Tuesday, September 29, 2009

A Commemoration to Enrico Fermi

Today, we wish a Happy Birthday to Enrico Fermi. If he was still alive, Fermi would be 108 years old.

Fermi was a Nobel Laureate physicist who is commonly credited with harnessing the nuclear power. Fermi won the Nobel Prize in Physics in 1938 “for his demonstrations of the existence of new radioactive elements produced by neutron irradiation, and for his related discovery of nuclear reactions brought about by slow neutrons” This work made him an important contributor to the Manhattan Project.

Fermi, who is considered one of the premier scientists of the 20th century, was granted 14 patents and was instrumental in the development of nuclear energy. He is called the father of nuclear energy.

In 1984, the Republic of San Marino,the oldest sovereign state and constitutional republic in the world, issued a 200 Lire commemorative coin (KM# 166) honoring Fermi on the 30th anniversary of his death. The coin is made of copper-nickel and is worth about $2.50 as an uncirculated coin.

Happy Birthday, Enrico, and thank you for sharing your work with the world!

Sorry, I forgot where I found the picture to give that person credit.

Monday, September 28, 2009

Movement to Redesign the Dollar

Over the last ten years, US coinage has seen many changes. Starting in 1999, the 50 State Quarters® Program and the DC and US Territories Coin Program has taught us about our country and entertained us with “interesting” designs. The Westward Journey Nickels, Presidential Dollars, and this year’s Lincoln Bicentennial One Cent Redesign have kept us examining our pocket change looking for something new.

US paper currency has also changed. But the changes are not what could be considered earth shattering. Rather than undergo a good design change, I had previously commented that the “[new] currency designs look like the Bureau of Engraving and Printing is dabbling in currency design after being mired using the same basic designs for over sixty years.” With little to no restriction on currency design, the BEP designs have gone from old to bland with no redesign planned for the one dollar bill that was designed in the 1920s!

An article that appeared in The Atlantic found a “image design consultant” who also thinks that the design of the dollar and its paper equivalents need to be upgraded.

Richard Smith, founder of the Dollar ReDe$ign Project thinks that as part of improving the US image, redesign its currency. Noting that a redesign may be looking backwards, Smith noted in an interview that “you need to go backwards to go forward.” (see video below) Without explaining this statement, Smith had to have been referring to the currency of the late 18th and early 19th century that produced phenomenal design.


Smith is approaching this issue from an image perspective. As a numismatist and a collector of Israeli paper currency, I am looking at the issue from a design perspective for making interesting collectibles.

Other countries seem to be able to handle change to their currency. In fact, the emergence of the Euro forced changes throughout Europe. Euro banknotes are printed in a variety of colors and representative designs that are accepted through out the European Union.

Also, the European Union and most other industrial countries does not issue their unit currency in paper. The United States continues to print the one-dollar note which I have written costs the government more to maintain.

Maybe if the numismatic angle is not working with the BEP, maybe the we could try the angle from the image consultant. Anything that could update the US staid currency design.

Wednesday, September 23, 2009

Fort Knox Visitors Day, 35 Years Ago

The United States Bullion Depository at Fort Knox, Kentucky has been called the world’s most secure facility. Its construction was completed in 1936 in order to store the country’s gold supply away from the coast to keep it safe from potential attack by Nazi Germany. Fort Knox is so secure that only those who work there, the Secretary of the Treasury, and the President of the United States may visit the facility.

Outside visitors are rare. Following President Franklin D. Roosevelt’s inspection trip in 1943, no outsiders have been allowed to visit the facility. Following an audit that was completed in 1953, the vaults were sealed and nobody was allowed to visit.

In 1974, noted conspiracy theorist Dr. Peter Beter wrote a book titled The Conspiracy Against the Dollar that alleged “powerful Americans have secretly permitted $20 billion worth of gold to be removed from Ft. Knox.” The claim caught on and the public clamored to prove that the nation’s gold was still in Fort Knox.

After clamoring from the public, congressed impressed on the Secretary of the Treasury William Simon and Director of the US Mint Mary Brooks to open the doors of the vault to public inspection. It was finally agreed that a select group of congress members and press would visit Fort Knox on September 23, 1974.

On September 20, 1974, the US Mint release the following press release:

FOR IMMEDIATE RELEASE
September 20, 1974

INSPECTION OF GOLD AT FORT KNOX

The inspection by Members of Congress on September 23, 1974, of U.S. gold stocks stored at the Fort Knox (Ky.) Bullion Depository marks a unique departure from the long standing and rigidly enforced policy of absolutely no visitors, Mrs. Mary Brooks, Director of the Mint, announced today.

“On April 28, 1943, President Franklin D. Roosevelt inspected the Bullion Depository,” Mrs. Brooks said. “His visit was the one and only time a gold vault was opened for inspection for anyone other than authorized personnel.

“The Congressional inspection adheres to the new open door policy of the government announced by President Ford. Treasury Secretary William E. Simon issued the invitation to Congressmen to inspect the gold at Fort Knox. By also inviting the press to witness the Congressional inspection, the Mint is clearing away cobwebs and re-assuring the public that their gold is intact and safe. For the first time photographing is being permitted inside the Depository.”

After the Congressional inspection, the Bullion Depository will once again be closed to visitors.

On September 24, 1974, a special settlement (audit) is scheduled to begin and at its conclusion a report on the audit will be issued.

The audit will be performed by a committee of auditors from the U.S. General Accounting Office (GAO) and the Department of the Treasury. The auditors from the Treasury will be drawn from the Office of the Secretary, the Bureau of Government Financial Operations, the U.S. Customs Service, and the Bureau of the Mint. In addition, the committee will include technicians from the Bureau of the Mint who are trained in assaying and weighing gold bullion.

The monetary gold stock of the United States totals 276.0 million fine troy ounces valued at $11.7 billion at the official rate of $42.2222 per fine troy ounce, and is stored in various federal depositories (table attached), the largest of which is at Fort Knox, Kentucky. 147.4 million fine troy ounces, valued at $6.2 billion, is stored in 13 vault compartments at Fort Knox Bullion Depository.

MONETARY GOLD STOCK OF THE UNITED STATES
(in millions of ounces)

Account of the U.S. Treasury  
Fort Knox147.4 
Denver Mint54.9 
New York Assay Office54.1 
San Francisco Assay Office10.6 
FRB New York – Special Custody Acct.4.2 
Bank of England1.3 
Bank of Canada1.4 
Other.1 
  274.0
Exchange Stabilization Fund 2.0
Total 276.0

For more on the Fort Knox visit, you should read the article by David Ganz, who attended as a freelance writer after skipping a day at law school.

Recently, the History Channel aired a show, Fort Knox – Secrets Revealed that was produced in 2007. “Hidden deep inside the vault is an estimated $73 billion dollars in gold. Almost all information about it is classified. Through interviews with eyewitnesses, rare photos and rarely seen films, we will construct a picture of what the building might look like. Hear testimony of those journalists and congressmen who were among the select few invited inside in 1974.”

If you cannot wait for the History Channel to air the show, you can purchase a DVD copy for yourself from Amazon.com. The link to the right will bring you right to the page to purchase the DVD.

Read the Blog Before Buying the Coin or Writing the Editor

One of the more interesting aspects of writing this blog is to be able to look into various aspects of numismatics and being able to explain what I discover to my readers. Sometimes, this research allows me to use what I write as a teachable moment to others. While I certainly subscribe to Aaron R. Feldman’s recommendation to “buy the book before you buy the coin,” but sometimes it may pay to read the blog.

Not long ago, I read an article printed in Numismatic News that had the valid point that the US Mint needs new and innovative direction. However, the writer placed the blame on the Mint itself without considering the law that govern everything the Mint does.

Long time readers may have remembered my post Sausage Making And Coin Production that described the process of how a coin or medal goes from being an idea to becoming a coin in detail. It is a sausage making process that would even scare Otto von Bismarck!

I felt that the writer of the opinion piece did not take into consideration that nearly everything the US Mint does is prescribed by law, as i described in my posting. So I took that posting, reworked it a bit to be more suitable for printed media, and sent it to Dave Harper, editor of Numismatic News. I learned from a colleague that the article has appeared on their website.

Long time readers will recognize the topic. Newer readers can use it to catch up. In either case, we might want to alter Feldman’s advice to “read the blog before buying the coin or writing the editor.

Thank you to all of my readers for being my inspiration.

Tuesday, September 22, 2009

PCGS Offers Second Tier Registry Competition

In an attempt to try to boost their business, the Professional Coin Grading Service (PCGS) has announced the launch of the “Everyman” category as part of their PCGS Set Registry competition. The main rule of the “Everyman” Collection are classic coins (mostly pre-1964) not grated higher than AU-58 by PCGS.

PCGS has been running their Set Registry since 2001. The PCGS Set Registry will only accept coins graded by PCGS. This is different from Numismatic Guarantee Corporation (NGC) whose registry competition will accept coins graded by NGC and PCGS. No other grading service offers registry sets.

While I do not begrudge PCGS for doing this, it seems like they have created a category for the “best of the rest.” Rather than compete for the best, you can compete for less than the best. It is like awarding someone for mediocrity. It reminds of the movie Meet the Fockers when Bernie (Dustin Hoffman) and Rozalin Focker (Barbara Streisand) were showing off fourth and fifth place ribbons and participation trophies to the over-acheiving Jack Byrnes (Robert De Niro). As I am looking at PCGS’s announcement as if I was looking at it through the eyes of Jack Byrnes.

I am not against registry sets. After all, I have written about my sets and even wrote when a set was called a top ranking set because it became third in its category. By the way, that set is now second in its category!

But why have a second tier competition? The only reason I can think of is that PCGS is trying to encourage more people to submit their coins for grading. There may not be many more higher grade coins to encapsulate, so this could be a reason to encourage those with coins that were not considered cost effective to grade to be submitted.

Who am I to question capitalism? Let’s see how many circulated 1935 Mercury Dimes (valued at $11 in AU58 according to the PCGS price guide) will be submitted for grading at $15 per coin in order for them to be entered in an “Everyman” set.

Sunday, September 20, 2009

1933 Double Eagles May Become Legal Tender

Thanks to an article that appeared in The New York Times, the case of Langbord v. U.S. Mint was back in the news. Apparently, the order [PDF] for the government to turn over the ten 1933 Saint-Gaudens Double Eagle coins to the Langbord family was posted to the website for the US District Court for Eastern Pennsylvania.

In the order, Judge Legrome D. Davis, Jr. agreed with the plaintiff (Langbord family) that the coins were illegally seized and order the government to turn over the coins or initiate a judicial forfeiture procedure by September 28, 2009. There has been no comment issued by the US Mint or the Department of the Treasury. It is expected that the government would file a forfeiture procedure that would have to prove the coins were stolen from the US Mint. Since the alleged crime occurred 75 years ago and none of the principals are still alive, the government has a very high standard to meet.

The 1933 Saint-Gaudens Double Eagle coins has been the source of legends. After the sale of the Farouk-Fenton Coin for $7.59 million in 2002, its story became the inspiration for two books, Illegal Tender and Double Eagle, and inspired legislation to protect older coins and patterns that left the Mint under allegedly nefarious conditions.

But would the addition of ten coins reduce the value of the Farouk-Fenton specimen?

Along with condition and rarity, any special story or provenance of a coin will affect its price. The story and provenance of the Farouk-Fenton specimen is extraordinary. It was the subject of international intrigue including the overthrow of King Farouk of Egypt and the chase by the US Secret Service for the coin that lead to the sting at the Waldorf Astoria Hotel where British coin dealer Stephen Fenton was arrested trying to buy the coin.

Two books, a court case, and a sale by Southeby’s for $6.6 million (plus the 15-percent buyer’s fee making the total $7.59 million) makes it a one-of-a-kind coin.

Even if the Switt-Langbord coins enter the market they may never reach the status of the Farouk-Fenton example. The only factor that could bring down the price of the Farouk-Fenton coin would the be effect of the economy. Otherwise, it will stand alone as the first 1933 Saint-Gaudens Double Eagle that comes with a very unique story.

Image courtesy of the US Mint and NY Times.

Wednesday, September 16, 2009

Heritage Accused of Racketeering

Heritage Auction Galleries, the third largest auction house in the country and probably the largest auctioneer of coins, is being sued by a former employee alleging that Heritage executives perpetuated a “massive auction scam.” The lawsuit charges that the Heritage used an undisclosed shill bidder at auctions to inflate the price. Co-defendants of the suit include Heritage executives Gregory J. Rohan, Steve Ivy, James L. Halperin, Marc D. Emory, Paul R. Minshull, and Dagmar Byers.

Filed on May 22, the suit alleges that Heritage and its executives violated the Racketeer Influenced and Corrupt Organizations Act (RICO, Title 18, Chapter 96), and the Texas Pawn Shop Act [PDF].

The suit was brought by Gary Hendershott, an alleged expert in Civil Was memorabilia and was recently joined by Montana businessman Chris Kortlander. Kortlander claims to have “consigned thousands of individual historical manuscripts and photographs to Heritage,” and claims to have been deprived of profits because of the use of the shill bidder.

Along with Kortlander’s claim, Hendershott claims he is owed $1.6 million for commissions on auction sales. Part of the sale includes two paintings purchased by a trust Hendershott was working with. A judge ordered that sale be arbitrated after the filing of suits and countersuits.

So let me see if I understand this lawsuit. Kortlander is suing Heritage because they use a shill bidder to increase the hammer price to levels higher than if the shill was not participating and Kortlander claims he was deprived of profits? What would the profits have been if the shill was not bidding on the auction? Would the same prices have been realized?

With Hendershott’s attorney Mark Senter being accused by Heritage President Greg Rohan of rewriting the suit with “salacious headlines,” the filing reads like one of a disgruntled employee and his attorney looking for attention to force Heritage to settle rather and experience the negative press.

One could only wonder what Judge Judy would say!

Corrected second to last paragraph (as marked) to clarify the quote.

Saturday, September 12, 2009

Yet Another Rotating Coin Series

On Wednesday, the US Mint announced the America the Beautiful Quarter Series, a 56 quarter series to “honor” national parks in the 50 states, District of Columbia, and territories. As part of the announcement, the US Mint announced the schedule of the national parks and historic areas that will be depicted.

According to the US Mint, a “restored” version of the 1932 portrait of George Washington designed by John Flanagan. Either this could mean that the Mint engravers will either fix the “spaghetti hair” portrait of the 50 State Quarters or change it to resemble linguini.

Pardon me if I fail to show excitement.

We just finished the State Quarters program and had the DC and Territories Quarters added to the end. This year we celebrate the bicentennial of Abraham Lincoln’s birth and the century anniversary of the Lincoln Cent. The Presidential $1 Coin series is in the middle of some of the dullest presidents in US history. And we cannot forget the Native American $1 Coin that probably has the best reverse design of all 2009 coins. Including the circulating coins without rotating reverses the total is 18 different coins being struck this year.

I agree with Mike Zielinski when he wrote on the Coin Update blog:
Although I did enjoy the 50 State Quarters series, I think reusing the same concept over and over again becomes dull. With no disrespect to the sites selected for the impending quarter series, I would rather see a single design that could become an iconic and lasting symbol of our generation [rather] than another collection of 56 designs representing 56 different things.

Let’s think of these quarters as a stimulus package for the collecting suppliers who will sell new folder and albums to house the coins in this series.

Below is the B-roll provided by the US Mint. Starting around 2:23 of the clip are scenes from within one of the branch mints showing the production of quarters.

Wednesday, September 09, 2009

Log Cabins from Henderson

Henderson, North Carolina is a small town north of Raleigh. Henderson was founded in 1785 by Samuel Reavis, Sr. and named for North Carolina Supreme Court Chief Justice Leonard Henderson. Reavis was a tobacco farmer and the town grew with the tobacco industry in North Carolina. When the Raleigh & Gaston railroad line was completed in 1835, Henderson became a regional trading area for tobacco, cotton, and textiles.

For most travelers today, Henderson is just about the only place to stop along I-85 between the northern most point of the highway in Petersburg, Virginia and Raleigh. Like many travelers, as I made my way north, I checked my car’s gas gauge and levels of personal fluids and made the decision to stop at one of Henderson’s fine service areas.

Following my purchase, I notice that the change handed to me included a few very shiny Lincoln cents. Considering my past experience, I dropped the coins in my pocket and returned to my car. After sitting for a few seconds thinking about the possibilities, I reached into my pocket to check my find. To my amazement I found three Lincoln Log Cabin Cents! All three were from the Philadelphia Mint and looked like they were from recently opened rolls.

This is the second time I found new Lincoln Cents in North Carolina. In fact, it is the only state where I have found 2009 coins! So when I returned to the DC area, I promptly spent the coins to put them in circulation here.

I still have not found any other 2009 coin in change including the DC and Territories Quarters. But I will keep checking.

Monday, September 07, 2009

My Inspiration, A Son's Memory

This post has only tangential mentions of numismatics. If you will indulge me on this occasion I promise to continue writing about various numismatic topics during this week. Thank you.
As we go through life, we lose perspective as to how much our parents had influenced our lives until something forces us to think about it. Since my mother’s passing on August 27, I have been thinking about how her influence has affected me and maybe what I write about on this blog.

Although my mother was not a direct influence in my early entry into coin collecting but she never discouraged me. I remember finding an early 20th century Indian Head Cent in the money I collected for delivering Newsday in the early 1970s. The first person I showed this coin to was my mother, who was cooking dinner at the time. Although the coin did say "United States of America," she did not know about the coin. I had to wait for my father to come home, but we talked about the coin all evening.

As I grew up, there was the usual parent-child tension that built up that was outgrown as I matured. But she was always supportive of whatever I did as long as I met my responsibilities, such as school or work, without criticism. She was so concerned about me that she would not let me get my driver’s license until I passed her driving test. She finally allowed me to take the driving test two weeks after my 16th birthday which I passed without issue.

My mother started painting and drawing as a teenager and stopped while she had three children, which I am the oldest. She went back to painting in the late 1960s. I remember watching her set up her easel in the kitchen and paint. Later, when her youngest child went to college, she went back to school to earn a Bachelors of Fine Arts. Of course she graduate with honors (Cum Laude).

My mom was diagnosed with Lupus 15 years ago and worked as long as she could doing and teaching flower arranging until her hands couldn’t handle the cutting. She was told to stop oil painting, acrylics, and the polymer clay because of the fumes were effecting her lungs. So she took up watercolors, colored pencils, and charcoal. When her hands were not as steady, she worked on a computer and whatever else she could do.

During her ups and downs, I would buy craft kits, colored pencil kits, books on alternative arts, and send them to her for inspiration. Sometimes it worked. Sometimes her health would not let her do much.

After my first wife died, I found my old blue coin folders and the folders I purchased for the 50 State Quarters and decided to dive back into collecting. My mother, who was feeling better at the time, encouraged me to pursue this outlet. We began to encourage each other to pursue our interests.

Over the last few years, my mother participated with Art Cards Editions and Originals (ACEO). Art cards are 3½ by 2½ inch works of art that are sold and traded. Art cards were a great outlet for someone who loved art but could not do larger work. I know she bought cards with themes she liked and cards from others who were also being challenged by illnesses. She was also ecstatic when one of her images were chosen for the group’s cookbook. She bought a copy of the cookbook for me.

When I started this blog in October 2005, I sent her the link to my first post. I was trying to show her how easy it was to put together a blog. I was hoping she would write about her experiences as someone with a debilitating illness can continue to create wonderful art. She commented on that first posting and I told her how I can help her set up a blog. Unfortunately, she never created a blog.

I know she was an infrequent reader of my blog since she would comment about some of my writing during our many phone conversations. The former English major would comment on my writing style and grammar letting me know what could be improved. The last time she commented on my writing I had to correct the posting twice before satisfying her!

My mother inspired me to try my best at whatever I do regardless of the curve balls life throws. In her memory, I will be working on a few projects for both personal and numismatic satisfaction. I will also continue to write about numismatics and try to maintain the writing standard she inspired. For my mom, I dedicate this blog and all future posts to her memory.

Rest in peace, mom. I hope you continue to be proud of me!
If you would like to help me celebrate her life, please consider donating what you can to the Lupus Foundation in the memory of my mom, Lorri Barman. Thank you.

I do not know who owns the art cards that I posted, but I found these electronic samples of art cards on her computer. I believe both cards were created with watercolor and ink.