http://www.zoomcoin.com/rare-coin-news/rare-coin-news/ en info@zoomcoin.com Copyright 2009 2009-11-18T23:15:12+00:00 http://www.zoomcoin.com/rare-coin-news/article/a-double-squeeze-play/ http://www.zoomcoin.com/rare-coin-news/article/a-double-squeeze-play/#When:23:15:12Z by Adam Crum The argument has been made that the current price spike in gold is ONLY due to the declining value of the dollar; however, the fundamentals of supply and demand are also at play. The market is being SQUEEZED by 1) a substantial increase in demand from increasingly wealthy nations with HUGE populations that prefer to hold wealth in tangibles (gold being their preference) AND 2) a world that grows increasingly afraid of holding the dollar as a reserve currency. It's a "double squeeze" play...and higher prices are the likely result. It is increasingly difficult to find ore Production of gold worldwide peaked around the year 2000 and has been in decline ever since, even as exploration budgets tripled during the same period. Not only is it more difficult to find ore, the quality of ore has declined as well. In recent days, India's central bank bought up half of the gold being sold by the International Monetary Fund. China has quietly doubled its holdings to 1,054 tonnes and is believed to be adding to its holdings periodically as dips in prices occur. Gold exchange-traded funds (ETFs) have accumulated 1,778 tons, making them the fifth biggest holder after the United States, Germany, France and Italy. With supply down and demand up, gold continues to set all time highs. But, that is only part of the story. President to focus on economic concerns next year In just three years, the Federal deficit has exploded 770%…$161 billion in 2007…$407 billion in 2008 and now a mind-boggling $1.4 trillion in 2009. According to the White House's own Office of Management and Budget, the future deficits will add $9 trillion in debt over the next ten years, bringing the national debt to more than $21 trillion. Peter Orszag, the White House budget director, recently stated that: "The President strongly believes that as the recovery strengthens and job growth returns, we will have to take the tough steps necessary to return our nation to a fiscally disciplined and sustainable path." That all sounds fine, of course, except the government is already planning to send supplemental checks to 50 million seniors, extend unemployment benefits, renew tax credits for new homeowners, pass the biggest health care legislation in history and pursue an aggressive global warming bill. Debt even LARGER than Washington claims When reporting the national debt, Washington apparently has forgotten about the $104 trillion for Social Security, Medicare, Medicaid and veterans benefits. And, oh, by the way, the oldest of the 76 million baby boomers turn 63 this year and are beginning to collect these benefits. "We're seeing deficits projected for the next 10 years of over a trillion dollars a year," said Senator Judd Gregg of New Hampshire, the ranking Republican on the Budget Committee, in congressional comments last week. "It's not sustainable. It's not fair, and it's not right." The nonpartisan Congressional Budget Office reports we could be on the verge of an economic crisis of colossal proportions. In its 2009 report, "The Long-Term Budget Outlook," the CBO writes: "[Our] model predicts only a gradual change in the economy as federal debt rises. In actuality, the economic effects of rapidly growing debt would probably be much more disorderly as investors' confidence in the nation's fiscal solvency began to erode. If foreign investors anticipated an economic crisis, they might significantly reduce their purchases of U.S. securities, causing the exchange value of the dollar to plunge, interest rates to climb, and consumer prices to shoot up... The growth of debt would lead to a vicious cycle in which the government had to issue ever-larger amounts of debt in order to pay ever-higher interest charges." Printing money like there's no tomorrow The only alternative Washington has is to pay its bills with cheaper dollars. In fact, the Federal Reserve has been doing its part by printing money like there's no tomorrow. To put it into perspective, the Fed increased bank reserves by an unparalleled $73 billion in an extraordinary three month period before the Y2K scare. That was only 1/14th as large as what they have just done! In the days following 9/11, the Fed again flooded the banks with liquidity, $40 billion by September 19th. But, that was only 1/25th as big as what they've just done. More on the effect of this in a minute! Time honored tradition of debasing currency While the new terminology may be quantitative easing or money printing hedging, currency has been debased throughout history when countries can't pay their debts. Think of the Roman Empire, British Empire and the Russian Empire. It took 4.2 German realmarks to buy one U.S. dollar at the start of World War I and three trillion realmarks to buy one in August 1923. In 1933, Franklin Roosevelt devalued the dollar by 75% simply by raising the official price of gold. And, more recently, similar currency devaluations have occurred in Argentina, Brazil, Indonesia, Zimbabwe and other countries around the world. This is why the dollar...your dollar…has plunged 40% in value. THIS is why the price you pay for just about everything has increased and will continue to do so. Back to the effect earlier explosions in the supply of the dollar...after the Y2K effect, the rare coin market saw a mild drop in value through 2001 and then experienced the biggest rise in value we have ever witnessed. Beginning in mid-2009 the rare coin market saw decreases off of those highs and have begun to rise again. Given the HUGE increase in the supply of dollars, I believe we are at the precipice of a rise by epic proportions. China Central Bank governor says dollar should be replaced by new global reserve currency Washington now owes $7.9 trillion to foreign investors and governments (mostly Asian) according to the U.S. Treasury Department. Since that debt is now worth 15% less than just seven months ago, as is the interest on the debt, it is not surprising that foreign lenders are not pleased. China, the largest holder of U.S. debt, has announced repeatedly its concerns about the U.S. Dollar. Zhou Xiaochuan, governor of the China Central Bank, says "The costs of a dollar-dominated system to the world may have exceeded its benefits. The dollar should be replaced by a new global reserve currency." China's commerce ministry spokesman Yao Jian just told reporters while the U.S. President travels in that country: "It is necessary to create for enterprises a stable and predictable environment, including (stable) economic and foreign exchange policies, to help the global economy grow steadily and China's exports recover." While the U.S. administration says Washington is not at fault, the commerce ministry spokesman added that the United States had "continued" to let the dollar drop "to improve its competitiveness" while pressing for the yuan's appreciation. "It is detrimental to the global recovery and is unfair for (the U.S.) to require other (currencies) to rise while allowing the dollar to keep slumping." Members of the G-20, the International Monetary Fund and the World Bank have called for the dollar to be replaced as the world's reserve currency. And, the United Nations has recommended a "global currency [that] would be backed by a basket of currencies of all the members." We have entered an entirely new uncertain economic era. One thing is for sure, however. You must protect yourself! We're witnessing a paradigm shift in the way the world economy operates We're witnessing a change in the way the world economy operates. We are now in a period of asset deflation and debt payback that has major implications, not only for the economy, but for financial markets in the years ahead. The tangible assets in your portfolio will be extremely important in the months and years to come. Most of my wealthiest clients are aggressively seeking unencumbered investments. Gold in its various forms is the only unencumbered, time-tested asset on the face of the earth. Numismatic quality gold coins can provide the following important aspects to your portfolio... Diversification. Investment professionals recommend ten to twenty percent of an investment portfolio be devoted to tangible assets like gold coins as a hedge against inflation and protection in times of economic upheaval Security. Gold coins possess the security and intrinsic value of bullion…and the government will never have to bail out gold. Privacy. Gold coins are a true storage of portable wealth that you can have in your own possession. Certification. Numismatic quality gold coins are certified by the Numismatic Guaranty Corporation and safeguarded in a protective holder designed exclusively by them. Liquidity. There are abundant opportunities to easily liquidate gold if the time comes. Profitability. While all other asset classes collapsed in the past years, gold continues to skyrocket, and many economic analysts are now projecting much higher prices in the very near future. Simplicity. Gold coins are essentially management-free, that does not require daily buy/sell decisions or monthly statements to decipher. Rarity and History. Gold coins are unique works of art and pieces of history providing a time tested asset class. It's time for action! The plunge in the dollar's value we've seen so far is only a drop in the proverbial bucket I'm afraid. From what we've already experienced, we're likely to see the dollar devalued and wealth diminished to an even greater extent in 2010, 2011 and beyond. Your standard of living and quality of life are being threatened. Even if the budget of the U.S. government was balanced today...generated surpluses every year from now on ... and paid down its debt at a rate of $100 million per day… it would take 3,446 years for the United States to pay what it already owes! I know it's a lot to think about! But, in this turbulent and uncertain economic environment, the need for a well diversified portfolio is increasingly obvious. I invite you to follow-up with us personally for a one-on-one portfolio review and consultation with a member of Monaco's professional investment staff. Call us right now toll-free at 1-888-900-9948 for a thorough and objective review of the hard asset part of your portfolio. If you do not yet have hard assets as a hedge against a devaluing dollar, increased risk of inflation or other unforeseen economic turmoil, then now is the time start. Our mission is to educate and assist you so you can begin or enhance the rare coin portion of your portfolio, as well as preserve and grow your capital. That's what we do for our clients every day. 2009-11-18T23:15:12+00:00 http://www.zoomcoin.com/rare-coin-news/article/2009-american-buffalo-1-oz-gold-coins-ngc-certified-early-release/ http://www.zoomcoin.com/rare-coin-news/article/2009-american-buffalo-1-oz-gold-coins-ngc-certified-early-release/#When:21:56:58Z by Adam Crum Monaco Rare Coins has just acquired a small cache of the highly anticipated “Early Release” American Buffalo 24 karat 1 ounce gold coins. Due to the extreme popularity of this coin since its release in 2006, the mint was forced to mint coins bearing the date of 2009, which was initially thought not to be a possibility. Obverse and reverse of the American Buffalo 24-kt gold bullion coin. NOTE: 2008 mintage shown, as 2009 image not available at press time. Since the first coins are not to minted and delivered until October 15th, it doesn’t take an MIT Mathematician to understand that the 2009 issue will be very limited. These beautifully-designed coins are a remake of the 20th century classic Buffalo Nickel, one of the most collected coins by date and mint-mark of all U.S. coins. It is due to this popularity, and the current gold bull market, that ensure these beautiful gold coins will not last long. Call today and secure your limited edition of this American Gold Classic! 2009-10-09T21:56:58+00:00 http://www.zoomcoin.com/rare-coin-news/article/large-sized-united-states-currency-red-alert-buy-signal/ http://www.zoomcoin.com/rare-coin-news/article/large-sized-united-states-currency-red-alert-buy-signal/#When:18:26:29Z by Adam Crum The United States Large-Sized paper currency market is heating up after a reprieve from the from the highs of April 2008. Across the board, most type notes of these important rarities have been off an average of 25%, which is incredible when considering that most markets are still off some 40% or more, and that’s with the Dow surging 40% off its lows. This is strong evidence that supports what I have known for decades, and that is, rarities are a tremendous storage of wealth. I have spent countless hours for the past year reading up on, watching inventories, sitting in auction rooms, wining and dining key players, talking with sophisticated collectors, buying and selling the high end of large-sized notes; and all of this has lead to me this conclusion: Now is the time to buy this growing and exciting market! With most notes trading off their highs, there are some tremendous bargains to be had, especially in the high-end material. These notes were rare before the financial markets collapsed, and they are rare now. Industry projections are extremely bright, as the collector base is expected to double in the next 7-10 years. The fact is this: you can't make any more of the material and the demand is growing…you know the rest. Fixed supply, growing demand…the rest is easy! While I have always loved the art and beauty of paper currency, and have from time to time indulged myself by adding notes such as early Colonial notes all the way through to uncut sheets of the recent $2 notes of today to my collection. I have never jumped into the trenches and traded with pros, like I have with coins for over twenty years. But rest assured, I have done my homework. In mid-2008, I started buying and selling within the wholesale market to test a number of factors. I wanted to learn what are the most popular, most rare and most liquid notes. All factors which can only be learned by jumping in and making a few mistakes…and yes, I made a few, but what I learned was well worth the investment. The mistakes were few, but the successes were many…and that is why I am now putting out a Red Alert to the market to buy Large-Sized United States Currency Notes. Why now? Because I have witnessed the following over the past two months: One of the largest and oldest companies in the rare coin and currency markets—who got out of currencies in late 2007—has recently jumped back into the game in a big way! The past three auctions I attended saw much higher sell rates on items offered, AND, prices have firmed with each passing sale. The most respected dealer, one who I have cultivated a great relationship with, has seen his collector/investor sales jump some 40% in the past quarter. The bottom line: the tide has turned and I expect prices to recover to early 2008 prices in the next quarter. In fact, I expect many of the most popular notes to exceed those levels. But wait…before you say, “okay, I am convinced—I want to start building a collection,” I think it is important to understand the demographics of those who are already collecting. Where is this demand coming from, and who is already at the party? The biggest reason I started down this path in the first place was because I asked the above question. And the answers I discovered after reviewing industry studies were overwhelming: There is a high cross-over from rare coin collectors to rare currency collectors. Those who do collect currencies tend to be higher income earners and are younger than the average coin collector. They have a higher level of interest in more traditional investments, like stocks and bonds, and their portfolios are larger than the average coin collector. They possess a high level of education. And, as with coins, they have a keen interest in pursuing investigations into history and the arts. The one consistent trait I have discovered in my years with high-end coin collectors, and the evidence is that high-end currency collectors too, are highly intellectual people seeking to improve their understanding of money in today’s world by collecting and understanding money of years gone by. Whether intentionally or not, the collecting of money teaches us a lot about how to preserve and earn more wealth—two things in which I have a high level of desire. These are all traits of individuals whom I believe to be the kind of people to associate. I believe it can serve to enhance our lives by collecting objects such as these beautiful rare notes…and right now, I believe this represents an excellent opportunity to acquire notes at discounted levels. If you are convinced, here is a special offer which can serve to help you discover this exciting opportunity with a very small initial investment. I have gone into the market for the past six months and acquired every 1899 $1 Silver Certificate, better known as “Black Eagle Notes,” in choice to gem uncirculated condition that I could find, and will continue to do so. These ”Black Eagle” notes are not only beautiful, they are also one of the most popular notes available, as evidenced by their #16 listing in the book, 100 Greatest American Currency Notes, by the greatest living numismatic scholar, Q. David Bowers. I think these notes are an excellent value, and most are valued at well under $1,000. But with the market expected to more than double in the next 7-10 years, they have a very bright future for price appreciation. Here is the special offer I have for you to get started: Call today and make an acquisition of one of these beautiful “Black Eagle” silver certificates and I will send you a FREE 100-year-old, uncirculated Morgan Silver Dollar. But that's not all…to help educate you on this exciting world of rare paper currency, I will also send you a FREE copy of Q. David Bowers’ beautifully illustrated book, 100 Greatest American Currency Notes. Don’t hesitate, I only have a couple a dozen of these beautiful notes and they won't last long. Call your Monaco Account Representative, or if you want to discuss a larger position, I will be happy to talk with you myself. Call us today at 1-888-900-9948. 2009-09-23T18:26:29+00:00 http://www.zoomcoin.com/rare-coin-news/article/ms65-humbert-reeded-edge-50-gold-ingot-sells-for-600000/ http://www.zoomcoin.com/rare-coin-news/article/ms65-humbert-reeded-edge-50-gold-ingot-sells-for-600000/#When:22:49:27Z One of the 100 Greatest U.S. Coins Q. David Bowers, the most prolific author in the field of numismatics, named it “the signature coin of the California Gold Rush.” It is number thirty-five in The 100 Greatest U.S. Coins and will be featured in the upcoming book by Adam Crum entitled TGold Coins and Ingots of Augustus Humbert: U.S. Assayer of San Francisco, 1849-1859. The Augustus Humbert $50 gold ingots, as they were legally termed (known today as “slugs”), are unique due to their size, octagonal shape and California Gold Rush provenance. They represent an expanding area of numismatics that remains an undervalued segment of the rare coin market. Humbert ingot a special example of territorial coinage One of the many challenges created by the fast and furious arrival of thousands of people to the California Gold Rush was insufficient coinage to conduct simple, mundane financial transactions. Weighing gold dust and nuggets was often inaccurate and coins issued by the U.S. government were utilized primarily for banking, gambling and paying customs; not ordinary business. Private minters quickly filled the void, even though they were prohibited to do so by the United States Constitution. However, people soon discovered that what these private minters had to offer was also suspect, since the value marked on one of their gold coins wasn’t necessarily a function of its gold content. Then in 1851, Congress authorized Moffat & Company, under the direction of official Assayer of the United States Augustus Humbert, to strike substantial eight-sided ingots of pure gold as legal tender. Charles C. Wright was commissioned to engrave the original dies that Humbert carried with him to California. Humbert arrived in San Francisco on January 30, 1851 and the first fifty-dollar coins of nearly 2.75 troy ounces of 887 gold were issued on February 14th. Humbert ingots continued to be struck in 1852 under the authority of both the United States Assay Office and its successor, the United States Assay Office of Gold. Variations in the ingots over that two year period are found in the edges (lettered and reeded), reverse designs and/or fineness of the gold content. Because they were technically ingots and not coins, they were not required to be of the same 90% purity as federal gold coins. Consequently, the Humbert ingots can be found in finesses of .880, .884, .887 and .900. Some varieties required as many as 14 steps to produce a single coin. Subtle details and history combine to make the Humbert coins highly desirable The Humbert coins are a unique example of territorial coinage and represent what many would consider the most fascinating period in the history of California. In addition to their place in history, the subtle details of the Humbert coins also add to their desirability. Prior to the staggering gold discoveries in California, along with the highly inflated Western economy, there hadn’t been a need for such a large gold coin. Charles Cushing Wright, probably the most skillful medal engraver of the era, artfully rendered the design of an eagle perched on a rock with a scroll in its beak, clutching a shield, a group of arrows and an olive branch. Uniqueness. A handsome engine-turned spiral decorates the reverse (with either a target in the center or the number “50”), a design that connects the coins in a very personal and unique way to Augustus Humbert, who was a watchmaker in New York City prior to his position as assayer. Rarity. The mass melting of early gold rush era coinage, a function of new U.S. government issued coins being struck at the new San Francisco Mint, contributed to making the Humbert ingots rare. According to The 100 Greatest U.S. Coins, “although thousands of United States double eagles were found in the wreckage of the steamer SS Central America, very few fifty-dollar ‘slugs’ were discovered (13), most of which were Augustus Humbert issues.” Renowned numismatist calls Humbert coin a beautiful object in and of itself Perceiving it to be an excellent value at $600,000, Mark Salzberg, one of the most sophisticated numismatists in the world, recently purchased the Augustus Humbert ingot from Monaco Rare Coins. The coin is described as: “Augustus Humbert. $50 Gold. Reeded Edge. K-5. Rarity-5. 880 THOUS. MS-65 * (NGC), boasts a combined PCGS and NGC Population (1851 $50 Reeded Edge, 880 THOUS variety only) of just 1; 0 finer.” Mr. Salzberg, who is Chairman of the Numismatic Guaranty Corporation (NGC) and Numismatic Conservation Services (NCS), stated that “This was the most memorable coin I have graded all year, a true pleasure to see such an original coin with original luster. ” Salzberg was named American Numismatist Association’s 2006 Numismatist of the Year in recognition of his overall devotion and dedication to the American Numismatics Association and numismatics. The rarity, quality and historical significance of the Humbert coin purchased by Mr. Salzberg make it a coin or ingot that even the most experienced numismatists may only be privileged to see a few times in their lives. For more information about these exciting and undervalued rarities, please contact Monaco Rare Coins at 1-888-900-9948. Gold Coins make more sense than ever Gary Dugan, chief investment officer for Merrill Lynch Global Wealth Management, commented in London’s Daily Telegraph that: “It is amazing how many clients want physical gold. They are so worried; they want a portable asset in their house. The metal should do well whatever happens. If deflation sets in…it will serve as a safe-haven, but if massive monetary stimulus gains traction and sets off inflation once again it will also come into its own as a store of value. It’s win-win either way.” Precious metals and commodities specialist Jim Sinclair says that as the dollar falls, gold will be “going to the moon.” With more and more investors seeking unencumbered investments, gold, more particularly rare gold, looks more desirable than ever. Gold is the only unencumbered, time-tested asset on the face of the earth. It provides overall portfolio protection because of… Diversification. Gold can reduce overall risk and creates the ultimate hedge against inflation. Security. Gold coins possess the security and intrinsic value of bullion…and the government will never have to bail out gold. Privacy. Gold is a portable storage of wealth that can be kept secure in a private vault. Certification. Quality rare gold coins are certified by the Numismatic Guaranty Corporation. Liquidity. There are many ways to easily liquidate gold. Profitability. Many economic analysts are predicting higher prices for gold, and rare highly collectible gold coins, similar to works of art, are in a class by themselves. Simplicity. Gold does not require daily buy/sell decisions or monthly statements to decipher. Rarity and History. Numismatic quality rare gold coins are unique and a very tangible representation of our historical heritage. 2009-09-16T22:49:27+00:00 http://www.zoomcoin.com/rare-coin-news/article/a-western-assayer-of-the-mark-twain-period/ http://www.zoomcoin.com/rare-coin-news/article/a-western-assayer-of-the-mark-twain-period/#When:22:28:28Z by Fred N. Holabird Introduction Conrad Wiegand was a boisterous man who was born in Philadelphia, worked for the US Mint, and came to the California Gold Rush in the early 1850’s. He went to work for the US Branch Mint in San Francisco at or near its inception in 1854. Wiegand was small in stature, but big in ideas, and even stronger still in his opinions. He was a devoutly religious person who saw such injustice in the world that he undertook the publishing of his own newspaper—two of them, in fact. His other passion was the metals question, particularly his political stance generally held by most miners that money should be in the form of circulating hard specie—gold and silver coinage and ingots. Wiegand’s outspoken nature repeatedly got him into trouble, especially during his life on the Comstock. He was severely physically assaulted and beaten twice, which endeared him to the likes of Sam Clemens. As he advanced in age, his mental troubles worsened. Ultimately, his life ended in a hangman’s noose at the age of fifty in Virginia City. A number of his precious metal ingots exist today as testimony of his work as a mainstream western assayer. These include nearly every phase of gold, silver and copper bullion in which Wiegand worked, as well as examples of items used to promote monetary specie. Background Conrad Wiegand shared with friends in Virginia City that he was born in Philadelphia in March, 1830. His father was John Wiegand, a one-time banker and later surgical instrument manufacturer. His brothers included a pharmacist (Thomas) and an inventor (George). The family lived in Philadelphia. Conrad, however, soon disappeared from the written historical record of Philadelphia and all American census data. In an interview later in life, Wiegand said that he “entered the assay department of the Philadelphia Mint on $1 a day for wages.” Wiegand apparently trained for several years at the Philadelphia Mint, and mention was made that he worked in New York as well, probably for a private assaying firm. Wiegand Appointed Assayer, Branch Mint, San Francisco, 1854 In 1854 he was appointed by President Pierce to the Branch Mint at San Francisco as Assayer. By his own admission, he returned to the east coast shortly after to run the New York New Boys Club, then left that job to study for the ministry. Unsuccessful with the Boys Club, he worked for a stint at the Brooklyn Naval Yard. President Abraham Lincoln subsequently appointed him as assayer to the Branch Mint in San Francisco once again. Working again in San Francisco, he soon published an opinionated pamphlet promoting the use of gold and silver as circulating specie. As one of the original presidential appointees of President Pierce for the US Branch Mint at San Francisco when it opened in 1854, Wiegand held special status. Information on this early period is scant. By 1855 he held the position with the Branch Mint as Assayer, though this may be near the time that he returned to New York for a short while. While working there, his naturally boisterous and vociferous nature came to the forefront almost immediately, particularly when the Vigilance Committee was formed and action later taken. Wiegand gave a public speech, reported October 12, 1856 on the moral aspects of the Casey matter. He also published at least one article under the pseudonym William Carroll. Wiegand was right in the middle of the 1856 Vigilance Committee fracas after James King of William was assassinated by James Casey. These events shaped his life forever, and more importantly, probably helped save his own life a decade later when a possible assassination attempt was made on his own life by John B. Winters. Perhaps the main way in which the James King of William Vigilance problem affected Wiegand was the power of and the use of a free press. In the same manner as James King of William assailed corruption, fraud among politicians and businessmen in San Francisco, Wiegand did the same later in Gold Hill against the powerful Bank of California. Indeed, in a strong paper published after the death of James King of William, it was noted that “he has died a martyr to Freedom of Speech.” This period of Wiegand’s life set the stage for his future work: as an assayer and as a humanitarian speaker and religious leader, probably stemming from his upbringing and family’s roots in Germany. Wiegand traded jobs within the Mint system several times, perhaps typical of many jobs today, where one changes positions within a specific company for the express purpose of learning all aspects of the business. In this regard, when Wiegand became Coiner in about 1860, he was given the opportunity to learn even more about the assay, gold and coining business. Wiegand was present for the troubles at the San Francisco Branch Mint in 1856 when charges were brought against A. Haraszthy for embezzlement. However, once it was learned that the Mint had been under tremendous pressure to process gold shipments at record rates of production never before seen in America, Haraszthy was exonerated. The losses were simply a result of fast and furious throughput in the Mint, and the dust exhumed from the Mint’s chimneys found on neighboring rooftops carried much of the missing gold. Under these extreme circumstances, Wiegand would have learned how to handle the toughest jobs under pressure. It may also have been the first event in his life that placed tremendous stress and burdens upon his mind that may have later led to his undoing. Wiegand Starts Politicking President Lincoln, 1861-2 In February, 1862, Wiegand wrote to President Lincoln in Washington. He had tried unsuccessfully to use an end-around method to take charge of certain affairs in the Assay department at the San Francisco Mint by trying to gain authority from Lincoln to hire and fire staff in the assay department whom he did not approve of. Wiegand tried to fire Jackson Snyder, but Branch Mint Superintendent Stevens instead terminated James Mars, who was Wiegand’s apparent right hand man in the Assay department. The letter shows a clear serious disagreement between Branch Mint Superintendent Stevens and Wiegand, but Wiegand felt the matter of such importance and “to the integrity of our National Coinage” that he wrote Lincoln, bypassing the established chain of command. President Lincoln must have taken heed, because Superintendent Stevens was subsequently compelled to write a lengthy letter to Lincoln days later justifying his actions and further stating that Wiegand’s letter was part of a “persistent system of attack which this singular person has kept up against me for months.” Stevens noted that Wiegand was “removed at the close of 1857 for extraordinary and unofficerlike conduct—indeed it was the common report at the time that he was insane.” Indeed, in Haraszthy’s defense of the embezzlement charges, “the counsel for the defense strenuously urged the unfitness of Wiegand for the position from (claiming) unsoundness of the mind, and the consequent unreliability of the assays by which the bullion was charged to the Melter and Refiner.” Wiegand was reinstated in June, 1858. Stevens wrote Lincoln that Wiegand’s behavior was so bad, and his “insidious inciting” of other officers of the Mint against him, that he asked Secretary of the Treasury Salmon P. Chase to prefer charges and remove him. Stevens was subsequently given authorization to remove him. Stevens wrote in a post script in April that Wiegand was minding his own business and doing his job satisfactorily. Wiegand agreed to obey orders, but was removed in October, 1861. Stevens went on to write that Mars was removed because he was “one who thinks the South should be left alone.”… “Mr. Snyder is a northern man.” Wiegand was later reinstated, perhaps because the Mint could not find a suitable replacement. Wiegand continued to correspond with Lincoln, in both writing letters of recommendation for various people, and in a request for a personal audience. Ultimately, Wiegand resigned his position at the San Francisco Branch Mint in December, and Lincoln was notified December 14, 1863. Wiegand Starts New Era in Nevada, 1863-1864 Conrad Wiegand immediately went to work at the newly constructed huge mill of the Gould & Curry Gold & Silver Mining Company located at the intersection of Six and Seven Mile canyons about a mile below Virginia City. The Gould & Curry had struck a bonanza ore deposit in 1862-3 which vaulted the Company into becoming the leading producer of gold and silver in America. A new mill was built to handle the ore, and the Company was so big at the time that it employed about a third of the local work force. Louis Janin, the mine and mill superintendent, must have been happy to have one of the key assayers from the Branch Mint helping manage the company’s operations. Wiegand had been recommended by Thomas Starr King of San Francisco, the brother of James King, of William, assassinated in 1856. But Janin, a well trained mining engineer of the Freiberg School of Mines, was a tough taskmaster, and probably did not tolerate Wiegand’s antics. Regardless of Wiegand’s behavior, there was a problem at the mill in late 1865, and Wiegand may have been subject to layoff. This is perhaps best evidenced by a letter Janin wrote to Gould & Curry President Alpheus Bull that there was a “bullion shortage at the mill… due to the long stoppage at the mill…I have been unwilling to engage outside mills.” This would have precipitated a major employee layoff as a cost-saving measure, even if temporary. Wiegand’s job with the Gould & Curry lasted only a few months. With business booming on the Comstock, Wiegand went into business for himself. At that time he must have decided to open his own assay office on the Comstock, and began preparations to relocate to Gold Hill, Nevada, just south of Virginia City. The Gold Hill Assay Office, 1865 Wiegand opened the Gold Hill Assay Office on May 14, 1865. He scheduled the official opening for June 1, but the Virginia Daily Union reported the earlier opening. Wiegand was financed by the Bank of California through his friend William Chapman Ralston, whom he had befriended in San Francisco. Ralston’s agent on the Comstock was William Sharon, who had full charge of all the affairs of the Bank in the Virginia City region. Sharon had tight control over Comstock mines and businesses. This control, and conflicts created by competing business interests, would soon work against Wiegand. Wiegand took on a partner a few months after he opened the Gold Hill Assay Office, W. T. Rickard. Apparently Rickard also may not have been able to tolerate Wiegand’s antics, and left for the employ of Van Wyck & Co., assayer competitors who held the Savage Mine contract. Coincidentally, Wiegand’s business failed. The insolvency affected Wiegand, and he swore that he would never again go through such humiliation. The insolvency was not due to normal debt. William Sharon showed up at Wiegand’s Assay Office one day without notice with a Sheriff in tow, and demanded immediate repayment of the loan which was about $19,000. Wiegand was unable to comply, especially on no notice. Sharon had the Sheriff seize most or all of Wiegand’s assay equipment. Within a couple of weeks, Wiegand was able to secure private financing, but suffered from financial harm while closed. The reason behind the seizure may have been competition with some of Sharon’s friends, not atypical of Sharon’s behavior as Bank manager. Regardless, the episode shaped Wiegand’s future business affairs and steered him toward helping the plight of small miners and businessmen. It was the foundation and the inspiration behind the People’s Tribune, which he published a few years later. By the beginning of 1866, the Gold Hill Assay Office was once again in operation, and Wiegand had brought in A. S. Edwards as a partner. When Wiegand opened the Gold Hill Assay Office, his competitor was Harvey Harris, who may have had more work than he could handle. Harris was a successful well-known western assayer who got his start in the California gold rush with Kellogg & Co. and the US Assay Office, and later for the assay firm of Justh & Hunter. He had come from the New Orleans Branch Mint, and after the Branch Mint at San Francisco opened in 1854, he moved into the Melting & Refining Department. In late 1855 Harris and Desiree Marchand opened assay offices in Sacramento, San Francisco and Marysville. The firm is perhaps best known today for their beautiful gold ingots recovered from the wreck of the SS Central America which sank in 1857. Harris, in tune with the latest gold and silver rushes, opened offices in Carson City and Aurora in 1861, some of the earliest assay offices in the Territory, if not the first. The Comstock so enthralled Harris, that in 1863 he sold his interest in his firm of Harris & Marchand to his partner and moved to Gold Hill. The Circulating Specie Push During the early phases of his western career as assayer, Wiegand began a long period of openly politicking for specie payments. The Federal Government was making a strong move to sell the American People on the use of greenbacks, and the possibility arose that the Fed might demonetize silver and perhaps gold, which set the western miners and businessmen on their heels. Paper currency, known as “greenbacks” because of their colorful green backsides, were so despised in the West that newspapers regularly published advertisements by merchants offering to buy them at discounts up to fifty percent. The feeling among the Western miners and merchants was that miners produced all this new money, and they wanted to be paid in it, not some paper replacement. In their minds, the paper currency was worthless, as proven by the many broken and failed banks in the East during the three decades preceding the establishment of the San Francisco Branch Mint which left depositors with piles and wallets full of worthless paper that had never been backed by gold or silver. Paper currency issued and distributed by San Francisco banks during the gold rush also proved to be worthless. This experience drove home the uselessness of paper currency to western miners, and they wanted nothing to do with it whatsoever. Wiegand was a continuous pusher of precious metals as a medium of exchange. He gave many speeches, first in San Francisco while under the employ of the US Branch Mint, then in Gold Hill and Virginia City where he operated his own assay offices. He used the power of free speech and freedom of the press to further his agenda of specie circulation. These speeches set the stage for the issuance of a number of gold ingots which he used as money in late 1865 and early 1866. In 1866, he made at least one pure monetary gold ingot - a gold ingot with a face value of $20.00. As circulating specie, this ingot exactly fit the needs of the daily businessmen with whom he was acquainted, including William Ralston, a friend, and president of the Bank of California. With a serious shortage of circulating specie, Wiegand proposed more metals be circulated in the public sector. If the Federal Government couldn’t do the job, private industry could. His personal slants on religion also came back into the limelight, and he became a Rector for the Humanitarian Christian Society in January 1868, though he resigned two months later. His main concern was for the plight of the small miner and businessman, many of whom were overrun by big business interests. The press, controlled in large part by the Bank of California, suggested Wiegand was crazy and some of the public bought into the idea, though those that knew him said otherwise. Wiegand continued to make small ingots for presentation, prizes, and so forth. Indeed, he may have been the most prolific of the Comstock assayers to do so since there are nearly twenty known specimens remaining of which there is direct knowledge. One of these ingots, which is well documented but has not been located, was given by Wiegand to Sam Clemens (Mark Twain) in 1868 on the occasion of Clemens’ second lecture in Virginia City. Clemens “was yesterday made the recipient at the hands of Conrad Wiegand, the well known assayer, of a very beautiful and highly polished silver brick, worth some $40. The Brick bears the following inscription: “‘Mark Twain….’” About ten other ingots, both gold and silver, were contained in the famous John J. Ford Collection. Wiegand Becomes Publisher and Assayer, 1870 In early 1870, Wiegand began publication of the Peoples Tribune, a newspaper he started to further moral issues with the public, including the exposure of fraud and scandalous activity on the Comstock. Its technical title, People’s Tribune; Devoted to the Betterment of All Things to the Defense of Right and to the People paralleled the efforts of the Germans in 1848 and later James King, of William’s San Francisco Bulletin. Here, Wiegand used his power of free speech and freedom of the press in exactly the same manner as James King of William with very nearly the same result. Bank of California interests told the people through their voice in the newspapers that he was using the Tribune as a “religious forum,” but he was clearly using it for his political forum for his views of maintaining specie payments and the standardization of gold and silver in the US monetary system. Rich Lingenfelter and Karen Gash summarized the effort: “To Wiegand, the Tribune was a moral mission. It was a crusading magazine, which endeavored to become the conscience of Washoe.” Only six issues were printed because of the trouble it caused. A month later, he tried to start another paper “The People’s Paper”, but its level of success is unknown as no copies survive. Just after the People’s paper began publication, Wiegand was seriously physically attacked by Griff Williams as reported in the Territorial Enterprise January 14, 1870. Williams coldcocked Wiegand, who was preoccupied, carrying an armload of papers and headed for his Gold Hill office. Williams repeatedly struck Wiegand with his fist from behind and violently kicked his head with his boots without provocation. Wiegand at first had no idea who hit him. Witnesses came to his aid and Williams was later arrested, fined $7.50 and told the judge “that he had been talking about him, and he could not stand it any longer.” Clemens later claimed any talk of Williams by Wiegand was imaginary. “Mr. Wiegand is a weak man, and notoriously non-combative” wrote the editor of the Territorial Enterprise Joseph Goodman. Then, a few days later, Wiegand was physically assaulted again in what was probably an assassination attempt, this time by John B. Winters, the superintendent of the Yellow Jacket Mining Company. Winters had asked (Wiegand later stated that Winters demanded and ordered his appearance) for a meeting with Wiegand after somewhat insulting charges and insinuations were made in the Peoples Tribune. Wiegand refused, so Winters went to Wiegand’s office and waited out of sight in the dark and sent Gold Hill News editor Phillip Lynch to find Wiegand. Wiegand, soon encountered Winters, thinking Lynch was an impartial witness. Winters denied what he claimed were the charges in the Tribune and demanded a retraction. Wiegand refused, and Winters struck him with a “cowhide” several times, apparently knocking him silly. The Territorial Enterprise interviewed Lynch, who thought the action of Winters was disgusting. Ultimately it may have cost Winters his job, as William Sharon, a Board member of the Company, and financier through the Bank of California, may have decided the behavior was unacceptable, though some have suggested Sharon was behind the attack. In July, Wiegand experienced another setback when his assay office burned in a terrible fire that destroyed most of the local Gold Hill business district. It caused Wiegand to temporarily open an office in the Morrill building in Virginia City, which subsequently remained open for a number of years. Enter Sam Clemens (Mark Twain) Sam Clemens was a friend of Territorial Enterprise editor Joe Goodman’s, as well as most of the Comstock editors. At the time of the attacks, he was deep in the throws of writing “Roughing It,” later published in 1872, a wondrously humorous autobiographical work of Clemens’ mining sojourns and editorial whimsies and mishaps. Clemens heard of the affairs, and was so incensed at their nature, that he published the whole mess in the back of the first edition of “Roughing It.” A short recitation of a few of Clemens’ comments on Wiegand well illustrate his sentiments: Concerning a Frightful Assassination That Was Never Consummated If ever there was a harmless man, it is Conrad Wiegand of Gold Hill, Nevada. If ever there was a gentle spirit that thought itself unfired gunpowder and latent ruin, it is Conrad Wiegand… When I met Conrad Wiegand he was superintendent of the Gold Hill Assay Office—and he was not only its superintendent, but its entire force. And he was a street preacher too, with a mongrel religion of his own invention, whereby he expected to regenerate the universe. Something less than two years ago, Conrad assailed several people mercilessly in his little People’s Tribune and got himself into trouble. Straightaway he airs the affair in the Territorial Enterprise in a communication over his own signature, and I propose to reproduce it here, in all its native simplicity and more than human candor. Long as it is, it is the richest specimen of journalistic literature the history of America can furnish, perhaps. Wiegand in the Territorial Enterprise article noted how John Winters’ threats were carried out. His assay business suffered severely, as other mining companies took their business elsewhere, again implicating coercion by Sharon and the Bank of California. He described Winters’ direct conversation to him about how they were going to kill him, and indeed, he was told he would have been killed (“not permitted to reach home alive”) then and there if he were not quite full in the head. Wiegand insisted that Winters was assisted by Gold Hill News Editor Lynch, who was in on the scheme from the start. Lynch later admitted he was involved, though denied any knowledge of an assassination attempt. Wiegand Finds Ways to Reestablish His Assay Business After the Winters attack, Wiegand lost a lot of business. But after the Territorial Enterprise article, business slowly dribbled back in. Public sentiment eventually went against Winters, but Wiegand had to find new ways to gain business. He held lectures, taught classes and did most anything in the limelight to draw attention to his business. In 1873, Wiegand published papers on the refining of copper-based precious metals bullion, and it is most likely during this period that he produced the few copper-based precious metals ingots that survive today. During the course of his career, he authored at least one book on assaying, and several pamphlets on the specie issues, as well as many public lectures on specie and religion, morality, etc. He wrote and published a pamphlet for the Money Commission in 1876, and was said to have greatly assisted Nevada senator John P. Jones in his specie arguments on Capitol Hill. Always the inventor, as were other members of his family, Wiegand patented a new process for slimes and tailings reduction machinery in 1874. A few years later he was involved in a new mercury and silver separation process. In the mid to late 1870’s Wiegand taught assaying classes in Virginia City that included blowpipe analyses and mineralogy. But the next few years were devoted to his work and the “Silver Question.” Feds had proposed to eliminate silver from the money issues, and Nevada lobbied and protested vehemently, through their newspapers, Congressmen, Senators and business interests. Somehow the Centennial year prompted the most action from Wiegand, and the local papers were full of his commentaries. Tragedy struck Wiegand many times. His daughter died, and her husband, an assayer in Eureka Nevada, also died a premature death. An Assayer Dies in the Hangman’s Noose Wiegand hastened his meeting with his maker on May 31, 1880 by questionably committing suicide in his office by way of hanging. Though there were injuries to the body and blood was found in unusual places in his office, his death was ruled a suicide by the Storey County Coroner. He was suffering serious debt, though his wife felt it was under control. He also suffered fits of what he himself considered insanity, and he feared that mental condition as an ultimate fate at old age. Sam Dowling, who had been working for Wiegand for a number of years, took over the business, which retained the name for several years. W. S. James later bought the business. Many people thought Wiegand was murdered, and the usual suspect was believed to be John Winters. Even Territorial Enterprise Editor Goodman thought there was a bit of possible tom-foolery in the death. Later journalists, such as Sam Davis of the Carson Appeal commented: “No review of early journalism in Nevada would be complete without mention of Conrad Wiegand, the most peculiar man who ever tramped the trails through the sagebrush. As assayer by profession, he was a deep student of the question of metals as a medium of exchange and wrote voluminously on the subject.” Davis noted that he was beaten by opponents, while “most any other editor would have had recourse to a six shooter.” The Wiegand Ingots A number of precious metal ingots remain today as a testament to this troubled, yet apparently brilliant man. Perhaps ten different silver ingots exist, mostly from the Gold Hill Assay Office. A few may have originated from the short-lived Virginia City office. At least five gold ingots exist from Wiegand’s Gold Hill Assay Office, all dated 1865 or 1866, which was during the initial period of his Comstock assay business, and during which time Wiegand pushed the specie in payment issue in preference over greenbacks. Much has been written of late on Wiegand, but little of it coming from detailed research. Wiegand’s historical record clearly demonstrates that he made many presentation ingots including one to Sam Clemens. More importantly, he was an outspoken proponent of specie as money. He constantly pushed the “specie as money” concept in the press, in public speeches, in printed pamphlets, and in his own newspaper. From his early days working for the Branch Mint at San Francisco to his last days on the Comstock, Wiegand promoted the use of gold and silver. The $20 gold ingot from Gold Hill is a lasting artifact and testament to Wiegand’s life. 2009-09-08T22:28:28+00:00 http://www.zoomcoin.com/rare-coin-news/article/night-at-the-museum-the-new-smithsonian-stories-on-money-exhibit/ http://www.zoomcoin.com/rare-coin-news/article/night-at-the-museum-the-new-smithsonian-stories-on-money-exhibit/#When:21:04:37Z by Adam Crum Several years in the making, the new exhibition of U.S. coins and currency titled, “Stories on Money”, was unveiled June 10, 2009 at the recently renovated Smithsonian National Museum of American History. Located on the first floor of the museum, the exhibition has a fresh new look dedicated fully to numismatics in American history. “Stories on Money” displays a vast array of items from the National Numismatic Collection and walks you through time, from Colonial Americana…the California Gold Rush…the Great Depression…and finally, to modern America – all pivotal events in American numismatics. As I toured the exhibit on the day before its grand opening, my thoughts quickly began to compare the changes in coin designs over time, and I couldn't help but recognize the visible changes in attitudes and philosophy of the American people and the government in charge of making these changes. Mark Salzberg of NGC and Adam Crum of Monaco Rare Coins cut a red ribbon to officially open “Stories on Money.” From left to right: Brent Glass, Adam Crum, Richard Kurin, Mark Salzberg, Edmund Moy, Jeff Garrett, and Elizabeth Little. It's interesting to think about the time when George Washington was shown a proposed pattern of early coinage depicting himself on the obverse, similar to the coinage of England portraying the King, and he ordered it destroyed. Washington instead preferred and advocated symbols of liberty and other important ideals supporting those of the peoples wishes and dreams. Those ideals are depicted on these early coins now displayed at the Smithsonian for all to enjoy. Rightly or wrongly, the designs of coins of the mid- to late-20th century changed dramatically from our founding fathers' wishes and began to immortalize individuals rather than the ideals of a nation. These changes in American currency are a reflection and a record of our history. “This display illuminates history in fresh and unexpected ways and will allow visitors to think of how money tells stories about different historical periods,” said Brent D. Glass, director of the museum. Adam Crum addresses the attendees at the grand opening event of the “Stories on Money.” Although each individual who visits the exhibit will be touched in their own way, I have my own personal favorites. For me the love of coins extends from my interest in financial history. I look at coins and think about the times in which they were made and imagine the hopes and dreams of those living at the time. I believe it is important to understand our nation's financial history to fully appreciate our current state of economic affairs and effectively predict the future. Entering the exhibit, it excites me to look at the early colonial coins and paper currency and ponder the hardships of those living in this exciting, but difficult era, and it is amazing to think that these objects symbolize the birth of a sovereign nation soon to be known as “America.” Just two steps over, I can then see a case full of classics from the California Gold Rush era and am fascinated by the unique coin designs such as the Baldwin $10 Horseman. Examining the beauty of the objects, I find my mind drifting to the incredible hardship yet extremely exciting times that the California gold rush thrust onto the hopes and dreams of the entire world. Michael Carabini, Jim Hughes and Adam Crum get a close up look at box of the legendary $20 gold coins minted in America. These legends will be on display at the ANA in August. The 1849 will be among them. Continuing through the exhibit I come to the case sure to garner the most attention: the display housing “America's Legendary Coins.” Included among these legendary rarities are all three types of the 1804 silver dollar…both extant gold 1877 $50 Half Unions…two versions of the 1907 Ultra High Relief $20 Saint-Gaudens…a 1933 $20 Saint-Gaudens…and finally, the hero of the entire collection, the unique 1849 Proof $20 gold Type I Double Eagle, described in the exhibit simply as follows: “Many consider this the most historically significant U.S. coin because it is the very first twenty-dollar gold coin…ever made.” To be sure, the 1849 $20 gold Double Eagle is widely considered to be the single most valuable coin in existence. Lastly, I see the exhibit case which portrays the many images of “Lady Liberty,” from the early coins of the Roman Empire, all the way through to the coins of today, dramatically showing how early coinage continues to play a key role in thoughts and designs of coins and currency, even in modern times. At the end of the night I sat and thought about my day (and night) at the museum. From our private tour of the back room vault, home to 1.6 million numismatic related items, to the grand opening event that evening, I found myself a little overwhelmed by the whole experience. Adam Crum gives a thumbs up for the new “Stories on Money” exhibit. The exhibit was made possible by the financial donations of NGC, NCS and Monaco Rare Coins. I cannot begin to express what an honor it has been to have had the privilege of being involved in the efforts to get this historical and wonderful collection back on display for the public to enjoy. The Smithsonian's “Stories on Money” exhibition explores the importance of our country's sovereignty, heritage and financial independence. The beauty of the coins is obvious, but the history witnessed by these little objects is what excites me the most. I want thank Mark Salzberg, President of NGC, for sharing in Monaco's vision and joining our efforts in supporting the collection and bringing this new Smithsonian exhibit to life. But keeping this exhibit in public view is a responsibility which falls on all numismatists. In these very difficult financial times, it will take sincere efforts from all of us to see that these wonderful items are never locked away in some vault somewhere. I hope this important event challenges industry leaders to continue our educational efforts to share the real value of collecting coins, not just as an asset, but also to see the value in educating people on the “history of money” and its important role in a developed society. For more information on the Smithsonian's “Stories on Money” exhibit and to view many of the coins of the National Numismatic Collection on-line, log on to: http://www.americanhistory.si.edu 2009-06-23T21:04:37+00:00 http://www.zoomcoin.com/rare-coin-news/article/1856-o-type-i-double-eagle-branch-mint-proof-sells-for-more-than-14-million/ http://www.zoomcoin.com/rare-coin-news/article/1856-o-type-i-double-eagle-branch-mint-proof-sells-for-more-than-14-million/#When:23:14:00Z Monaco Rare Coins is excited to announce its most recent acquisition… What is considered to be the greatest New Orleans minted coin in existence set a record on May 29th for the highest price ever realized for a proof Double Eagle. The 1856-O Type I $20 gold piece—certified Specimen-63 by PCGS—is the rarest New Orleans-minted Double Eagle‚ and is by far the finest known example of this famous American coin. Entering the auction as the featured specimen of the sale‚ it did not disappoint the crowd and certainly lived up to its billing. At more than $1.4 million‚ it is the most ever paid at auction for a New Orleans Double Eagle‚ eclipsing the 1854-O Type I Double Eagle which sold in November 2008 for just over $600‚000. This new record for a New Orleans-minted coin will no doubt continue to stir the imagination and drive interest from both collectors and investors for these highly-desired branch mint coins. Many specialists believe that this is the single most important New Orleans Double Eagle in existence‚ and the most important O-mint coin of any denomination. The seven-figure price is even more impressive when you consider the price journey this particular coin has taken just over the past decade alone‚ where it sold twice before‚ bringing $310‚500 in 2002‚ just months after the tragedy of September 11th‚ and then again for $542‚800 in 2004. Only 19 coins (of any type) have ever sold at auction for more than this one‚ and none of those were struck in New Orleans. Monaco Rare Coins is honored to have purchased the first million-dollar piece of Southern branch mint gold. While the value of this coin is important‚ the sheer beauty of the piece cannot be overlooked. It exhibits deeply mirrored fields and sharply-struck devices which jump off the surface of the coin. By any standard it's a work of art and is arguably more important‚ and certainly more impressive‚ than coins like the 1894-S Barber dimes‚ two of which have sold over the past two years for more than $1.5 million‚ with the most recent selling for a record $1.9 million. I used the sale of the 1894-S dime at $1.9 million and the 1861 “Paquet” Reverse Type I Double Eagle‚ which sold in January 2008 for $2.5 million‚ to help determine the price to bid for the 1856-O. After careful market analysis and much discussion with my staff‚ I determined that anything under $2 million would be a good value. We are so excited to have acquired this important rarity for only $1‚437‚500 and believe it to be one of the best values in numismatics today. Whomever we place this coin with will have the honor of being the custodian of not only a great portfolio cornerstone coin‚ but will also be acquiring an asset of outstanding value and time-tested appeal of an important part of American history. 2009-06-17T23:14:00+00:00 http://www.zoomcoin.com/rare-coin-news/article/what-would-happen-if-the-united-states-lost-its-aaa-credit-rating/ http://www.zoomcoin.com/rare-coin-news/article/what-would-happen-if-the-united-states-lost-its-aaa-credit-rating/#When:03:01:07Z by Adam Crum Two years ago‚ a company that performs financial research and analysis on commercial and government entities and has a 40% share in the world credit rating market warned the United States government that it risked losing its triple A rating if it didn’t get its finances under control. That company was Moody’s and the warning was motivated by the future of healthcare and Social Security costs and long before the present financial upheaval. Does our government deserve a triple A credit rating? While the U.S. government has had a triple A credit rating since 1917‚ there are those who feel that if the United States were any other country‚ its coveted top-tier credit rating might have been stripped away by now. “For too long‚ the U.S. has delayed making the tough but necessary choices needed to reverse its deteriorating financial condition‚” David Walker‚ chief executive of the Peter G. Peterson Foundation and a former comptroller general of the United States‚ recently wrote in the Financial Times. “One could even argue that our government does not deserve a AAA credit rating based on our current financial condition‚ structural fiscal imbalances and political stalemate.” “The triple-A rating is undeserved‚” suggests Peter Morici‚ a professor of international business at the University of Maryland. “If Washington were a state capitol‚ we would have lost the AAA with the current budget.” Here are just some of the reasons Mr. Walker and Professor Morici would make such statements: Equal to about 80 percent of total output of the United States‚ the Treasury Department recently reported that the total U.S. government debt is $11‚270‚547‚397‚564.64. With the U.S. relying on foreign buyers to keep its borrowing costs low‚ China and Japan alone hold more than $1.4 trillion of U.S. Treasury bonds as of March‚ according to U.S. Treasury data. A sovereign downgrade would certainly alarm at least some of those buyers. The Fed is now burdened by the same kind of toxic paper that has been plaguing private U.S. banks for several quarters. Leveraging its capital 48-to-1‚ Fed banks are holding total capital of just $45.7 billion against the sum total of $2.19 trillion in assets. Two years ago the ratio was only 27-to-1. The government's $787 billion economic stimulus package and $700 billion bank bailout fund have strained the country's resources and the jury is still out as to whether any of this will actually make a difference. The International Monetary Fund expects the debt-to-GDP ratio to hit 97.5 percent next year. Standard & Poor reaffirmed its AAA sovereign rating for the United States in January; however‚ the ratings agency also cautioned that the hundreds of billions of dollars committed to bailing out the banking sector would lead to a “noticeable deterioration in the U.S. fiscal profile.” The Chinese premier and the head of the People's Bank of China have expressed concern over America's long-term credit worthiness and the value of the dollar. China has also called for the creation of a new international reserve currency to replace the U.S. dollar. With a loss of 5.7 million jobs since December 2007‚ the number of workers collecting unemployment checks increased to a record of more than 6.6 million in the week ending May 9‚ the highest level of unemployment since 1983. The present economic situation in the U.S. is taking a huge chunk out of tax income‚ reported to be down 34%. Manufacturing in the U.S. Mid-Atlantic area shrank in May for the eighth straight month. States like California have been hit hard by the credit crunch and are struggling to arrange backing for municipal bonds and short-term debt. Then there is still that two year old warning of Moody’s. The significance of that warning appears to be even greater now. A government report released on May 12 found that the Social Security trust fund would be exhausted by 2037‚ four years earlier than previously estimated‚ and the Medicare hospital trust fund would become insolvent by 2017‚ two years earlier than estimated. All of that in light of the fact that the first big wave of the 72 million strong Baby Boomers (folks born from 1946 to 1964) will soon become eligible to start collecting retirement benefits. Is losing a triple A rating that big of a deal? The answer to whether it’s a big deal or not for the United States to lose its triple A rating would be a resounding “Yes‚ it is a big deal!” A credit rating reflects the risk of default. A downgrade will raise the cost of borrowing for the United States government‚ could have a spillover effect on corporate debt and investors will buy fewer U.S. Treasuries. There could be a massive outflow of foreign investment. Some global funds are mandated to invest only in AAA debt and if the U.S. loses its AAA rating‚ it loses those investors. A credit rating downgrade provides a perfect excuse for an alternative reserve currency to replace the dollar. China‚ Russia and other countries are already suggesting creating a “basket of currencies” that would replace the U.S. dollar. Interest rates will increase. Should the United States lose its AAA credit rating‚ it will trigger rising interest rates in an already unfrozen credit market. The risk of inflation increases. Philadelphia Federal Reserve President Charles Plosser has warned that the U.S. government’s emergency programs for the economy undermined central bank independence and raised the risk of inflation. “When a nation’s treasury or finance ministry and its central bank work too closely together‚ there is a clear risk that the government’s spending will end up being financed by the central bank’s power to create money‚” Plosser cautions. “History shows us that you can get very bad economic outcomes with rapidly rising inflation.” The ultimate outcome depends upon the reaction of the capital markets and the actions of the Federal government. Will investors continue to aggressively bid on U.S. Treasuries at auction? Will foreign creditors start balking at supporting the country's irresponsibility? Will the AAA credit rating of the United States come under even greater scrutiny? Will the dollar start to reflect the fact that the Fed is throwing money around like never before—and taking on any and all kinds of bad assets? Will the federal government enact tough spending‚ tax and budget control measures after we turn the corner on this shaky economy or will we discover that the government and our political system is not up to the task of addressing the economic imbalances that confront us? Don’t look for answers to these questions anytime soon. But that doesn’t mean we shouldn’t discuss the risks now. The reality is that you must start taking protective steps immediately if you haven’t already. I recommend you consider buying gold. Are you hedged against this very real possibility? In the 19th century‚ the gold standard was the monetary system that dominated the developed world. Then with the final breakdown of the Bretton Woods system in 1971 and exchange rates “floating‚” investors searched for investments that provided a “safe haven.” It is ironic and not surprising that among the ways investors found security was by returning to gold in its many forms‚ such as rare gold coins. Rare coins have always provided an ideal hedge against inflation‚ thrived in times of insecurity and rising interest rates and provided a long-term storage of wealth that has consistently outperformed other assets in times of turmoil against the dollar. Numismatic quality rare gold coins have proven time and time again to be an excellent hedge because they have become a standardized asset easily traded in a market that is always open. Rare gold coins have become a solid asset because governmental authorities cannot produce and thus debase them. Because of this characteristic they have acquired long-term wealth preserving properties over the centuries. Gold coins have intrinsic‚ aesthetic and historic value as well. They are‚ quite honestly‚ works of art and pieces of history‚ making them highly collectible and desirable. I encourage you to call one of Monaco Rare Coin’s account executives toll-free today at 1-888-900-9948 to initiate or enhance the rare coin portion of your portfolio. Monaco’s investment professionals can: Assist you in planning your rare coin investment strategy or reviewing one that is already established; Recommend the best coins for your investment objectives and help ensure that your rare coin portfolio is balanced; Update you on market news‚ what America’s top numismatists are recommending and new offerings. 2009-06-03T03:01:07+00:00 http://www.zoomcoin.com/rare-coin-news/article/monaco-discovers-lost-gold-of-the-republic/ http://www.zoomcoin.com/rare-coin-news/article/monaco-discovers-lost-gold-of-the-republic/#When:17:10:48Z The Story of the SS Republic Treasure by Adam Crum In October of 1865, six months after the end of the Civil War, the side-wheel steamer SS Republic was bound from New York to New Orleans. Aboard the former Civil War blockade ship was precious cargo to aid in the rebuilding of the war-ravaged city of New Orleans to its prewar glory. Unfortunately, the ship never made port, sinking in a massive hurricane off the coast of Georgia. The ship and its cargo, including a reported $400,000 in gold and silver coins, came to rest 1,700 feet deep in the Atlantic Ocean. Nearly 140 years later a team of salvage experts, aided by state-of-the-art electronics and recovery equipment, found and brought to the surface a stunning treasure trove of numismatic classics. The quality of the coins recovered cannot be overstated. You see, during and just after the Civil War, in both the North and especially the South, gold and silver coins were a valued but extremely scarce commodity. Rampant inflation, caused by both sides financing their huge war costs through the near-nonstop printing of paper currency, resulted in the widespread hoarding of “hard money.” At the end of the war, the South, for all practical purposes, was broke… its paper money was worthless, its hard money virtually gone. The years following the Civil War saw wild fluctuations in the value of gold and silver. As a result of these fluctuations, many of the coins of this era were melted or saw heavy circulation. The wonderful and rare SS Republic treasure gold in the small collection we recently purchased are available today only because of the tragic loss of the SS Republic. The coins offered here are all beautifully preserved in their pristine condition due to the fact that they were locked in a time capsule at the bottom of the deep blue sea. Each gold coin in this small collection are of the $10 denomination, or more commonly known as gold “No Motto” Liberty Eagles” minted prior to the 1865. Many of these coins have the highly collected New Orleans mint mark which is denoted with the letter “O” on the reverse below the tail feathers. I am excited to announce that Monaco Rare Coins has been able to acquire this near complete date and mint mark collection in tact and they are ready for immediate acquisition and delivery. The average grade is AU53-AU55, which is amazing given the fact that many of these rarities are nearly impossible to find in ANY condition. Here is the most exciting part of this deal: We are now offering these last remaining coins for BIG savings over what many SS Republic coins have been sold for by the discovery group in their initial offering, which has been sold out for years. How can we do this? Very simple: “Cash is King,” especially when negotiating for an entire collection. Don’t miss this exciting opportunity to own a beautiful and certified piece of Civil War history. This collection of only 29 coins, all different dates and mint marks, will not last long. Call your Monaco representative as soon as possible at 1-888-900-9948. 2009-05-25T17:10:48+00:00 http://www.zoomcoin.com/rare-coin-news/article/money-talks-at-the-smithsonians-national-museum-of-american-history/ http://www.zoomcoin.com/rare-coin-news/article/money-talks-at-the-smithsonians-national-museum-of-american-history/#When:19:22:01Z New Display of Numismatic Rarities WASHINGTON, May 11—A new exhibition at the National Museum of American History invites visitors to explore the development and meaning behind American coinage and currency. “Stories on Money” demonstrates the interplay among people, money and history, from the earliest times to the present day. The display of coins and other related objects will open June 12 in a new first-floor gallery. “Stories on Money” explores the museum’s vast numismatic collections from seven vantage points. The main section shows what money looked like in Colonial America and at pivotal times, including the Gold Rush, Great Depression and in the current era. Visitors will compare the coin designs of the 19th century with those produced during the renaissance of American coinage in the early 20th century. The section called “The Power of Liberty,” presents an array of coins from the United States and the world depicting Liberty, the feminine personification of freedom; coins with real and mythological women are also featured. “American currency is a reflection and a record of our history,” said Brent D. Glass, director of the museum. “This display illuminates history in fresh and unexpected ways and will allow visitors to think of how money tells stories about different historical periods.” “Stories on Money” was made possible through the generosity of the Numismatic Guaranty Corporation of America, Numismatic Conservation Services and Monaco Rare Coins. “Having this wonderful space at the museum is very meaningful to the entire community of numismatists, and we are very proud to be a part of it. ‘Stories on Money’ is an especially fitting exhibition since it illustrates the close interplay between coins as objects and the personal history of their use,” said Mark Salzberg, chairman of sponsoring organizations Numismatic Guaranty Corporation and Numismatic Conservation Services. “The ‘Stories on Money’ exhibition explores the importance of our country’s sovereignty, heritage and financial independence,” said Adam Crum, president of Monaco Rare Coins. “The beauty of the coins speaks for itself, but the history witnessed by these miniature objects is often epic.” The exhibition draws from the museum’s National Numismatic Collection, which consists of more than 1.5 million objects, including coins, medals and paper currency and preserves the role of money in economic history. Featured objects include a colonial Massachusetts shilling from 1690—the first paper money in the Western hemisphere, the unique 1849 $20 gold coin and a clam shell used as currency during the Great Depression. The exhibition uses objects and interactive media to immerse visitors in these stories on money, including an opportunity to view enlarged images and delve further into numismatic history. In “A penny for your thoughts?” visitors can cast their opinion about the future of the most-produced coin in the world. Two books based on the National Numismatic Collection have been published in conjunction with the exhibition. Exhibition curator Richard Doty’s “America’s Money, America’s Story” and The Encyclopedia of U.S. Gold Coins by visiting researcher Jeff Garrett substantiate the scholastic value of the National Numismatic Collection. Doty and Garrett, a lifelong coin collector, have spent their careers working in numismatics and have written several books on the subject. The National Museum of American History collects, preserves and displays American heritage in the areas of social, political, cultural, scientific and military history. After a two-year renovation and a dramatic transformation, the museum shines new light on American history, both in Washington and online. To learn more about the museum, check http://americanhistory.si.edu For Smithsonian information, the public may call (202) 633-1000, (202) 633-5285 (TTY). 2009-05-14T19:22:01+00:00