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Monday, March 31, 2008

Heritage Offers “D.B. Cooper” Skyjacking Notes

By Heritage Auctions

Fifteen $20 Federal Reserve Notes from the infamous 1971 “D. B. Cooper” skyjacking will be offered to the public for the first time in June by Heritage Auction Galleries of Dallas, Texas (www.HA.com). The notes are owned by Brian Ingram, 36, of Mena, Arkansas who was eight years old in 1980 when he found the only ransom money ever discovered from the still-unsolved skyjacking.

“Some of these notes have the initials of investigators who examined the recovered money after Ingram found it along the banks of the Columbia River near Vancouver, Washington in February 1980,” said Steve Ivy, Co-Chairman of Heritage and a long-time paper money collector.
“The serial numbers all match the FBI’s list of $20 bills given to the skyjacker known as ‘D.B. Cooper’ who parachuted from a jetliner with the cash somewhere between Seattle Washington and Reno, Nevada during a rainstorm on November 24, 1971. The 15 pieces consigned by Ingram include two Series 1963-A and four Series 1969 Federal Reserve Notes.”

The D.B. Cooper cash will be offered as part of a big auction of Americana memorabilia in Dallas and online, June 13 and 14.

“As a collectible, these notes cross several lines of interest. Of course, they appeal to many currency collectors, but they also have great appeal to people who enjoy general Americana and popular culture items as well as those who collect ‘outlaw’ items, an area that has a big following,” said Ivy.

Ingram said the money almost didn’t survive its discovery.

“We were going to make a fire along the river bank,” Ingram recalled. “I was on my hands and knees smoothing out the sand with my arm, and I uncovered three bundles of money just below the surface. My uncle thought we should throw it in the fire.”

Ingram found approximately $5,800 of the $200,000 ransom given to the skyjacker, and the FBI later returned a small portion to his family.
Ingram owns 84 D.B. Cooper bills and fragments that were authenticated by PCGS Currency in February and encapsulated in specially-labeled protective, archival storage holders. The labels have the FBI’s 1971 artist’s sketch of the sunglasses-wearing skyjacking suspect who has still not been found.

Anyone with information about the skyjacking is encouraged to contact the FBI’s Seattle office by e-mail at fbise@leo.gov. Additional information about the auction will be available from Heritage Auction Galleries, online at www.HA.com, and by phone at (800) 872-6467.

Sunday, March 30, 2008

The Mega Commodity Move: Why it's Happening

by Mary Anne & Pamela Aden

The precious metals have been soaring. Gold, silver, platinum, palladium… you name it. If it’s a metal, it’s been booming. The same is true of other commodities too.

So are commodities the new bubble? Have they replaced the real estate bubble, which replaced the tech stock bubble, as investors move from one bubble to another? It sure looks like it. But the big difference is that this metals and commodities bubble has a lot further to go. Why?

THE PERFECT STORM
Basically, the perfect storm has been gathering and it’s going to fuel a mega rise that will likely last for years to come. We’ve often discussed the most important reasons why but since these markets have been picking up steam, we’ll review these basics again.

Most important is China and other growing nations, which are keeping demand and prices super strong. But also important are spending, soaring global money creation, inflation, the falling U.S. dollar and international tensions. But let’s take China first…

China power
China’s growth has been astounding at over 9% each year for more than 25 years. During that time, China has lifted 300 million people out of poverty and it’s quadrupled the average income.
This is the fastest economic growth in recorded world history. Many felt it couldn’t last, but year after year it has, and it’s going to continue.

Since wages are higher in urban areas, 500 million rural Chinese are expected to move to the cities over the next couple of decades in search of the good life that former migrants have already found. This growing middle class is proudly spending money on homes, cars and other consumer goods.

Retail sales, for instance, recently soared 20% and China has become the world’s second largest oil consumer. This huge demand for all things, from food, to oil, gasoline, metals and other commodities has been one of the main factors driving these markets higher.

The Chinese government’s top priority is to close the gap between rich and poor. And they want to make a big splash on the world stage as a major power during this year’s Olympics. But something more important is also happening.

As Time magazine points out, comparing China to the U.S., China is cramming two important eras into one. The post World War II prosperity that fueled the flight to the suburbs is coinciding with the 19th century Industrial Revolution that lured people from the farms to the cities.
This is powerful stuff. Demand for everything is huge and there’s no end in sight. This reinforces that the mega commodity uptrend will continue.

Demand growing
That’s especially true combined with another source of growing demand, which is new money looking for good returns. With stocks and real estate down, the metals and commodities have become increasingly attractive, and with good reason.

The metals have gained between 12% and 30% so far this year. Commodities are up between 9% to 26%. These markets have strongly outperformed all other investments. They are also stronger than any currency, and with the U.S. dollar super weak at new record lows, it makes the metals even more attractive.

Supply limited
Then there’s the supply factor, which is critical as well. While demand is soaring, supply is limited. It’s also consistently threatened by international tension or internal mishaps.
Considering it takes many years to develop new mines, this supply picture is something that’s not going to change quickly. The recent electricity shortage in South Africa, for instance, drove many metals prices sharply higher because miners simply couldn’t work and supply was therefore disrupted.

Also, don’t forget that events in areas rich in natural resources, like the Middle East, Russia, Nigeria, Venezuela and many other places, could push the price of metals, oil and other commodities sharply higher in a heartbeat, depending on what happens in these countries. Basically, world tensions are truly a big wild card.

Spending & money: Out on a limb
A real biggie, however, is spending and money creation. That’s the cause of inflation and there’s no end in sight here either.

Spending is skyrocketing. The military budget alone will be the biggest since World War II. The baby boomers are now starting to retire and since 20 million of these upcoming retirees don’t have enough money to retire on, it’s going to balloon spending to far greater levels in the years ahead.

Meanwhile, money is flowing like mad all over the world. Money supply is up 16% in the U.S. but it’s even more in other countries… it’s soaring 42% in Russia, 21% in India, 18% in China and so on.

And with the whole world worried about a U.S. recession, as well as the domino effects of the subprime mortgage meltdown, which has already tallied up losses of around $200 billion (so far only half of what’s expected), the money’s going to keep flowing, all in a concerted effort to avoid a recession at all costs.

You see, a recession could turn into a deflation, accompanied by massive bank failures, and that’s something no one wants. Sure, all this money is fueling inflation and the commodity boom. And yes, lower interest rates are making the U.S. dollar super unattractive and driving it to new all time record lows, but low rates will help the economy.

The bottom line is that this inflation option is a whole lot better than the deflation option, and that’s what the Fed and the world’s central banks have chosen to do. They really have no other choice.

Inflation growing
Remember, gold has always been an inflation hedge. With money flowing, oil above $100 and commodity prices soaring, inflation is surging too. It’s moving up at the fastest pace in 26 years, which is not surprising when you see the CRB commodity index hitting record highs (see Chart 1). This is also making the precious metals very appealing and it’s one of the most important components in this overall big picture (Chart 2). So despite normal ups and downs, the major trends are clearly up, and there’s no reason to believe that’s going to change.

HAVE ALL COME TOGETHER
That’s the perfect storm in a nutshell. All these factors have come together at the same time, and they’re extremely bullish for gold, the other metals and commodities. These are the reasons why the metals and commodities markets are rising and why they’ll keep rising.

Interestingly, these factors are also coinciding with the 200 year commodity cycle, in which bull market upmoves have averaged between 17-22 years. Currently, we’re only seven years into the current bull market, so this too coincides with the fundamentals, reinforcing that these rises still have years to run.

That’s why we’ve continued to stress keeping a large portion of your investments in gold, silver and their shares. No investments have been better over the past few years and we feel strongly that these markets will remain winners.

We wouldn’t trade these markets and this month’s strong upmove illustrates why. Just plan to stay with the mega upmove for the long haul. Essentially, the storm is getting stronger and that’s not when you want to be jumping ship.

Friday, March 28, 2008

Bags and Rolls of New Mexico Quarters Available 4/7/08

WASHINGTON - Collectors can begin purchasing shiny, new quarters honoring New Mexico directly from the United States Mint at noon (ET) on April 7, 2008. The New Mexico commemorative quarter-dollar is available for approximately 10 weeks, and options include a two-roll set priced at $32.95, and 100- and 1,000 coin bags priced at $32.95 and $309.95, respectively. There is no order limit on these options.

The New Mexico quarter-dollar is the 47th coin released in the United States Mint's 50 State Quarters® Program and the second commemorative quarter issued in 2008. The coin's obverse features a Zia sun symbol superimposed over a topographical outline of the State. Inscriptions on the coin are "Land of Enchantment," "New Mexico" and "1912."

Struck on the main production floors at the United States Mint facilities at Denver and Philadelphia, the coins in the New Mexico quarter-dollar bags and rolls were minted for use in general circulation. Each canvas bag carries a tag with the mint of origin and the monetary value of its contents ($25 or $250). The two-roll sets include one roll each of 40 coins wrapped in distinctive packaging bearing the 50 State Quarters logo and the "D" and "P" mint marks. The packaging also bears the official state abbreviation "NM" and the dollar value of the contents.

Collectors may order bags and rolls of New Mexico quarters at the United States Mint's secure web site, www.usmint.gov, or at the toll-free number, 1-800-USA-MINT (872-6468). Hearing- and speech-impaired customers with TTY equipment may call 1-888-321-MINT (6468).

Domestic orders include a $4.95 fee per order for shipping and handling. Because of their size and weight, orders for 1,000-coin quarter bags will be assessed an additional fee of $7.95.
The bags and rolls of 50 State Quarters coins, along with other specific products, are included in the United States Mint's Online Subscription Program. Customers who are interested in this convenient shopping method should visit www.usmint.gov for more information.

Note: Orders placed before the designated date and time are subject to cancellation. For more information, please read our Frequently Asked Questions (FAQs), Answer ID #175.

Contact: Press inquiries: Michael White (202) 354-7222 Customer Service information: (800) USA MINT (872-6468)

Thursday, March 27, 2008

PCGS Announces Innovative Roll Certification Program

Professional Coin Grading Service (PCGS) is offering a new service, the Roll Certification Program, for rolls of Brilliant Uncirculated coins. Certified rolls are encapsulated in a new PCGS product, the clear, durable CrystalVue™ holder, which enables easy viewing of the obverse and reverse designs as well as the coins’ edges.

"In 1986, PCGS revolutionized the coin market by establishing the standard for third-party grading of individual coins. Now, with so many people collecting coins such as Presidential dollars by the roll, PCGS is revolutionizing coin collecting again with the Roll Certification Program. It gives collectors a safe, effective method of protecting their coins for future generations while guaranteeing the authenticity and Brilliant Uncirculated grade of an entire roll," said Ron Guth, PCGS President.

PCGS now is accepting for roll certification Presidential dollars submitted in Mint-sealed boxes of government-wrapped rolls, and American silver Eagles in Mint boxes. Acceptance of additional coin denominations and series will be announced in the coming weeks.

Each certified roll is sonically sealed in a CrystalVue holder with both a tamper-evident PCGS hologram and an official PCGS label containing a brief description of the coins inside the tube.
"This is the most secure and aesthetic method of packaging coin rolls in the history of the hobby," explained Miles Standish, Vice President of Business Development for PCGS.

"The crystal clarity of the new holders allows the obverse and reverse designs, and even the edge lettering on Presidential dollars, to be easily seen. The sonically-sealed tube also provides safe, long-term storage."

For additional information about the PCGS Roll Certification service, contact the PCGS Bulk Department at (800) 447-8848. A free brochure is available on request.

PCGS (www.PCGS.com) is a division of Collectors Universe, Inc. (NASDAQ: CLCT).

Tuesday, March 25, 2008

New Mexico State Quarter is Ready for Release

By CoinNews.net

The second commemorative state quarter for release in 2008 honors New Mexico. The countdown for its circulation has officially started with the U.S. Mint’s announcement of the release ceremony on April 7, 2008. There is also a special coin collectors forum on the day prior.
The New Mexico quarter is the 47th coin in the United States Mint’s 50 State Quarters® Program. Roughly 1,000 concepts were suggested by New Mexico residents. Four of them were given to the U.S. Mint for artist renderings.

The selected design was that of the “Zia Symbol over Topographical State Outline” design. The design features a Zia sun symbol over a topographical outline of the State with its nickname, “Land of Enchantment.” The coin also bears the inscriptions “New Mexico” and “1912.”
The Zia sun symbol reflects the influence of Native American cultures throughout New Mexico. According to its design description, The Zia Pueblo believe the sun symbol represents the giver of all good, who gave gifts in groups of four. From the circle representing life and love without beginning or end, the four groups of four rays that emanate represent the four directions, the four seasons, the four phases of a day (sunrise, noon, evening, and night), and the four divisions of life (childhood, youth, middle years, and old age).

Quarter release ceremony: location and time New Mexico Governor Bill Richardson will be joined by U.S. Mint Director Ed Moy in the official quarter release ceremony. The event is free to the public and New Mexico quarters will be handed out to children in attendance who are under 18.

Location: Capitol Rotunda, State Capitol Building, Santa Fe, NM
Time: April 7th, 2008, 11 a.m. (MT); Quarter Exchange to immediately follow ceremony

Monday, March 24, 2008

BEP Says Consumers Love the New $5 Bill

By CoinNews.net

The newly redesigned $5 bill entered circulation March 13, 2008. While it will take time for everyone to receive their first $5, those that have seen it love it. Well, that’s what the Bureau of Engraving and Printing (BEP) is saying at least.

Based on their latest video showing consumer reactions to the $5, it’s a smash-hit.
For a new note that is promoted as being “safer, smarter and more secure,” building public acceptance and knowledge for the $5 is an absolute must. Hundreds of millions of the new notes will pass through people’s hands each year (1.4 billion $5s were produced in 2007). Reducing confusion during money transactions is better for everyone.

Fortunately for the BEP, the new $5s are like the U.S. state quarters and unlike the new Presidential $1 coins. Why is that? They are a complete replacement for an already used banknote. They have no direct competition. Presidential dollar coins must compete against the already popular and easy-to-use $1 bill.

Yet, that does not belittle the BEP’s public relations and marketing efforts for the new $5. Their pre-launch, actual release and continued efforts after release have been remarkable. The BEP’s consumer reaction video to the new $5 is simply the latest example.

Sunday, March 23, 2008

English Gold Pattern Coins to be Auctioned

By CoinLink

A rare and important collection of English gold ‘pattern’ coins last seen on the market in 1904 is due to go under the hammer in Plymouth.

The 44 coins had been locked in a vault until recently when their Plymouth owner - a descendant of Evan Roberts who bought them 104 years ago - decided to sell them.
Auctioneer Paul Keen, of Plymouth Auction Rooms, said he expected the coins to sell for thousands of pounds.

“In 1904 a Mr Evan Roberts purchased various rare gold coins from the Sotheby’s major four-day auction of the collection of Mr J G Murdoch, at the time the coins were selling for between £4 and £9. They’re now worth thousands. Mr Roberts was an important collector of pocket watches at the time. In fact, his collection was given to the Victoria and Albert Museum, where curators produced a special book just for his collection.

A pattern is a coin designed and proposed for use as regular currency. Apart from genuine trial pieces there were various non-issue pattern coins produced privately which gave full rein to the engraver’s skills.

These coins were made in silver, copper, bronze and gold.

A total of 44 high-quality gold coins are on offer including a rare George III pattern twopence by William J Taylor. It was made in 1805, weighs 62 grams and its value is estimated at £3,000 to £5,000.

A Victorian gold pattern crown by LC Lauer, circa 1887, is estimated at £2,500 to £4,000 and a George III double-headed (obverse) five-shilling piece is expected to go for £3,500 to £5,000. The sale also includes other coins such as a Queen Anne five-guinea piece dated 1709, and a George II five-guinea piece dated 1753. Both are expected to sell for £3,000 to £4000.
The auction will be held on Friday, April 18, from 2pm.

For more details call 01752 254740, email info@plymouthauctions.co.uk or visit www.plymouthauctions.co.uk

Friday, March 21, 2008

Gold Advances in Asia on Inflation Concerns After Fed Statement

By Dave McCombs

Gold gained for the first time in five days as some investors judged yesterday's decline to a one- month low had gone too far given prospects that inflation will accelerate, boosting demand for the metal as a haven.

The Federal Reserve as of March 19 lent $28.8 billion to the biggest U.S. securities firms to try to stabilize capital markets, in its first extension of credit to non-banks since the Great Depression. Pumping more money into the banking system may fuel inflation and demand for precious metals and other commodities.

Fundamentally, the charge forward is still there, Peter McGuire, managing director at Commodity Warrants Australia, said today in a Bloomberg Television interview. The time to buy is on the dips.

Gold for immediate delivery gained $9.71, or 1.1 percent, to $920.24 an ounce as of 4:26 p.m. in Tokyo. Silver for immediate delivery gained 0.7 percent to $16.90 an ounce.

A weakening U.S. currency has also benefited gold. The dollar has lost 16 percent against the euro in the past year as the Fed lowered its target rate to 2.25 percent. The central bank is cutting rates and pumping money into the banking system to prevent the worst housing slump in a quarter of a century and widening losses in credit markets from tipping the economy into a recession.

The steps have also prompted concern U.S. inflation may accelerate. Excluding food and energy costs, consumer prices rose 2.3 percent in February.

Given the scale of gold's rally in recent years and the pace of inflation, the precious metal should be at $2,500 an ounce, on an inflation-adjusted basis, McGuire of Commodity Warrants Australia said today. We think it's got a long way to go.

Gold for February delivery on the Tokyo Commodity Exchange fell by the 150 yen daily limit, or 4.7 percent, to 3,017 yen a gram ($944 an ounce) as of 4:39 p.m. in Tokyo. Japan's financial markets were closed yesterday for a national holiday.

Gold futures for April delivery fell 2.7 percent to $920 an ounce on the Comex division of the New York Mercantile Exchange yesterday. The price fell 8 percent this week, the biggest weekly drop for a most-active contract since August 1990. Bullion was not traded on Comex today because the market is closed for a holiday.

Platinum futures on the Tokyo Commodity Exchange also fell by the daily limit today.
Platinum for February 2009 delivery dropped the maximum 300 yen, or 5 percent, to 5,745 yen a gram ($1,794 an ounce) as of 4:21 p.m. in Tokyo. The most-active contract has plunged 23 percent from the record 7,427 yen a gram set March 6.

The metal for immediate delivery traded unchanged at $1,855 an ounce. Platinum for immediate delivery reached a record 2,301.50 an ounce on March 4.

Thursday, March 20, 2008

Rare Second Temple Coin Discovered

This coming Thursday, before reading the Scroll of Esther, all devout Jews will contribute a sum of money – “a reminder of the half shekel” – which is a tradition that took root in the wake of the ancient virtuous deed of paying a tax of one half shekel to the Temple. This sum, which was used in the past for the establishment and maintenance of the temple, is translated into a contemporary amount and donated to the needy.

In an archaeological excavation that is being conducted in the main drainage channel of Jerusalem from the time of the Second Temple, in the City of David, in the Walls around Jerusalem National Park, an ancient rare silver coin was recently discovered. This coin is a shekel denomination that was customarily used to pay a half shekel head-tax in the Second Temple period.

The excavations, directed by Eli Shukron of the Israel Antiquities Authority and Professor Ronny Reich of the University of Haifa, are being conducted on behalf of the Israel Antiquities Authority, the Nature and Parks Authority and the ‘Ir David Foundation.

Archaeologist Eli Shukron estimates that, “Just like today when coins sometimes fall from our pockets and roll into drainage openings at the side of the street, that’s how it was some two thousand years ago – a man was on his way to the Temple and the shekel which he intended to use for paying the half shekel head-tax found its way into the drainage channel”.

The origin of the commandment to pay the half shekel head-tax to the Temple is in the weekly Biblical reading “Ki Tisa”, in the Book of Exodus: “When you take the census of the people of Israel, then each shall give a ransom for himself to the Lord when you number them…half a shekel…the rich shall not give more, and the poor shall not give less…and you shall take the atonement money from the people of Israel and shall appoint it for the service of the tent of meeting; that it may bring the people of Israel to remembrance before the Lord, so as to make atonement for yourselves”.

At the time of the temple’s construction, every Jew was commanded to make an obligatory donation of a half shekel to the edifice. This modest sum allowed all Jews, of all economic levels, to participate in the building the Temple. After the construction was completed, they continued to collect the tax from every Jew for the purpose of purchasing the public sacrifices and renewing the furnishings of the Temple. The collection occurred every year on the first day of the month of Adar when the “heralding of the shekalim” took place, that is to say the beginning of the collection of the money and it ended on the first day of the month of Nissan, when ‘there is a new budget’ in the Temple and the purchase of public sacrifices was renewed.

It was most likely a shekel of Tyre that Jesus and Peter used to pay the Temple head tax (a half shekel each): "Go thou to the sea, and cast an hook, and take up the fish that first cometh up; and when thou hast opened his mouth, thou shalt find a piece of money. That take, and give unto them for me and thee" (Matthew 17:27). Moreover, Tyrian silver coins probably comprised the infamous payment to Judas Iscariot, when "they covenanted with him for thirty pieces of silver" (Matthew 26:15).

The annual half shekel head-tax was donated in shekels and half shekels from the Tyre mint where they were struck from the year 125 BCE until the outbreak of the Great Revolt in 66 CE. At the time of the uprising, the tax was paid using Jerusalem shekalim, which were specifically struck for this purpose. In the rabbinic sources, the Tosefta (Ketubot 13:20) states “Silver mentioned in the Pentateuch is always Tyrian silver: What is Tyrian silver? It is Jerusalemite.” Many have interpreted this to mean that only Tyrian shekalim could be used to pay the half shekel head-tax at the Jerusalem temple.

The shekel that was found in the excavation weighs 13 grams, bears the head of Melqart, the chief deity of the city of Tyre on the obverse (equivalent to the Semitic god Baal) and an eagle upon a ship’s prow on the reverse. The coin was struck in the year 22 CE.
Despite the importance of the half-shekel head-tax for the economy of Jerusalem in the Second Temple period, only seven other Tyrian shekalim and half shekalim were heretofore found in the excavations in Jerusalem.

Wednesday, March 19, 2008

Evaporation of the Market Premium Factor

By Doug Winter

One of the consequences of the soaring gold market is the evaporation of the Market Premium Factor (or “MPF”) for certain semi-scarce dates in the St. Gaudens double eagle series. This scenario presents the savvy collector with what appears to be an interesting short-term opportunity.

The term Market Premium Factor was invented, as far as I can tell, by my friend the newsletter writer/publisher Maurice Rosen. It refers to the premium that a better date coin sells for versus a common date. If a common date in a series is worth $1,000 and a slightly better date sells for $1,200 it has an MPF or 20%.

There are a number of reasons why the generic double eagle market is currently as weak as it has been in recent memory. With gold blasting through the $1,000 mark, the gold content of a $20 Lib. or a Saint is enough that it becomes a sizable outlay of cash for the typical collector or investor; especially if being purchased in bulk quantities. Many new collectors and investors who are purchasing gold are buying modern U.S. mint products and eschewing older American gold. And many of the large-scale marketers who sold vast quantities of $20’s in the past are turning their focus to areas of the market where the profit margins are greater.

In the wake of the Great Saint Malaise, some dates that were formerly accorded market premium factors of 10-30% are suddenly selling for generic prices or just a bit more. These are the coins that, it seems to me, are good value right now.

Let me give you some examples of semi-better date Saints that are selling for the same price as generics but which are a lot scarcer (and, by the way, just in case you think I happen to have a double row box of these sitting in the back of my safe, I don’t…).

The 1910 is a date that I’ve always thought was pretty tough to find in properly graded MS64 and it is genuinely scarce in MS65. According to the most recent PCGS population figures, there are 1,057 graded in MS64 and 158 in MS65. Compare this to the common 1924 that has a current population of 60,451 in MS64 with 38,752 in MS65. In theory, the 1910 is 57 times scarcer in MS64 than the 1924. I’m not saying that the 1910 should sell for an enormous premium over the 1924. But in stronger markets, I can remember getting a decent premium for this date in grades as low as MS62.

Some of the other semi-better dates that have had good MPF’s in the past but which are currently selling for generic price levels (or close to generic levels) include the 1907 No Motto, 1908-D No Motto (in MS63 and below), 1909-S, 1910-D, 1912 and 1913 (in the lower Uncirculated grades) and 1920 (again, in MS63 and below).

Before you run out and buy a bunch of these, I have a caveat for you. One of the reasons that the MPF has evaporated many Saints is because of loose grading. I’m guessing that if you can find CAC approved 1910 double eagles in MS64, they ARE going to sell for a premium; as well they should. If you look at the price structure for many of the more common Saints graded between MS61 and MS64 you’ll note very small price spreads. One of the major reasons for this is that there is often very little difference in quality between these grades (!).

That said, I still like the idea of buying a group of 1910 Saints in PCGS MS64 for common date prices if you have the opportunity. At these levels, you have very little downside other than the price of gold dropping and with the current state of the United States economy I don’t foresee this happening anytime soon.

Monday, March 17, 2008

A Quarter for Guam: Recognizing American Citizens Outside of Our 50 States

I make no bones about it. I am very proud of my heritage. I am an American citizen, an Air Force Brat, who was privileged to have been able to travel this globe while my father served our country. I am the oldest of three girls with a British mother and a Chamorro (Guamanian) father, a truly unique mixture of culture and traditions. I find great pleasure in teaching my own 2 young daughters about the richness of their heritage, and all that they are a part of. I am lucky that this pride was instilled into me by both of my parents, who regaled their own girls with stories of their youth. It is no wonder, then, that whenever anyone mentions England or Guam, they get my full attention.

It was with great interest that I listened to the discussion in the House of Representatives, recently, relating to 1997's 50 States Commemorative Coin Program Act (Public Law 105-204). I am quite familiar with this program, as I am an active collector of the state quarters. The US Mint began releasing the quarters in 1999. The designs on each quarter were to reflect the history and spirit of each state. Each quarter was released in the order of the date each state was admitted into the Union. It is a ten-year program, with five quarters released each year, ending with Hawaii, our 50th and last admitted state, having its quarter released in late 2008.

I have to admit, I was a little sad with the prospect of this program ending next year. However, due to the previously mentioned discussions in the House of Representatives, there is a possibility of an extension of this program. How? With the proposal of HR 392 - The District of Columbia and United States Territories Circulating Quarter Dollar Program Act - the "collecting" can continue for another year by including the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the United States Virgin Islands, and the Commonwealth of the Northern Mariana Islands (CNMI).

Sunday, March 16, 2008

Cool Options Add Up For Young Collectors

The Tampa Tribune

I remember my coin collection from yesteryear: A handful of silver dollars, some JFK 50-cent pieces and an assortment of coins from faraway lands that I dreamed of someday visiting.
My smattering of coins was a disorganized mess. Some were stuck in plastic bags, others wrapped in cotton and all were tucked in a cigar box deep in my bedroom closet.

Compare that with today's typical young coin collectors. They have plenty of fun options, from the 50 state quarters to the new presidential dollars to other special series of coins. Chances are the coins are stored in colorful booklets that include a bit of history about the images and other design features.

Coin collecting truly has become a cool hobby for youngsters since the 1999 launch of the state quarters program. Frankly, I think it is also one of the best ways to introduce young children to money. Not only can they learn about the value of money, how to count and how coins are minted, but also the designs, mint marks and other patterns can also make history come alive.
The hobby has gone through a "neo-renaissance" in the past 10 years, said U.S. Mint Director Edmund Moy.

Before the quarter series, the typical coin collector was a white male, 55 and older, said mint spokesman Michael White. "Now coin collecting has a much broader appeal," he said.
According to the mint, more than 140 million Americans are collecting the state quarters, which have been introduced at a pace of five per year. The mint hopes to continue this collectible roll with other coin programs now or about to be in circulation.

Whether it's baseball cards, stamps or coins, it's difficult to predict future collectible values. That's why I think the main objective - especially for youngsters starting out - should be on collecting for fun. Cornering the quarter market can come later.

Here are some programs from the mint that are likely to interest young collectors.

Quarters
Perhaps you thought the hugely popular quarter program was set to end this year with the release of Hawaii's design. Not so.
The mint will unveil six more quarters next year to cover the District of Columbia and the five United States territories: the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands and the Commonwealth of the Northern Mariana Islands. The coins will be issued in the order listed.

Presidential Coins
The fifth design of the presidential $1 coin series - James Monroe - was unveiled on Valentine's Day. It joined George Washington, John Adams, Thomas Jefferson and James Madison, which were released last year.

The presidential coin program is similar to the quarter program, with staggered release dates. Due out next is John Quincy Adams on May 15, followed by Andrew Jackson in mid-August and Martin Van Buren, the eighth president, in mid-November. No living former or current president will be honored as part of this series.

In addition to recognizing presidents, the mint also is paying tribute to the nation's first ladies with $10 gold coins. Last month, for example, the mint honored Monroe's wife, Elizabeth.

Pennies
The mint plans to honor the 200th anniversary of Abraham Lincoln's birth with four new designs for the cent throughout 2009.

The first design will pay tribute to Lincoln's birth in Kentucky; the second will reflect his boyhood years in Indiana; the third will deal with his professional life in Illinois; and the fourth, his presidency. The coins will be issued every three months.

Although the mint has certainly cranked up the promoting and marketing of coins and all the related numismatic products, the organization also has an educational mandate to teach children about money. The usmint.gov Web site includes a history of money, a behind-the-scenes look at how coins are produced, tips on starting collections and release-date schedules on the various series of coins. Also on the site, a "Hip Pocket Change" section is devoted to children and offers everything from money trivia to quick lessons on the European euro.

Too bad coin collecting wasn't this hip when I was young. Perhaps I would have needed more than one cigar box to hold my collection.

Saturday, March 15, 2008

Gold rush: Record high

By CHRIS HUBBUCH

Turns jewelry boxes into treasure chests

Nicole Miller waited in line Friday at River City Gold & Silver Exchange with a chest of jewelry she inherited and hoped would be pay dirt.

She had necklaces, anniversary pins, old broaches and “some earrings that are questionable,” as well as a plastic bag of belt buckles and old watches. Justin Cain of River City Gold and Silver Exchange appraises a piece of jewelry brought in by a customer. Erik Daily

Miller, 31, said there wasn’t really anything she wanted and would rather have money to set aside for her two young children’s education.

With the price of gold at an all-time high and silver at its highest since 1980, people are raiding jewelry boxes and cashing in coin collections in a modern-day gold rush.

At River City, the line was about nine-deep Friday morning as three buyers panned through trinkets for 14 karat nuggets.

Gold hit a record $1,009 an ounce Friday on the New York Mercantile Exchange, breaking the $1,000 mark for the second time this week.

Prices have surged nearly 20 percent this year, fueled by a tumbling dollar, record crude oil prices and concern over a faltering economy. Experts say the metal could go even higher if the Federal Reserve cuts interest rates again next week.

So far, rising prices haven’t produced a noticeable crime wave, said La Crosse Police Officer Drew Gavrilos.

Nor has the market surge hurt jewelry sales, said Lynn McIlvaine, owner of Crescent Jewelers, where wedding and engagement rings account for the bulk of sales.

River City owner Al Louis, who has been in the jewelry trade since before he was in high school, said he’s seeing more traffic than he has since 1980, when silver spiked to nearly $50 an ounce and gold was fetching $850. Adjusted for inflation, that’s twice what gold is selling for today.

Back then, the line stretched around the block.

Louis, 47, said his profit margin on precious metals is only about 1½ percent, so volume is important, especially to offset refining costs. He has advertised heavily, offering money for coins and jewelry. His biggest payout so far: about $125,000.

And the more volume he does, the better his chances of finding something truly rare.
The coin counter was whirring and clacking Friday. Nothing collectible in there — just the sound of money.

Louis said one person cashed in coins worth $14,000.

Helen Osley brought in her husband’s coin collection and some jewelry — “a little bit of everything.”

Justin Cain opened roll after roll of pre-1965 dimes and quarters and sifted through piles of silver dollars and 50-cent pieces. The coins have no numismatic value, but with silver trading at more than $20 an ounce, Osley got $1.20 per dime and $3 a quarter.

Cain sorted jewelry into 14 karat, 10 karat, and sterling. “That stuff you can have back,” he said handing Osley a plastic baggie of gold-plated chains.

Among the pins, rings and chains was a molar, also her husband’s.

“Dental gold,” Cain said. “We get a lot of that. It really pays.”

Osley, 79, said she planned to use the money to pay her property taxes.

Nicole Miller wasn’t doing as well. “A lot of costume jewelry so far,” she said.
In the end, she got $115.

“It’s just nice to know this stuff’s worth keeping,” she said, patting the jewelry box.

Friday, March 14, 2008

Gold Soars, Dollar Crashes, Jitters Persist

Spot gold broke and held above the key psychological 1,000 usd barrier and traded at a record 1,002.50 usd per ounce as the dollar tumbled to a new record low against the euro.

The dollar's freefall, which continued today with the greenback hitting another record low against the euro, has made gold cheaper for those trading in stronger currencies. Bullion is often seen as hedge against inflation and has also moved up in line with rocketing oil prices, which yesterday touched a record 111 usd.

Meanwhile, a bleak economic outlook, as the US flirts with recession and the world ready for a significant slowdown, has seen swathes of investment into gold as a safe haven asset, which keeps its value while equity markets crumble.

Also, players are betting on the likelihood of an aggressive US Federal Reserve interest rate cut on March 18. Such a move should weaken the dollar and support gold.

'The expectation of the coming cut will likely keep the gambling (hedge funds) on the boil and have them trying for another spike in gold,' said Kitco analyst Jon Nadler.

At 2.19 pm, spot gold was trading at 1,002.50 usd per ounce against 991.70 usd in late New York trade yesterday.

All that glitters … is unaffordable

by Peter Koven

Jewellery market under pressure as gold hits US$1,000 an ounce

Andrew Costen used to sell gold jewellery to people because they liked to wear it and look good. But today, with gold breaching US$1,000 an ounce, it is a very different story.
"It's kind of bizarre. Customers have started to look at it as a kind of investment as prices go up," said Mr. Costen, president of custom retailer Costen Catbalue in Vancouver. "To me you shouldn't be buying jewellery for that purpose. But these prices have certainly got people interested."
The fact is that the stunning run-up in gold prices in the past few years has been driven almost completely by investment demand. Jewellery demand, which remains the cornerstone of the market, has been largely forgotten, raising questions about what happens when the investment demand dries up.
Gold has enjoyed its record run because of a number of factors coming together, including a global credit crisis, a crumbling U.S. dollar, stagnant mine supply and inflationary pressures.
As prices have gone up, more evidence has surfaced that jewellery demand is declining fast. In India, which is a key market, gold imports plunged 72% in January, according to the World Gold Council.
In the 1990s, jewellery made up around 85% of gold demand. Today, the precious metals consultancy GFMS Group puts the number at a little more than 60%. That decline has been more than offset by buying from exchange-traded funds, commodity funds and other investment sources.
"What's happened here is that the public has taken up the call to buy gold, where once upon a time it was central bankers," said Martin Murenbeeld, chief economist at DundeeWealth Economics.
Experts believe these investment sources could continue to drive gold higher well into the future. Even at US$1,000 an ounce, prices are less than half as high as they were in 1980 on an inflation-adjusted basis. A price of US$2,000 an ounce or higher is a real possibility amid the global economic turmoil.
"Tell me when all the bad U.S. news is going to be out of the market and I'll tell you when the turning point for gold is coming," said Paul Walker, chief executive of London-based GFMS. "It's very difficult to know."
Mr. Walker's big concern is what happens once gold does hit its peak and the investment demand dries up.
At that point, the only thing that will sustain the market is jewellery demand, and his prediction is that customers in India, China and elsewhere will wait for prices to "drop really significantly" before coming into the market.
He said that consumers have gotten used to buying cheaper silver and copper jewelry in the face of high gold prices, and they may not be so quick to return to gold.
"I'm really worried that with these high sustained prices, you have a secular shift in the [jewellery] industry," he said.
Bart Melek, global commodity strategist at BMO Capital Markets, does not agree with the notion that sinking jewellery demand is a concern. He points out that a lot of the jewellery market is actually investment demand, a fact supported by Mr. Costen's business in Vancouver. And in the Middle East, one of the key sources of gold demand, petrodollars are providing plenty of currency to buy more.
"Ultimately some people get priced out of the market. But some people get rich enough to buy it for the first time," Mr. Melek said.

Thursday, March 13, 2008

Gold at $1,000 on Weak Dollar, High Oil

By Lauren Shepherd

Gold Futures Hit $1,000 Per Ounce Benchmark on Falling Dollar, Rising Oil Prices

Gold futures hit $1,000 an ounce for the first time Thursday, pushed past the benchmark by the sinking dollar and record crude oil prices.The dollar fell below 100 yen during Asian trading Thursday, its weakest level against the Japanese currency in 12 years. The dollar also dropped to all-time lows against the euro. After reaching $1,001 on the New York Mercantile Exchange, gold for April delivery dropped slightly to $999.70 by midmorning Thursday.
The price still doesn't match the all-time high of $850 in 1980, if that price is adjusted for inflation. An $850 ounce of gold then would be worth $2,177 in today's dollars.

The $1,000 an ounce price, though, is still a milestone and a telling sign that investors are continuing to abandon the dollar.

Gold has been pushing up against the $1,000 an ounce mark for weeks, mainly because of the weaker dollar. Interest rate cuts -- and the prospect of more on the way -- have weakened the currency so much that foreign investors can buy dollar-based commodities like gold and oil more cheaply.

Crude oil futures hit a record high above $110 a barrel Thursday, after first crossing that level Wednesday, also due to investors abandoning the weak dollar.

Investors have been expecting gold futures to rise to $1,000 as they watched the dollar spiral lower, said Scott Meyers, senior trading analyst with Pioneer Futures, a division of MF Global. Gold has been steadily creeping closer to the record after rising nearly 32 percent in 2007.
The dollar's decline and the boost in the price of oil price merely added the extra push.
"We're getting a scenario where commodities are the place to be today," Meyers said. "With the weak dollar, it's hard to be against them."

Meyers declined to speculate on how high gold could go, saying, "to pick a top is a foolish game to play at this juncture."

The Federal Reserve's meeting next week could provide more encouragement for gold prices since the Fed is widely believed to be considering cutting interest rates again. Another rate cut could reduce the dollar's value further, making gold an even better investment.

U.S. gold hits $1,000 record high

March 13, 9:13 am ET
NEW YORK (Reuters) -

U.S. gold futures rallied to a record high of $1,000 an ounce on Thursday, fueled by a combination of a weakening dollar, strong investment demand and inflation fears due to rising crude oil prices.
At 8:27 a.m. EDT, the active contract for April delivery was up $17.30 or 1.7 percent at $997.70 an ounce. Just minutes earlier, it had hit an all-time high of $1,000 on the COMEX division of the New York Mercantile Exchange.

Wednesday, March 12, 2008

Record gold prices drive business at pawn shops

By Dave Carpenter

'Everybody's trying to sell,' an owner says.
A new kind of gold rush is unfolding at jewelry stores and pawnshops - featuring not prospectors, but consumers.
White-collar workers, retirees and many others have been digging through jewelry boxes and safety deposit boxes to cash in as gold prices flirt with $1,000 an ounce. Coins, old wedding rings, necklaces given by ex-boyfriends, hand-me-down gold pieces - everything is fair game when it brings this kind of profit.
Shop owners across the United States are marveling about the phenomenon they say began in the latter part of 2007 and accelerated through the winter, reflecting torrid gold demand like none had ever seen. There are even gold parties, where people gather to sell their jewelry.
"Everybody's trying to sell," said Richard Rozhko, owner of a jewelry store on the northern edge of Chicago. "People are trying to cash out because they don't believe that gold's going to go higher than $1,000 or $1,200" an ounce.

Rachel Weingarten, a New Yorker with a self-described obsession with "shiny trinkets," did not need to sell but could not resist the chance when she saw prices soar like an overinflated tech stock.

"When I saw the prices going through the roof, I saw it as an amazing opportunity to rid myself of jewelry that no longer suits my taste or status," said Weingarten, a marketing consultant. "It's also been a lot of fun to get cash for stuff that is broken or just really ugly or just takes up room in my drawers."

Royal Pawn Shop, a 75-year-old business within earshot of the rattle of passing elevated trains in Chicago's South Loop, has display cases sporting fancy gold rings, bracelets and watches along with racks holding hundreds of pawned fur coats. It also attracts more office workers these days - mostly sellers, not buyers, bringing in gold chains and rings.

"It's stuff that's lying around the house, so they figure: Why not make money from it?" said the co-owner, Wayne Cohen. "The price of gold is so ridiculously high that they'd be stupid not to get rid of it."

Others are selling to help cope with tough times in an economic slowdown.

Another Chicago shop owner, John Vela, recounted housewives coming in to pawn treasured items from their jewelry boxes and numerous clients saying they need money to pay their property tax bills and take care of other rising financial obligations.

"I have mortgage brokers, real estate agents, retail shop owners. They're nervous, you can see the stress on their faces," he said. "Many haven't been to a pawnshop before - they want to know how it works. Some don't want to let go of their gold."
But, he said, "gold is cash to them."
Silver also is stirring customers to sell more, with prices having more than tripled from $6 per troy ounce two years ago to over $20.

The stories are similar elsewhere.
At Gold Star Pawn Shop in Eastlake, Ohio, where the Cleveland-area economy is suffering, the manager, Marc Berman, said people come in regularly with broken gold chains, rings with marks on them and scrap gold to get more money in their pockets.
"I think it's more about gas prices than anything else," he said. "People are bringing in anything to try to get money to put a few gallons in the tank."
Some seniors come in monthly to pawn gold items in order to make it through until their next Social Security checks arrive, Berman said.
The clientele at Palace Pawnbrokers in downtown San Diego has gone upscale as gold prices have soared. The owner, Jeff Bernard, said it was a mixture of those who seem to need the money more than ever and those who want it.

"It's a combination of many factors - the state of the economy, the price of a gallon of unleaded gas going for $3.60 here," he said. "People are saying 'We've just got to do something.' With gold knocking on the $1,000 door, they can actually pay off a bill, do something significant with it."
One woman recently lugged a safety deposit box full of old wedding rings, chains and gaudy 14-karat jewelry from the 1970s in to Scott Goldstein's Super Pawn shop in Round Lake Beach, Illinois.

Others have arrived carrying shoeboxes full of jewelry, and a 92-year-old man brought in 80 gold coins. Customers have brought in as much as 40 ounces of gold to sell, he said.

"It's people going through hard times and the crazy prices," Goldstein said of the crush that began there after Christmas. "With all the foreclosures nowadays, you hear people more and more saying 'I've got a mortgage to pay.' "

Midge Elias watched prices rise for months until she finally gave in to the temptation and walked into a Manhattan coin shop with two mounted Liberty Walking gold pieces that she had once worn on long chains. She left with a check for $1,150.

"It felt like a little gift," Elias said. "Of course, there's always the possibility of gold going way higher. But hey, those are the risks."

The high price of gold attracts buyers and sellers

By Shirley Skeel

West Seattle Coins manager Daniel Hoolahan says many people are selling gold because they need money.
Gold coins are more popular than bars, even though they sell at a slight premium. Bryan Geraghty, owner of Northgate Rare Coins & Precious Metals, says people believe they are safer. Stocks are down. The dollar is down. Home values are down.
But drop by your neighborhood coin or pawnshop, and clearly something is up.
The price of gold is soaring out of sight. And with its price nudging $1,000 an ounce, potential buyers and sellers are turning out.
For some Seattle-area residents, this is the time to sell. Pawnbrokers report women are pillaging their jewelry boxes and bringing in old gold pieces.
"It's people all across the board," said Nancy Robinson, owner of Cash Company Pawnbrokers in Redmond. "People are selling their broken pieces. And women are selling bracelets from old boyfriends that they never wore because of bad memories."
Robinson said sellers may get only $130 for a 10-gram (0.35 ounce), 14-karat necklace, but that's triple the price of five years ago.
At Dave's Jewelry in the White Center area, a salesman said the number of people pawning their gold has jumped about 50 percent compared with two years ago. Most are selling out of need, not greed, he said.
"Most of them say they need to buy gas. They're serious."
Daniel Hoolahan, manager of the West Seattle Coins shop, has had similar experiences.
"A girl walked in today with an ounce of gold, and she couldn't pay her rent," he said. "So she sold the gold coin her grandma gave her." The young woman pocketed $982 and walked out satisfied.
It would surprise no one that sellers are taking advantage of the metal's record highs. But the far bigger trend, gold dealers say, is the surge in interest from people wanting to buy.
Ross Hansen, owner of the Northwest Territorial Mint in Auburn, said gold sales volume has shot up eight to 10 times normal in recent weeks.
The other day, a client sat across from him, ready to invest in gold. "And if I told you who, you would know his name," said Hansen, who wasn't telling.
At West Seattle Coins, Hoolahan said he is seeing more new buyers. "Some people look like they haven't much money on them, but they still want to invest in it," he said.
Other Seattle coin shops confirm a surge in interest, though one owner said the buying and selling has been even.
Hansen said people are buying gold because they're worried about the economy and the falling value of the dollar. The credit crunch, sinking home values, and soaring oil and food prices are making gold look like the safest place to put some cash. In times of crisis, gold tends to hold its value or go up, he said.
In addition, more interest-rate cuts by the Federal Reserve could send the dollar even lower. And when the dollar falls, gold prices generally rise.
Gold customers are "very concerned about the future economic prospects of the U.S.," Hansen said. "You do get a lot of paranoia."
There is, of course, one other reason people are buying. Chatter on the Internet that gold could shoot to $2,000 an ounce has attracted investors.
Experts, however, are mixed about the future of gold prices. A trader for MF Global in New York is on record for predicting gold could reach $1,500 an ounce if the Fed keeps chopping rates.
But Jon Nadler, a senior analyst at Kitco Bullion Dealers of Montreal, is skeptical. A gold-watcher for three decades, he expects by summer that bankers will get a grip on their problems, the dollar will begin to recover and gold will sink to "more-normal" levels of $650 to $750 an ounce.
Nadler argues that edgy hedge funds are ready to take a profit, while slowing demand from jewelers and growing supply will force gold back to earth.
In January 1980, as inflation soared, gold shot briefly to $850 an ounce. But speculators began to sell, and a year later gold had tumbled a third to $570.
Gold fans point out that even though the yellow metal may not bring riches to all, it could bring financial stability.
Bryan Geraghty, owner of Northgate Rare Coins & Precious Metals, said some customers are buying gold as a way of "forced savings."
"We've had fishermen come in and they'll buy some gold because that way they can't hit [their savings] in the ATM machine."
He's seen retirees, doctors and lawyers spend tens of thousands of dollars on gold. Coins are more popular than bars, even though they sell at a slight premium. Geraghty says people believe they are safer because governments make them.
As for the future price of gold, the veteran coin dealer doesn't hesitate. Geraghty is certain of what's to come.
"It'll definitely go up," he says. "Or down, or stay the same. It'll be one of those three."

Tuesday, March 11, 2008

Another 'New' Dollar Coin on the Way?

by Paul Partyka
In less than a year, the presidential dollar coin has outsold and outcirculated its two most recent predecessors, the Sacagawea and Susan B. Anthony coins, according to the U.S. Mint.

If you pay close attention to the coins you carry or receive on a daily basis, you may have noticed the newest presidential dollar, the James Monroe dollar coin that debuted in February. Some of these coins may even have made their way into your laundry. Whether you like the dollar coin or not, get set for a new-look dollar due out in 2009.

New Sacagawea dollars will start circulating alongside the presidential dollars. These dollar coins will still bear the image of Sacagawea on the front, but once a year will have a different reverse design representing the contributions of Native Americans to our heritage.

There was a bit of a snafu with the Sacagawea dollars. Last year a law was enacted that called for circulating new Sacagawea coins starting in 2009 featuring a regularly changing reverse design. However, the sponsors of the law forgot to allow continued production of the existing coin in 2008. In order to rectify this problem, President Bush recently signed into law a bill that will continue the minting of the Sacagawea dollar in 2008, but only for numismatic purposes. No more will be produced for general circulation until next year.

If you find the whole situation somewhat confusing as a citizen as well as the owner of a coin-operated business, it could always be worse. The government could start pushing 50-cent pieces. Yes, these coins, larger than the dollar coins, are still in circulation and bear the likeness of the late John F. Kennedy.

Sunday, March 09, 2008

Jewellery trends adapting to record gold prices

Jewellers need to review prices on a daily basis due to swings in gold prices. Diamonds might be a girl's best friend, but for those buying jewellery at a time of record gold prices, a new trend for lightweight pieces using semi-precious stones and organic materials might be a welcome ally.
Jewellery trends in recent years have been dominated by chunky pieces worn around the neck and clunky gold bangles around the arms and ankles.
But while these heavyweight pieces may still be favoured by the rich and famous, jewellery-lovers with more limited means are being targeted by a new trend for slinky jewellery, hollowed out pieces and jewellery made from non-traditional materials.
Sophisticated simplicity is the buzzword used by European fashionistas, while the trend in Asia is for street-chic and rustic pieces made of semi-precious stones and non-traditional materials including titanium and wood.
"It's no longer about the bling, about the gold. The days of the big heavy gold chain are probably over, and if they are still around, they will be a lot lighter," Desmond Lim, fashion editor at Prestige and August Man, two Singapore lifestyle magazines.
"It's about smart fashion and this casual-chic style is probably a reflection of both fashion and economics. There is a definite balance between the art and the commerce, resulting in this street chic look."
The prices of gold and platinum have both rocketed to record highs, with spot gold trading just short of $US1,000 an ounce and platinum above $US2,000, prompting some jewellery makers to opt for lightweight and hollow pieces.
"In fashion jewellery, the designers are offering us lighter weight designs. Interestingly, this means more inventive and innovative design and the craftsmanship is still there," said David Hinds, managing director of F Hinds, a family-owned jewellery chain in the United Kingdom.
Retailers in London's Hatton Garden jewellery district are seeing a similar trend and a shift in favour of hollow jewellery which consumes less precious metals and are being sold for more or less the same prices that heavier items sold for a year or two ago before gold prices really began to soar.
"A lot of chains are being made hollow and the reduction in weight is compensating for the rise in gold prices," said Roy Lynch, director of Strictly Gold.
He added that his company had launched a new range of lighter weight products to complement their traditional heavier lines.
Jewellers the world over have complained that they need to review prices of their pieces on a daily basis due to the swings in gold prices in recent weeks. Customers are being told prices are only valid for the duration of that day.
The trend for lightweight jewellery has not extended to high-end diamond rings, where most of the value is from the stone. Buyers are still prepared to hand over the cash for items such as engagement rings.
"People aren't going to skimp on things like that," said Lisa Argenton, an Australian jewellery designer.
"People are still happy to spend money on jewellery with meaning, although some clients who really want platinum find they can't afford it and go for white gold instead. Generally, platinum pieces are two to three times dearer than 18 carat white gold."
Record gold and platinum prices are never likely to deter high net-worth individuals from indulging themselves.
"One of the biggest things in fashion right now are gold cuffs - big, chunky yellow gold bracelets," Carol Woolton, jewellery editor at Vogue magazine in the United Kingdom.
But she added some designers were also opting to make cuffs in wood, set with semi-precious stones. Although she admitted that none of the trends for less opulent jewellery were on display at the Academy Awards in February.
"Interestingly, there was more jewellery on the red carpet at the Oscars this year than ever before. A lot of actresses are wearing big gold necklaces," she said.
"Nicole Kidman wore a sautoir necklace in white metal - gold or platinum - studded with 7,000 diamonds totalling 1,400 carats."
The jewellery display at the Oscars underscored the view from high-end jewellers that the rich are not deterred by gold prices.
Stanislas de Quercize, president of Paris-based fine jewellery house Van Cleef & Arpels, told Reuters recently that all-time high precious metals prices would not alter the raw material content of Van Cleef & Arpels jewellery as his clients wanted only the best.
"We have high-demanding clients who want the best art (in jewellery)," Mr De Quercize said.
"We have to fulfil the mission to offer the best. The appetite for rare stones is growing and growing."

Saturday, March 08, 2008

All that glitters is not always a golden opportunity

By John Waggoner

At Manfra Tordella & Brookes, the upscale gold dealer in New York, business is brisk. "Today, I sold a lot of gold," sales director David Phillips said this week. "I also bought a lot of gold."The U.S. mint is selling a lot of gold, too. The mint sold 49,000 gold eagle bullion coins in February, compared with 9,500 in February 2007.
In fact, as gold hovers near $1,000 an ounce, the whole nation seems to be trading gold. "It's hot," says Eric Vallow, manager of Lev's Pawn Shop in Fort Wayne, Ind. People are bringing in gold jewelry and coins to sell, Vallow says. And on days when gold takes a tumble, as it did Wednesday and Thursday, he's happy to buy.
Given the huge surge in gold prices, a logical question is: Should you be a buyer? The answer: Yes, but not much, and not right away.
Gold prices bottomed in April 2001 at $255.95 an ounce; they've marched more or less steadily upward since. At Thursday's close of $975 an ounce, gold has gained $719.05, or 281%, from its 2001 low. Life hasn't always been so good for gold aficionados. Gold peaked at $850 an ounce in January 1980. Adjusted for inflation, gold would have to hit $2,144 an ounce to match its 1980 peak.
FIND MORE STORIES IN: New York Indiana Fort Wayne Bureau of Labor Statistics Maple Leaf Barring David Phillips John Derrick Lev Pawn Shop And that's one argument for buying gold, which is a hedge against inflation. As the value of paper money deteriorates, the value of gold rises, because gold tends to keep its buying power in times of inflation and economic uncertainty. For the price of gold to catch up to its inflation-adjusted peak, it would have to rise 100%.
Bear in mind, though, that the $850 peak in 1980 was a classic speculative blow-off top: Gold had soared 66% in just 14 trading days. The $850 gold price was available for just one frenetic trading day. The average price of gold during 1980 was $613, according to gold bullion dealer Kitco. If we use that as a slightly more rational starting point, gold would need to hit $1,570 an ounce to equal its 1980 level — still a colossal gain.
Perhaps inflation parity isn't a good reason to buy gold, anyway. Gold averaged $307 an ounce in 1979, just one year before the 1980 peak. Using that as our benchmark, gold has already caught up with inflation: The inflation-adjusted equivalent of $307 in 1979 is $893 in today's dollars, according to the Bureau of Labor Statistics.
But there are reasonable long-term arguments for gold:
•Inflation. Gold tumbled from 1980 through 2001 in part because inflation was low and people eventually stopped worrying about it. But people are fearing inflation now: The price of oil has risen above $100, for example, and the price of wheat has leaped to $11.27 a bushel from $4.74 a year ago. Though the government's consumer price index has gained 4.3% since January 2007, big price jumps in everyday items can spark an inflationary mindset. That's good for gold.
•The dollar. Gold moves in the opposite direction of the dollar, and the dollar has been on a toboggan run downhill the past 12 months. A euro now costs $1.54, vs. $1.31 a year ago.
•The debt. The USA has $9.4 trillion in debt outstanding, equal to about 67% of the U.S. gross domestic product. In 1980, federal debt was equal to 33% of GDP. Some argue that eventually, the government will succumb to the temptation to get out of debt by printing more money, which is inflationary.
•Supply. Should someone find a gargantuan new gold field, then the price of gold (all things being equal) would tumble. If someone has struck gold, he or she hasn't told anyone. And even if someone does find a gold vein, it takes years to open a new gold mine.
If the long-term argument for gold is a reasonable one, the short-term argument isn't quite as strong, says John Derrick, director of research at U.S. Global Investors, a fund company. "In the short term, we're due for a correction," he says.
The main reason: Barring a 1980-style blow-off, the price of gold is up too far, too fast. "We've moved a fairly large amount in a quick period of time, and history tells us we're due to correct," Derrick says. He thinks a drop to about $910 or so is possible, so if you're considering investing in gold, you might have some time to think about it.
Start by thinking about how you'll invest in gold. If you want to buy the metal itself, gold bullion coins, such as the U.S. Eagle or the Canadian Maple Leaf, are good bets. Avoid rare gold coins, because their value is pegged, in part, to their scarcity and condition.
The problem with gold coins is that they can be lost or stolen. If that worries you, consider investing in the StreetTracks Gold Shares Fund, which invests in gold bullion. One share equals about 1/10 the price of an ounce of gold. You might also consider investing in a gold mutual fund, which typically buys the shares of gold-mining stocks. The top five funds are in the chart.
But the big problem with gold and gold funds is that they can be insanely volatile. If you make a big bet on gold, be prepared to take a big loss. You really shouldn't keep more than 5% of your portfolio in gold, and you should rebalance regularly. If your holdings grow to 10%, sell enough to get back to 5%. If they shrink to 2%, buy enough to fill your holdings to 5%. You'll be selling high and buying low — and that, at least, will help you keep some of the gold you gain.

Friday, March 07, 2008

Legend Numismatics, Morphy Auctions launch new venture

Morphy Auctions, a Geppi's Entertainment Auctions company, and Legend Numismatics have announced the creation of Morphy/Legend Coin Auctions, a new division of Geppi's Entertainment Auctions. The Denver, Pa.-based Morphy Auctions and the Lincroft, N.J.-based Legend Numismatics will each own 50 percent of the new company, which has already begun accepting consignments for its debut auction.
Legend brings to this new enterprise its extraordinary standing in the coin world and collecting circles, while Morphy's contributes its sterling reputation in operating antiques auctions. Both firms have become widely known for their customer service and attention to detail.
Scheduled for May 6, 2008, the new company's first event will be live with all forms of absentee bidding available, including online via eBay Live Auctions. Additional details will be available soon at www.mlcoinauctions.com.
“Teaming up with a company of Legend's stature is not something one enters into lightly,” said Stephen A. Geppi, chief executive officer and owner of the Geppi's Entertainment companies. “We think, though, that with our experience in auctions, which was most recently seen in the $7.7 million result for the Steckbeck collection of mechanical banks, and Legend's understanding of the coin market, that we can offer consumers and collectors a truly superb experience.”
“The Geppi's Entertainment companies have been way ahead of the curve in trying to promote an awareness of collecting and investment-grade collectibles in the general population, including establishing Geppi's Entertainment Museum in Baltimore, Maryland,” said Laura Sperber, co-president of Legend Numismatics. “This track record, combined with Morphy Auctions' know-how in operating auctions in a manner supportive of both buyers and sellers, puts this new venture on an excellent footing from day one.”
“Following some of our recent successes, we had announced our interest in the coin market and received more than 100 consignments before Morphy/Legend Coin Auctions was even launched,” said Dan Morphy, chief operating officer of Morphy Auctions. “By teaming up with Legend, we provide our consignors and buyers an outstanding ability to reach out to their colleagues and compatriots in the collecting world.”
Legend Numismatics is one of the premier rare coin dealers in the United States. Legend's principals have been participating in the coin market since 1973 and have been full-time dealers for more than 30 years. Since 1987, Legend's emphasis has been on dealing with the growing collecting public and supplying this market with exceptional coins that are always in demand.
The Geppi's Entertainment family of companies, including Geppi's Entertainment Museum, Diamond International Galleries, Hake's Americana & Collectibles, Morphy Auctions, and Gemstone Publishing, is dedicated to promoting the awareness of the role of popular culture in mainstream American history by making vintage pop culture artifacts and information about them available to the general public and specialists alike through auctions, sales, live events, and detailed publications.

Wednesday, March 05, 2008

The Faceless Monroe Presidential Dollar

by Susan Headley

Blank Monroe Dollar has Edge Lettering

A "Faceless" Monroe Presidential Dollar has been found by coin collector Garrett Reich of Michigan. This extremely rare error type, of which only one previous specimen has ever been confirmed, is a Presidential Dollar that didn't get struck by the coin dies, leaving it without any obverse or reverse designs. Reich's coin is a blank planchet with a very important difference from nearly other blank Presidential Dollar coins: it has Presidential Dollar edge lettering on it! Garrett found the coin in a bank box of 1,000 coins wrapped up into 40 rolls on February 13, 2008, the day before the coins officially went on sale at most banks. (Some banks are known to distribute the coins ahead of the official release date.)
Monroe Faceless Dollar is NGC CertifiedReich's Faceless Monroe Dollar specimen has been certified by NGC as genuine, with the label reading "2008P (James Monroe) $1 / Edge Lettered Planchet / Mint Error" along with the verification number on the insert.
According to Reich's wife, Erika, the grading service messed up the label the first time around, apparently not recognizing that the particular president was a certain, known fact in this case. Originally, the label merely indicated that it was a blank Presidential Dollar planchet with edge lettering, which would have meant that it could have come from any president in 2008. Fortunately for the Reichs, they had leading variety coin expert Ken Potter on their side, who contacted NGC and got the proper designation put on the label. The coin had to be a Monroe Dollar because no other Presidential Dollars had been issued yet in 2008, and the edge lettering, although weak, clearly indicates the year 2008. Potter's intervention makes the Reich Specimen quite a bit more valuable than it would be otherwise; any other 2008-dated faceless Presidential Dollars which are found once the Fed releases the next Dollar (the John Quincy Adams, which will leave the Fed around May 2) can only get a generic label insert.
Major Monroe Dollar ErrorsReich found his amazing error coin while searching for another major Monroe error, the Monroe Dollars which were struck on planchets meant for State Quarters! An undisclosed number of Dollars struck on Quarter planchets were found by the contractor who wraps the coins for the U.S. Mint, and although the Mint acknowledged that this stupendous error had occurred, it also claims that it recovered them all. As of press time, no such specimens have come to light outside the Mint's control. There is believed to be another "faceless" Monroe Dollar in the certification pipeline, one found in New Jersey sometime later than Reich's find. If this coin is confirmed, it brings the total number of authenticated faceless dollars to 3, with the total number of rumored, faked, debunked, and spurious faceless dollars in the dozens. Readers are cautioned that they should never buy a major error unless it is certified by a leading grading service.
The Second Known Faceless DollarThe Faceless Monroe Dollar was one of numerous more minor errors that Reich found during his searching. The most interesting of the other errors he found included partial edge lettered coins, coins with weak edge lettering, and coins that had edge lettering spacing errors. Reich searched through at least 20,000 Monroe Dollars before finding his faceless specimen, and despite searching through a total of more than 40,000 Monroe Dollars so far, he hasn't found any others like it. His find could be worth anywhere from $15,000 to as much as $50,000 or more, depending on how many others are found. The first Faceless Dollar, found by the Smith family in Colorado, never came to market, so the Reich Specimen will be the first test of how deeply people are willing to dig into their pockets to own one of these.
How to Find Your Own Faceless DollarOne of the hallmarks of Reich's searching technique is sheer persistence. He searches tens of thousands of coins per month, always on the lookout for that which is different or odd. He was in on the Adams Doubled Edge Lettering bonanza, finding enough specimens that he was selling them to local coin dealers in batches. He has found numerous other major errors through the years. Like most avid coin roll searchers, the key to Reich's success is searching a lot of coins on a consistent basis. He has even hit the silver bonanza, once finding a whole batch of boxes of Half Dollars at a local bank that were loaded with silver halves! If you want to find your own valuable coins in circulation, get some boxes of circulating coins from your local bank, heave them all home, roll up your sleeves, and start searching!

Tuesday, March 04, 2008

Citizens Coinage Advisory Committee Meets 9/13

Design Candidates and Narratives Slated for Review
The Citizens Coinage Advisory Committee (CCAC) will hold a public meeting at 9 a.m. (ET) on March 13, 2008, at United States Mint headquarters at 801 9th Street NW, Washington D.C. 20220. The purpose of the meeting is to conduct business related to the CCAC's responsibility to advise the Secretary of the Treasury on themes and designs pertaining to United States coinage.
Agenda (subject to change): * Review redesigned candidates for the 4th reverse aspect of the circulating coin in the 2009 Abraham Lincoln Bicentennial One-Cent Coin series. * Review design candidates for the 2009 Louis Braille Bicentennial - Braille Literacy Commemorative Coin Program. * Review design narratives for the Native American $1 Coin. * Other general business.Who: Citizens Coinage Advisory Committee (CCAC) Pursuant to 31 U.S.C. 5135, the CCAC was established to:
* Advise the Secretary of the Treasury on any theme or design proposals relating to circulating coinage, bullion coinage, commemorative coins, Congressional gold medals, and national and other medals produced by the Secretary; * Advise the Secretary of the Treasury with regard to the events, persons, or places that the Committee recommends to be commemorated; and * Advise the Secretary of the Treasury with respect to the mintage level for any commemorative coin recommended.When: Thursday, March 13, 2008, at 9 a.m. to 12:00 p.m. (ET)Where: United States Mint 801 9th Street NW 8th Floor Board Room Washington, D.C. 20220
Contact:
Press inquiries: Michael White (202) 354-7222

Customer Service information: (800) USA MINT (872-6468)

Monday, March 03, 2008

One Percent Shy

By Jon Nadler
The price/day countdown we alluded to in last week's closing comments accelerated on this first trading day of March as the precious metals recorded fresh gains across the board. Amid ideal (for them) conditions in the financial arena and on the geopolitical scene, gold, silver and the platinum group metals all rose in concert. This latest surge took place as the US dollar traded at more than $1.53 against the euro and 73.6 on the index, and as crude oil leaped to $103.70 per barrel amid a frenzy of fund money. Geopolitics were showing the world nothing but a mounting heap of potential and actual trouble spots. To wit: Venezuela's Chavez massed tanks on the border with Colombia and kicked up the inflammatory rhetoric a few more notches, violence continued in Gaza, and the list could go on, with Pakistan, Armenia, Kenya, and pending UN Iran sanctions as well as Ahmadinejad's rhetoric heard in Iraq.
New York spot gold reached a record high that was 99% of the way to $1,000 but pulled back later in the day, at last check showing a $9.20 gain, at $983.50 bid. Silver reached a high of $20.66 per ounce before pulling back to $20.07 later in the day. Platinum did not look back and surged to $2233, up $72 per ounce. Palladium had a good day as well, rising $12 to $579.00 per ounce. For more on why gold retreated from the magic figure achievement, and why the greenback sat up in its coffin once again, read below.
The noble metals received a mixed bag of news this morning, as the platinum and palladium deficits were seen as rising in the current year, but also that full power to the mines in S. Africa will be restored as soon as the contingency plans being studied by the government take hold. Some kind of announcement on that front is expected by mid-week. Overall, however, participants were still focused on the latest US economic statistics, leading up to Friday's February employment report. First out of the gate for the month, was the ISM manufacturing index number, showed that, at a 48.3 level, even if some growth is still being recorded, "contraction" remains the operative word to heed thus far. Forbes reports that "the slowdown in manufacturing is mostly due to a decrease in imports and new orders and an increase in prices."
The high prices of commodities like corn, copper, structural steel, and plastic resin are having a direct effect on many manufacturers and thus we got the lowest such reading on the pulse of manufacturing activity in half a decade. Perhaps someone should have a word with the hedge funds that have been pushing the price pedal to the metal(s) across the board... In any case, very few analysts expected that the US economy had done an about-face just yet, despite the very aggressive rate slashing campaign offered up by the Fed since September. The speculative crowd remains firmly fixated on the fulfillment of the four-digit price tag being affixed to a one-ounce chunk of gold. A price that has been talked about for roughly one generation now.
The fly in today's gold market ointment came from Euroland, where, according to Bloomberg, " The dollar rose from a record low against the euro as Luxembourg Prime and Finance Minister Jean-Claude Juncker said he was becoming "increasingly concerned" about the euro's rally. The U.S. currency also recovered after European Central Bank President Jean-Claude Trichet said the U.S. government's strong-dollar policy is "very important." The two Jean-Claudes, they are starting to sound just like their counterpart, Hank Paulson last week, eh? Could actual currency market intervention be far behind? Don't know, but someone is watching all of these developments with more than just a casual spectator kind of attention span...
So, what may be next for markets and corresponding asset values? At least in the opinion of one observer (Bill Donoghue) the sure-fire sign that there is more turmoil to come is seen in the FDIC staffing up of late. Make of it what you will. Others, however, are not so sure this situation is all a one-way street, even if they have not declared themselves as bullish on other alternatives just yet. Here is a sampling of this weekend's punditry, courtesy of Marketwatch and Bloomberg:
First, on the dollar/euro (or dollar/pick-your-currency) situation:
"Currency experts, however, argue that the dollar will remain under pressure at least through the next month or longer. If next Friday's February employment report is as bad as economists are anticipating, argues Joe Francomano, manager of foreign exchange with Erste Bank in New York, the greenback could possibly hit rock bottom at that point.
"You are going to see the momentum of this week carry over as far as dollar weakness goes and culminate next Friday," said Francomano."
But:
"Even the most bearish currency experts agree that the pressure on the dollar should abate some time around the middle of 2008, after the Fed winds down its rate-cutting campaign and as the sluggish U.S. economy starts to perk up."
Furthermore:
"The risk is the euro appreciates too far, choking European sales abroad and pushing up the price of imports to the U.S. The currency has climbed 15 percent against in the past year, rising as high as $1.5239 yesterday."
And finally, Marketwatch's Kevin Kerr on commodities:
"Now no market continues higher forever, eventually all markets correct. The same holds true for the commodities markets and the record buying we are seeing. The best part about trading commodities is that it is as easy to go short (sell) as it is to go long (buy). I am not advocating shorting any of these commodities just yet, but I will say I have taken out my bear hat and am dusting it off. In the meantime there are still good reasons to buy many of these commodities even at these nosebleed levels."
For the moment, none of the commentators are willing to step in front of the commodity bus and hope that someone will apply the brakes. Hulbert's "tepid" Gold Newsletter Sentiment Index at 65.4% could be telling contrarians that gold has remaining price increases in store. Wonder which gold timing newsletters those are. They must not be very popular of late. The week will be dominated by momentum trades and the focus on the economy. The Kitco price boards could make for some ecstatic attendees at the heavily-populates PDAC show in Toronto, even if not yet for those whose brokerage account statements are full of mining shares. Patience.
Let's see what Tuesday brings other than a make/break day for Mrs. Clinton. We have retail sales and consumer confidence (make that lack thereof) coming our way. Watch that dollar. And also, your own.

Sunday, March 02, 2008

Egyptian gold demand to grow strongly

Egypt's gold demand is likely to continue double-digit growth over the next five years as its economy expands, a World Gold Council official said.
"The market in Egypt is doing really well," Moaz Barakat, managing director of the industry-funded World Gold Council in the Middle East, Turkey and Pakistan, said.
"The economy is improving, many tourists are buying gold, and the government is reviving the market," he told Reuters.
Egypt, which once considered gold as "the skin of the gods," is likely to achieve an economic growth rate of around 7 percent in the 2007/8 fiscal year despite rising inflation rates, Investment Minister Mahmoud Mohieldin said last Monday.
Egypt was among the fastest growing countries in tourism last year, according to the World Tourism Organization.
Major regional players expanding their manufacturing capacity, such as United Arab Emirates' Damas Jewellery and Saudi Arabia's L'azurdi Jewellery, and sales campaigns have significantly boosted demand in the country, Barakat said.
"These manufacturers are attracting Egyptians to buying gold again, and it is now back in fashion...that was not the case a few years ago," Barakat said.
Egyptians, who once used gold as a dialy ornament and buried their pharaohs bedecked with the precious metal, consider gold jewellery a financial security and a vital part of weddings.
Despite soaring gold prices, last year's demand was up 12.2 percent at 67.3 tonnes. The country's fourth-quarter demand was up 8.8 percent at 17.4 tonnes.
"Compared to the rest of the Middle East, and particularly the Gulf, Egypt was the best performer in the fourth quarter of last year despite high and volatile gold prices," Barakat said.
Gold rose more than 30 percent in 2007 amid safe-haven buying due to credit market turmoil and worries about the health of the US economy.
Spot gold set a record high of $975.90 a troy ounce in Europe on Friday as a weaker dollar and escalating worries about price pressures triggered a wave of investor buying.
Gold's rally weighed on fourth-quarter demand in Saudi Arabia, the Middle East's largest gold consumer, depressing volume by 8.9 percent to 22.4 tonnes.
In the UAE, demand followed a similar pattern, and fell 8.1 percent to 19.3 tonnes during the same period. In other countries such as India -- the world's top gold consumer -- demand has suffered, Italian consumers temporarily suspended orders, and Japanese retail investors are offloading.
"Things are going well for us here, and we are seeing many keen buyers, who are either tourists or ordinary housewives who think it is a good time to buy gold and perhaps sell it later if prices go higher," Abdo Mallak, a Cairo jeweller said.
"I think wearing gold jewellery is becoming trendy again, and many women here want to be trendy regardless of the price." Egypt is revisiting ancient deposits of the metal -- some of which have not been worked for 2000 years.