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 Friday, May 25, 2007
Retirement closes new issues career
Posted by Dave
 Fred Borgmann retires at the end of next week on June 1. He has been a colleague of mine on the numismatic staff for my entire career here, now almost three decades. Had he chosen to stick around until August, he would have marked his 31st anniversary with Krause Publications. That’s quite an achievement in an age when we are told that the average worker will hold 10 jobs in his career. Fred’s job was and always has been cataloging new issues from the world’s many mints so that they get listed in the Standard Catalog of World Coins. It is a precision job in an age of corporate “whatever.” The world’s mints don’t beat a path to our door and hand us computer disks or paper lists of everything they produce. Dealers have regularly sent packages to Fred to identify coins, assign them Krause-Mishler numbers and figure out what they are made off. He sometimes resorts to specific gravity tests to figure it out. All of this takes time, patience and encyclopedic knowledge of world coinage output. There is probably no other individual who has such a keen sense of what is going on with new issues. Whenever I had a world coin question, I knew who to ask. Several dozen of his co-workers gave him a retirement lunch yesterday here at the office. The photo shows him with his wife, Kathy, holding the retirement cake. It was a nice affair. Brats and hamburgers were cooked on a gas grill. There was a little trouble getting it going at first, so I quipped to Fred that it was a good thing there was another retirement party next Thursday at the bowling alley where we could get it done right. Those last few words might have been Fred’s motto, “Get it done right.” He always did. For nearly 31 years that is what he has been doing to the benefit of the collectors and dealers of the world who use the Standard Catalog both in print and in its new incarnation online in NumisMaster. Good luck in retirement, Fred. We’ll miss you.
5/25/2007 9:01:17 AM (Eastern Daylight Time, UTC-04:00)
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 Thursday, May 24, 2007
Photo didn't make it
Posted by Dave
Take a look at the photo. You won’t see it on the front page of Numismati c News. It, as they say about the movie industry, ended up on the cutting room floor. The event at which it was taken is significant. It was the official launch on Tuesday of the Adams Presidential dollar in our second President’s hometown of Quincy, Mass. The persons in the photograph are also significant. The problem though is the photo’s composition. The U.S. Mint director, Edmund C. Moy is on the left. There is a lot of gaping space between him and the other ceremony participants. The eye doesn’t know where to look easily. I could show just the Mint director, but then you really wouldn’t know the context. It could be a speech delivered anywhere at anytime. On the right of the photo, the eye goes to the historical re-enactor Sam Goodyear. He is seated with Quincy, Mass., Mayor William J. Phelan. To focus solely on these two individuals would show little energy or enthusiasm for the great day and they could be an actor and his manager conversing before the beginning of an historical play somewhere. Then there is the fellow in the hat. He is descendant Peter Boylston Adams. It was very good of him to participate. We should all be grateful. To focus on him alone would also not do anything to give readers the idea of the great event of which he was a part. This becomes one of many photos that I do not publish, but to see it here gives you a glimpse into how I think. I would like to thank the U.S. Mint for providing the photo (and the one I did use) and I think the whole hobby should say thanks that Presidential dollar launch events of this kind are being staged. It helps everybody. Keep them coming. Will we see the Jefferson dollar debut in Colonial Williamsburg accompanied by fifes and drums? I hope so.
5/24/2007 9:13:47 AM (Eastern Daylight Time, UTC-04:00)
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 Wednesday, May 23, 2007
Numbers add up for change
Posted by Dave
Some things just don’t add up. The Presidential Coin Act that authorized the current series of Presidential dollars also requires that the U.S. Mint issue Sacagawea dollars in a number to equal one-third of the total of all dollars struck this year and in future years. When I saw that number for the first time, I asked the Mint about how that might be done. I could understand collectors continuing to buy Sacagawea dollars even as the Presidential series unfolded. I could understand they would want five-coin proof dollar sets and five dollar coins in the regular proof set, but the math didn’t add up. If collectors take one of everything, the percentage attained would be 20 percent. That is a long way from 33.33 percent. So far, I haven’t seen anything from the Mint that would help spur Sacagawea dollar demand to a level to comply with the law. Perhaps the solons in Congress noticed this, or perhaps a Mint official put a bug in a congressional ear, but legislation in the form of H.R. 2358 has been introduced to correct that mathematical dilemma. But correction is not the sole purpose of the legislation. The legislation also authorizes and annual reverse design on the Sacagawea dollar to honor Native Americans. This then would make the coin a commemorative, too. The congressional sponsors, I imagine, also believe, that the new themes will spur additional demand. They saw the popularity of the Buffalo commemorative silver dollar of 2001 that first reused the Buffalo nickel design and then the launch last year of the same design on a one-ounce gold coin. Collectors say they like the James Earle Fraser design of Buffalo and Native American whenever they are asked. Perhaps the potentially new Sac dollars will broaden the Native American thematic appeal. The legislation has to pass before that can happen. Something tells me that it will have little problem getting support. The numbers for that seem to me to add up.
5/23/2007 8:56:24 AM (Eastern Daylight Time, UTC-04:00)
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 Tuesday, May 22, 2007
Does he bite? Not the dog, the ANA president
Posted by Dave
American Numismatic Association president Bill Horton has presided over tumultuous times at the national collector organization during these past two years.  One thing I have observed is that during the difficult days, he has not lost his sense of humor. When I received the photo, which was taken during the Garden State Numismatic Convention over the weekend in Somerset, N.J., I quickly e-mailed back the headline to Bill and I asked if I should publish it. His reply was quick: “Go for it.” Humor is a wonderful thing. It can take the edge off tense meetings. It can help people reach accommodation when they feel more like arguing. All too often, it has been absent from ANA presentations to its members and the public. I find myself thinking to myself, “If only they could see Bill individually or in a small group. It would be different.” During the ANA’s National Money Show in Charlotte, N.C., Bill quipped during a lunch break from the ongoing board of governors meeting, “I’m the pinata and I bring my own stick.” It was a clever reference to the Mexican delight of hitting a paper animal or other object filled with goodies. At the Central States convention in St. Louis earlier this month, the CSNS board went into a very lengthy executive session. It was so lengthy that some outside commented about it. Bill’s humor came through. In a conversation with Nancy Wilson, he said, “They are allowed to do that. It’s a different set of letters.” That cracked me up. The reference was clear. Critics, including me, have said that there are too many things done in executive session by the ANA. I like the humor. I appreciate it. I am sure others would, too, if they saw more of it. By the way, the dog belongs to Andy Lustig and is named Aki. The Young Numismatist is David Jacobson.
5/22/2007 9:03:03 AM (Eastern Daylight Time, UTC-04:00)
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 Monday, May 21, 2007
Time to buy Buffalo, or not?
Posted by Dave
The U.S. Mint has cut the maximum possible mintage for the proof 2007 Buffalo one-ounce gold piece from last year’s 300,000 to 200,000. It will go on sale to collectors in just two days on Wednesday, May 23. Price this year will be $825.95, up $25.95 from the $800 price of the 2006. Will the lower mintage ceiling induce more hobbyists to buy than otherwise? I assume the Mint thinks the answer to the question is yes. Second years of issue of virtually anything usually disappoint. The novelty is gone. The enthusiasm is gone. Most importantly, the collectors doing the buying may notice that their money is gone. After all, an $800 item is relatively expensive. Most Numismatic News readers can afford it – once – but if reader surveys are to be believed, that one coin alone takes up a significant chunk of the average collector’s buying funds. Unless this average collector wants to permanently change his collecting habits, he will most likely revert to the habits of prior years. Also, many collectors are type collectors. Once they own the type, there is no further need to add another of the same design to their collections. Potentially pushing collectors to buy are their thoughts about the gold market itself. Gold has been in a nice uptrend since 2001. Many think it will continue. If this is so, it will be better to buy a gold coin now and not wait because it might be more expensive next year or the year after. I am already on record in print that I think the purchase total for this year’s Buffalo coin will be 75,000. That is quite a bit lower than the 300,000-coin ceiling of 2006 and the 252,200 actually sold. Am I out on a limb? Perhaps. One factor that I look at as extremely important is the gross dollars the Mint is asking the hobby to put out. If all 200,000 of the new Buffalo coins would sell, that takes $165,190,000 out of collector hands and puts it into government hands. That’s more than the hobby can handle. Can I be wrong? Sure. There are no accurate numbers anywhere as to just how much money collectors will spend in a year. This is my sense of things. Starting Wednesday, we will see.
5/21/2007 9:03:57 AM (Eastern Daylight Time, UTC-04:00)
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 Friday, May 18, 2007
Treasure revs me up
Posted by Dave
How do you put a price on a dream? I just got off the phone with a reporter for the Associated Press. He was writing a story about the reported recovery of $500 million of sunken treasure from the Atlantic Ocean. It is always good to be skeptical. The $500 million might turn out to be too high a price, but I said that coins that have been properly conserved and marketed have been known to bring far higher prices than those of us in the strictly numismatic market could think possible. I said the Odyssey Marine Exploration group has enough of a track record that I would give them the benefit of the doubt in the early going. We don’t know the country of origin of the coins, the dates, or mints. All that is known so far is that there are 17 tons of what are called “Colonial-era silver and gold coins,” with the bulk of the coins being silver. I said some obvious things that any collector might point out. Sea water is the very devil on silver coins. Gold survives better. The conservation effort on them will determine a large amount of their value. What is good, though, is that the news has made it to the general press and is not restricted solely to the pages and Web sites of the hobby press. We all benefit when that happens. Any publicity in this regard is good not only for the treasure hunters, but also for all coin collectors. It will be very interesting to see how additional information will be announced. Will we watch a masterful marketing process unfold as was done for the S.S. Central America? I hope so. We were all winners in that process. The hobby has benefited enormously from it. Soon enough I will be able to warn people to be skeptical when buying sunken treasure. Soon enough I get to be a scold. However, today, I want to bask in the possibilities. I want to let my imagination run with it. Don’t you?
5/18/2007 12:36:20 PM (Eastern Daylight Time, UTC-04:00)
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Mint cares about collector opinions
Posted by Dave
The U.S. Mint cares about the opinions of average collectors. I believe it. The real question is do you believe that? More proof for my opinion arrived late Wednesday afternoon when I received an e-mail from the U.S. Mint asking if Numismatic News would mind sharing the results of a recent online poll conducted here at www.numismaticnews.net asking whether the dollar coin should be abolished. I requested the full data for submission to the Mint yesterday and off it went. We had published the results of the online poll on Page 4 of the May 22 issue, but that just provided percentages. What probably got the Mint’s attention and spurred the urge to explore further was the fact that 49 percent of the respondents said that the dollar coin should be struck but the dollar bill should be abolished. This flies in the face of national polls done over the years and would constitute an earthquake shift in opinion were it true. The trouble with online polls is that they do not use scientific sampling technique to assue that they are an accurate reflection of the broad population. An online poll is just that, the opinions of the very specific group of people who choose to respond to it.. What does that tell me? It tells me that the Mint does care about collector opinion and wants to gather the broadest data possible. Will it change current Mint policy governing the dollar coin? Not likely anytime soon, but who knows? If collectors like you get in the habit of participating in online polls, you know that whatever your opinion is will be picked up by the U.S. Mint. That’s a good thing to know. Your opinion matters and your voice is heard.
5/18/2007 9:03:16 AM (Eastern Daylight Time, UTC-04:00)
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 Thursday, May 17, 2007
I'll fight, but its for clarity
Posted by Dave
When I was a child, my father smoked Tarryton cigarettes. (He quit when he was 40). The brand had a catchy slogan: “I’d rather fight than switch.” Print ads showed guys with black eyes holding their cigarettes. Some collectors would rather fight than collect. I write that because I got a phone call yesterday from a reader who wanted to dispute something written in a feature story. The story recalled that mint sets were abolished in 1982 and 1983. The consequence of that is some of the uncirculated coins with those dates are scarcer than coins from other years because collectors don’t have the supply of mint sets to raid for high-quality coins. This is settled history. The caller called it an error. He said there were mint sets in 1982 and 1983. I said, “No, but there were souvenir sets.” He immediately agreed, but then insisted it was wrong to say there were no mint sets in those years. I demurred. Settled hobby definitions apply the term “mint set” to specially produced sets of uncirculated coins from all of the active minting facilities of that year. The most prominent producer of these is the U.S. Mint itself, which has done so in modern times since 1947. Mint sets can be produced privately. They were a staple in the hobby for many years, especially in 1982 and 1983 when my firm created its own to help sell newspapers. Private sets need to be labeled as such to be distinguished from the official Mint products, which are what make it into the price guide books. There are no price guides that I know of for 1982 Krause mint sets or of those of any other private producer. Common collector parlance uses “mint set” in a settled way to refer exclusively to the U.S. Mint product. Legally, there is nothing to enforce it. However, by the standards of this newspaper, we are in the business of being as clear as possible and not to use common terms in an uncommon way to mislead readers. So, the existence of souvenir sets does not make the statement of a lack of mint sets in 1982 and 1983 untrue. Besides, the basic point of the original statement is the lack of millions of official mint sets make uncirculated coins more valuable. The few thousand souvenir sets that were produced during those years make absolutely no difference to this true statement. Souvenir sets also did not include all uncirculated coins of the year. They included only those from specific mints, so you need further modifiers of "Denver mint set" and "Philadelphia mint set" to be accurate. So, I guess I would rather fight, too. I fight for clarity, but then again, that’s my job.
5/17/2007 9:03:03 AM (Eastern Daylight Time, UTC-04:00)
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 Wednesday, May 16, 2007
Will you buy John Adams dollars?
Posted by Dave
Tomorrow the John Adams dollar will be introduced. The U.S. Mint will begin selling bags and rolls of them on its Web site. Will you be a buyer? Not too many people will be as far as I can tell. All the novelty, fanfare and hoopla was spent on the introduction of the George Washington dollar in February. What will be left for Adams? The Washington coins even enjoyed the publicity of the discovery of a significant and very collectible error, the plain edge variety, where the date, mintmarks, “In God We Trust” and “E Pluribus Unum” are missing. It is a wonderful error because you don’t need industrial scale magnifiers to see it. What will Adams offer? I wrote a “Class of ’63” column in the May 8 Numismatic News where I took a poke at Adams. I wasn’t exactly overwhelmed with responses. That is probably the biggest indicator of the level of collector interest in an Adams dollar. Sure, Brad Karoleff told me at the St. Louis Central States convention that he liked Adams and I should read a biography of our second President that he recommended. I respect Brad and his opinions. I probably will end up reading the book. But, he is the only one so far to speak up in defense of Adams. Not that the other side is well represented. I have received one or two e-mails and that’s it. That’s probably it for Adams, too. I could be wrong. When sales open for the Adams dollar tomorrow, we will see.
5/16/2007 8:59:34 AM (Eastern Daylight Time, UTC-04:00)
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 Tuesday, May 15, 2007
Summer might be dangerous
Posted by Dave
It was 87 degrees in Iola, Wis., yesterday. That is much above normal. It serves as a reminder to me and others that summer is coming. That could have an effect on the coin market. Summer historically has meant a seasonal slowdown in collector activity. Average collectors trade the indoor activities of the winter season for the outdoor pleasures and chores of the summer season. The economic impact is a drop in purchases and cash flow within the commercial sector of the numismatic community. Many dealers used to schedule vacations. Newcomers, or those with a short memory might be surprised by this, as we all live now in a 24/7 culture where business long-term planning is simply making the next quarterly set of numbers. Their perception is reinforced by the fact that the coin market was so hot last year and the year before that the usual pattern was obscured. Nobody wants to go off on a vacation when deal making activity is so intense that they can pay for their summer home with the profits. That’s like leaving the poker table in the middle of a hot streak. This year it is a different story. Activity has not been hot. It has held up, but it is not hot. Following the Long Beach show at the end of this month, we just might see a traditional summer lull. The next major show after that is in Baltimore a month later, making the whole month of June ripe for a pause. Contributing to this is the move out of June of the Memphis paper money show, which historically was Father’s Day weekend. This year it is July 6-8. None of this should be a cause for worry except the nagging doubt of debt. How deeply in debt to carry their inventory are the market players? Can they survive a pause, or are they stretched like the housing market was last year. Will what happened to the housing market happen to the numismatic market? These are the questions to keep in mind as you hear Nat King Cole sing about those lazy days of summer.
5/15/2007 8:56:47 AM (Eastern Daylight Time, UTC-04:00)
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 Monday, May 14, 2007
Hobby great honored by CSNS
Posted by Dave
 Would you know if you were in the presence of greatness? Attendees at the annual awards breakfast of the Central States Numismatic Society May 12 in St. Louis certainly did. They were assembled to honor Eric Newman, a man whose long life and scholarly numismatic pursuits have made him a living legend. James Moores, a member of the CSNS board of governors, was given the honor and duty of presenting a special award to Newman. It is a Lifetime Achievement Award that was given, “In recognition of your contributions to numismatics for over 80 years and for your role as one of the founding members of CSNS.” CSNS was founded in 1939, Newman was the first secretary, but his credentials don’t stop there. Moores hit some of the highlights. Moores noted that Newman began in the hobby at the age of 10, more than 85 years ago and at one time owned all five 1913 Liberty Head nickels. “I’m a living fossil,” Newman declared when it was his turn to speak. “I’m extremely grateful for the honor.” He said it came in “recognition of all the fun I’ve had.” He reminisced. His mentor was Burdette Johnson, a St. Louis dealer who would not sell him a coin until he had read a book about it. “He was the greatest numismatist in the United States in any language and any period,” Newman said in tribute. Newman cited a number of other anecdotes and mentioned other historical hobby figures, but he also knew his audience. He mentioned that he attended the first CSNS convention in 1940 in Burlington, Iowa. Guests didn’t get any sleep then because the hotel was right over the rail switching yard and cars were banging together all night long. He also recalled that B. Max Mehl, the famous Fort Worth, Texas, dealer who died in 1957, “asked me to be a shill in one of his mail auctions.” The CSNS membership loved it. They knew they were in the presence of greatness. I was lucky to be there.
5/14/2007 8:53:15 AM (Eastern Daylight Time, UTC-04:00)
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 Friday, May 11, 2007
On the road again
Posted by dave
I am in St. Louis attending the Central States Numismatic Society convention through Saturday. It is almost 30 years since I attended my first one in 1979. I couldn’t have picked a better convention to start my career at Numismatic News. The 1979 was the convention was where the Susan B. Anthony dollar made its illegal and early debut approximately three months before the official July release date. Joe Jones, a former Numismatic News ad manager, grabbed me in the aisle of the bourse floor and said, “Close your eyes and hold out your hand.” Now that is a strange request in any circumstances, but Joe was a well-known staff practical joker and I was the newbie NN staffer. Just what I needed, I thought, but I had no choice. I closed my eyes and held out my hand. What do you think happened? You’re right. He dropped an Anthony dollar into it. Wow, I felt like I was at the center of the action attending the Central States show. The next convention was even more memorable. It was the show where the coin market died, the party ended and hard years followed the late 1970s coin and bullion boom. Dealers had made so much money, they called the time of the late 1970s bull market “The Party.” For years afterwards, they would compare market conditions to the party. Not every Central States show has burned itself into my memory, but it is no accident that many hobbyists consider it a must-attend event. While I personally haven’t made every one, Numismatic News has for 55 years. That is a tradition I am pleased to be a part of.
5/11/2007 9:21:55 AM (Eastern Daylight Time, UTC-04:00)
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