Where is the ANA In This Electronic Discussion?

I have never had a reaction to anything I wrote as I have regarding electronic publishing. Not only have I heard from numismatic publishers, but on the E-Sylum newsletter from the Numismatic Bibliomania Society. The editor of the E-Sylum electronic newsletter has been posting excerpts from my postings regarding electronic publishing and responses from other readers.

One of the responders is David Lange, Research Director at Numismatic Guaranty Corporation and author of many excellent books. His latest book, Coin Collecting Boards of the 1930s & 1940s, opens the history of how coin boards changed the collecting habits of millions of collectors—a book I recommend. However, in response to my request for more electronic publication, Dave writes:

The problem I have with doing a book solely in electronic format is one which many numismatic authors and publishers may have encountered---ours is a hobby that caters mostly to older people. I know that the buyers of my current book and the subscribers to my price lists and newsletters are mostly my age and older.

Not to pick on Dave, but his response is an endemic problem with the hobby. Numismatics is dominated by many people over 50. If there is a second age group, it is younger than 18. Missing in the demographic are those from 18-50 who might have been a Young Numismatist but dropped out in college and did not return until after their children have grown. This situation is unacceptable if the hobby is to survive!

One question I have: where is the American Numismatic Association in this discussion?

Sure, the ANA now offers editions of The Numismatist online, but where is the rest of their outreach? Twitter and Facebook are only outreach tools, they are not delivery platforms. The ANA has wonderful programs for Young Numismatists to bring those under 18 into the hobby, but what programs do they have to keep them engaged? Even though the YN program extends to 22, keeping those in college or trying to start careers interested as they mature into their lives is severely lacking.

The ANA can offer better outreach to this connected demographic by the appropriate use of technology. This does not have to cost a lot of money. It takes a little imagination to figure out where these potential members congregate online and deliver new content.

For example, hometown coin clubs may not be accessible to collectors at college. What about virtual coin clubs? The ANA can create “Numismatic Counsellors” to hold periodic meetings that members could access from anywhere. Presentations can be given online by anyone or the meeting can consist of videos, show and tell, and discussion amongst members. And for an average cost of $4,000-5,000 per year, it could be the least expensive outreach the ANA could do.

Has the ANA ever thought to using this service to bring the Coins in the Classroom program on line? When teachers register for the seminar, Education Department could send the materials via regular mail. When the seminar is held teachers can login to the online classroom to support this program. It would reduce travel, lodging, and room rental costs for those taking the online seminar. And the ANA can hold more of these seminars to further the outreach to a new audience.

I have many more examples of how the ANA could reach out to more people—like using a streaming video service during the ANA conventions. However, the last time I wrote to the ANA Board to discuss a previous post, I was disappointed with the response. I volunteered my services as someone with over 30 years in the computing industry and have not heard back from anyone mentioned in various email notes. DISCLAIMER: Shortly after writing my note my work assignment changed limiting my time, but I could help in smaller ways.

However, if something happened to limit my time, an organization should never ignore a member who is volunteering to help. Not only do I have experience in this area, you never know when my situation will change that will allow me to participate further.

I think the hobby is losing a lot of potential members by not using technology to keep members interested after they are YNs. Especially over the last ten years, as YNs grow up and transition to young adults, they are very comfortable with technology. They are very heavy consumers of electronic content. If the ANA provides its outreach online where these potential members are, maybe the age demographic of the hobby will be more distributed than it is today.

Launch of the Gettysburg Quarter

The Battle of Gettyburg was the pivotal battle of the Civil War. The three day battle (July 1-3, 1863) started when Confederate General Robert E. Lee attacked the Union position in an attempt to invade the North after successful battles in Northern Virginia. Gettysburg was defended by Major General George G. Meade who arrived at Gettysburg three days before the battle began. The Confederate Army began its Retreat from Gettysburg on July 4, 1863 following the resounding defeat after (Maj. Gen. George) Pickett’s Charge on Cemetery Hill.

The Battle of Gettysburg is considered the turning point of the American Civil War because of the morale boost it provided the Union forces. But when the battle was over, there was no mistaking the cost of this battle in that between 46,000 and 51,000 Americans died on the battlefield.

The Gettysburg National Cemetery was dedicated on November 19, 1863 with speeches from Edward Everett and President Abraham Lincoln. Everett’s two-hour formal speech at the event preceded Lincoln’s 271-word Gettysburg Address, a speech that proved Lincoln was not a good prognosticator: “The world will little note, nor long remember what we say here....”

The Gettysburg National Military Park came into existence on February 11, 1895 when President Grover Cleveland signed the legislation into law. Originally, the law required the park was to be administered by the War Department. In 1933, control was passed to the National Park Service.

On January 25, 2011, the U.S. Mint launched the The Gettysburg National Military Park Quarter held at park’s Museum and Visitors Center. U.S. Mint Associate Director for Sales and Marketing B. B. Craig and Gettysburg National Military Park Superintendent Bob Kirby co-hosted the event, with Barbara Finfrock, vice chair of the Gettysburg Foundation, serving as master of ceremonies.

The reverse of the quarter depicts the 72nd Pennsylvania Infantry Monument, which is located on the battle line of the Union Army at Cemetery Ridge. It was designed by Artistic Infusion Program Master Designer Joel Iskowitz and engraved by U.S. Mint Sculptor-Engraver Phebe Hemphill.

As with previous releases, the U.S. Mint released an edited B-roll video of the launch with highlights, scenery, production footage.

This is the first quarter in the America the Beautiful Quarters Program representing a piece of United States history. We should always note and long remember what happened in Gettysburg and learn about the events leading up to the worst conflict in U.S. history so that we may never relive that history again.

Gettysburg Quarter Launch Info

Followers of the U.S. Mint may have read the announcement that the launch launch of the 2011 Gettysburg National Military Park quarter will be held Tuesday, January 25 at 11:00 A.M (Eastern Time) at the Gettysburg National Military Park Museum and Visitor Center. The public event will include a cash exchange for $10 rolls of the new quarters. Attendees 18 years old and younger will receive a free quarter to commemorate the event.

After the launch ceremony, the U.S. Mint will host a forum where the public will have an opportunity to ask questions and share their ideas about the future of the Nation’s coinage. The forum will be held Monday, January 24 at 5:30 p.m. ET in the Ford Motor Company Fund Education Center at the Gettysburg National Military Park Museum and Visitor Center. No word as to whether someone from the Citizens Coinage Advisory Committee will be at this forum.

What the announcement did not include was that B. B. Craig, the Associate Director of Sales and Marketing for the U.S. Mint, will be the Mint’s representative at these events. In checking the 2008 Plum Book, the Associate Director of Sales and Marketing is not listed as a policy or supporting position. Thus, Mr. Craig may be a career professional stepping up to represent the U.S. Mint. Regardless of what you read in the press or hear from politicians, government career professionals are hard working citizens doing the jobs prescribed by the laws passed by congress on behalf of the American people. I wish Mr. Craig well in his appearance!

Another Maryland Note Comes Home

I think I may adjust my 2011 collecting goals to finding representative notes of Maryland colonial currency from each emission. While searching an popular online auction website, I found a listing for a note that needed to “come home.” This note did not look like it was in as good condition as my previous purchase, but it looked good enough to represent a new emission.

With money in demand, the Maryland Colonial Assembly authorized an emission of $318,000 in indented bills without legal tender status that would be issued as loans which came due between October 10, 1781 and April 10, 1782. The dollar was tariffed at 4/6 sterling or equivalent in gold or silver. These notes were similar to the release of 1767 except they listed the printers as A.C. and W. Green (Anne Catherine Green and her son William). Jonas Green, Anne’s husband, had died three years earlier. Each bill had two signers, who were Robert Couden, an Annapolis dry goods merchant and mayor of Annapolis from 1786–87, and John Clapham, a landowner in western Maryland who served as sheriff (tax collector) of Anne Arundel County (Annapolis) from 1770–72. These two went into private business together in 1772.

This note has a few condition issues that give it the character of surviving 241 years. Aside from the softness of the paper from handling, the center has a fold that is beginning to tear from the bottom and the bottom right corner (obverse) is torn to almost coming off. But the printing is still clear including the signatures of two Maryland patriots.

One of the interesting features of this note is the “J G” included in the right leaf on the reverse of the note for Jonas Green. Green’s influence can also be seen on the obverse of the note on the left border that says “JG Printer · T Sparrow, sculp.” These notes were sculpted by Thomas Sparrow, a Maryland artist who provided most of the border cuts for Maryland colonial currency.

Those who study the history of colonial currency are quick to note that Maryland notes declare that they “shall entitle the Bearer hereof to receive BILLS of Exchange payable in LONDON, or Gold and Silver, at the rate of FOUR SHILLINGS AND SIX PENCE sterline per Dollar for the said BILL.” Notes issued by the Maryland Colonial Council were backed by the profits of Calvert family whose head was Frederick Calvert, the Sixth Lord of Baltimore.

Frederick Calvert was somewhat of a ladies man after becoming the Sixth Lord of Baltimore and Fourth Proprietor of Maryland at the age of 20 in 1751. Aside from having several mistresses, one who published a scandalous autobiography in 1768, he was accused of abducting and raping Sarah Woodcock in London. Although Calvert was acquitted after claiming the encounter was consensual, Calvert escaped to Europe looking to escape his notoriety. Calvert eventually died in Naples in September 1771.

During this time, nobody spoke for the Calvert family and the Maryland assembly continued to freely use the family’s holdings as collateral for these indented bills. Even though Frederick Calvert’s will left the entire Calvert estate to his oldest son, Henry Harford, Harford was only 13 and did not have influence over the assembly’s working even though he was welcomed as the Fifth Proprietor of Maryland. Since Harford was the illegitimate child of Calvert and Hester Whelan of Ireland, Harford was not entitled to ascend to become Lord of Baltimore making Frederick Calvert the last Lord of Baltimore.

Eventually, Harford’s Maryland holdings were seized during the Revolutionary War and used to help fund the government and the Maryland regiments. Harfod returned to Maryland in 1883 and attempted to reclaim the land. Petitions to the Maryland General Assembly failed. His heirs fought for more than 100 years to reclaim the family property. The last case was heard by the U.S. Supreme Court in 1899. In Morris v. U.S., the court denied the family’s claim.

Isn’t it great how one note can open up a segment of history that is not included in your high school history books?!

Click on image to see a larger version.

Old Maryland Notes, New Owner

Last year, I wrote an article about the currency issued by the Maryland colony in the 18th century through the end of the Revolutionary War that was published of the Maryland Numismatist, the quarterly publication of the Maryland State Numismatic Association (MSNA). I became interested in Maryland colonial currency after stumbling over the Numismatic Collection in the Department of Special Collections at the University of Notre Dame and reading about Maryland currency on their Colonial Currency page.

Discovering this information about Maryland Colonial Currency inspired me to do more research. The result was a presentation (PDF) I gave to my coin club. I was then asked to convert the presentation to an article that was published in the Spring 2010 edition of the Maryland Numismatist. It was selected as “Article of the Year” by the MSNA.

After doing this research, I realized I did not own a piece of Maryland currency. After reading that some people were finding bargains during the holiday time period at one large auction house, I decided to spend my holiday gift money buying a Maryland note. I bid on a few notes hoping to win one. At the end of the auction, I won two notes!

The notes I won are two-dollar and eight-dollar notes from the April 10, 1774 emission. These note were authorized by the Maryland Colonial Assembly. They authorized an emission of $480,000 of non-legal tender bills to be dated and issued on April 10, 1774. This emission. would be the last colonial issue before the Revolutionary War. The authorization was for $266,666 to pay loans, $80,000 for government expenses, and $133,334 to be exchanged for worn bills payable from October 10, 1785-April 10, 1786 at the rate of 4/6 sterling per dollar. An act of October 17, 1780 changed the exchange rate for all currency issued before 1776 to forty old dollars for one new dollar to be redeemed by March 20, 1781, after which all colonial notes were voided.

Designs and denominations were similar to the March 1, 1770 issue. Anne Catherine and William Green printed these notes. Anne Catherine Green, whose name appears at “A.C. Green” on the note, took over the business following the death of her husband Jonas Green. Anne Green had to use her initials because it was not acceptable for a woman to be working as a printer in the 18th century. William was Anne’s oldest son. The notes were originally designed by Thomas Sparrow who created the border cuts for these notes. Numismatists studying coinage attempts for the government formed under the Articles of Confederation knows that Sparrow was involved in one attempt.

In order to make these notes legal to issue they had to be signed by authorizing agents. The agents who signed these notes were John Clapham and William Eddis. Clapham was a landowner in western Maryland who served as sheriff (tax collector) of Anne Arundel County (Annapolis) from 1770–72. Eddis was a British loyalist, born in England about 1745, worked for Colonial Governor Sir Robert Eden as the office of surveyor of customs. Eddis fled to England in 1777.

For being nearly 237 years old, these notes are in fantastic condition. Considering what the reference books say the notes should cost, I can say that I did very well with this purchase. It is a great way to start the new numismatic year!

Click on any image to see a larger version.

PCGS Demonstrates Its New Technology

Last March, the Professional Coin Grading Service announced the PCGS Secure Plus service. Coins graded through Secure Plus will be scanned by an optical device that will map the surface of the coin creating a digital signature of its characteristics that can be used for later reference. The digital signature is a unique identification of the coin that can withstand potential coin doctoring and to prevent the users from removing the coin from the slab to try to have it graded higher. It can also be used to determine if the coin was doctored from its previous submission such as being artificially toned.

Recently, PCGS created a video demonstrating the scanner used to fingerprint and detect re-submitted coins. In the demonstration, PCGS shows how it detected a coin that had previously been submitted then artificially toned before being re-submitted. Here is the video:

I thought the device would be a little bigger. But that is the beauty of modern technology. In the past, I wrote, “Computers are great tools. Imaging technologies enhanced by computers can do wonderful things. To apply this technology to coin grading and analysis would be a fantastic addition to the industry. Can you imagine being able to take the technology to major shows and for a small fee, provide on sight diagnostics for coins before submitting them to the grading services?” PCGS is one step closer to that possibility!

CCAC Meets to Discuss Design Report

If you are in the Washington, DC area, the Citizens Coinage Advisory Committee is meeting today in the 8th Floor Board Room a at the U.S. Mint Headquarters located at 801 9th Street NW.

Today’s agenda includes the review and consideration of the draft report “A Blueprint for Advancing Artistic Creativity and Excellence in United States Coins and Medals.” Last June, the CCAC formed a subcommittee after being consistently frustrated with “overall disappointment with the poor quality of the alternatives presented for the 2011 commemoratives” and reminding the Director Edmund Moy that he wanted “and intend to spark a Neo-Renaissance of coin design and achieve a new level of design excellence that will be sustained long after my term expires.”

Although Moy resigned as director, the challenge remains.

Earlier today, CCAC Member Donald Scarinci tweeted, “CCAC will hopefully adopt the design excellence subcommittee report today. The info in it might be shocking to some, but all accurate.” While wondering what was so shocking, I asked Scarinci if the report will be release to the public today. He said yes. However, given the low information aspect of the CCAC’s website, I hope the report is given prominent place on the front page.

If you cannot attend the meeting you can follow along as Donald Scarinci tweets from the meeting. You can follow Donald at @scarinci on Twitter.

More E-Numismatics and Krause E-Books

I am amazed at the response I have received over the topic of digital books. For those who wrote to me directly echoing my call for more, I wish you would add them as comments to my posts. I think the numismatic publishers would like to see your comment—especially since I have been contacted by both the publishers at Whitman Books and Krause Publications, they are reading and paying attention!

Roger deWardt Lane reports that his book Encyclopedia Small Silver Coins: Brother Can You Spare A Dime about modern dime-sized silver coins of the world can be purchased in both paper form and as a download. Roger also said that he gave permission to Google Books to add it to their digital database.

Thijs Verspagen wrote to let me know that he maintains the Digital Library Numis that links to many electronic numismatic books and articles that can be freely downloaded. The site has quite a list of a variety of downloadable numismatic publications.

I also heard from Scott Tappa, Publisher at Krause Publications. Scott reports that two Krause books are now available on the Kindle. Scott writes:

This year you will see more and more KP books available for e-reader devices like the iPad, Kindle, Nook, etc. For instance, here are links to Kindle editions of two recent releases, Warman’s U.S. Coin Collecting and Canadian Coin Digest. (click on the titles to view the listings at Amazon.com)

Numismatic books face certain challenges in formatting for e-readers. In particular, our catalogs are image-heavy, which makes them very large files, which can make them difficult to download. Thus, expect to see KP create e-reader specific products that are smaller and more focused than our large catalogs.

Our parent company, F+W Media, has made e-books a top priority. In fact, we are hosting the second annual Digital Book World conference in New York City starting January 24, and are keenly focused on staying at the front of this market revolution.

Numismatic publishing is a niche business. While it is a large niche, publishers are competing for the best content, the best authors, and access to the same distribution sources. These companies have to be responsive to what their readers want. I am sure that these publishers welcome your feedback.

Brunhart Leaves the U.S. Mint

It is not often a member of the federal government’s Senior Executive Service makes the news for changing jobs. But when that person is Andy Brunhart, it has the numismatic media noticing. CoinWorld is reporting in its January 31, 2011 edition that Brunhart left the U.S. Mint four days after Ed Moy’s last day.

Brunhart is now working for the Bureau of Engraving and Printing and will oversee quality and strategic integrated production issues. His arrival at the BEP comes after the mainstream media picked up on the production problems plaguing the printing of the new $100 federal reserve note.

CoinWorld reports that the Treasurer of the United States Rosie Rios will carry out the duties of the Director until a new director is appointed by President Obama.

Whitman on E-Books

Earlier this month I posted the question, “Where are the Electronic Numismatic Books?” That post garnered the most responses I have seen in quite some time—although many were in the form of personal notes rather than blog comments. Most of the comments were overwhelmingly positive agreeing with my assertion that there should be more electronic numismatic books.

Some of the comments, including Dennis Tucker, Publisher at Whitman Publishing, corrected me in saying that the Whitman Encyclopedia of U.S. Paper Money by Q. David Bowers is available on DVD. Tucker also said that the the Guide Book of United States Coins, Professional Edition was also available on DVD but I did not see it listed on Whitman’s website.

After receiving the note from Tucker, I asked him about Whitman’s e-book plans. He responded as follows:

Whitman Publishing does plan to distribute more books in electronic format. PDFs have certain strengths that our readers find appealing: they can be distributed on DVDs; they're searchable; they have internal links; they're PC and Mac compatible. Paper-money collectors love Q. David Bowers's Whitman Encyclopedia of U.S. Paper Money --- a massive 900-page reference book --- and they also love having an electronic version available on a conveniently portable DVD.

Retail pricing, distribution models, and other details of future electronic projects aren't ready to go public yet. But I can say that nothing is off the table as we explore the best ways to bring numismatic content to our readers --- PDFs, downloads, apps, online content are all possibilities. Currently we have two web sites, WhitmanReview.com and WhitmanCoinCollecting.com, that aren't "books" or "magazines" as such, but that broadcast show reports, book reviews, numismatic interviews and commentary, auction news, and other hobby information.

Remember in the early and mid-1990s, when "CONTENT IS KING" became the mantra of every Internet consultant and Web design agency from coast to coast? It's still a very important concept in numismatic publishing. Whitman is strongly devoted to supporting fresh, ongoing, original numismatic research and authorship. This of course includes updated retail and wholesale pricing (as found in the Red Book and the Blue Book), updated auction records, updated certified coin populations, and the like. Those kinds of market data are very important to collectors, dealers, and investors. But Whitman Publishing has a commitment to the hobby community that goes beyond just reporting on market trends. We've nurtured a booming renaissance in numismatic publishing over the past ten years or so in particular. That investment, that energy, that explosion of talent has created the CONTENT; without good content, distribution models (whether ink-on-paper or electronic) are irrelevant to the hobbyist. If the content is factually wrong, or if it's incomplete or misleading, or if it's just a stale rehashing of old previously published information, it won't matter if it's published in books or online --- collectors won't find it valuable. Neither the publisher nor the consumer will find true, lasting value in that formula.

Whitman Publishing has the best numismatic authors and researchers working today. Kenneth Bressett, Q. David Bowers, Jeff Garrett, Dick Doty, Roger W. Burdette, David W. Lange, Rick Snow, Mike Moran, Bill Fivaz, J.T. Stanton, Katherine Jaeger, Rick Tomaska, Nicholas Brown, David Camire, Fred Weinberg, David Sundman, Harlan J. Berk, Clifford Mishler, Jim Haxby, Art Friedberg, Ron Guth, John Dannreuther, Hugh Shull, George Tremmel, Robert Azpiazu, Ira and Larry Goldberg, Eric P. Newman, Paul Rynearson, David MacDonald, Don Bailey, Scott Schechter, Saul Teichman, Fred Reed, Adam Crum, Selby Ungar, Jeff Oxman, Frank Colletti, Bob Leonard, Len Augsburger, Joel Orosz --- that constellation of numismatic stars shows Whitman's commitment to content. How we deliver that fresh, original content will continue to evolve. And it won't end with the current generation of numismatic superstars. Last year Whitman teamed up with the American Numismatic Association to revamp and endow three new literary awards for Young Numismatists. They'll be the ones digging in Treasury archives, unearthing primary documents, analyzing data, making brilliant connections, and writing about their findings after we all retire.

Is the traditional paper book obsolete? No. Are distribution models changing? Yes. Will Whitman Publishing continue to bring its best to collectors and serve their needs? Yes indeed!

Interestingly, I never questioned the quality of the content of Whitman Books. On the contrary, it is because that their content is so worthwhile that I am interested in e-books that Whitman would publish. However, I believe that the those of us who are interested in technology and those who grew up in the 1990s will be more interested in e-books than dead-tree editions. In other words, I think Whitman, Krause, Zyrus Press, and any other numismatic publisher should be entrenched in electronic publishing within the next five years.

Good Video Showing History of the BEP

When I returned to coin collecting a few years ago from my hiatus that began before I went to college I discovered there was more to collecting than buying shiny objects of copper and silver. I found that there was a confluence of history and politics that was also an interest. My return to numismatics coincided with my returning to school to get a masters degree that included public policy as part of the curriculum. It was perfect for a political junkie. So when something is written or broadcast that adds to my quest to learn about history that includes numismatics, my interest piques.

At the end of November, I was channel surfing and found a documentary on one of the C-SPAN channels about the History of U.S. Currency. The show featured an interview with Franklin Noll, Consultant in the Bureau of Engraving and Printing Historical Resource Center. It was a different look at the BEP since it did not go into the process of printing money but the final result and the evolution of the BEP.

Using pieces of the BEP’s archive, Noll traces the history of the bureau from its founding in 1861 to the modern small currency. Noll begins by showing some of the pre-BEP printed notes and how the government needed to control its currency in order to help fund the Civil War. He showed the first notes that were printed by a “New York Printer” under the authority of the new bureau. Noll does not mention that the New York printer was the American Banknote Company.

One think I learned was that Franklin Delano Roosevelt was the only president who had a direct influence on any aspect of currency design. When presented with the proof for the small one dollar Federal Reserve Note, FDR requested that the BEP switch the Great Seal and the Heraldic Eagle so that the eagle is on the right side of the note. FDR felt that this would be better since the eagle’s head would face the center of the note. Otherwise, the eagle’s head would be facing off the note. Noll showed the actual proof sheet that FDR wrote his request.

The video of the History of U.S. Currency can be viewed online in the C-SPAN Video Library. Not only can your watch the video, but there is an option to purchase a DVD. Just click here to see the video. Enjoy!

Rethinking Safety and Security

With the news coming from Arizona this past weekend, I was thinking about personal security and the security of our collections. It may seem like a gruesome topic to discuss in the aftermath of the shooting, but as long as our attention is on the situation, we need to take a look at our own security.

Last June, I discussed the Safety and Security Traveling with Coins after the robberies of dealers traveling to and from shows. One the key points I made is the beware of your surrounding, what we call “situation awareness.” It is not typical to think like this, but if you have numismatics that seem to be desirable, you need to consider your environment. Does the area “feel right?” Do you feel comfortable in the area? Are you worried about the strangers around you? What is your gut feeling? If you are not comfortable and just have that feeling that the area is not safe, go with that feeling and take appropriate actions.

We would like to think we live in a safe neighborhood, but at least once per week I see a news report with someone saying, “Nothing like this has happened here. This is such a safe neighborhood.” Unfortunately, there is always a first time, why be the first victim. How secure is your property? Are you coins on display in your home? If they are, do you have a security system?

Whatever you have for security may not be enough. You have to think like a thief and figure out how strengthen your defenses. Sure, strengthening your defenses may stop 95-percent of the thefts, but what about the other five percent? What about the amateur thief who gets lucky?

One of the best resources you have is your home insurance company. After many years of protecting property all over the country, they know what works and where to find the best people to help. Most insurance companies will help you with the risk assessment and share with you what their company knows about the risks in your area. They can also tell you about savings that you could see if you added additional security to your home.

Aside from the security of your personal property, you also need to considered what to do with your collection when you are no longer able to enjoy it. In my post, What Will Your Heirs Do With Your Collection, I discussed the necessity of estate planning with your collection. Remember, “It may be difficult to admit that the niece or grandson that appears to love to see your coins when they visit or is excited to receive a special numismatic gift may be more happy because of their interaction with you rather than your collection.”

Be honest with yourself, does your family really want the coins or what the coins are worth. If you are not going to mind that they will sell your coins, then leave it to them. However, if they are not going to keep the collection and their disposition really matter to you, then you should figure out how to deal with them while you still can make the decision.

While we pray that Rep. Gabrielle Giffords and the others who were injured a complete recovery; and we join with the families of Judge John Roll, 9-year old Christiana Green, Dorothy Morris, Phyllis Schneck, Dorwan Stoddard, and Gabriel Zimmerman in grieving their losses, we should take this opportunity to heighten our own security awareness to protect ourselves, our loved ones, and our collections.

Where Are the Electronic Numismatic Books

Ever since I first put my fingers to the keyboard of a PolyMorphic Systems Polly 88 microcomputer and learned to program it in BASIC, I have been very interested in technology and integrating technology in my life. I have owned computers since the early 1980s and spent a career first as a programmer, architecting systems and networks, and for the last 18 years in information security. Over my 30 year career I have seen the industry grow from million dollar mainframes to being able to put a computer in your pocket that can make telephone calls without wires and play music.

My trip down memory lane comes as the the Consumer Electronics Show (CES) opens in Las Vegas. It is the largest show that features nearly every electronic gadget and gizmo both available and not available. It is where companies announce new products, new features, and show off what they are thinking about the future—which those of us in the industry call vaporware. It is where all of the neat toys are shown off.

Even for those of us in the industry, it is difficult to predict the future, even after seeing this year’s “next big thing.” We can look back at the last CES and see what made it past the announcement and has became hotter a year later. Watching the new product introductions, the hot products are smarter phones and tablets.

Tablets are smallish computers with the functionality to consume media and content and only powered enough to be a limited content creator. Applications run locally to enhance the tablet’s functionality while giving the user access to an entire Internet of resources. This year it is clear that those introducing new products are looking to be the next iPad killer. Weather you like Apple or not, the iPad has set the tone for the tablet market the same way the iPhone has set the tone for the smart phone market.

So why am I talking about CES on a coin collector’s blog? Because this big thing will have an impact on how you consume numismatic information.

The future of content consumption is electronic. E-book readers will support the reading of books, magazines, newspaper, and some online content on a small handheld device conveniently sized for reading. They are designed to do one thing very well: provide you a way to read published content in a more convenient manner and without killing trees. While tablet and smart phones are more general devices, both have the ability for you to read published works when you are not playing the current hot game or social networking. All of these devices have programs that can tap into online bookstores so that you can buy books at a reduced price and have it loaded directly onto your device to read.

E-book readers can read many different format files, but the type used for the best reading experience is based on the concept of “electronic paper.” Electronic paper allows the reader to resize, bookmark, type notes, highlight, and do anything to an electronic page except fold it while maintaining the integrity of the book. As the read changes size or add their own notes, electronic paper allows the book to reflow, or repaginate, within the device. When a book or document is repaginated, tables of contexts and indices are also adjusted to make the text easy to search.

Currently, the only numismatic book publisher selling electronic versions of their books is Krause Publications. If you visit their online store you can search the Coin CDs/DVDs section to find a number of their publications, including the Standard Catalog series can be purchased on CD. Once you load the CD on your computer and copy the Portable Document Format (PDF) file to your hard disk, you can open the file in a PDF reader (Adobe Acrobat Reader on any system or Preview on a Mac). Once the file is open you can search for any text, zoom in to view any image up to 400 percent, add notes, bookmark pages, and highlight areas. Again, anything you can do with a real book except fold page corners.

Krause also sell sections of the Standard Catalogs and other publications as downloads. For example, if all you are interested in are Obsolete Bank Notes of the District of Columbia, you can just download that section of the Standard Catalog of United States Obsolete Bank Notes for significantly less than the entire four CD set.

Since I purchase the Standard Catalog of World Coins for the 20th century, it has been a wonderful resource to have while sitting at my computer. Searching for country coinage information and making highlights has really enhanced my appreciation for the work without having to lug around that huge volume. I also consider how many trees were saved by buying bits and not pulp.

Using a PDF document on an e-reader does not take advantage of the e-reader’s strength. Since I do not have an e-reader, I downloaded Krause’s U.S. Coin Digest onto my iPhone to use as a portable reference. It is a wonderful portable reference to have without having to carry the book. However, the use of a PDF document shows its limitation on smaller screens. A test on a friend’s Kindle demonstrated the limitation of a PDF file when it was proven difficult to navigate a zoomed PDF document because of screen size limitations. It would help those of us with e-readers if they would publish books in ePub and E Ink formats.

At least Krause has taken the first step into electronic publishing. Whitman Publishing, the other major publisher of numismatic books, only offers “dead tree editions.” I know that some people like the physical book, but they should start embracing the 21st century and offer e-books for those of us who want to read their books in a more portable format that does not kill trees. I am sure Whitman can figure out the economic benefits of replicating bits over importing physical copies from China.

Until Whitman and other numismatic publishers catch up with the e-reader, you can find classic electronic books to download to any device. The best source if Google Books. While Google Books does sell current editions in electronic format, they also have a number of scanned books they have permission to make available or whose copyrights have expired. The best way to find numismatic books is search for “coins” on the Google Books website. Books can be read online or you can download free books through the Google Bookstore. You can file early copies of The Numismatist through Google.

Publishers who have not embraced the e-reader will lose out on the business of younger numismatists and technology-oriented people like myself. CES made it clear that the future is in portable electronic devices and the publishers who cannot or will not provide the appropriate product will be losing out on new business. I hope the numismatic publishers consider this for their current and future publications

Will Virginia Coin Its Own Money

I am not one who looks at our current monetary system and believes that changes must revert back to a standard based on precious metals. I understand that such a standard requires government intervention by controlling the prices of the metals in order to create a monetary standard that does not allow for growth and expansion. History shows that the attempt to control the prices of precious metals while trying to maintain economic growth has not worked. We can look at the Coin Act of 1873, also known as the Crime of 1873, for manipulating silver out of the monetary system and creating a series of recessions and depressions because of the lack of real growth.

On the other end, taking the U.S. off the gold standard in 1933 was the first step in expansion of the U.S. economy. The final step in economic growth was fully breaking the dollar’s tie to gold while allowing the price of gold and the U.S. dollar to trade freely on open markets. Even though the United States experienced a concept call stagflation in the 1970s, the strength of the U.S. dollar was growing around the world. It was during this time that many economies were basing their own currencies on dollars to where some countries use dollars instead of their local currency.

After many years of seeing the dollar take over economies all over the world, the European Union joined to form a common currency in order to offer an alternative to the U.S. dollar. When the Euro was launched in 1999, the two European economic powers went in different directions. Germany, which has a significant manufacturing and technology base, joined the Euro while Great Britain, worrying about its sovereignty because it could not control its currency, kept its currency based on the Pound. Today, the Euro is having problems with the economic programs throughout Europe (Greece, Ireland, and Portugal with Spain not far behind) and Great Britain able to weather their own storm, albeit not without protest. Talk about replacing the Dollar with the Euro as the benchmark currency have subsided.

The issue of sovereignty becomes an interesting question with a joint resolution introduced to the Virginia House of Delegates. House Joint Resolution No. 557, introduced by Del. Bob Marshall (R-Manassas 13th district), to “[Establish] a joint subcommittee to study whether the Commonwealth should adopt a currency to serve as an alternative to the currency distributed by the Federal Reserve System in the event of a major breakdown of the Federal Reserve System.”

As with many bills on both the federal and state level, the bill begins with paragraphs what begin “Whereas....” For this joint resolution, it claims authority by cherry picking rulings from 19th century rulings made during the height of the Robber Barron era before the introduction of the various Anti-Trust Acts to justify the assumptions. They also cherry pick statements from the United States Code (U.S.C.) that take the statements out of context in order to pervert their meanings.

The “Whereas...” section also claims that “many widely recognized experts predict the inevitable destruction of the Federal Reserve System&rsuqo;s currency through hyperinflation in the foreseeable future.” Who are these experts?

If the resolution passes, it directs that a joint committee will be created to study whether the Treasurer of the Commonwealth of Virginia and the Bureau of Financial Institutions can and should coin its own money for use within the Commonwealth should the Federal Reserve or other sources collapse. The committee is supposed to report its findings by the first day of the 2012 Regular Session of the General Assembly.

After living in the Washington, DC area for almost 20 years and having jobs that worked with the federal government, I have seen my share of wingnuts from both sides of the aisle. But I have come to learn that the extremes on either side is aptly described as extreme. The extreme nature of this resolution ignores Article I, Section 10 of the U.S. Constitution that says “No State shall... coin Money.”

While the Federal Reserve and the U.S. Mint has its issues regarding the policies of the manufacture and distribution of money (remember the Bureau of Engraving and Printing prints the currency), proposing to violate the constitution is unconscionable. Besides, if it ever gets to the point that the Federal Reserve fails, Virginia coining their own money may be the least of our problems.

Looking Back at 2010 to Look Forward for 2011

Many things can be said about 2010, but for numismatics and precious metals it was quite a ride. What could this ride tell us about 2011?

Looking at the economy, the real gross domestic product—the output of goods and services produced by labor and property located in the United States—increased at an annual rate of 2.6 percent in the third quarter of 2010. A rate greater than in 2009. Although real disposable personal income increased 0.2 percent through November, the consumer price index rose at a faster rate of 1.1-percent while unemployment reached a one-year high of 9.8 percent in November.

If the slow improving economy and expanding unemployment has you confused, the simple explanation is that if the economy was a bus, it just pulled away from the curb and the driver started to shift into second gear while employment has yet to be allowed aboard. Although economists agree that employment and Consumer Confidence Index are lagging indicators, neither have seen improvement in 2010. Although the politicians are hoping their lame duck legislative efforts will help the unemployed to board the employment bus, it is possible that the bus will be too far down the road to make a difference in 2011. Let’s hope it is not too late!

In an attempt to provide its version of stimulus in 2010, the Federal Reserve’s lowered its discount rates and its ability to manipulate the money supply to try to provide relief. Although the Fed has increased the money supply, the United States dollar has not been significantly weakened against most of the world currencies—although some would say that it was seriously weakened in 2009. While the dollar has fluctuated against other major currencies throughout the year, the dollar has shown marginal only weakness against the British Pound, Euro, and Yen year-over-year while there were no weaknesses against the Reniminbi (or Yuan) because of institutionalized currency manipulation in China. Many economists believe that the avoidance of a dollar free-fall was because of the failure and pending failure of some Eurozone economies and China’s desire to reduce its own inflation concerns. The rumblings to remove the dollar as the standard and benchmark currency that we heard in 2009 subsided in 2010.

To measure the effect of the economy on the numismatic markets, I use the PCGS3000® Index as an indicator. The PCGS3000 Index is a market basket of 3,000 coins that PCGS their analysts believe represents the broad market. The variety of coins makes for a good indicator but as a broad market basket, movement indicates trends rather than a real-time indicator (similar to the Russell 2000).

The PCGS3000 Index opened 2010 with at 68,476.87. After dropping to a 12-month low of 66,886.27 (↓2.3-percent) in August, the index closed at 67,323.11, down ↓1.68-percent for the year. For a market basket that consists of 3,000 non-volatile items made from a variety of metals an in different grades, a downward trend of one-to-two percentage points indicates a weakness in the numismatic market. While some think the markets are strong—and there has been no slow down in the high-end coin market—collectors and some investors are either pushing prices downward or waiting for prices to drop before buying. Like in retail sales, many purchasers are standing on the sidelines waiting for the bargains or the market to settle.

But if the economic indicators do not show weaknesses except in employment, then why should the numismatic market show a weakness? The answer can be summed up in two words: gold and silver.

Some dealers and auction houses have found that the buyers for the high-end coins have continued their strong buying but the rest of the market has not joined them. One of the factors can be that the price of gold has scared many people away. When the markets opened on January 4, 2010, the price was $1,087.50 for one troy ounce of gold. During the year, the price never dipped below $1,050 climbing to $1,420 on December 7 before closing at $1,405.50 on December 30. As a result, investors who bought gold prior to 2010 saw their investment to rise 29.2 during the year. One would think it makes sense that the generic gold coin market would rise with the gold market. But a look at the PCGS Generic Gold Coin Index found that even with gold’s rise through the year, the generic gold coin market also saw a 17.76-percent drop in prices. However, Proof Gold rose only four-tenths of one-percent (0.41%) showing that there continued to be a little activity in the high-end market.

If there was a bull market in 2010 they were running for silver. After opening the year at $16.99 per troy ounce, silver closed at $30.63—a whopping 80.4-percent increase! Although less than the $54 ($143 adjusted for inflation in 2010 dollars) that it reached when the Hunt Brothers tried to corner the silver market in 1980, the 2010 rise is significant because few believe that the markets are being manipulated. In fact, one analyst believes that the silver market is undervalued as compared to the gold market. He said, “The gold rush of the 2000s is going to be nothing [compared] to the silver rush of the 2010s.”

When looking at the numismatics market, silver is the key metal. Up until 1964, every dime, quarter, half-dollar, and non-gold dollars were made of silver. Silver has been a key coining metal since the creation of the United States Mint in 1792. Many of the most collectible coin ever created by the U.S. Mint were struck in silver. Nothing represents silver coins like Morgan and Peace Dollars. Arguably one of the most popular numismatic collectibles, Morgan and Peace dollars are 26.73 grams made of 90-percent silver and 10-percent copper making its melt value $23.03 at the end of 2010.

But the value of Morgan and Peace dollars extend beyond their melt value. Morgan and Peace dollars are tied to the late 19th and early 20th century history of silver manipulation in the United States with designs popular with collectors. Morgan dollars struct at the Carson City mint are amongst the most desired. Since the GSA sales in the 1970s, the prices of these coins have gone up—in some cases beyond the reach of the average collector. Of the Peace dollar series, the high-relief 1921-D dollar is very desirable as is the low mintage 1928 dollar, and the 1935 last year of issue dollars. And the rumor that not all of the 1964-D Peace dollars were melted makes finding out the absolute truth a great interest to the numismatic world. However, with the rest of the market trending downward and silver skyrocketing, the PCGS3000 Morgan and Peace Dollar Index found the market rise-then-fall-then-rise again to end the year up eight-tenths of one-percent (0.825-percent) for 2010. Not a great showing, but demonstrating that Morgan and Peace dollars are still popular amongst collectors.

What is clear is that the coin market was down in 2010 while investors and even some collectors might have been concentrating on gold and silver bullion.

In speaking with some dealers, many have said that they have survived the last two years buying and selling bullion including American Eagle coins. One said that the numismatic market has been very slow that the bullion market has allowed him to stay in business during this era being dubbed “The Great Recession.”

Just because the calendar turns does not mean the market will turn along with it. Even though the lame duck congress passed significant stimulus legislation, it will take some time for those measures to settle into the markets. Some experts think that the eventual hiring may not occur for at least six monist and that there will not be a significant drop in unemployment until the fall. Others point to the infrastructure project the new laws are supposed to support forgetting that even shovel-ready projects have legal requirements, such as contract and environmental restrictions, that have to be address before a shovel can be used. In short, we may be in for more of the same through the first and even second quarters of 2011.

The new congress will help keep the economic uncertainty alive. Although the Republicans will control the House of Representatives, the Senate will be controlled by the Democrats with an active Republican minority who has shown that they will use the body’s rules to try to force their will. In other words, prepare for gridlock. None of this takes into consideration that Rep. Ron Paul (R-TX) will be the chairman of the House Finance Committee, thus allowing him to have control over economic policy in the House!

Neither the lame duck stimulus or the new congress will do anything to settle the markets in the short term. With the uncertainty, investors will continue hedge their bets using precious metals. Gold will continue to rise but at a rate less than in 2010. It is fair to say that with the current valuation being so high, it is likely that 2011 will end with gold only rising by 20-percent. However, the argument that the gold-to-silver ratio is out of balance being very compelling, we may see silver continue to climb. Silver may not climb at the 80-percent rate we saw in 2010, but a 40-percent rate may be reasonable. If this holds true, this time next year we could be talking about gold being $1,680 per troy ounce and silver closing at $42.

During the Fall of 2010, the PCGS3000 Index rose a bit from its low for the year and the low since the index’s all-time high in 2008. But with other factors not changing in the short term, could this be the coin market’s version of a “dead cat bounce?” A dead cat bounce is a small yet brief market recovery derived from the idea that “even a dead cat will bounce if it falls from a great height.” It is more likely that the numismatic market will flatten a bit while the rest of the markets figure out which direction they will go.

The first indication of how the numismatic market starts the year will be at the F.U.N. Show held January 4-9 in Tampa, Florida. With F.U.N. being one of the largest non-ANA shows of the year, sales and dealer impressions will set the tone for at least the next few months. Under the premise that markets do not turnaround quickly and that the last major show, Whitman Baltimore Expo in November, saw only nominal sales, one can assume a similar atmosphere for F.U.N. It will be more reasonable to wait until the National Money Show March 17-19 in Sacramento and the Whitman Baltimore Expo held March 31-April 3 to determine if the numismatic market will be better in 2011. At the end of the year, it is reasonable to expect that the PCGS3000 Index will be up 2.5-percent by the end of 2011 given the other market forces.

Of course predicting any market is a total crap shoot. While my roll of the dice may be no better than others, I would caution against thinking that my crystal ball is clearer than anyone else’s. All I have done is read the proverbial tea leaves and drank the tea while throwing darts at the wall trying to guess what the future will bring. Or as one comedian used to say, “That’s my opinion, I could be wrong.”

Metals charts courtesy of Kitco.
The PCGS300® Index courtesy of the Professional Coin Grading Service.

Happy 2011!

Happy New Year!

As we begin 2011, we should look forward to better times for our hobby, our nation, and our world. I wish you and yours a Happy and Healthy 2010 and hope that you find the key coin of your dreams!