Last week, the U.S. Mint announced that they are accepting applications for a new member to the Citizens Coinage Advisory Committee. They are looking for someone who is specifically qualified in numismatics.
Although I have been a critic of the CCAC, it is because I see their input into the design process as essential. It is my attempt to provide another perspective to be considered when making the decisions. Each member brings their own unique experience to the process. However, sometimes when you are in the proverbial bubble of the action for multiple years, there is a tendency to adapt to the environment without considering how to adapt and change. At work, we call this “going native.”
I urge members of the numismatic community who may qualify “by virtue of education, training or experience” and would like to see the CCAC have a real positive impact on coinage design to apply for the position. I hope you can work with the committee but provide a strong perspective to promote good designs. If you are willing to find ways of opening up the CCAC to make it more accessible to the public including pushing the U.S. Mint to make materials more available to the public, then you will get my support.
Wednesday, March 30, 2011
Monday, March 28, 2011
Ron Paul Proposes the Collapse of the World Economy
Bernard von NotHaus, creator of the Liberty Dollar, was convicted of counterfeiting for creating “coins resembling and similar to United States coins” and distributing them with the intent to “use [them] as current money.” The verdict was handed down by a federal jury in Statesville, NC on March 18, 2011. Von NotHaus is facing a maximum sentence of 20 years in prison and fines up to $500,000. Sentencing hearing will begin on April 4.
In an email to supporters, von NotHaus indicated that he will appeal his conviction.
A few days before the end of the trial, Rep. Ron Paul (R-TX) introduced H.R. 1098: Free Competition in Currency Act of 2011. Its stated purpose is “To repeal the legal tender laws, to prohibit taxation on certain coins and bullion, and to repeal superfluous sections related to coinage.”
During his Extensions of Remarks on March 15, 2011, Rep. Paul said, “At this country’s founding, there was no government controlled national currency. While the Constitution established the congressional power of minting coins, it was not until 1792 that the U.S. Mint was formally established. In the meantime, Americans made do with foreign silver and gold coins. Even after the Mint’s operations got underway, foreign coins continued to circulate within the United States, and did so for several decades.” Unfortunately, Rep. Paul learned the wrong lesson from history.
Starting with the statement that foreign coins continued to circulate for several decades, fails to recognize the real reason for this. Upon passage of the Constitution and prior to the passage of the Coinage Act of 1792, the new government realized that the they were not ready a would not be ready to supply coins to satisfy the needs of the new nation. Even after the passage of the first Coinage Act, congress realized that the U.S. Mint needed time to produce enough coins for the nation. Rather than plunging the economic potential of the new nation into chaos, the government continue to allow foreign coinage, specifically the Spanish Reales, to be used for commerce. This continued until the passage of the Coinage Act of 1857. Aside from authorizing the issuing of the small cent, which the U.S. Mint did by striking the Flying Eagle Cent, the law gave citizens two years to redeem their foreign money for the equivalent in U.S. coinage. By 1859, no foreign coins were circulating in the United States.
In the years leading up to the Revolutionary War, the new colonies were hampered by a situation where King of England did not allow the colonies to control its own money or create its own monetary policy. In order to expand commerce, colonies issued paper notes. These notes functioned as currency but actually were bills of credit, short-term public loans to the government. For the first time, the money had no intrinsic value but was valued at the rate issued by the government of the colony in payment of debt. Every time the colonial government needed money to pay creditors, they authorized the printing of a specified quantity and denomination of notes. Laws authorizing the issuance of notes were called emissions. The emission laws also included a tax that was used to repay the bills of credit with interest.
As taxes were paid using the paper currency, the paper was retired. As the notes were removed from circulation, that meant less payments the government had to make. On the maturity date, people brought their notes to authorized agents who paid off the loan. Agents then turned the notes over to the colonial government for reimbursement plus a com- mission. Sometimes, colonies could not pay back the loan. They instead passed another emission law to cover the debt owed from the previous emission plus further operating expenses, buying back mature notes with new notes. The colonists accepted this system since it was easier than barter and there were never enough coins to meet commercial needs.
To maintain commerce, many of the notes were tied to the value of the Pound Sterling but the worth of the Pound Sterling was interpreted differently from colony to colony. Although the colonies accepted foreign coins, especially the Spanish silver reales, each colony set its own price of silver as based on its purchasing power. For example, the colonies of North Carolina and Virginia tied the reales’ value to the amount of tobacco that can be traded. This continued following the Revolutionary War so that commerce could continue and the new states could repay war debts.
After the failure of the Articles of Confederation to form that perfect union, the authors of U.S. Constitution understood the a union must be able to be supported out of the whole and not individual parts. It was best explained by James Madison in Federalist No. 44 when he wrote:
The economic strength of the United States is based on strength of its currency that is backed by the full faith and credit of the U.S. government. While there are disagreements as to how to use and maintain that strength, the fact of the matter is that much of the world bases its economic stability on the full faith and credit of the U.S. Dollar. There are many economies that use Dollars as its primary means of exchange like most of the countries in Central America. Most of the world’s commodities are priced in dollars like oil and precious metals. And countries buy United States bonds to help back their currency like China.
By repealing the legal tender laws (31 U.S.C. § 5103), Rep. Paul is proposing to demonetize all United States coins and currency that could lead to a global economic collapse. Countries that use the dollar as their currency will not have a currency; currencies backed by the dollar will be worthless; and the price of world commodities will become unstable as the markets search for a new standard. As we have seen during the current economic crisis, instability causes prices to rise—see the prices of gold, silver, and oil.
H.R. 1098 was referred to the Committees on Financial Services, Ways and Means, and the Judiciary. Rep. Paul is chairman of the Domestic Monetary Policy and Technology Subcommittee under the Committee on Financial Services. Should this bill be successfully reported out of all three committees it would have to passed on the floor of the House of Representatives. If it passes the House, it is doubtful that the bill would pass in the Senate. This aspect of the sausage making process ensures that this bill will never pass. Regardless of what you think about United States monetary policy, it is not in anyone’s interest to plunge the world into economic chaos.
In an email to supporters, von NotHaus indicated that he will appeal his conviction.
A few days before the end of the trial, Rep. Ron Paul (R-TX) introduced H.R. 1098: Free Competition in Currency Act of 2011. Its stated purpose is “To repeal the legal tender laws, to prohibit taxation on certain coins and bullion, and to repeal superfluous sections related to coinage.”
During his Extensions of Remarks on March 15, 2011, Rep. Paul said, “At this country’s founding, there was no government controlled national currency. While the Constitution established the congressional power of minting coins, it was not until 1792 that the U.S. Mint was formally established. In the meantime, Americans made do with foreign silver and gold coins. Even after the Mint’s operations got underway, foreign coins continued to circulate within the United States, and did so for several decades.” Unfortunately, Rep. Paul learned the wrong lesson from history.
Starting with the statement that foreign coins continued to circulate for several decades, fails to recognize the real reason for this. Upon passage of the Constitution and prior to the passage of the Coinage Act of 1792, the new government realized that the they were not ready a would not be ready to supply coins to satisfy the needs of the new nation. Even after the passage of the first Coinage Act, congress realized that the U.S. Mint needed time to produce enough coins for the nation. Rather than plunging the economic potential of the new nation into chaos, the government continue to allow foreign coinage, specifically the Spanish Reales, to be used for commerce. This continued until the passage of the Coinage Act of 1857. Aside from authorizing the issuing of the small cent, which the U.S. Mint did by striking the Flying Eagle Cent, the law gave citizens two years to redeem their foreign money for the equivalent in U.S. coinage. By 1859, no foreign coins were circulating in the United States.
In the years leading up to the Revolutionary War, the new colonies were hampered by a situation where King of England did not allow the colonies to control its own money or create its own monetary policy. In order to expand commerce, colonies issued paper notes. These notes functioned as currency but actually were bills of credit, short-term public loans to the government. For the first time, the money had no intrinsic value but was valued at the rate issued by the government of the colony in payment of debt. Every time the colonial government needed money to pay creditors, they authorized the printing of a specified quantity and denomination of notes. Laws authorizing the issuance of notes were called emissions. The emission laws also included a tax that was used to repay the bills of credit with interest.
As taxes were paid using the paper currency, the paper was retired. As the notes were removed from circulation, that meant less payments the government had to make. On the maturity date, people brought their notes to authorized agents who paid off the loan. Agents then turned the notes over to the colonial government for reimbursement plus a com- mission. Sometimes, colonies could not pay back the loan. They instead passed another emission law to cover the debt owed from the previous emission plus further operating expenses, buying back mature notes with new notes. The colonists accepted this system since it was easier than barter and there were never enough coins to meet commercial needs.
To maintain commerce, many of the notes were tied to the value of the Pound Sterling but the worth of the Pound Sterling was interpreted differently from colony to colony. Although the colonies accepted foreign coins, especially the Spanish silver reales, each colony set its own price of silver as based on its purchasing power. For example, the colonies of North Carolina and Virginia tied the reales’ value to the amount of tobacco that can be traded. This continued following the Revolutionary War so that commerce could continue and the new states could repay war debts.
After the failure of the Articles of Confederation to form that perfect union, the authors of U.S. Constitution understood the a union must be able to be supported out of the whole and not individual parts. It was best explained by James Madison in Federalist No. 44 when he wrote:
Had every State a right to regulate the value of its coin, there might be as many different currencies as States, and thus the intercourse among them would be impeded; retrospective alterations in its value might be made, and thus the citizens of other States be injured, and animosities be kindled among the States themselves. The subjects of foreign powers might suffer from the same cause, and hence the Union be discredited and embroiled by the indiscretion of a single member. No one of these mischiefs is less incident to a power in the States to emit paper money, than to coin gold or silver.By reigning in the chaos caused by 13 different economic policies, the more perfect union turned this young country into an economic powerhouse that has surprised empires of years past.
The economic strength of the United States is based on strength of its currency that is backed by the full faith and credit of the U.S. government. While there are disagreements as to how to use and maintain that strength, the fact of the matter is that much of the world bases its economic stability on the full faith and credit of the U.S. Dollar. There are many economies that use Dollars as its primary means of exchange like most of the countries in Central America. Most of the world’s commodities are priced in dollars like oil and precious metals. And countries buy United States bonds to help back their currency like China.
By repealing the legal tender laws (31 U.S.C. § 5103), Rep. Paul is proposing to demonetize all United States coins and currency that could lead to a global economic collapse. Countries that use the dollar as their currency will not have a currency; currencies backed by the dollar will be worthless; and the price of world commodities will become unstable as the markets search for a new standard. As we have seen during the current economic crisis, instability causes prices to rise—see the prices of gold, silver, and oil.
H.R. 1098 was referred to the Committees on Financial Services, Ways and Means, and the Judiciary. Rep. Paul is chairman of the Domestic Monetary Policy and Technology Subcommittee under the Committee on Financial Services. Should this bill be successfully reported out of all three committees it would have to passed on the floor of the House of Representatives. If it passes the House, it is doubtful that the bill would pass in the Senate. This aspect of the sausage making process ensures that this bill will never pass. Regardless of what you think about United States monetary policy, it is not in anyone’s interest to plunge the world into economic chaos.
Sunday, March 27, 2011
Backup To Get Back Up
I am returning from a break for not only my medical reasons, but the health of my computer also failed. It started when the computer’s memory went bad and the system crashed in the middle of session, including backing up my files. As a result, not only did the internal hard drive fail, but the backup drive also failed. New memory and a drive repair program later, both the computer and I feel better.
Which brings me to today’s topic: BACKUPS! As a proponent of diving further into electronic publishing and electronic access for numismatics, one of the things we have to remember is to back up our data! Not only should you backup your data, but you must have a plan and execute that plan regularly and in a way that will ensure your data is safe.
Thinking about backups, you might want to consider using the “3-2-1 plan” to do your backups. The “3-2-1 plan” is three copies of your files on two different storage mediums and one backup off site. In my case, I have one copy on my computer that I use daily, one copy on an external hard disk, and the off site copy is using an online backup service where I consider “the cloud” as a different medium. Yes, you do want to back up a copy of your files away from your computer. If there is an unfortunate catastrophic event including theft, fire, or natural disasters (see what is going on in Japan), then the off-site backup becomes critical in saving your important data.
One of the tools I use to ensure I have critical information backed up is to use a service called Dropbox. Dropbox runs on just about any computer and will automatically backs up selected files. To use Dropbox, you create a free account that gives you 2 gigabytes of storage (you can buy more storage, but I use Dropbox for a few selected files), download the software, install it, and copy the files you want to save into your Dropbox folder. When the software detects new files or that the files have changed, the Dropbox software will securely transfer your files to their servers. I found this beneficial when the backup I made before my computer died did not back up the inventory of my collection. When I reinstalled Dropbox on my computer, the software automatically recovered the files from the server.
I do not know what I would do if I lost my inventory files. I could attempt to recreate those records, but I saved myself a lot of time and heartburn by storing it in my Dropbox. Also, by storing the files in my Dropbox, I can access these files using my iPhone. Dropbox also has apps for the iPad, Android phones, and Blackberry devices. Since I have access to these files using my iPhone, I can check my want list at any time without having to carry around paper.
During this crash, I did not lose any of the images I had taken of some of my coins and currency, some that has appeared on this blog. But had something happened, I use an online service called CrashPlan to backup my system. CrashPlan is good for people with more than one computer and can automatically backup your data to CrashPlan’s servers via the Internet. You can also have CrashPlan backup your files to someone else’s computer (with their permission, of course) or to another disk on your home network. It is a great service even for one computer but fantastic for multiple systems. With the unlimited data plan, all of my pictures are backed up off-site. So if something happened, I have an off-site backup with all of my files.
There are other services that work similarly to CrashPlan. For example, a friend uses Mozy on the laptop he uses for business. When he connects to a hotel’s network, his Mozy software will back up the day’s work. Another Mac friend uses Carbonite and gives it rave reviews. You can read a Comparison of Online Backup Services to determine which service may be right for you based on the features and almost all of them offer free trials.
I do recommend keeping your inventory on your computer—I will discuss software for this another time. But if you do have important data on your computer, including the inventory of your collection, then you should backup your data. You should have three copies of your inventory on two different types of backup media and one should be off-site or away from your computer. Do it now because you never know when something will happen.
Which brings me to today’s topic: BACKUPS! As a proponent of diving further into electronic publishing and electronic access for numismatics, one of the things we have to remember is to back up our data! Not only should you backup your data, but you must have a plan and execute that plan regularly and in a way that will ensure your data is safe.Thinking about backups, you might want to consider using the “3-2-1 plan” to do your backups. The “3-2-1 plan” is three copies of your files on two different storage mediums and one backup off site. In my case, I have one copy on my computer that I use daily, one copy on an external hard disk, and the off site copy is using an online backup service where I consider “the cloud” as a different medium. Yes, you do want to back up a copy of your files away from your computer. If there is an unfortunate catastrophic event including theft, fire, or natural disasters (see what is going on in Japan), then the off-site backup becomes critical in saving your important data.
One of the tools I use to ensure I have critical information backed up is to use a service called Dropbox. Dropbox runs on just about any computer and will automatically backs up selected files. To use Dropbox, you create a free account that gives you 2 gigabytes of storage (you can buy more storage, but I use Dropbox for a few selected files), download the software, install it, and copy the files you want to save into your Dropbox folder. When the software detects new files or that the files have changed, the Dropbox software will securely transfer your files to their servers. I found this beneficial when the backup I made before my computer died did not back up the inventory of my collection. When I reinstalled Dropbox on my computer, the software automatically recovered the files from the server.
I do not know what I would do if I lost my inventory files. I could attempt to recreate those records, but I saved myself a lot of time and heartburn by storing it in my Dropbox. Also, by storing the files in my Dropbox, I can access these files using my iPhone. Dropbox also has apps for the iPad, Android phones, and Blackberry devices. Since I have access to these files using my iPhone, I can check my want list at any time without having to carry around paper.
During this crash, I did not lose any of the images I had taken of some of my coins and currency, some that has appeared on this blog. But had something happened, I use an online service called CrashPlan to backup my system. CrashPlan is good for people with more than one computer and can automatically backup your data to CrashPlan’s servers via the Internet. You can also have CrashPlan backup your files to someone else’s computer (with their permission, of course) or to another disk on your home network. It is a great service even for one computer but fantastic for multiple systems. With the unlimited data plan, all of my pictures are backed up off-site. So if something happened, I have an off-site backup with all of my files.
There are other services that work similarly to CrashPlan. For example, a friend uses Mozy on the laptop he uses for business. When he connects to a hotel’s network, his Mozy software will back up the day’s work. Another Mac friend uses Carbonite and gives it rave reviews. You can read a Comparison of Online Backup Services to determine which service may be right for you based on the features and almost all of them offer free trials.
I do recommend keeping your inventory on your computer—I will discuss software for this another time. But if you do have important data on your computer, including the inventory of your collection, then you should backup your data. You should have three copies of your inventory on two different types of backup media and one should be off-site or away from your computer. Do it now because you never know when something will happen.
Tuesday, March 15, 2011
Beware of the 2055th Ides of March
One of the most recognizable coin from ancient Rome is the Eid Mar denarius commemorative coin issued by Marcus Junius Brutus after he participated in the assassination of Julius Cæsar on the Ides of March (15th of March), 44 B.C.E. The fame of this coin was already cemented by the time Roman historian Cassius Dio wrote sometime in the second century, “Brutus stamped upon the coins which were being minted in his own likeness and a cap and two daggers, indicating by this and by the inscription that he and Cassius had liberated the fatherland.”On the Ides of March, a group of senators conspired to assassinate Julius Cæsar to liberate the Roman Republic and save it from Cæsar’s tyranny. Brutus, who Cæsar thought was a friend and ally, was a leader of the conspirators. After Cæsar arrived at the senate, the conspirators stabbed Cæsar 23 times using daggers they hid under their robes. Cæsar died after seeing that Brutus was part of the conspiracy. William Shakespeare dramatizes this scene in Act 3, Scene 1 of the play Julius Cæsar:
Cæsar: Doth not Brutus bootless kneel?
Casca: Speak, hands, for me! [The conspirators stab Cæsar]
Cæsar: [Turning to Brutus] Et tu, Brute? Then fall, Cæsar!
[Cæsar dies]
Cinna: Liberty! Freedom! Tyranny is dead!
Run hence, proclaim, cry it about the streets.
Cassius: Some to the common pulpits, and cry out
‘Liberty, freedom, and enfranchisement!’
Brutus: People and senators, be not affrighted;
Fly not; stand stiff: ambition’s debt is paid.
There are 60 known examples of the EID MAR denarius in silver and only one known gold example. The gold coin is on loan to the British Museum. The obverse of the coin features the bust of Brutus with the inscription “BRVT IMP L PLAET CEST” which means “Brutus, Imperator (honored military commander), Lucius Plætorius Cestianus.” Lucius Plætorius Cestianus was the manager of the mint workers. It was common for the coiner’s name to appear on Roman coinage as a guarantee to the quality of the metal. The reverse features two daggers on either side of a liberty cap, a symbol of freedom. Inscribed below the cap is “EID MAR,” for the Latin Eidibus Martiis or the “Ides of March” to commemorate the day he saved the republic.Anyone in the area of the British Museum on the Ides of March, they are presenting a gallery talk by Ian Leins of the British Museum about the Ides of March. The free 45-minute gallery talk will begin at 13.15 (1:15 P.M. London Time) in Room 68. This would be a fantastic... visit one of the world’s greatest museums and take a break with an interesting talk!
Image of the Eid Mar silver coin courtesy of dig4coins.com.
Image of the Eid Mar gold coin courtesy of the British Museum via guardian.co.uk.
Saturday, March 12, 2011
Dear U.S. Mint Marketing Department
When was the last time I placed a mail order for a U.S. Mint product? In fact, when was the last time I called the U.S. Mint’s toll-free number to place an order? If you check your record, I have never placed a mail or telephone order. All of my orders have been made over the Internet with your online catalog. Then why do you persist in sending advertisements via the Postal Service?
How much does it cost for the U.S. Mint to send postal advertisements to me and others who have only placed orders online? Aside from the postage, which I am sure you are paying bulk rates, how much are you paying to print these materials, process the mailing list, and transport these pieces to the bulk mail center?
Today, I received the latest mail advertising the America the Beautiful Quarters Proof Set. Forgetting the fact that I never order partial sets, I have never ordered products from the U.S. Mint based on mailed advertisements. If the U.S. Mint Marketing Department had performed basic business intelligence, not only you would know that sending postal advertisement has not influenced a my purchases but I am on every email list that the U.S. Mint offers. It seems obvious that the U.S. Mint does not use business intelligence to help with their sales.
While producing a top-notch product is very important to you and the collecting public, being able to run the bureau with efficiency is also important. Part of that is to know that sending postal advertisements to people like me is a waste of money at a time when every cent counts. I hope that you can fix this issue so that you can improve the fiscal performance of the U.S. Mint.
How much does it cost for the U.S. Mint to send postal advertisements to me and others who have only placed orders online? Aside from the postage, which I am sure you are paying bulk rates, how much are you paying to print these materials, process the mailing list, and transport these pieces to the bulk mail center?
Today, I received the latest mail advertising the America the Beautiful Quarters Proof Set. Forgetting the fact that I never order partial sets, I have never ordered products from the U.S. Mint based on mailed advertisements. If the U.S. Mint Marketing Department had performed basic business intelligence, not only you would know that sending postal advertisement has not influenced a my purchases but I am on every email list that the U.S. Mint offers. It seems obvious that the U.S. Mint does not use business intelligence to help with their sales.
While producing a top-notch product is very important to you and the collecting public, being able to run the bureau with efficiency is also important. Part of that is to know that sending postal advertisements to people like me is a waste of money at a time when every cent counts. I hope that you can fix this issue so that you can improve the fiscal performance of the U.S. Mint.
Tuesday, March 08, 2011
The Presidential Dollars Are Vanishing
Did you know that the Presidential $1 Coins are “vanishing from circulation at an alarming rate” because they are being hoarded by collectors? Did you also know that the Presidential $1 Coins were “highly coveted coins every produced by the U.S. Mint” and that they are “vanishing from circulation at an alarming rate?”
This piffle was detailed on a half-hour infomercial entitled DCN Coin Talk starring a pitchman with an official sounding voice and his vapid female sidekick both acting from a script that would have made Phineas Taylor Barnum proud.
Rather than lying awake in the wee hours of the morning, I treated myself to a snack and sat down on the couch in front of the television. After removing the dog’s bone from under my behind, I started channel surfing to find something interesting. I guess cable television does not think anyone would be awake at 5:00 A.M. since the hundreds of stations were filled with bad reruns and infomercials. I found the end of something interesting and watched. After the closing credits, I was greeted with the opening to DCN Coin Talk.
After the opening banter between the pitchman and his muse, they spoke to their correspondent on the scene somewhere in a white room with only a bank vault-like door. The correspondent standing there in a pitch silent room holding his ear as if he holding an IFB in his ear regurgitating his score that ensured he agreed with the pitchman anchor.
To prove this is a legitimate offer, the pitchman anchor introduces David Ganz, “The Father of the 50 State Quarters Series.” Ganz, a long time numismatic author, former President of the American Numismatic Association, lawyer, and Bergen County (NJ) Freeholder, was presented as their numismatic expert as to the potential value of the coins. If you listened carefully, Ganz really did not endorse the product or the claims of their potential price. Ganz did talk about the worth of Morgan Dollars, which were large coins made from 90-percent silver whose population is lower than modern coins. Ganz did not equate the Morgan Dollar to the current Presidential Dollars, but the pitchman anchor really spun what Ganz said into something so positive that it bordered on overreaching.
“You can pay up to six time face value for some of these coins,” the anchor pitchman announced with a smile almost suggesting you could realize a similar profit as well.
After reaching into my pocket for my iPhone, I opened the browser and searched for an article that was familiar sounding. I found an article written by Ganz for Numismatic News that described his experiences making this informercial.
However, the Danbury Mint can help! For $34.95, the Danbury Mint will sell you a roll of 12 “gem uncirculated dollar coins” encased in a plastic roll. Surrounding the roll is an official-looking paper seal that looks like the type placed over the cap on liquor bottles.
But wait, there’s more. In addition to the roll of 12 gem uncirculated dollar coins, you will also receive an additional coin encased in a capsule so that you can have one to admire that is not in the roll. You will receive one roll a month to catch up on the program. All you do is pay $34.95 plus shipping and handling. And since you need to be able to store you new collection, you will also get a beautiful wood case with a tray to hold the capsules above a drawer to hold the rolls. There is a limited supply. Act now before it’s too late!
While the show was entertaining in its absurdity, I am shocked at the chutzpah. What is even more shocking is that I am sure someone is going to buy into this program. I understand that the coins, materials, case, and infomercial costs money, and the purchaser does not care and wants their investment in these coins to appreciate over time. While nobody can predict the future costs of these coins, the truth is that it is doubtful that the buyer would recover the purchase price!
The truth is quite different than what is claimed by this infomercial.
The largest hoards of Presidential $1 Coins are in the coin rooms of the 12 Federal Reserve branches. According to the testimony during a hearing held in July 2010, the representative from the Fed testified that there were $1.1 billion worth of dollar coins waiting to be circulated. When asked why there were so many coins, then U.S. Mint Director Ed Moy testified that even though they have tried to educate the public on the benefit of the coin, most people prefer to use the paper dollar. The hoard is the result of statutory requirements that regulate how many coins are produced.
Rolls purchased from the bank, dealers, or the U.S. Mint’s Direct Ship Program contains 25 coins. Rolls purchased from a bank or the U.S. Mint are sold at face value. Most dealers are selling the rolls at a $8-12 premium including rolls of dollars that are no longer in circulation. You can also purchase older rolls at banks at face value. Visit your bank branch and ask what they have available.
Roll collectors I have spoken with are not interested in short rolls, especially at the retail price of a full roll. Further, roll collectors want to know that the coins within the rolls are from a specific mint. From what I could tell, it is not possible to determine the mint mark on the coins in the Danbury Mint rolls.
If the roll collector wants to collect encased rolls, they usually opt for PCGS Certified Rolls. The PCGS service only accepts rolls from Mint-sealed packaging and places the coins in sonically sealed rolls with their label and tamper evident hologram. These rolls contain 25 coins and dealers have been selling for $50-65.
I have informally polled several online dealers and found that the only Presidential Dollar coins that cost more than $6 are error coins, specifically those with edge errors. Even the most expensive dealer was selling both P & D as a set for $5.75. The most expensive single coin I found was for the uncirculated Lincoln Dollar for $3.50.
While you can buy capsules to hold the coins for around 50-cents each, the coin tubes you can buy holds 25 coins, a full roll. All companies that sell capsules have a storage system that can be displayed on your credenza and easily stored. Some companies make special albums and folders that display the Presidential Dollars well for a fraction of the cost.
Unless you like the display format and do not care about the long term value of the set as sold by the Danbury Mint, then I would not recommend anyone buy into this offer.
This piffle was detailed on a half-hour infomercial entitled DCN Coin Talk starring a pitchman with an official sounding voice and his vapid female sidekick both acting from a script that would have made Phineas Taylor Barnum proud.
Rather than lying awake in the wee hours of the morning, I treated myself to a snack and sat down on the couch in front of the television. After removing the dog’s bone from under my behind, I started channel surfing to find something interesting. I guess cable television does not think anyone would be awake at 5:00 A.M. since the hundreds of stations were filled with bad reruns and infomercials. I found the end of something interesting and watched. After the closing credits, I was greeted with the opening to DCN Coin Talk.
After the opening banter between the pitchman and his muse, they spoke to their correspondent on the scene somewhere in a white room with only a bank vault-like door. The correspondent standing there in a pitch silent room holding his ear as if he holding an IFB in his ear regurgitating his score that ensured he agreed with the pitchman anchor.
To prove this is a legitimate offer, the pitchman anchor introduces David Ganz, “The Father of the 50 State Quarters Series.” Ganz, a long time numismatic author, former President of the American Numismatic Association, lawyer, and Bergen County (NJ) Freeholder, was presented as their numismatic expert as to the potential value of the coins. If you listened carefully, Ganz really did not endorse the product or the claims of their potential price. Ganz did talk about the worth of Morgan Dollars, which were large coins made from 90-percent silver whose population is lower than modern coins. Ganz did not equate the Morgan Dollar to the current Presidential Dollars, but the pitchman anchor really spun what Ganz said into something so positive that it bordered on overreaching.
“You can pay up to six time face value for some of these coins,” the anchor pitchman announced with a smile almost suggesting you could realize a similar profit as well.
After reaching into my pocket for my iPhone, I opened the browser and searched for an article that was familiar sounding. I found an article written by Ganz for Numismatic News that described his experiences making this informercial.
However, the Danbury Mint can help! For $34.95, the Danbury Mint will sell you a roll of 12 “gem uncirculated dollar coins” encased in a plastic roll. Surrounding the roll is an official-looking paper seal that looks like the type placed over the cap on liquor bottles.
But wait, there’s more. In addition to the roll of 12 gem uncirculated dollar coins, you will also receive an additional coin encased in a capsule so that you can have one to admire that is not in the roll. You will receive one roll a month to catch up on the program. All you do is pay $34.95 plus shipping and handling. And since you need to be able to store you new collection, you will also get a beautiful wood case with a tray to hold the capsules above a drawer to hold the rolls. There is a limited supply. Act now before it’s too late!
While the show was entertaining in its absurdity, I am shocked at the chutzpah. What is even more shocking is that I am sure someone is going to buy into this program. I understand that the coins, materials, case, and infomercial costs money, and the purchaser does not care and wants their investment in these coins to appreciate over time. While nobody can predict the future costs of these coins, the truth is that it is doubtful that the buyer would recover the purchase price!
The truth is quite different than what is claimed by this infomercial.
The largest hoards of Presidential $1 Coins are in the coin rooms of the 12 Federal Reserve branches. According to the testimony during a hearing held in July 2010, the representative from the Fed testified that there were $1.1 billion worth of dollar coins waiting to be circulated. When asked why there were so many coins, then U.S. Mint Director Ed Moy testified that even though they have tried to educate the public on the benefit of the coin, most people prefer to use the paper dollar. The hoard is the result of statutory requirements that regulate how many coins are produced.
Rolls purchased from the bank, dealers, or the U.S. Mint’s Direct Ship Program contains 25 coins. Rolls purchased from a bank or the U.S. Mint are sold at face value. Most dealers are selling the rolls at a $8-12 premium including rolls of dollars that are no longer in circulation. You can also purchase older rolls at banks at face value. Visit your bank branch and ask what they have available.
Roll collectors I have spoken with are not interested in short rolls, especially at the retail price of a full roll. Further, roll collectors want to know that the coins within the rolls are from a specific mint. From what I could tell, it is not possible to determine the mint mark on the coins in the Danbury Mint rolls.
If the roll collector wants to collect encased rolls, they usually opt for PCGS Certified Rolls. The PCGS service only accepts rolls from Mint-sealed packaging and places the coins in sonically sealed rolls with their label and tamper evident hologram. These rolls contain 25 coins and dealers have been selling for $50-65.
I have informally polled several online dealers and found that the only Presidential Dollar coins that cost more than $6 are error coins, specifically those with edge errors. Even the most expensive dealer was selling both P & D as a set for $5.75. The most expensive single coin I found was for the uncirculated Lincoln Dollar for $3.50.
While you can buy capsules to hold the coins for around 50-cents each, the coin tubes you can buy holds 25 coins, a full roll. All companies that sell capsules have a storage system that can be displayed on your credenza and easily stored. Some companies make special albums and folders that display the Presidential Dollars well for a fraction of the cost.
Unless you like the display format and do not care about the long term value of the set as sold by the Danbury Mint, then I would not recommend anyone buy into this offer.
Friday, March 04, 2011
Political Collectible Book and Numismatics
It is difficult to live in the Washington, DC area without being interested in politics. Some statistics have shown that 60-65 percent of all people either work for the Federal Government, a contractor to the federal government, or working in a job that supports the people, contractors, and governments. For those of us whose daily habits includes watching cable news, the Sunday morning shows, and reads Politico on a daily basis, it should be no surprise that a coin collector would be interested in political exonumia.So I was ordering CDs from Krause Publishing and found myself short of the $49 needed for free shipping. While looking for something interesting to fill out the order, I found Warman’s Political Collectibles: Identification and Price Guide. I did not know why this was with their numismatics books, but it looked interesting and added it to my order. Satisfied my order would ship for free, I placed my order.
When it arrived, I flipped through the color pages and glanced at a number of interesting pages, but did not think twice. It was interesting but I had other things to do. This past weekend, I picked up the book and from Chapter 1, I found why this book would be of interest to exonumia collectors: “Medals, ‘Coins,’ Badges, & Plaques.” It is an entire chapter on tokens, medals, woods, and ribbons of politics from years past.
For most of the 19th Century through the early 20th Century, it was common to see medals and ribbons on the campaign trail. Hard Times Tokens with pithy statements on the political issue of the day were as common as money was not. Many of the medals shown in the book have holes so that they can be worn as jewelry. And the book shows quite a few ribbons that are real interesting and had me looking at the archives of online auctions to see who has listed these items.
Warman’s Political Collectibles is a full-color book printed on heavy glossy paper. The images are fantastic and the information appears to be solid. While the price ranges are based on the author’s research at the time the book was published (2004), there should not be a big difference between the published prices and what you should expect to spend today.
It would be impossible to catalog every political collectible that ever existed, but this book highlights some of the more interesting items and potential prices ranges for each. The one chapter about political exonumia was a pleasant surprise and worth purchasing if you have an interest in political collectibles.
Cover image complements of Krause Publications.
Thursday, March 03, 2011
Let's Talk Collecting
Let’s do something different. Let’s talk collecting!
I am finding quite a few 2011 coins in pocket change. Most of my finds are Lincoln cents, but there have been a few 2011-P nickels mixed in. For the first time, I found 2010 dimes in change. I have yet to find any America the Beautiful Quarters® in change. Finding 2011 coins in pocket change this early is a good sign, until oil prices rise and put us back into the “Big Recession.”
In recent years, I have purchased the $2 Single Note Collection from the Bureau of Engraving and Printing. I don’t collect the notes from all of the Federal Reserve branches, I only collect the ones from the Federal Reserve Bank New York. The $2 Single Note Collection features a Series 2003A Federal Reserve note with a a serial number beginning with “2010xxxxD” in a special holder. During the pre-release period, the BEP will only sell the 2011 $2 Single Note Collection as a set. They will begin to sell the individual notes on March 15.
Last week, I purchased the 2010 Presidential $1 Coin Covers. I have been buying U.S. Mint coin covers since they were first released in 1999 for the 50 State Quarters. I find these very cool collectibles and have enjoyed showing them off. They are not popular with collectors and do not sell well in the secondary market, but I like them. To store and display them, I use a two pocket first day cover page stored in a loose leaf binder with anticorrosion pages in the front and back of the book.
I did not buy the 2010 annual sets. The proof sets contain 14 coins and the mint set has 28 coins. Because of the number of coins, the prices for these sets are high. I am not sure it is worth the price since since I collect uncirculated and proof coins in various blue albums and feel that these sets are redundant collectibles. Up until now, I was collecting mint and proof sets dating back to my birth year. But I am not sure I want to continue. I may stop collecting these sets and sell off the collection except for my birth year and the 1965-67 Special Mint Sets.
In fact, I was looking at my collection and may sell a lot of it to just concentrate on my date-mintmark collection, U.S. Mint First Day Covers, interesting world Philatelic-Numismatic Covers (PNC), and some other smaller specialized collections. The rest may end up on eBay!
Speaking of Maryland Colonial currency, I have seen buyer-friendly prices on different auction websites. I wonder if the lack of activity is because of the economy or general interest. For collectors, this is good since we can buy what we want at a good price with a potential for a good future return.
I am finding quite a few 2011 coins in pocket change. Most of my finds are Lincoln cents, but there have been a few 2011-P nickels mixed in. For the first time, I found 2010 dimes in change. I have yet to find any America the Beautiful Quarters® in change. Finding 2011 coins in pocket change this early is a good sign, until oil prices rise and put us back into the “Big Recession.”
In recent years, I have purchased the $2 Single Note Collection from the Bureau of Engraving and Printing. I don’t collect the notes from all of the Federal Reserve branches, I only collect the ones from the Federal Reserve Bank New York. The $2 Single Note Collection features a Series 2003A Federal Reserve note with a a serial number beginning with “2010xxxxD” in a special holder. During the pre-release period, the BEP will only sell the 2011 $2 Single Note Collection as a set. They will begin to sell the individual notes on March 15.
Last week, I purchased the 2010 Presidential $1 Coin Covers. I have been buying U.S. Mint coin covers since they were first released in 1999 for the 50 State Quarters. I find these very cool collectibles and have enjoyed showing them off. They are not popular with collectors and do not sell well in the secondary market, but I like them. To store and display them, I use a two pocket first day cover page stored in a loose leaf binder with anticorrosion pages in the front and back of the book.
I did not buy the 2010 annual sets. The proof sets contain 14 coins and the mint set has 28 coins. Because of the number of coins, the prices for these sets are high. I am not sure it is worth the price since since I collect uncirculated and proof coins in various blue albums and feel that these sets are redundant collectibles. Up until now, I was collecting mint and proof sets dating back to my birth year. But I am not sure I want to continue. I may stop collecting these sets and sell off the collection except for my birth year and the 1965-67 Special Mint Sets.
In fact, I was looking at my collection and may sell a lot of it to just concentrate on my date-mintmark collection, U.S. Mint First Day Covers, interesting world Philatelic-Numismatic Covers (PNC), and some other smaller specialized collections. The rest may end up on eBay!
Speaking of Maryland Colonial currency, I have seen buyer-friendly prices on different auction websites. I wonder if the lack of activity is because of the economy or general interest. For collectors, this is good since we can buy what we want at a good price with a potential for a good future return.
Wednesday, March 02, 2011
I Will Buy An iPad 2: Where's My e-Numismatist?
While I unbury myself from “real work,” I have been fielding questions and comments over my postings on electronic publishing. The comments have run the gamut from skeptical to enthusiastic for more electronic publishing.
I bring this up now because as part of the introduction of Apple’s new iPad 2, Apple CEO Steve Jobs announced that Radom House, Inc., the largest trade book publisher in the U.S., has made its catalog of 17,000 electronic books on Apple’s iBookstore.
Apple says that the iBookstore sells ebooks from more than 2,500 publishers and all six major trade publishers. This does not include specialty applications sold in the iTunes app store.
I wonder how difficult it would be to create an ebook version of The Numismatist? While the reader that the American Numismatic Association uses to display The Numismatist on the computer screen, the program uses Adobe Flash, which is not available on the iPad. It also requires that the computer be connected to the Internet reducing its portability.
I wonder of Apple or Amazon.com wants to help pioneer working with not-for-profit organizations by supporting subscription downloads. Amazon.com would be a good partner because they offer the Kindle reader and apps that can read Kindle formatted ebooks for many devices, including the Apple iPad. Imagine waking up one morning and the current version of The Numismatist on your favorite device. Pick up your device and just go!
Since I will not buy the first release of any product, it was difficult to wait for the iPod 2. The iPad 2 is faster, lighter, has new cameras, and more for the same price as the first generation product with a cool Smart Cover, it was worth the wait. Although I will not stand on line in front of an Apple Store when it will will go on sale at 5:00 P.M. on March 11, I will buy one before the end of the month.
Once I buy my iPad 2, I want content. Dear ANA: please sell me content!
Here I am telling the ANA that I will pay my dues for the content they provide in the form of The Numismatist in a form that would be cheaper to produce. I am not asking for something for nothing. In fact, I will pay the current paper version in order to be able to download The Numismatist to my iPad 2 so that I can consume this media how I want. So why isn’t the ANA looking outside of the box to figure out how to do this?
I bring this up now because as part of the introduction of Apple’s new iPad 2, Apple CEO Steve Jobs announced that Radom House, Inc., the largest trade book publisher in the U.S., has made its catalog of 17,000 electronic books on Apple’s iBookstore.
Apple says that the iBookstore sells ebooks from more than 2,500 publishers and all six major trade publishers. This does not include specialty applications sold in the iTunes app store.
I wonder how difficult it would be to create an ebook version of The Numismatist? While the reader that the American Numismatic Association uses to display The Numismatist on the computer screen, the program uses Adobe Flash, which is not available on the iPad. It also requires that the computer be connected to the Internet reducing its portability.
I wonder of Apple or Amazon.com wants to help pioneer working with not-for-profit organizations by supporting subscription downloads. Amazon.com would be a good partner because they offer the Kindle reader and apps that can read Kindle formatted ebooks for many devices, including the Apple iPad. Imagine waking up one morning and the current version of The Numismatist on your favorite device. Pick up your device and just go!
Since I will not buy the first release of any product, it was difficult to wait for the iPod 2. The iPad 2 is faster, lighter, has new cameras, and more for the same price as the first generation product with a cool Smart Cover, it was worth the wait. Although I will not stand on line in front of an Apple Store when it will will go on sale at 5:00 P.M. on March 11, I will buy one before the end of the month.
Once I buy my iPad 2, I want content. Dear ANA: please sell me content!
Here I am telling the ANA that I will pay my dues for the content they provide in the form of The Numismatist in a form that would be cheaper to produce. I am not asking for something for nothing. In fact, I will pay the current paper version in order to be able to download The Numismatist to my iPad 2 so that I can consume this media how I want. So why isn’t the ANA looking outside of the box to figure out how to do this?
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