What's Happening

From the desk of your Secretary

March 26/07 - A Peoria man was sentenced to more than four years in prison for defrauding eBay customers of about $800,000 after selling coins that he never delivered.

Anthony L. McEnroe, 36, apologized before U.S. District Judge Joe B. McDade handed down the prison term Thursday, saying he made bad business decisions that kept him from filling orders placed through the online auction house.

McEnroe pleaded guilty in October to one federal count of wire fraud.

Prosecutors say McEnroe offered gold and silver coins through eBay in 2000 and 2001, along with advance orders for special-edition quarters commemorating each of the nation's 50 states.

McEnroe was suspended by eBay when orders went unfilled, but continued to sell coins through the service by using different business names and identification, according to prosecutors.

Prosecutors allege McEnroe sold the coins to another set of buyers, then diverted money from hundreds of online orders to personal accounts and a business he owned that sold Mexican pottery.

McDade ordered McEnroe to surrender to prison officials in May to begin serving his 51-month sentence.

March 22/07 - PNG Experts Warn of Altered, No Edge-Lettering Dollars.  The Professional Numismatists Guild (PNG), a nonprofit organization composed of the country’s top rare coin and paper money dealers, issued the following consumer protection advisory on March 21, 2007 about altered coins being sold as genuine errors.

Some 2007-dated Presidential dollar coins, deliberately altered after leaving the United States Mint to remove the edge lettering including the motto, “In God We Trust,” are being offered to unsuspecting buyers in online auctions and at swap meets. The Mint mistakenly released for circulation thousands of genuine coins without the edge lettering, but the PNG cautions that worthless, fake versions now are appearing in the marketplace, especially Internet auctions.

“The edge lettering on some perfectly-made coins is being intentionally removed in machine shops to fraudulently make the coins appear to have a plain edge without the date, without the mintmark and without the mottos, In God We Trust and E Pluribus Unum. It's the wild, wild West out there online, and it's probably going to get worse before it gets better,” said Fred Weinberg of Encino, California, a former President of the Professional Numismatists Guild and an internationally known expert on mis-struck coins.

“You run the risk of paying $100 or more for an altered coin that’s only worth one dollar. Unless you know how to determine authenticity, the coin should be certified by a nationally-recognized authentication company or you should know the reputation of the professional dealer you're buying it from.”

The normal weight of the George Washington dollar coins is 8.1 grams (125 grains) and the diameter is 26.5 millimeters. Any plain-edge coins that weigh less than 8 grams (123 grains) or with a diameter of 26 millimeters or less should be viewed with skepticism. They may have been deliberately trimmed to remove the edge lettering, according to the PNG.

“The altered coins are deliberately machined down until the lettering on the edges disappears. It's also possible for the incused lettering to be filled in, then re-plated or re-colored, and then the altered coin is deceitfully sold as a genuine Mint-made error,” Weinberg explained.

Weinberg also cautions consumers to be wary of sale pitches for so-called “upside-down” lettering errors.

“The relationship is random between the edge lettering and the ‘heads’ side on the Presidential dollars. Some coins have the letters reading ‘up,’ and some are ‘upside-down’ when you view the front of the coin. These are not inverted-lettering errors, only a random method of placing the edge-lettering on the coins. Half the coins will have the letters up, and half will appear upside down.”

Members of the Professional Numismatists Guild must adhere to a strict code of ethics in the buying and selling of rare coins and paper money. 

March 07/07 - Letters missing on Washington dollars edge.

~ Professional Coin Grading Service of Newport Beach, California (www.PCGS.com) is offering a $10,000 reward for the first person who submits for verification a genuine, Sacagawea golden dollar coin mistakenly struck with the edge lettering intended for the new Presidential dollar coins.

The coins depicting Native American, Sacagawea, who assisted Lewis and Clark on their exploration of the Louisiana Purchase, are supposed to have smooth, plain edges. The new Presidential dollars have incuse edge lettering that includes the year of minting and the mottos, In God We Trust and E Pluribus Unum.

"Even with the Mint taking steps to carefully produce coins, valuable errors like these could happen. We've already seen, certified and graded some Presidential dollars that have no lettering on the edge," said Ron Guth, PCGS President.

PCGS is the world's largest rare coin authentication company and a division of Collectors Universe, Inc. (NASDAQ: CLCT).

"The United States Mint is still making the plain-edged Sacagawea dollars while also striking literally hundreds of millions of the Presidential coins. Sooner or later, we believe a Sacagawea coin will be erroneously made with lettering on the edge, or will be over-struck with the both the Sacagawea and Presidential designs on the same coin. We'll pay $10,000 just to be the first to authenticate them."

PCGS also is offering a $2,500 finder's reward for the first blank Presidential dollar it receives where there is only the edge lettering but no design on the front or back.

"It's possible that a planchet intended for a Presidential dollar might only get struck for the lettering around the edge, and not go through the earlier 'heads and tails' part of the minting process," explained Guth.

"We're asking the public, collectors and dealers to carefully look at their money. You could find a fortune in your pocket change if it's the 'right' dollar that's been made wrong."

Additional information is available from Professional Coin Grading Service at (800) 447-8848. E-mail: info@PCGS.com.

~ A Statement from the United States Mint -  The United States Mint has struck more than 300 million George Washington Presidential $1 Coins. We have recently learned that an unspecified quantity of these coins inadvertently left the United States Mint at Philadelphia without edge-lettering on them. It is unknown how many of these coins without inscriptions on the edge have been placed into circulation.

The United States Mint understands the importance of the inscriptions “In God We Trust” and “E Pluribus Unum,” as well as the mint mark and year on U.S. coinage. We take this matter seriously. We also consider quality control a high priority. The agency is looking into the matter to determine a possible cause in the manufacturing process.

Production of the Presidential $1 Coin, with its unique edge-lettering, is a new, complex, high volume manufacturing system, and the United States Mint is determined to make technical adjustments to perfect the process. As we adjust this new process, we intend to eliminate any such defects.

Consistent with the agency’s practice in such situations, the United States Mint has informed the Office of Inspector General of the U.S. Department of the Treasury about this matter.
 

March 03/07 -

 

 

 

Announcing another world first from the pioneers of minting, Pobjoy Mint. Now’s your chance to own the world’s first quad metal (that’s four metal) coin, intricately crafted in rings of silver, palladium and gold, with a centre of platinum, and produced on behalf of the British Virgin Islands.

It’s a must, not only for those collectors who are fans of groundbreaking minting, but for those who love coins with an intriguing story. The value of the coin is a royal, which is the English spelling of the Spanish Ryal. This historic Spanish coin used to be cut into four to break it down into smaller change. It’s from these Ryal quarters that the famous US Quarter got its name. It’s in honour of the Ryal and the Quarter that Pobjoy Mint has chosen to ‘quarter’ this new coin using four metals.

And that’s not the end of the story. Look at the beautifully intricate design and you’ll notice it has a nautical theme, which ties in perfectly with the seafaring traditions of the British Virgin Islands. The outer ring of the coin depicts the points of a compass and includes a cross from the Spanish eight Reale coin (which is better known to fans of pirate movies as a ‘piece of eight’).

Inside this there’s more; a ship’s rope intertwined with blue marlins and bottlenose dolphins and the centre ring shows the sun with a ship from the 15th century. Sailors used to believe the earth was made up of four elements: fire, earth, water and air – which takes us back to the theme of four at the heart of this groundbreaking, superbly detailed coin.

This beautifully engineered and unique precious metal coin has been struck four times to produce the superlative Pobjoy proof finish. Fine Silver, Palladium, Fine Gold and Platinum 1/2 Royal 2007 Coin £591.49

February 20/07 - The recent controversy surrounding possible changes in the bylaws of the American Numismatic Association may last a little longer.

President William H. Horton Jr. said that any proposed bylaws changes would not be voted on at the March board of governors meetings in Charlotte, N.C., but would instead be handled during the August board meetings during the organization’s World’s Fair of Money in Milwaukee, Wis.

February 13/07 - Consumers from 10 states have sued a group of telemarketers for fraud and deceptive trade practices in the marketing of “rare” coins, according to a press release by the Gibson Law Firm, representing the consumers.

In a lawsuit filed in state court in Beaumont, Texas, 21 affiliated companies are accused of using high-pressure, unlawful telemarketing tactics to convince senior citizens and others to buy gold, platinum and silver coins of dubious worth and origin. They are also accused of making unauthorized charges to credit cards, sending unordered coins to customers, fabricating information about the origin and current and likely future value of coins and not honoring return guarantees.

The defendants include Universal Coin & Bullion, Ltd., 1st American Reserve, 1st Capital Reserve, 1st Fidelity Reserve, and 1st National Reserve, among others. The plaintiffs are seeking actual and exemplary damages of $500 million, including trebling of damages allowed under the Texas DTPA.

February 6/07 - In January 2007, Coins 2.0 (www.coins2.com), the Numismatic Search Engine, was launched. It leverages state-of-the art search technology Google CSE to search numismatic websites.

January 29/07 -  For the fifth time in as many Congresses, legislation to authorize the equivalent of a six-coin extension to the 50-state quarter program has passed the House of Representatives. Action came at 1:28 p.m. on Jan. 23, 2007, passed on the consent calendar unanimously. The last time it had similarly passed was in the wee morning hours of Dec. 9, 2006, as the last sands of the 109th Congress slipped through the hour glass.

The 2006 action then shifted to the Senate, which adjourned an hour later without taking action, thus killing the measure. Under legislative rules, the initiative dies when the session of Congress terminates, and must be reintroduced, which it was, if it is to become a reality.

Providing for inclusion of a circulating quarter dollar coin program for the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the United States Virgin Islands, and the Commonwealth of the Northern Mariana Islands, H.R. 392 would add an 11th year to the existing 10-year program, currently slated to terminate in 2008.

Six additional coins would be struck the following year, presumably at the rate of about one in every eight weeks, compared to the rate now employed of approximately one every 10 weeks.

Rep. Barney Frank, D-Mass., chair of the House Financial Services Committee, was a co-sponsor of the measure introduced by Rep. Eleanor Holmes Norton, D-DC, the non-voting delegate from Washington, D.C. He gave it a green light by placing it on the consent calendar Jan. 10. Action came before the Jan. 31 reorganization of the Financial Services unit, a surprise.

Action again shifts to the Senate which has no parallel measure and may consider and pass the House version. In the past, hidden opposition in the Senate has blocked action to approve the measure. A Presidential signature is also required.

January 25/07 - The U.S. House of Representatives on Wednesday passed a bill to authorize the United States Mint to circulate redesigned quarter dollars that would commemorate the District of Columbia and the U.S. territories.

Under the District of Columbia and United States Territories Circulating Quarter Dollar Program Act, the special coins would be made for Guam, the Commonwealth of the Northern Mariana Islands, American Samoa, the United States Virgin Islands, and Puerto Rico.

Wednesday's vote is the fifth time the House has given approval to the proposed legislation, which would extend the 50 State Quarters Program, according to Guam Delegate Madeleine Bordallo's office. The legislation now goes to the U.S. Senate, where it has stalled over the past eight years.

Bordallo spoke in favor of the legislation on the House floor Wednesday. "Guam, like the District of Columbia and the other U.S. Territories, has unique attributes that too few Americans are aware of. In fact, it is all too common for Americans to be unaware of -- or misinformed about -- Guam's history and our culture," Bordallo said in the release. "Continuation of the Quarter Program by minting quarters to honor Guam and our sister territories would be good way to promote our country's diversity and to educate Americans about our island's history, our culture, and our island community."

~A potential shortage of coins in the United States could mean all those pennies in your piggy bank could be worth five times their current value soon, says an economist at the Federal Reserve Bank of Chicago.

Sharply rising prices of metals such as copper and nickel have meant the face value of pennies and nickels are worth less than the material that they are made of, increasing the risk that speculators could melt the coins and sell them for a profit.

Such a risk spurred the U.S. Mint last month to issue regulations limiting melting and exporting of the coins.

But Francois Velde, senior economist at the Chicago Fed, argued in a recent research note that prohibitions by the Mint would unlikely deter serious speculators who already have piled up the coinage.

The best solution, Velde said, would be to "rebase" the penny by making it worth five cents rather than one cent. Doing so would increase the amount of five-cent coins in circulation and do away with the almost worthless one cent coin.

"History shows that when coins are worth melting, they disappear," Velde wrote.

"Rebasing the penny would ... debase the five-cent piece and put it safely away from its melting point," he added.

Raw material prices in general have skyrocketed in the last five years, sending copper prices to record highs of $4.16 a pound in May. Copper pennies number 154 to a pound. Prices have since come down from that peak but could still trek higher, Velde said.

Since 1982, the Mint began making copper-coated zinc pennies to prevent metals speculators from taking advantage of lofty base metal prices. Though the penny is losing its importance -- it is worth only four seconds of the average American's work time, assuming a 40-hour workweek -- the Mint is making more and more pennies.

Velde said that since 1982 the Mint has produced 910 pennies for every American. Last year there were 8.23 billion pennies in circulation, according to the Mint.

"These factors suggest that, sooner or later, the penny will join the farthing (one-quarter of a penny) and the hapenny (one-half of a penny) in coin museums," he said.

January 20/07 - Derek McDonough #90 sent me the following scan from a Coin World article discussing the meltdown of Canadian nickels. Newsprint is one of the hardest things to scan; even though the quality isn't the best it is readable.

~2007 Scheduled Products Listing: The following list displays the United States Mint's 2007 products and their dates of availability. This list will be updated periodically as dates for products being released later in the year have yet to be set. All dates are subject to change by the United States Mint without prior notice.

Availability Date Product Description

March           American Eagle Silver Proof Coin
March/April   American Eagle Uncirculated Coins
April             American Buffalo Gold Proof One Ounce Coin
April             Washington Quarter Bags and Two-Roll Sets
April             United States Mint Proof Set®
May              Presidential Spouse Gold Proof Coin
May              Presidential Spouse Bronze Medal 1 5/16"
May              John Adams $1 Coin Bags and Rolls
May              Little Rock Central High School Desegregation Silver Dollar

January 10/07 - Robbers in surgical masks pulled off a $4 million coin heist at knifepoint outside a coin dealers convention, getting away with gold, silver and a rare 1843 set of currency once owned by President Tyler, authorities said.

It was the second time in two years that the Florida United Numismatists' annual coin show had been hit, and this year's loss was much larger.

On Saturday, a Minnesota coin dealer's employee was unloading an SUV outside a luxury hotel when a robber in a surgical mask and a hooded sweater grabbed him from behind and held a knife to his throat, witnesses and the victim told authorities. Two other masked men grabbed a suitcase from the SUV, according to authorities.

"It's a brazen happening. This kind of thing doesn't happen often at all, at knifepoint," said Robert Brueggeman, head of the Professional Numismatists Guild and owner of Positive Protection, which provided security at the convention.

Sheriff's Deputy Carlos Padilla said the coins were extremely rare, which could make it difficult for a thief to sell them. "I guess it makes you wonder if the people that committed this crime even knew what they were getting," Padilla said.

Last year, thieves stole about $450,000 worth of coins by breaking into cars, most of them while dealers ate in restaurants.

This year, the convention's organizers had increased security with more off-duty sheriff's deputies and a 24-hour secured room where dealers could store their coins, convention coordinator Cindy Wicker said. The four-day show attracted 1,750 dealers.

January 6/07 - North Carolina cops are searching for a guy who successfully passed a $200 bill bearing George W. Bush's portrait and a drawing of the White House complete with lawn signs reading "We like ice cream" and "USA deserves a tax cut." The phony Bush bill was presented to a cashier at a Food Lion in Roanoke Rapids on September 6 by an unidentified male who was seeking to pay for $150 in groceries. Remarkably, the cashier accepted the counterfeit note and gave the man $50 change. In a separate incident involving a different perp. Roanoke Rapids cops Tuesday arrested Michael Harris, 24, for attempting last month to pass an identical $200 Bush bill at a convenience store.

January 03/07 - A rare nickel, shown by a New York gallery and thought to be worth about $5 million, didn't fetch a cent at auction Tuesday.

The coin was one of five known 1913 Liberty Head nickels. New York-based Stack's Rare Coin Galleries showed the nickel, which was struck clandestinely at the Philadelphia mint after its design was retired.

Bidding started at $4.5 million, but no one made an offer for it.