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Highlights of the Robinson S. Brown Conder Token Auction, October 7, 2009

Posted in coin investments, collector investments, Conder Tokens, copper tokens, Dix Noonan Webb, Gammill Numismatics, knowledge is power, Provincial Token Coinage of the 18th Century, rare coin investment, Robinson S. Brown Jr. on October 28, 2009| Leave a Comment »

Essex Epping Forest DH 1 obv_edited

Essex Epping Forest DH 1 rev_edited

By all accounts the Robinson S. Brown Jr. Conder Token Auction by DNW in London on October 7th, 2009 by was a great success.   The Brown collection (Part I) consisted of lots 1 – 247 and realized ₤91,080 including the buyer’s premium.  The entire auction consisted of 621 lots, 4 lots went unsold, there were 98 successful bidders and a total of 33 vendors.  A few hightlights follow.

Pictured above is Lot 132, from Essex, Epping Forest [DH 1], Spence’s Shilling dated 1796 (the 9 and 6 in the date are retrograde, see below).  It has the stag right and the reverse has the star and Garter.  The edge reads: Spence x  Dealer x in x Coins x London.   The quality of the work that went into this token is perhaps best noted by the eye of the stag, what craftsmanship!  The token sold for ₤540.

Essex DH 1 Date_edited

Essex DH 1 eyes

 

 

 

 

 

 

Lot 9           Aylesbury [DH 4], Francis Wheeler Halfpenny dated 1797, had most attractive original surfaces with brilliant toning.  This lot sold for ₤ 1440 ($2,290 based on US exchange of $1.59).  All prices include a 20% buyers’ premium.

Lot 10        Aylesbury [DH 5] another Francis Wheeler, Skidmore’s mule Halfpenny (1797), where the approximate population is reported to be 6 pieces with 2 in institutions, produced  ₤ 780 ($1,240).

Lot 11         Aylesbury [DH 6] was another Francis Wheeler, Skidmore’s mule Halfpenny, with the same obverse die as Lot 10 brought ₤ 816 ($1297) in extremely fine condition with only one other specimen known.  This example’s provenance goes back to  the S.H. Hamer Collection.

Lot 12         Aylesbury [DH 7c], Lutwyche’s Halfpenny with the laureate but of William III and perhaps the finest in private hands was hammered down at ₤ 1,020 ($1,622).  The provenance of this coin was back to the W. Anderson Collection (April 2000) and J. Spingarn Collection (February 2001).

Lot 13         Aylesbury [DH 8], another very rare (only one other specimen known to the cataloguer) Skidmore’s mule brought ₤ 540 ($859).  This specimen has the FW cipher surmounted by the crest of a swan and encircled by a wreath of oak and palm on the obverse while the reverse has the heart on hand.  Beautiful example and practically unique.

Lot 15         Aylesbury [DH 9], another Skidmore’s Halfpenny coming from the S.H. Hamer collection brought ₤ 744 ($1,183).

Lot 19         Aylesbury [DH 14], Skidmore’s mule with justice seated right and with the Hendon church on the reverse,  brought ₤ 1,200 ($1,908).   Another example where only two other specimens are known, and one of those is in the British Museum.

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Highlights of the Spectacular Dan Holmes Collection of Early Date Large Cents and a Congratulation.

Posted in Chris McCawley and Bob Grellman, Dan Holmes Large Cents, Ira and Larry Goldberg, knowledge is power, large cents, numismatics, tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , on August 24, 2009| Leave a Comment »

Congratulations Dan, you have managed to accomplish something that all who love and collect large cents can share and enjoy with you into the future.  Your perseverance over the last 35 years has resulted in an historical “first” for the coin collecting community on the whole, and particularly, for large cent collectors everywhere.  To further distinguish your accomplishment, you compiled your collection by what we will call the “old school approach” of untiring patience in your search, meticulousness in your purchases, and all done with an “eye” for unwavering quality in your choice of copper.  Your assembling the most complete set of Early Date US Large Cents in history is an event that will go down in numismatic history as one of the foremost events in our hobby.   

Not only has Dan brought together all 302 Sheldon varieties in the early date years (1793-1814) in a single collection, but even more remarkably, he has managed to couple that with bringing together all 53 of the NC (noncollectible) varieties as well.  Dan was able to obtain all of the noncollectible varieties but one.  Through the generosity of the ANS, they have loaned to Dan that single unique coin, the 1793 NC-5, through his September auction to make it possible to display, and for collectors to view, a complete set by Sheldon number of United States Early Date Large Cents for the first time.   This display contains all 355 varieties including the NC varieties of this remarkable era in our Early American history.  What an amazing triumph!

The extent of Dan’s accomplishment has further been amplified by Bob Grellman when he noted that there are probably two dozen coins in this early date large cent collection whose rarity exceeds both the 1804 dollar and the 1913 Liberty nickel!!  Another remarkable accomplishment!

And, there are over 50 coins listed as finest known for the variety, or condition census pieces including many of those described below. 

The sale will take place September 6, 2009, at the Crowne Plaza Hotel in Beverly Hills at 1:00 PM with auctioneers Larry and Ira Goldberg in collaboration with Chris McCawley and Bob Grellman, The Copper Specialist.  This continues to be a phenomal team for bringing high quality large cent auctions to the cutting edge for both collector and investor.  We owe these gentlemen a great deal of gratidue in bringing us these landmark events.  Thanks to you and you hard working staffs gentlemen! 

We will mention a few highlights of the auction to further heighten your interest.  We will give you the PCGS grade as well as McCawley and Grellman’s grade (The Copper Specialists/EAC grade).  

Let’s begin with Lot 128, the legendary 1795 Reeded Edge Sheldon-79.  This Holmes coin is the finest of 8 known examples (R7+).  Even through the grade assigned by PCGS is only VG-10, the Reeded Edge is clear and strong with the exception of a small area over the S-OF-A where it is weak or missing.  McCawley & Grellman give the coin a VG-10 designation.  To help put this particular coin in perspective, a G-4 with heavy wear brought $402,500 (lot #1143) in the Nov. 20, 2008, Bowers and Merena auction in Baltimore.  What will be the final hammer for this exceptional treasure, one of the most famous coins in the collection?

Probably considered to be the most valuable coin in the collection is Lot 352.  This is the extraordinary Mint State 1799 Sheldon-189 (Normal Date).  It is the only Certified Mint State coin of that year.   It has been graded MS-62 BN by NGC.   It is the superior coin for that year by a wide margin, the runner-up being a VF-30 example housed in the ANS Museum.  Catalogers McCawley & Grellman give the coin an AU-55 designation.  This is the “must-have” coin for anyone assembling a registry set of mint state large cents!

Lot 3 is another amazing coin.  It is the second finest 1793 Sheldon-2 Chain America graded MS-63 BN by PCGS.  It ranks as an R4+.  This copper has incredibly well defined hair detail and magnificent surfaces beaming with luster.  McCawley and Grellman assign this coin a grade of AU-55 due to the light friction on the highest points.

Lot 5 is another Chain America, the 1793 Sheldon-3, which is the Levick Plate Coin.  It is an R3- and graded MS 63 BN by PCGS.  McCawley and Grellman assign this coin a grade of AU-50+. 

Lot 7 is the Unique 1793 Strawberry with One Cent Centered, NC-2, R8+, graded by PCGS as Fair 2.  This is the Levick-Crosby Plate Coin. McCawley and Grellman assign this coin a grade of Fair-2+.  An extraordinary coin!

Lot 8, also a 1793 NC-3 Strawberry Leaf Wreath Cent with the ONE CENT High is one of only three known and is referred to as the “Common Strawberry”.   PCGS graded this coin as Good-4 with which McCawley and Grellman  concur.  The finest known example is a VG-7 (EAC grade) which sold for $862,500 as lot #51 in the January 5, 2009, Stack’s auction in Orlando.  This set a record  price paid for a large cent.  Will it stand or fall during the Holmes auction?

Accordingly, in a single collection, Dan has assembled two of the four known examples of the Strawberry Leaf Wreath Cent.

Lot 9 is a Prooflike 1793 S-5 (R4) Wreath Cent with Large Date and Liberty.   This is simply a near flawless Wreath Cent.  The coin is sharply struck and has reflective prooflike surfaces.  PCGS graded this coin MS-65 BN while McCawley and Grellman assign it a grade of MS-63 prooflike.  NGC had graded the coin as Specimen-65 BN.  This is simply another amazing coin in Dan’s collection.  Auction estimates are $150,000-UP!

Lot 79 is yet another spectacular and popular coin for the large cent collector.  It is the attractive high condition census 1794 Sheldon-48  (R5) Starred Reverse graded by PCGS as VF-30.  A very rare coin indeed in this grade!  McCawley and Grellman assign a grade of VF-25.  In Dan’s example, all 94 stars are clearly visible and reflect the quality of this great collection.  Someone will walk away with a pristine example of this popular variety.  Once again, auction estimates are $150,000-UP!

Lot 1 is the American Classic 1793 Sheldon-1 (R4) Chain Ameri. graded by PCGS as AU-58.  This coin represents one of the finest known of this variety.  Graded AU-55 by McCawley and Grellman, this is a true American Classic.

Lot 24 is the Finest Known Bisected Obverse 1793 Sheldon-14, a R5 and residing in an AU-53 PCGS holder.  McCawley and Grellman give this coin a grade of EF-45.  With an estimate of $100,000 and UP, given the exquisite nature and rank of the coin, this is surely a figure which will be exceeded.

As we continue, Lot 31 is another remarkable mint state large cent.  This lot is the lustrous 1794 Sheldon-18b, Head of 1793 with Edge of 1794 and is a R4.  PCGS graded this coin as MS-63 (tied for the finest they have graded) whereas McCawley and Grellman assign a grade of MS-60.  Estimated value for this coin is $100,000.

Lot 74 is the Finest Known 1794 Sheldon-45 (R5+), and the finest by a wide margin.   There is no roughness or planchet flaws on this coin which is from the Oswald group of mint state early dates.  PCGS graded the coin MS-65 RB, and McCawley and Grellman concur.  An absolutely beautiful specimen with an auction estimate of $100,000 and UP.

Lot 95 is a Gem 1794 Sheldon-59 (R3-), another Oswald coin graded MS 66 RB by PCGS.  McCawley and Grellman give the coin a grade of MS 65+ and note that it is certainly one of the finest 1794 cents of any die variety.  An incredible gem in all respects as well as being from the famous Oswald collection.   An auction estimate of $100,000 and UP.

Lot 101 is a Choice Mint State 1794 Sheldon-64 with Missing Fraction Bar, graded MS-64 RB by PCGS with an R5- rating.  McCawley and Grellman assign a grade of MS-63 to this choice steel brown coin with ample mint red color remaining.   Another coin with an auction estimate of $100,000 and UP.  Surely a true rarity with a PCGS population of 1 and none finer at PCGS for the variety.

Lot 185 is a Gem 1796 Draped Bust Sheldon-110 with an R3+ rating and graded MS-66 BN by PCGS and MS 65 by McCawley and Grellman.  Tremendous coin, possessing highly lustrous steel brown surfaces which have eloquently faded from the underlying mint red color which still remains strong in the protected areas.  An incredible gem which makes the large cent enthusiast gasps for breath and weak at the knees.

Lot 531 is the Unique Certified Mint State 1804 Sheldon-266c Large Cent graded MS-63 BN by PCGS with an R2 rarity rating.  This is the Sheldon Plate Coin.  McCawley and Grellman assign a grade of AU-58.  It is worth reading the description of this coin to understand the disparity in grade.  In any event, this is the finest known in both census lists.  This coin is a true prize for the most discerning collector of Early American Coppers.

Finally, also offeredd in this sale is the Unique Sheldon-Holmes Color Set.  This set consist of 6 Colonials and 60 Large Cents assembled by Dr. Sheldon and sold intact to Dan in 1976.   Auction estimate is $20,000-UP.  

We all eagerly await September 6, 2009 to learn the outcome of his historical sale.

We also wish Dan the very best and look forward to the remaining three sales in 2010.

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2009 ANA Summer Seminar on Advanced United States Coin Grading and Problem Coins. A Critique.

Posted in coin condition, coin investments, collector investments, Economy, Gammill Numismatics, Grading, Grading problem coins, Half Cents, Hard Times Tokens, knowledge is power, large cents, rare coin investment, shield nickels, Stand Alone Coins for Investments, tagged , , , , , , , , , , , , , , , , , , , , , , , , on July 28, 2009| Leave a Comment »

Instructors: William Shamhart, Jr., Charles Browne, Lane Brunner, John Dannreuther & John Albanese

Week of July 4, 2009

If you aren’t familiar with the five names above, you should make a concerted effort to find out who they are and where you might meet and learn from their years of experience in numismatics. These gentlemen have a strong background in numismatic research, the marketplace, pricing and “grading” some of the most famous collector coins that have appeared in the market during the last 20-30 years. Of course, these were the gentlemen who taught the ANA’s Advanced United States Coin Grading and Problem Coins class out in Colorado Springs during the second session of this year’s ANA’s summer seminar series.

Bill Shamhart has been teaching advanced grading out at the ANA during the summer seminar series for a number of years and always brings along an “all star” roster of graders, numismatic experts and innovators in the hobby. Of course, Bill heads up the class and is a demanding mentor with the students’ best interest always out front. He is nothing less than a consummate professional whose philosophy is deeply seated in education.

Charles Browne is likewise a most respected PCGS grader and summer instructor with magnificent grading skills and a more than unique ability to explain the subtlety between that PF 66 and PF 67. Charlie also has a very enjoyable personality which enables him to readily share his strong fundamental understanding of market grading and the market place. He also has a mature and profound knowledge of the field of numismatics.

John Albanese, as most of you know, is the president of CAC. He was also one of the co-founders of PCGS and founder of NGC. He is a soft-spoken individual who is easy to engage and discuss grading and answer your questions. He is a man of many interests and seems to be one of the few who are able to see the “big picture” in the “collectibles space”. What an opportunity we had to have him there as an instructor for the week! It was a unique occasion to learn firsthand his insight into creating that little green “CAC” sticker. In addition, we benefited from his one-on-one instruction about grading which was an experience in itself. He was indeed, as they all were, splendid gentlemen with education at the top of their agenda.

Dr. Lane Brunner has served several positions with the ANA. Lane has a sharp and critical eye when it comes to grading high end coins and spotting coins that have problems of every description. His natural teaching skills were evident in our one-on-one examination of coins and explanation of problems that were present on many of the coins.

Finally, there was John Dannreuther, one of the co-founders of PCGS, a well-known world class researcher, author, consultant and rare coin dealer. John was just a wealth of information and enthusiastically shared his personal experiences in the business, as well as, some of his unpublished results regarding the minting process and in particular about proof coinage. His attention to detail during our one-on-one exercises was truly informative. John is currently working on his opus on proof gold coins and gave an excellent lecture on the production of proofs. What a wealth of information!

John, or JD as we learned to call him, rounded out a particularly unique gathering of instructors of exceptional caliber for our one week course.

All of these fellows have been around the business for a while (sorry for that guys), but as I am sure Bill would say……’the truth sometime hurts’.  These gentlemen are to be applauded for donating their time and energy so their students will not only be better at grading and detecting problem coins, but will also continue the generous giving of time and energy to numismatics through their example.

These instructors have seen, and in fact, been part of a lot of the change we have all seen during the last twenty years or so in our hobby. Their accomplishments range from the founding of the two most successful grading services and subsequent innovations, such as CAC, participating in numismatic service organizations, publishing articles, reference books and teaching.  Finally, they have been successful dealers who have prospered through ethical practices and survived the chaotic markets that occurred during the late 70’s and early 80’s.

From a historical perspective, these gentlemen’s mentors and current colleagues are among the greatest names in 20th century US numismatics.  I am sure that in future years, all the students in this class will delight in the fact that they sat in the room with these men for a week and were able to discuss the timely developments of grading, the coin market itself and contemplate the future of our hobby.

Now some comments about the class and its content.

There were twenty five students in the class, including one YN. We had five instructors for almost every exercise we conducted with one-on-one follow-up. The line of attack in the class was simple: we were to look at and evaluate as many coins in 5 days as possible, and then be able to gain a consensus within a group setting about the grade of those coins. I think we saw most US type coins (in copper, silver and gold) and in grades from AU 58 to MS 68 as well as a good number of proof issues.

Not stopping with the grade, you had to determine the method of manufacture (mint state or proof), color designation for copper, other designations such as PL, DMPL, cameo, ultra cameo, FH, FBL, FSBs, FS, as well as, whether the coin had been lightly dipped (and thus graded) or harshly dipped and a “no grade”, cleaning (heavy vs light hairlines), re-colored or doctored to cover scratches or spots….and so own. All the coins were either PCGS or NGC to the best of my recollection.

We broke up into five groups with one instructor assigned to each group. Then the fun began.  “Number you papers from one to thirty” came the directive from one of the instructors. Another instructor might tell us that we have 30 seconds to inspect each coin and then must pass it to our neighbor. They reminded us to go with our first impression using only the naked eye and then if you see a problem use your loupe. A loupe was also appropriate for the smaller coins. It seemed as if we were off to the races…and in fact we were!

Coins were passed around the group; you recorded your grade; and after everyone had graded the coins, we begin an in-depth evaluation of the coins. The objective was to arrive at some consensus regarding the grade within the group. All the while, we were getting feedback from our table instructor in the way of questions, comments and tips such as, you might want to look at that coin one more time (since you clearly missed something the first time).  The greatest learning tool was in the effort to gain consensus regarding a grade.  This was the process that exposed everyones thoughts about  the grade of the coins and thus provided the forum for disussion with the each other as well as the instructor.

At first, it was hectic but as that first day progressed I think most of us fell into a rhythm that at least helped everyone get to the second day. Then it started all over again on day two.

We were looking at a lot of different coins and were processing a lot of information in a very short period of time. In the first couple of exercises the grade spread within a given group might be from AU 58 to MS 65 or higher.  The objective of the class was to narrow that range down to the correct grade, or to be at least only one point away. Despite the hectic nature of the process the composure and positive instruction from the instructors resulted in little anxiety associated with the process after the first day. We were now on a steep learning curve and had nothing but critical information to gain. This realization, I think, was a big turning point in the class. Now, we had nothing to lose so to speak, but everything to gain. So listen and learn!

As the week progressed, each groups’ consensus grade became tighter and we also gained a much better understanding of A, B and C coins within a grade.  This is something John expanded on with regard to certified coins getting those little green “CAC” stickers.  

All in all it was a great week and is among the strongest classes I have seen the ANA summer seminar series offer in many years.   There were several people that signed up for the class next year before leaving Colorado Springs at the end  of the week.  That says an awful lot about the instructors and class content.  I don’t know of another place where you could gain this type of information from a fine group of experts.  I might also mention, there were several students in the class that had taken the class in previous years (as in last year).

If  you have the opportunity and are interested in grading ,be sure to look into this class.  You must have completed the Beginning and Intermediate grading classes before you can get into this advanced class. 

Remember: Eye Appeal and Luster are the two things that your eyes see first when looking at a coin and thus represents that critical first impression.  Eye appeal and luster are the top factors being considered in market grading and thus pricing.

We were constantly reminded that with market grading, eye appeal adds a little, but forgives a lot.

P1010404

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As the Economy Goes, So Goes the Coin Market

Posted in coin condition, coin investments, collector investments, Economy, key date investments, knowledge is power, rare coin investment, Uncategorized, tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , on July 18, 2009| Leave a Comment »

 AM23507536-oz

As the economy continues to struggle with rising unemployment numbers (heading toward 10%), tight credit for small businesses, bankruptcies and housing foreclosures increasing 15% in the first half of 2009, it should be no surprise that we are also seeing the activity of the coin collecting community shift their priorities.  With less disposable income we are seeing a drop in attendance and purchases by collectors at both the local and national level at both shows and auctions. Additionally, this economic down turn has hit collectors at all financial levels.  These are certainly not surprising results, but the question a lot of dealers and collectors alike are asking is: how long will it last? 

Many dealers are traveling less (particularly between coasts) due to slow retail and wholesale sales which are primarily due to the factors mentioned above, as well as, the lack of fresh material and the presence of what are referred to as “C” and “D” quality coins on the floor.  Or, to say it another way, too much of what everyone has already seen time and time again.  Dealers are relying more and more on internet transactions to get rid of these less than desirable coins while looking for the more desirable “A” and “B” coins, and in particular those coins that have the new little green “CAC” (Certified Acceptance Corporation) sticker affixed.  

Note, the “C” and “D” coins that are selling for discounts are not good collector or investor coins for your portfolio!    If dealers and collectors are trying to get rid of this material now, they will be trying to do the same thing in twenty years.  Quality (often referred to as eye appeal) is the leading factor that dominates market value!  

It is not surprising that a number of collectors out there have slowed down, or at least put things on hold for a while.  There are also a number of collectors and dealers that are either being forced to sell their collections to make ends meet; or, they are just becoming disillusioned by the current rare coin market, jittery economy and few positive signs of a timely recovery. 

There is also a strong desire by everyone in this collectible/ investment space to establish the value of their numismatic portfolios.  Of course value is always based on quality, availability and demand, and in a down market, the inferior examples in a specific grade are just going to sit and sit and sit!  In this market, only the top tier coins, i.e. the “A” and “B” examples in any given grade are going to be the coins that will move, and probably move at a premium independent of tier price.  Likewise the more common issues are going to be less desirable and will suffer due to the lack of demand for such ordinary items.  Add to this the overall movement of the world economy and this becomes a complex issue unless you are holding bullion (for which there are daily prices, and liquidation is efficient and has a well defined mechanism).

For some collectors who have been able to put themselves in a strong cash position, this is an excellent time to purchase coins if the right gems emerge.  For example, the recent sell of the Adams-Carter Class III 1804 dollar brought half a million dollars less than it would have reportedly brought a year ago due to the current recession.  This rarity sold several months ago at the CSNS show in Cincinnati.  It sold for $2.3 million (including the buyer’s premium) and was considered by the buyer at that time to be a bargain.  Time will tell, but my best guess is that this coin will recover nicely from the current down turn simply because it is a “true rarity“.  A true rarity is important for everyone to understand vs.  series rarities such as the 1909 S VDB.

In the early part of this recession, it seemed as though the casual (new) collectors began to disappear as the economy tightened up.  However, at this point, with the continuing problems on Wall Street, Main Street, General Motors going in and out of Chapter 11, CIT on the brink of insolvency, credit card debt, real estate debt and increased home foreclosures, we find that a lot of people who thought they were insulated from a fragile economy simply are not.  Of course Bernie Madoff made us all acutely aware of the criminal nature of some people and how cautious we all should be in the current environment with all financial investments.  Thus, there seems to be a slow methodical breather being taken by the collector base, as well as investors, until things become a little more upbeat, i.e. employment numbers dramatically improve for starters.

Remember, it started with the causal collector, then moved to the more dedicated collector and finally to the financially capable and steadfast collector.  Caution rules the moment for most.  At present, the biggest buyers of coins are coin dealers! 

Another important realization is that a price correction is taking place in the numismatic marketplace just as it has in so many other parts of our economy.  Of course we have the same problem as the other markets and that is, we don’t yet know where or when we will (or have) reach the bottom, what the recovery will look like and finally the time line of that recovery.

There are areas in this market that are doing better than others.  For example, early copper collectors seem to be holding up their area of collecting, while Morgan Dollars (particularly the common dates) and some of the more common early commemoratives are weakening.  Indian Head Cents and Lincoln Cents are somewhat slow.  Early Type (“A” and “B” coins) seem to be holding their own due mainly to their rarity due to scarcity.  This of course provides a nice buying opportunity if these are areas of interest to you and cash is available.  So, what do you buy now with confidence that your investment is sound in this down market?  You buy “A” and “B” coins that are rare due to scarcity and are always, for these reasons, in high demand.  Look for that “CAC” sticker or work closely with an experienced rare coin dealer to help you make these decisions.

The collectible and rare coin market has maintained its strength longer than most investment vehicles.  At first, it looked like rare coins were the ideal hedge against what was happening in the stock market.  However, sooner or later, just as with all bubbles, it has been forced to give back some of that rapid growth seen in the past three to five years.  There has been a lot said about foreign vs US money coming in from all over the world to purchase rare coins.  Now we see the effect of that world economy and realize the reality and consequences of what is now a world market in rare US coins, controlled by an impartial and slashing world economy.  

How long will it last?  It will last until we start seeing positive job reports at the end of every week for starts!  Look for that first and then formulate the next question!

When will collectors/investors from all positions and skill levels feel comfortable enough to re-enter the coin market once the economy begins to gain positive momentum?

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China, Counterfeit US Coins & Holders. Best Strategy Moving Forward.

Posted in coin condition, counterfeit coins from China, knowledge is power, large cents, Uncategorized, tagged , , , , , , , , , , , , , , , , , , , , , , , , on May 19, 2009| Leave a Comment »

eagle

There are reportedly a hundred mints in China rapidly producing counterfeit United States coins that are  infiltrating our borders hoping to find a home with some unsuspecting  US collector.  Most of these coins are coming from the two southern Chinese provinces of Fujian and Guangdong.  This problem has been going at an ever increasing rate since the end of 2007 and earlier.  However, now that the Chinese have technology and minting presses from the US,  this problem will force us to a “New Educational Level” to prevent and protect collectors and dealers from buying these worthless reproductions of our historic numismatic past. 

The Chinese are busy making everything from Colonials, Half Cents, Large Cents, Indian Head Cents, Buffalo Nickels, Standing Liberty Quarters, Morgan, Peace and Trade Dollars, all dominations of Gold coins and paper money.  Their technology is rapidly is improving rapidly improving as well as mastering the color of our early copper coins. 

One of their newest entries is the production of “error coins”,  an area in which they know very well the passion US collectors have for these unique items.   And to be honest, they are getting better and better at producing these counterfeits.  The machinery they are using is becoming, if not already, state of the art.  Their dies are improving, the strikes are improving and with copper coins, they are moving rapidly to getting the color right.

To make life a little more complicated, the Chinese have now introduced counterfeit PCGS and NGC holders into our marketplace.  At present, it appears that these counterfeit holders, as you would expect, contain counterfeit coins, however, that is likely to change in the near future if it hasn’t already.  At some point they will be putting authentic over-graded coins in these holders.  For example, an AU-50 1909 S VDB in a PCGS or NGC holder graded MS 63.  Or just as easily it could be a Fine 1877 Indian Head Cent graded EF 40 or EF 45.  The point is that there is a lot of money to be made by using this combination of authentic coin and counterfeit holder.  Grade inflation is already a major problem as we continue to evolve within the arena of market grading.

I guess these events reminds us all that it wise to buy the coin and not the holder…..buy the book,  then the coin.  In this case, buy a good book on  detecting counterfeit coins (see book list below).  Our best protection regarding these commonly counterfeit rarities is to know the die characteristic of the  authentic coin and not worry so much about what the counterfeit coin looks like.  If you are looking at a 1909 S VDB Lincoln and the “S” mint mark does not have the characteristics of the authentic “S”…..you most likely have a bad coin.  There are exceptions.  Some counterfeiters have been able to duplicate the “S” mint mark on the 1909 S VDB Lincoln so secondary characteristics of the die are required.  Don’t depend on one particular die characteristic but look at two or three to be conclusive.   Know what the real coin looks like  and have a good reference library and you will be able to discard as many counterfeits as they through your way.   Just remember, a second opinion is always important when dealing with counterfeits.  Fine a dealer you can work with and that you have confidence in to help you. 

The best people to help you are people that have had extensive interactions (on site classes) with the ANA (Colorado Springs), the ANS (New York City), Professional Numismatic Guild (PNG), NLG (Numismatic Literary Guild), professional grading services such as PCGS, NGC and ANACS.  These are the people with the greatest amount of experience that can help you the most.

Upcoming educational events on the topic of Chinese Counterfeit coins.

Facing the Chinese Counterfeiting Threat – August 4, 9 a.m.-1 p.m.; August 5, 1-5 p.m. Counterfeit coins and slabs made in the People’s Republic of China are pouring into the marketplace in unprecedented numbers. Access to Western technology means that the counterfeiters are able to produce high-quality fakes. In this two-day seminar, learn to protect yourself by becoming a smart online customer, and learn how to use simple, inexpensive tools to authenticate your own coins. Instructors: Susan Headley, numismatic journalist and counterfeit expert; Beth Deisher, editor, Coin World; and Dr. Gregory Dubay, noted Chinese counterfeit expert.
ANA Member Price: $149 through July 1; $169 after.

Links to Coin World articles describing the Chinese Counterfeit activity can be found on the Web through Google. 

THE FOLLOWING LIST OF BOOKS ON COUNTERFEIT DETECTION WILL HELP YOU GET STARTED WITH A NICE LIBRARY FOR DEALING WITH THIS PROBLEM.

 1.  Fivaz, Bill; United States Gold.  Counterfeit Detection Guide.     Whitman Publishing , LLC, 3101 Clairmont Road, Suite C, Atlanta, GA  30329. (2005)

2.  Official Guide to Coin Grading and Counterfeit Detection. Professional Coin Grading Service (PCGS) Staff.  Second Edition.  (2004)

3.  Larson, Charles M.; Numismatic Forgery.  (2004)

4.  Fivaz, Bill; Counterfeit Detection Guide.  (2001)

5.  Counterfeit Detection: A Reprint from the Numismatist, Vol I.  American Numismatic Association, Box 2366,  Colorado Springs, CO 80901. (1983)

6.  Counterfeit Detection: A Reprint from the Numismatist, Vol II.  American Numismatic Association, 818 North Cascade Avenue, Colorado Springs, CO 80903. (1988)

7.  Hancock, Virgil; Spanbauer, Larry; Standard Catalog of Counterfeit and Altered United States Coins. Sanford J. Durst, Numismatic Publications, New York, N.Y. (1979)

8.  Devine, John; Detecting Counterfeit Gold Coins, Book II; Heigh-Ho Printing Co., 3477 Old Conejo Road C-7, Newbury Park, CA 91320. (1977; Sixteenth Printing in 1980)

9.  Taxay, Don; Counterfeit & Unofficial Misstruck U.S. Coins.  (1976)

10. Devine, John; Detecting Counterfeit Coins, Book I; Heigh-Ho Printing Co., 3477 Old Conejo Road, Newbury Park, CA 91320. (1975)

11. Dieffenbacher, Alfred; Counterfeit Gold Coins, Nineteenth and Twentieth Centuries (Fully Illustrated); Dieffenbackher Coin BTD.  Montreal, Canada.  (1963)

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COIN COLLECTING IN THIS ECONOMY. WHAT’S A COLLECTOR TO DO?

Posted in coin condition, coin investments, collector investments, Gammill Numismatics, key date investments, knowledge is power, large cents, numismatics, tagged , , , , , , , , , , , , , , , , , , , , , , on September 19, 2008| Leave a Comment »

The number of coin collectors has really grown since the launch of the State Quarter program in 1999.  It is great to once again be able to check your pocket change each evening in hopes of finding a much needed coin to add to your collection….and, at face value.  The number of grandparents assembling sets of the state quarters for their grandkids must be a staggering number.  Everyone is enjoying this old fashion approach to coin collecting and the hobby is enjoying both new and renewed interest from collectors of all walks of life. 

 

 

2001 Kentucky State Quarter with Reverse CUD and Polish Marks.  Rare Error Quarter.  Be sure to check your pocket change for this gem!

 

However, since 1999 things have changed dramatically on the economic front.  If you have been attending coin shows for the last couple of years, particularly the smaller local club shows throughout the country, you might have noticed that attendance is down.  In reality, things don’t seem much better at a lot of the larger shows.  All too many collectors just don’t have the extra income today to continue adding to their collections as they had in past years.  There has really been a loss of activity amongst collectors who live on a fixed income, have lost jobs, or have just had to watch their family budgets so much more closely than in times past. 

 So what does this mean to the hobby?  Pulling state quarters from circulation continues to be exciting but novice collectors as well as seasoned collectors become disenchanted with the same old thing and soon lose interest.  In addition, many new and old collectors are almost encouraged to leave the hobby because the US Mint keeps raising prices on an endless number of products.  Should we have to pay a premium for US half dollars or rolls of state quarters?  Maybe when the economic environment improves and collector’s disposable income returns they will return to the hobby.  Unfortunately, when these collectors take a leave of absence, a large number of them don’t come back!  Also, who knows when this economy is going to straighten out?

 

Considia 6

 

What can collectors do during tough economic times to maintain a strong energetic interest in coin collecting and most importantly their own collections?  Let me make a couple of suggestions that will certainly enhance your knowledge of both collecting and give you added information about your existing collection.  All in all, you will be a much more astute collector.

 First, many collectors are so busy assembling a collection that they rarely have, or take the time, to actually study in any detail what they are collecting.  Of course this certainly isn’t true for all collectors, but we have all purchased a coin or book with very good intention of doing more with it, but the time never presents itself.  Of course we have all heard the old saying, “buy the book before the coin”.  This is very good advice but most collectors are to impatience to take this to heart.  There is always the rush to make the purchase. 

 Now, is a good time to do some reading and research on what you have purchased and what is left to be purchased for your collection if you are working on a series collection or type set.  If you are a member of the ANA you have a number of great resources at your disposal.  They have a world class library for your use, available online or through the mail.  Most state and local clubs also have libraries available for your use.  Read about the coins in your collection.  1798 S-148, Horned 9You may even find that there are some interesting varieties in your collection that you haven’t yet discovered (see 1798 large cent variety (S-148, Horned 9) to the right.

There are also some very informative books which discuss the history of coins, the engravers who designed them and the circumstances under which they went into production. 

 

 

 

 

Another possibility is to take a look at how your coins are graded.  I know they were likely graded when you purchased them, but were they graded by you or the person who sold them to you.  There is also this thing called “grade inflation” that impacts our collections.  For this we can thank the commercial grading firms such as PCGS, NGC, ANACS and others, who grade, curate and certify coins for a healthy price.  Their grading criteria moves with the market demand thus grading becomes a moving target.  In any event, the longer you collect, theoretically, the better your grading skills should become and at the same time, if you are abreast of the market, you can stay in tune with the commercial movement of the market which influences the value of your collection. 

 

 You might also want to check for counterfeits, particularly the key dates in your collection.  The ANA has published several excellent books on the subject to help guide you and determine if your coin is authentic.  You can also have one of the third party grading services authentic your key dates as well (PCGS).  It is always wise to purchase key date coins that are known to have been heavily counterfeited (1877 Indian Head Cent; 1909 S VDB Lincoln cent; 1916 D Mercury dime to name a few) from dealers you know and trust or buy certified coins.

 Now may be a good time to evaluate your home security.  Be sure your collection is adequately insured and that your inventory is correct and up to date.  Have a digital photo or video of your collection or at least of the most value coins in the collection.  Make sure your home safe if both burglar and fire proof with a high safety rating.  Be sure to keep your inventory list separate from your collection!

 You might even consider purchasing a stereo microscope if you don’t already have one.  They run about $200 and can provide hours of enjoyment in studying your coins, particularly when looking for varieties.

 Evaluate your entire collection and see if there are items you might want to sell.  Look for things that you may no longer have interest in that can be replaced with new items to keep your collection moving in a direction that keeps you interested.

 Go to coin shows and coin shops and look at certified coins to gauge where the market grading resides.  See if you can find those coins in NGC holders that have been cleaned (or conserved) that they have been graded!  This might lead you to spend more time looking at PCGS coins which might be more original or as some might say, are still in their original skin.

 There are many things to do to improve and continue to understand your collection.  Believe me, in this economy, this is the time to do it!

 

 

 

Who am I?

 

 

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MORGAN DOLLAR COLLECTORS? CAN YOU, DO YOU WANT TO, ABSORB THE BINION HOARD IN THE UP COMING BOWERS & MERENA AUCTIONS?

Posted in coin investments, collector investments, Gammill Numismatics, internet auctions, key date investments, knowledge is power, numismatics, rare coin investment, Stand Alone Coins for Investments, tagged , , , , , , , , , , , , , , , , , , , on August 29, 2008| Leave a Comment »

 

On Friday, August 22, 2008 Bowers and Merena Auctions will open their September 2008 Collector’s Choice Auction.  The auction closes on September 17th.  This auction will include the Vernon G Stewart Collection as well as material from the famous Binion Hoard.  I have never seen so many rolls of common date coins of every denomination in recent times.

 

I guess the real question at hand at this point and time is whether Morgan Dollar collectors, and dealers as well, are ready to absorb 5,996 common date certified dollars and an addition 9,464 common date raw dollars, Is this really how they want to spend their money when the market is begging for rarities, not common date material that is falling off dealers shelfs as we speak.  Maybe someone will view this auction as an opportunity to make an investment in bulk silver….at a premium.

 

What do you do with so many PCGS certified common date Morgan dollars?  I guess the telemarketers are getting ready for a heyday, as are the TV coin shows (although I hear they are falling on hard times).    Most of these dollars are common Morgans with a small percentage of Peace dollars that hold little more than bullion value in such large quantities.  Do you think the wholesale and retail prices will be effected by these quantities entering the market?  It will be interesting to follow the sheet prices after the auction.  My guess, they will fall, particularly the ones listed below in grades of MS 63 and MS 64.  It will also be interesting to see if some of these large lots fail to met their minimum.

 

For example, there are 783 pieces of 1883 O Morgans (159 are MS 64s and 624 are MS 63s).  There are 1,221 pieces of 1884 O s (94 are MS 65 and 1,127 are MS 64s).  There are 639 MS 63 1885 Os.  There are 201 MS 64 1886 pieces & 1,187 MS 63 1886 Morgans.  There are 15 MS 64 PL 1887s, 161 MS 64s, 28 MS 63 PL and 177 MS 63 1887s.

 

There are approximately 15, 460 dollars in this auction, they are common date Morgans and the question is what is the value of holding such volumes of these coins other than for slightly better than bullion value. 

 

My money has to go to the key date and semi-key issues from the Morgan and Peace dollar series.  After that, Early Type is the only investment that continues to make sense.

 

 

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