resulted in the United States annexing over half a million square miles of territory in the Southwest and West, including California.

Abraham Lincoln, that star of the wildly popular cent, opposed the war and was chucked out of Congress for his trouble in 1848

Conveniently for the United States, gold was discovered in such large quantity in California in 1848 that it catapulted the place to statehood in 1850.

Oregon and Washington territories were also added to the United States.

Polk was the man in the White House at the time, but little of this history is likely to find its way to the public, nor will the coins likely find their way to their neighborhood banks.

Perhaps we should ask the Mint to stamp “CAL” on some of those dollars as was done on the 1848 $2.50 gold pieces just to create an historical parallel and perhaps a little bit more interest.

Thursday, August 20, 2009 2:06:47 PM (GMT Daylight Time, UTC+01:00)

Comments [1]

Wednesday, August 19, 2009

Slower start for cent roll set
Posted by Dave

The two-roll Professional Life Lincoln cent set went on the boards this week with an initial sales total reported by the Mint of 152,146. This compares to 200,055 for the first report on the Formative Years two-roll set.

Both numbers cover sales during the initial three days. In this case, from Aug. 13 when sales began to Aug. 16.

Does this mean that interest in Lincoln cents, or at least in this form of Lincoln cents, has peaked and is coming down?

Possibly.

Perhaps in aiding the process of drawing a conclusion one way or another is the news that the Formative Years two-roll set was taken off the market with sales totaling an even 300,000.

Since last week’s Mint Stats page reported sales of 300,246, the Mint is rounding down. Does that mean this number of orders has fallen through, or that there will be a few disappointed late would-be buyers? That I cannot answer, but with the usual credit card expiration snafus it is easy enough to imagine 246 sales disappearing.

Also, does this mean that the Mint has penciled in 300,000 as the ceiling for the final two offerings? Nothing seems to goose sales to collectors more than a ceiling. Still, that number is more than three times the 96,000 sales achieved by the Birthplace two-roll set in March.

Last week’s cent debut ceremony at the Old State Capitol in Springfield, Ill., came off without a hitch. There were collectors lined up to get the rolls offered for face value.

The line went by the area where the ceremony was held, so persons could watch without losing their place. That’s progress.

Now we watch for a while to see how sales results unfold and begin thinking about the fourth issue in three months’ time.

Wednesday, August 19, 2009 1:53:38 PM (GMT Daylight Time, UTC+01:00)

Comments [1]

Tuesday, August 18, 2009

Spend time, not money if necessary
Posted by Dave

During this recession there are probably many collectors who wonder about their hobby futures. It takes money to expand a coin collection. Money is in short supply either because of a lost job, or the insistence of a spouse that now is not the time to spend money on what might be considered nonessentials.

I would never make a case that a spouse’s wishes should not be respected. That wouldn’t be a smart thing to do.

While there might be a few bargain coins to be had at the moment if you are willing to spend the money to acquire them, the long-term health of the family is far more important than scoring a good deal.

If you find yourself thinking in these either/or terms. Stop. Think of this recession as the time to invest more time rather than more money in your hobby.

Teach yourself something new through books and periodicals. For example, if you collect modern half dollars, throw yourself into learning about large cents. Describe it as cheap entertainment to your spouse.

It does not matter what new area you pick as long as you pick something that will spur you to learn more about numismatics. It might be commemoratives or silver dollars that appeal to you, or even paper money or world coins. The possibilities are numerous.

No matter what you tell your spouse, learning is the opposite of cheap. It is very valuable. It prevents a hobbyist from being in an endless loop of mistakes. It forms the basis of a collection that retains and gains value better than random accumulations.

We all make mistakes. We all buy coins that are overgraded at one time or another because we missed something about them when we were considering the purchase. We all splurge on an impulse buy. That’s normal.

Education, though, channels this energy and interest in the most constructive way possible over the long haul.

If you are facing personal budgetary doubts, by all means rein in your expenditures of cash, but do not rein in your expenditures of time. Time spent studying now will pay off big time in your numismatic future.

The late Art Kagin often said to me that collectors cannot buy a coin every day, but they can read about them every day.

Take his advice and when good times return you will be ready.

Tuesday, August 18, 2009 2:09:46 PM (GMT Daylight Time, UTC+01:00)

Comments [0]

Monday, August 17, 2009

Still magic in 2014?
Posted by Dave

What will the hobby be like five years from now when more and more coins are graded MS-70?

One of the things that I learned at the American Numismatic Association convention is that the professional third-party grading services are staying afloat financially because of the their willingness to grade the modern coin series that then get sold on television or through direct marketing efforts.

The holy grail for the marketers is to get coins that they can turn around and market to people as the near magical MS-70 or Proof-70.

This effect occurs both at the top end of the market and the bottom. Part of the motivation for the run on Ultra High Relief Saint-Gaudens gold $20 gold pieces was the chance to get a few that will make Proof-70 and thereby command in the current marketplace premiums of hundreds of dollars over the $1,289 issue price that prevailed at the time.

This is what gives the dealers the profit margin to essentially pay people to stand in line for the coins at the show.

But this isn’t just a high-end phenomenon. It happens with issues like Presidential dollars. Each new design generates yet more submissions to the grading services. It is a wonderful profit generator for all parties to it – except perhaps the end buyer.

The end buyer in 2014 or 2015 will suddenly come face to face with the question: “What’s an MS-70 John Tyler Presidential dollar worth?”

If I want to be funny, I would say it will be worth more than an MS-65 John Tyler. But what exactly is that value?

Coins are valued according to supply and demand. If demand exceeds supply, prices rise. If supply exceeds demand, prices either fall or stabilize. I can write stabilize because in a weak market, coins can simply stop trading and guide book prices can simply sit there for years until the next renewal of interest occurs.

What will thousands or even tens of thousands of MS-70 John Tyler dollars be worth in 2014? I fear much less than the buyers paid for them. Gold coins at least have a floor put under their prices by the gold bullion market. Presidential golden dollars will not have that benefit.

The lesson: If you like collecting Presidential dollars in the finest possible condition, great. Go for it. But if you are hypnotized by the sales pitch of buying the finest grade and paying a premium price that can never be recovered in the secondary market, you had better think again.

Monday, August 17, 2009 2:08:38 PM (GMT Daylight Time, UTC+01:00)

Comments [0]

Friday, August 14, 2009

Collectors who shoot their own feet
Posted by Dave

After being on the road to the American Numismatic Association convention for over a week, as might be expected it takes some time to catch up in the office.

There are the usual deadlines to meet. The Bank Note Reporter Paper Money Market price guide section went to press Tuesday. The September World Coin News went to press Wednesday. Numismatic News went to press Thursday. Today the September Coin Market price guide goes to press. I have roles to play in all of those. And then there are the e-newsletters and www.CoinChatRadio that I also contribute to.

Naturally, though, the biggest call on my time is to get Numismatic News out the door with as much space devoted to ANA activities as possible. I think it is important to give readers a flavor of what goes on at major shows. These are the basic commercial infrastructure of both the hobby and the commercial sector.

I know a majority of Numismatic News readers do not attend. However, having a working knowledge of who does what is useful in pursuing the coin collecting hobby.

Many hobby misunderstandings would not happen if collectors themselves would take in a show or two during the course of the year to become acclimated. To meet dealers face to face is important. To talk to hobby leaders about common problems is important. To get out there to simply buy and sell a little is important.

That is what makes the fully rounded hobbyist.

Of course, nobody makes you do that or makes you eat your vegetables. I can be just a blowhard pontificating on a Web site.

However, if collectors would do such things I would get fewer phone calls from elderly collectors who have never sold a thing and have no idea how to maximize value. They are virtually guaranteed to screw it up.

I have calls from collectors who are upset with dealers who will not take their phone calls. A little face-to-face show contact from time to time would do wonders for a business relationship.

I have calls from people who are not ANA members or even subscribe to Numismatic News who find themselves in unfortunate situations. Sometimes it’s their own doing. Sometimes it isn’t. They demand action.

The ANA and Numismatic News have limited resources. Do the math. Who do you think gets helped first?

Friday, August 14, 2009 2:18:50 PM (GMT Daylight Time, UTC+01:00)

Comments [0]

Thursday, August 13, 2009

An other cent rock festival?
Posted by Dave

Will the Old State Capitol in Springfield, Ill., turn into a numismatic rock festival this morning as the one in Lincoln, Ind., did in May?

The third Lincoln cent design is scheduled to arrive officially at 10 a.m. midwifed by Mint Director Ed Moy and local dignitaries U.S. Sen. Dick Durbin and Mayor Tim Davlin.

Thousands queued up to get the second design in Indiana and completely ignored the formal ceremony. Many went through the line two and three times to get more cents.

I had an e-mail from a former enthusiast, who attended the Lincoln City ceremony early. This time he didn’t have a good thing to say. He wasn’t going to the third event at all.

Perhaps his illusion of vast fortune beckoning was shattered in Indiana. I can’t know for sure, but nothing seems angrier than a hobbyist who decides he has been deprived of speculative profit when it seems like others are getting it.

Taking the pressure off the cent release in Illinois are two other sales locations set up in Washington, D.C., one hour earlier (because of the time difference).

Collectors will be able to buy rolls of Lincoln cents for face value at Union Station and at the Mint’s headquarters building from 10 a.m. until 4 p.m. today. Next month the cents will be available on Capitol Hill at the Rayburn House Offfice Building.

Collectors who do not want to drive, can order two-roll sets online, but they will of course have to pay $8.95 each plus a handling charge of $4.95.

So is the bloom off the numismatic rose? we will soon see.

Thursday, August 13, 2009 2:04:31 PM (GMT Daylight Time, UTC+01:00)

Comments [1]

Wednesday, August 12, 2009

Eunice Shriver made a difference
Posted by Dave

Eunice Kennedy Shriver died yesterday at the age of 88. News of her passing evokes some memories for me.

The Special Olympics silver dollar of 1995 bears her portrait. In the debate over what the design should be for the coin, we in the hobby relearned something we probably knew generations ago but had forgotten: living persons can appear on U.S. coins.

The precedents were there. Gov. T.E. Kilby of Alabama appeared on a 1921 half dollar marking the centennial of that state’s admission to the Union.

The Sesquicentennial half dollar of 1926 shows President Calvin Coolidge during his term as President.

Shriver then appeared on the dollar as the founder of the Special Olympics, though the origin of the program was an athletic event in Chicago in 1968. Shriver took it up and made it international.

During the debate on the coinage, I wrote an editorial favoring the coin. It was a single silver dollar design, which I found refreshing. The Olympic program for the 1996 Games was going to be 32 pieces. That was at the height of the commemorative proliferation era when we in the hobby were recoiling from the excess. Imagine settling for just one coin.

It was a good cause. It was modest.

My support for the program also elicited two interesting telephone calls.

I was telephoned at home one evening by Sargent Shriver, the founding head of the Peace Corps and a former vice presidential candidate. He was also Eunice’s husband. He thanked me for my support. That graciousness set him apart.

A second phone call reached me in the office late one afternoon to help keep the universe in balance. The man from Pennsylvania was irate. Didn’t I know I was supporting a Kennedy? A Kennedy!! He canceled his subscription on the spot.

I never met Eunice Kennedy Shriver, but she obviously made a difference with her life.

Wednesday, August 12, 2009 2:14:21 PM (GMT Daylight Time, UTC+01:00)

Comments [0]

Tuesday, August 11, 2009

Fast start for Mishler at ANA
Posted by Dave

I had a telephone call from Cliff Mishler yesterday afternoon. He was in Colorado Springs, Colo., at the headquarters of the American Numismatic Association.

He was laying the groundwork for his two-year ANA presidency after being sworn in Saturday night and he wanted to fill me in on a few things. He also telephoned other media outlets to tell them the same thing.

Already he has a schedule for the board that board members can look at and plan for and so can I. That is something that I have never had in such detail before.
Consider the board’s schedule in the next 12 months.

There will be four face-to-face meetings and four telephone conferences.

The meetings will start with one in Colorado Springs Oct. 12-13. There will be executive sessions and public sessions. In recent years this has most often been simply executive sessions. Any open sessions had been dropped in at the last minute. Do I want to come? I have to do some pretty fancy dancing for my publisher to justify the last-minute expenses. Our budget, like many others, is set a year ahead of time.

The next board meeting will be at the Florida United Numismatists convention Jan. 8, 2010.

Then Fort Worth March 25-28 for the National Money Show and then the Boston World’s Fair of Money starting Aug. 11, 2010.

Board conference calls are already scheduled for Nov. 17, Feb. 16, May 11 and June 22. There will be public portions that I and others will be allowed to listen in on.

Mishler pledged to do as much business as possible in open session to even avoid an impression of doing too much in secret.

He admits that even in light of the many lawsuits that are currently in the process of resolution, too much business was conducted out of sight. He is working to change that.
I wish him luck. I think most ANA members feel as I do.

Has a new era dawned? We’ll see.

Now we have to stand back and let the new board function. I can write up a report card next year.

Tuesday, August 11, 2009 2:09:22 PM (GMT Daylight Time, UTC+01:00)

Comments [1]

Monday, August 10, 2009

Still traveling, mulling ANA observations
Posted by Dave

My trip to the American Numismatic Association World's Fair of Monday has taken an unexpected turn. I am sitting here this morning in a La Quinta hotel in suburban Milwaukee. I arrived in my room at 3:30 a.m. after a delayed departure from Los Angeles International Airport.

It has been a short night, so if you find any typos, I hope you can cut me some slack.

One of the most interesting happenings at the ANA was the repeated runs on the supply of Ultra High Relief Saint-Gaudens gold $20s at the U.S. Mint booth. Long lines would form in the morning to buy them and before the day ended, the supply would be gone.

This isn't something you would think would occur for a product that has been available since January, but it did.

The increase in the order limit to 10 coins per person presented dealers with opportunities to assemble a large supply quickly. They were paying people a $60 per coin bounty for the pieces. Intrepid individuals could earn $600 for their time standing in line by simply walking from one side of the bourse to the other with their 10 pieces. Even ANA award winners were spotted in the line.

Why would dealers be assembling positions in this coins? As it was pointed out to me, the coins are still trading at a premium on the secondary market, but the first stop with the new supply is the grading services. Finding a few pieces in each 10-coin lot that make Proof-70 will add significantly to their value. The rest of the coins can be bulked out for a small profit.

Buying coins one at a time through the mail just didn't make this type of thing possible.

Another thought that was expressed to me by a hobby observer was that since a 10-coin transaction was almost $13,000, it was a quick way to do cash deals without filling out cash transaction forms. Was that a motive? I don't know.

Whatever the case, it was interesting to see the Mint booth being the most active spot on the bourse floor.

Now I will turn my attention once again to getting home.

Wish me luck.

Monday, August 10, 2009 2:38:13 PM (GMT Daylight Time, UTC+01:00)

Comments [0]

Google Sponsored Links

Free Updates

Navigation

Search

Archives

More Links