Perth Mint Marks Barbie's 50th

Barbie celebrated her big "5-0" on March 9, which Tuvalu marked with issue of a .999 fine silver dollar struck by the Perth Mint.

Barbie may have made her debut at the American International Toy Fair in New York on March 9, 1959, but it was not until May that year that her international career was launched.

Up to this point dolls with adult bodies were few and far between in America. Most were modeled on babies. Ruth Handler, wife of the co-founder of the Mattel toy company, believed a niche existed in the market for an adult-bodied doll after she had watched her daughter, Barbara, dress paper dolls.

During a trip to Europe in 1956, Ruth came across such an adult doll called Bild Lilli, originally made for adults. However, the doll proved popular with German children who enjoyed dressing Lilli in different outfits.

Ruth took several Lillis home, reworked their design and christened her new creation Barbie, after he own daughter. Despite reservations on the part of Mattel's executives, "Teen-age Fashion Model" Barbie went forth to meet her public, dressed in a simple black and white zebra striped swimsuit number and flaunting her trademark ponytail. She came either as a blonde or brunette with a range of clothes created by Mattel fashion designer Charlotte Johnson.

She was an instant star. In her first year, 350,000 Barbie dolls went to good homes around the world. Today more than a billion Barbies have been sold worldwide in more than 150 countries. Mattel claims three dolls are purchased every second.

Ruth Handler believed it was important for Barbie to have an adult appearance despite early market research showing some parents were unhappy about Barbie's celebrated bust. Ruth ignored the market research.

Nonetheless, Barbie has had numerous makeovers over the years. The most famous was her 1971 eye job. She no longer glanced sideways demurely but now had a direct, in-yer-face, look. And her waistline appears to have thickened somewhat in middle age.

Trivia buffs will want to know that Barbie's full name is Barbara Millicent Roberts. Her parents are George and Margaret Roberts from Willows, Wis. She attended Willows High School and Manhattan International High School in New York.

She has owned more than 40 pets including a panda, a lion cub and a zebra. She has a pink Corvette convertible, holds a pilot's license and is rated for flying commercial airliners. She has a medical degree and served briefly as an astronaut.

Her on-off relationship with Ken Carson, who first stopped by in 1961, is on again as of February 2006, following a two-year stint in Splitsville.

Barbie's status was recognized in 1974 when a section of Times Square was renamed Barbie Boulevard for a week. And in 1985 she sat to have her portrait painted by Andy Warhol.

If any numismatist is tempted to splurge on a new collecting area, vintage Barbie dolls now command top dollar. Top price realized at auction was back in 2006 when £9,000 was paid for Midnight Red Barbie from 1965 at Christie's in London.
Source:numismaster.com

The Hunt for Undervalued Gold

One of the fun aspects of numismatics is the potential to find a coin that qualifies as a real sleeper. By this term, I mean, a coin that is drastically undervalued and that one hopes will go up in value in the relatively near future. It really does seem to be an idea that is stronger among coin collectors than among aficionados of other hobbies. Few others expect to buy anything to add to their collection and then have it increase in value.

At the same time, coin collecting generally places limits on just how much of a sleeper you may expect to find. For example, it's not at all common to find a coin in change - one made from copper-nickel and produced by the tens of millions - that will go up in value by thousands of dollars. It's more likely you will find something in change that is worth $10 to $100. A great find, no doubt, but not a world-shattering rarity.

For that world shatterer, you probably have to hope to find some older U.S. gold $10s or $20s. It might come as something of a surprise then to know that there are still a few sleepers within the field of U.S. gold coins. Admittedly, not all of them have enormous growth potential, but it's a fair bet that many of us will be surprised at how much a single coin might go up in price should it move from sleeper to fully awake.

One series of U.S. gold coins that spans several decades is the Coronet Head $5. Christian Gobrecht's design was minted from 1839-1908 and saw some rather amazing high mintages in the good years and some horridly low ones during the lean years. That means there ought to be some great possibilities when it comes to sleepers. If we're really lucky, the general price of these gold pieces won't be too high either.

Let's start at the near end, since there's a good chance of higher mintages in the more recent years. Three examples of dates or date and mintmark combinations that ought to qualify as high mintage are: the 1900 1.4 million, 1901-S 3.6 million, and 1903-S 1.8 million. By just about any count, a gold coin with more than 1 million to its name is probably a common date.

Next, we need to check out the prices of these three dates. It should come as no surprise to any experienced collector that they are the about the same for all three. In About Uncirculated-50 each will cost around $235. In Mint State-60 the price climbs to $250 for any of the three. In MS-63 the price goes up rather substantially, to $750. But whether the price jumps or crawls up with the grade, these three numbers give us a basis against which we can compare any other of the dates and mintmarks within this series.

It turns out that for the Coronet gold $5s we don't have to look too far. The 1904-S is an example of a coin with a far lower mintage - 97,000 to be exact. That's just over 14 times lower than the three dates already mentioned. In AU-50 it's $270. How about in MS-60? Well, here is jumps up to $900. In MS-63 the climb is still higher, to $3,850.

What do these numbers mean? Well, the cynic will state quickly that it means that without $3,850 you aren't going to get a great specimen of the 1904-S. But a more optimistic collector will note just as quickly that this coin is a steal in AU-50. Sure, it's not as good a coin as a mint-state specimen. But an AU-50 is no slouch, either. It is certainly a coin that meets my definition of a sleeper.

For another example, let's go to 1896. In that year, the Philadelphia Mint seems to have gotten to gold $5s in a somewhat half-hearted way. Mintage is listed as only 59,063. Those numbers are perhaps obviously dwarfed by the 1900, 1901-S, and 1903-S I am using as benchmark dates. They are, to be precise, more than 23 three times lower than the 1900, which was the smallest of my trio of common dates.

The prices of the 1896 Coronet gold $5 shake out as follows: $238 in AU-50, $300 in MS-60, and $9,750 in MS-63.

What do these numbers mean? The gold pieces of Philadelphia in general appear to be somewhat undervalued when compared to their mintmarked brethren. Possibly, collectors like Western gold better because it is associated with the Wild West, with gold rushes, and with a whole cowboy way of life. Possibly, gold pieces from Philadelphia have simply survived better over the course of years. But whatever the reason, we have a case in hand where a much lower mintage coin from Philadelphia can be had for a truly lovely price.

To prove my point, let's look at one additional date within the gold $5 series, the 1891. This shiny little devil was coined to the tune of 61,413 coins, including a proof mintage of 53 pieces. Overall, it's about as scarce as the 1896, which makes it as scarce when compared to the common dates. It's priced at $277 in AU-50, $450 in MS-60, and $8,000 in MS-63? Once again, it appears the gold of the Philadephia Mint is listed at prices that point to a real sleeper in grades below MS-63.

Let's take a look at a higher denomination gold coin, the Coronet gold $10, to see if there are any sleepers there.

Gobrecht's design graced the gold $10 for essentially the same number of years as it did the gold $5. It just starts and ends one year earlier. Like the gold $5s, the gold $10s saw years with hefty mintages, and some years in which the coins seemed to be nothing more than an afterthought.

Using the same process as before, we find the 1881 Coronet $10 had a mintage of 3.87 million. Coming in behind it, but still with a massive total, the 1901-S has 2.8 million. Continuing, the year 1894 chalks up 2.4 million, and the 1882 is just behind at 2.3 million.

Now, for each of these the coins range around $500 in AU-50, $600 in MS-60 and $1,000 in MS-63. Just that glance indicates it's probably better to go for the MS-60 piece, if you can afford it.

But I'm not looking at common dates. I'm going for the sleepers in the series. So, doing a bit of scouting about lands us quickly at the listing for the 1902 $10. Just 82,513 gold $10s were minted in Philadelphia that year. And, importantly, the prices are the same in AU-50 and MS-60 as those I just quoted for the higher mintage gold coins. Even going for the harder to find MS-63 pieces, the price only goes up to $2,800, not twice that of the common dates in that grade.

Before continuing, let's take stock of some real numbers, meaning the real dollars it costs for any of these coins. If you are the type of collector who sets a strict ceiling on your purchases of around $50, this whole discussion has probably been a mix of wishful thinking and outright longing for you. Still, thanks for reading this far. It means you are at least thinking about going for something bigger.

If you are the type of collector who thinks of your holdings as an investment in addition to being a hobby collection, well, these prices probably aren't too shocking for you. You already know that you have to spend money to make money.

But I'll use these prices to make two points. First, if you are going to go hunting for the less common pieces I have mentioned, buy certified coins. Even if the idea of third-party graded coins leave a sour taste in your mouth, buy them in this case. The last thing you want is to own a piece that you are sure is an MS-63, for which you spent over $1,000, only to have someone offer to buy it from you as an MS-62, or even an MS-60. Don't take the chance. Plus, it lowers the chance of receiving an altered or counterfeit coin.

Second, remember that even though these coins may be sleepers now, there is no guarantee they will awaken soon. If you collect numismatic reference books as well as coins, you can page through old issues of price guides and find that some coins have been undervalued for decades. We call them sleepers here, as we examine them, but some sleepers may be in a long term coma. The point is that we shouldn't assume a sleeper is a fantastic investment vehicle.

Having said all this, let's jump into the Coronet $10s once more. The 1906-O $10 has a mintage similar to 1902. The 1906-O had a total of 86,895. In AU-50 it is valued at $600, the MS-60 is at $750, and the MS-65 brings $4,900. It looks as if the highest grade is quite a bit to swallow, but the lower two are once again right on the same plane as the prices for the higher mintage $10s.

Let's check out two more Coronet $10s, but do so with dates that have even lower mintages. The 1893-O $10 has a total of 17,000. That's tiny compared to the four leaders I am using as my baseline. But let's also compare the 1893-CC, with its 14,000, and see what similarities and differences there might be. After all, the lure of the Carson City mintmark has long been a siren song to collectors. Let's see what it means for these gold pieces.

The 1893-O comes in with $640 in AU-50. So far, so good. That's a definite sleeper. In MS-60 this becomes an $880 coin. Still, that's not too bad. Finally, in MS-63 the price is $5,300. That's a steep price. Technically, it's still a sleeper in that it is far below where it could be based on its scarcity. But it's hard to imagine spending this much money on a single coin in the hope it will quickly rise in value. Still, all in all, the 1893-O has some serious sleeper potential to it.

What about the 1893-CC $10? What do the numbers look like here? Well, in AU-50 itís $1,800, which isn't cheap, but isn't as expensive as it could be. In MS-60, that number jumps to $8,500. That's steep. And in MS-65, at least one of the major monthly price references doesn't even list this date. It sounds like that's the stuff of auctions.

Ultimately, it does appear that the CC mintmark carries a premium. But it's curious to note that the AU-50 coin still qualifies as affordable, or probably does for a person who could lay out $1,800 for an MS-63 $10 that qualifies as common. It's also heartening to see that the 1893-O is a serious sleeper, at least in two of the grades I've looked at.

The list could go on and on. I haven't looked at any of the gold $20s, for example, or any of the Indian Head $5s and $10s that came after the Coronets. One can only wonder what sleepers lie among all those dates and series.
Source: numismaster.com

GFMS still expects fresh gold peak in H2 09

An inflation-driven surge in gold investment around the world will likely boost the yellow metal to new highs in the second half of this year, GFMS chairperson Philip Klapwijk writes in the latest issue of the consultancy's quarterly newsletter.

Investment demand, and especially so-called 'western' elements, like exchange-traded funds, futures and the over-the-counter market, is expected to remain the driving force behind gold price movements over the rest of 2009.

“Given increasing fears over the long-term inflation threat in western countries, we expect world investment to see a massive increase this year, particularly from its implied net investment and official coins components,” Klapwijk commented.

GFMS calculates world investment as the sum of implied net (dis)investment, official coins, bar hoarding, and medals and imitation coins.

In its May quarterly three-year gold forecast, GFMS predicted that world investment this year would actually exceed 1 500 t, or some $47-billion, which would carry the gold price to new peaks by the end of the year.

Growth in investment demand has been the primary driver of the rally that has taken gold from around $250/oz in early 2001 to peaks above or close to the $1 000/oz level in 2008 and 2009

Increased demand has been mainly driven by booming investor interest in gold.

This is “a result of the general decline in the US dollar since 2002; rising commodity prices (at least until mid-2008); concerns over the security of bank deposits following the near meltdown of global financial markets; more recently, the drop in short term interest rates to levels close to zero in the major advanced economies and growing concerns at the potential longer term inflationary consequences of unprecedented monetary and fiscal policy easing,” Klapwijk says.

He suggests that the 'western' investment tends to be what drives gold prices, either higher or lower, while demand in the rest of the world – bar hoarding, medals and coins - generally tends to support a floor – “although as has been seen over 2001-2009 - to date, a floor that is at successively higher price levels”.

In April, GFMS said it expected to see gold prices set new records this year, possibly rising as high as $1 100, on investment demand.

Gold set a three-month high of $989,80/oz earlier this month, but has been weighed down in the last couple of weeks by a stronger US dollar.
Source: miningweekly.com

Coin trail leads to church thief

A thief who robbed a church during a baptism was caught after police followed a trail of dropped coins straight to him, a court has heard.

Andrew Brown stole the collection money while the congregation were singing at Rattray Parish Church, Blairgowrie.

He made off with nearly £300 in cash and cheques on 11 January.

Brown, 24, was jailed for four months after Perth Sheriff Court heard he had already spent some of the money on drugs by the time police arrived.

Brown, from Ashgrove Gardens, Blairgowrie, admitted stealing £296.40 from the church's vestry. Only £180 was recovered by the police.

'Felt sorry'

Church-goers realised there had been a robbery when coins were found on the vestry floor.

Brown envelopes containing loose change were found discarded a short distance away from the church.

The trail of coins and envelopes led police to a nearby park, where they found Brown who immediately admitted what he had done.

He told them he had used the money to buy valium and heroin from a Big Issue seller in Perth.

He had also spent some of the cash on food and his bus fares to and from Blairgowrie.

Solicitor David Holmes said: "He pled guilty straight away because he felt sorry for what he had done.

"He still continues to feel sorry for what he has done and would wish the opportunity to make recompense."

Source: news.bbc.co.uk

1856-O Gold $20 Doubles its Prior Record

On May 29, at the Long Beach Coin, Stamp and Collectible Expo, Heritage auctioned the finest known 1856-O double eagle for $1,437,500. No other New Orleans Mint coin has ever been publicly auctioned for more than $1 million. It is the only 1856-O gold $20 that is known for sure to grade above -60 and it seems to be the only one that is a "special striking."

The previous record for an 1856-O was set in October 2008, when an Numismatic Guaranty Corp. graded AU-58 coin was auctioned for $576,150.

This result is the second highest auction price for any Liberty Head double eagle. In 2006, Heritage sold an 1861 Philadelphia Mint, Liberty Head with the Paquet reverse, for $1,610,000.

This same 1856-O, then NGC certified Specimen-63, was previously auctioned in June 2005, for $542,800. The "Specimen" designation refers to coins that are neither proofs nor business strikes, but are specially made and have certain characteristics that are different from those of corresponding business strikes. Usually, Specimen strikes are intended to be better looking than business strikes.

Not long before this May 2009 auction, this coin was submitted to the Professional Coin Grading Service and it "crossed over" to a PCGS holder also with a "SP-63" certification. Additionally, it was given a sticker of approval by the CAC.

Jeff Garrett and I viewed the coin together in Long Beach, at which time he remarked that it is "obviously special" and "beautifully struck." Garrett is a very experienced dealer and the co-author of two widely recognized books, including an "Encyclopedia of U.S. Gold Coins."

He emphasizes that "the surfaces [are] deeply mirrored and completely different from other double eagles of the era." Interestingly, Garrett likened the mirror surfaces on this Specimen 1856-O to those on the pattern 1849 double eagle and especially to those on the Smithsonian's 1854-S double eagle. The late researcher Walter Breen raved about the Smithsonian's 1854-S double eagle, which he strongly regarded as a proof.

While I do not believe that this 1856-O screams "Specimen," I agree that it is a true Specimen striking. I am not as impressed by the mirrors as Garrett and others. There are many 19th century, prooflike gold coins with fully reflective surfaces. Very few of them are true specimen strikings. In my view, the crisp, exceptionally even strike and the ways in which the devices meet the fields place this coin in a category above any other New Orleans Mint double eagle. A magnifying glass is needed to verify its "Specimen" status.

Not everyone is impressed by specimen designations. Bob Green declares that "most of the $20 Liberty double eagle collectors" that he has "worked with had no interest in ever owning this coin as it is likely to be a special striking and not a business strike meant for commerce at a time in our history." Green, of Park Avenue Numismatics, is a specialist in the Liberty double eagle series.

Green "was very surprised that this coin sold for $1,437,500. [He] would not have bid more than $1 million." Garrett, in contrast, remarks that "the coin was a bargain in relation to the cost of circulation strike 1856-O double eagles and the unique status of the coin elevates it to iconic status."

In my view, the price realized was a little high, given current market conditions. A circulated 1856-O could probably be purchased, at some point over the next 18 months, for less than $475,000. This 1856-O is a coin of such importance, however, that it is very difficult to put a price tag on it. Plus, it is really cool.
Source: numismaster.com

Stamps & Coins: Coins worth a pretty penny

The legions of print and broadcast advertisers begging to buy your gold coins and "unwanted jewelry" are all but incessant. Even during the gold boom of the early 1980s, dealers didn't promote the purchase of gold as much as now. But that's understandable.

The economic climate back then wasn't as dire. Personal finances now are such that many individuals might be considering parting with heirlooms or coins. But what might you be selling? As regular readers know, my eternal mantra has been, "Knowledge is both power and profit." Since almost the beginning of coins being minted, gold has been considered the premium medium. Most modern gold coins are not and will never be rare.

Conversely, older coins with low mintages, rare dates or mint marks command substantial premiums well above their gold content.

Happily, most coin dealers are reputable and will readily identify a rare variety if you happen to own one. Still, it's best to know before you go.

Dozens of books are available from dealers or libraries that call out scarce coins. Insofar as those struck from gold, one of the best is "Gold Coins of the World," considered the definitive encyclopedia. The 800-page tome lists 21,000 coins dating as far back as 600 B.C. Accompanying each are detailed descriptions, prices and weights, along with 8,000 photos, some of which are otherwise available only in out-of-print books.

Published by the Coin & Currency Institute, the price is $89.95, $79.95 on CD. It's not inexpensive, but it could be considered a bargain if it helps potential sellers increase the amount they realize on their coins by hundreds or thousands of dollars.

Now for the flip side of the coin. What if you're not fortunate enough to own gold? Instead, you may have a collection of lowly pennies you collected as a youngster or were given by a relative.

When the price of copper skyrocketed a few years ago, the government made it illegal to melt pennies for their metallic content. So, a penny is just a penny, right? Not so fast.

Depending on your age, you may recall sorting through change to find the elusive Flying Eagle or Indian Head cents produced between 1856 and 1909. As recently as the 1940s and '50s, many of them circulated regularly along with the more modern Lincoln pennies. That allowed kids and adults to extract and collect them. A goodly number of those collections surely still sit on dusty shelves or stuffed in boxes on the assumption that their worth is minimal at best.

In truth, the least that dealers will pay for Flying Eagle cents in only "good" condition (which really isn't visually appealing) is $20 apiece. For an 1856 Flying Eagle penny, the value ranges from a low of $4,000 to more than $45,000.

Even common-date Indian Head pennies in average condition bring a minimum of $1 each. Of course, the higher the grade, the higher the price.

And those that are more scarce – minted between 1858 and 1878 – have substantial value, from $4 to $600 in average condition to hundreds or thousands of dollars if they are in mint condition (uncirculated).

So in reality, that paltry penny could very well be worth more than a hefty gold coin. Moreover, one of those once-plentiful cents once used to purchase a newspaper or candy bar might now have enough collector value to fill up a gas tank or even buy a new car.

Because of prices and opportunities such as these, a new edition of the book "A Guide Book of Flying Eagle and Indian Head Cents" has just been released. The full-color, 288-page guide includes updated pricing, market data and photographs. It also includes expert advice on collecting and interesting background information.

Source: sacbee.com

Mint Considers Starting Coin Reserve

Coins are in surplus now but the Mint is thinking about a reserve of coins to provide a buffer supply in times of high demand, or unexpected disruption, Mint Director Edmund C. Moy said in an interview with Coin Chat Radio May 20.

Right now the Mint produces coins month to month to match orders from the Federal Reserve System, which oversees the banking system's supply of coins and paper currency. It has no extra supply in on hand.

"It would be nice to have a bank of coins to draw on," he said.

During some recent months the orders for coins exceeded the Mint's capacity to produce them, Moy pointed out. A reserve of coins would allow the Mint to meet comfortably this higher demand.

"We've decided that the strategic reserve was a good idea to explore," Moy explained.

"If this costs a lot of money and it's cheaper for us to find other ways to meet the demand, that's where we're going to go."

Why examine this possibility in a year when coin demand and production is expected to drop by 70 percent from the 10 billion coin level of 2008?

Moy said it is a question that first came up two years ago when the Mint's distribution center was hit by a tornado.

With Washington intervening with the automobile manufacturers in Detroit, is a coin reserve some way to keep blank and strip suppliers to the Mint in business?

Moy said at this point suppliers have not officially been part of the discussion, but he noted that if one of them is acquired by another firm or goes out of business, it could create difficulties for the Mint.

How big a stock of coins would be needed?

Moy said that is something that is under consideration and a specific target is not yet defined.

"We were created to create coins for use in commerce. The worst thing that can happen is that we have a shortage of coins," Moy said. "It's better to have a little bit extra."

To that end, "We're studying all the past trends," he said.

Because coin demand began falling even before the current recession, has there been a paradigm shift such that future demand for coins would be lower than what used to be the case?

Moy noted that coin demand at the commercial level has been holding up and coins are used in about one-third of commercial transactions. It is the demand for checks that has been declining.

"Checking has gone down by roughly half its volume," Moy said.

He expected fundamental underlying demand for coins to continue to hold up.

The Mint is also evaluating the impact on Mint production of what Moy called coin aggregators, a term for Coinstar, which is a business that puts coin counters in commercial establishments and allows consumers to exchange coins for store credits or paper money.

This has the effect of meeting commercial demand for coins without additional new supplies being needed from the Mint.

"We hope to make some decision about this this year," Moy said.

Should the Mint decide to proceed with the concept of a strategic reserve, he said that nickels and dimes would be good denominations to strike for inclusion in it because so few of them have been struck this year and because their designs are not changing regularly as is the case for quarters and dollars.

This might be a warning to collectors who are drooling over the current relatively low mintages so far this year and the prospect that no more nickels and dimes will be produced.
Source: numismaster.com

Gold Buys Freedom

There are dozens of financial reasons why it makes sense to own gold (and silver) as insurance against the risk of declining values of paper assets such as stocks and bonds and currencies (especially the U.S. dollar). Many of my weekly essays are devoted to the financial aspects of owning precious metals.

This week, I would like to address what I consider the number one political reason to own gold - individual freedom. Although I have considered the political aspects of gold ownership ever since I bought my first gold coins in 1973, it wasn't until last week that I came across a superb articulation of this concept.

Dr. Arthur B. Robinson is president and a research professor at the Oregon Institute of Science and Medicine. Years ago, he took over publication of Access To Energy (ATE), a pro-science, pro-technology, pro-free enterprise monthly newsletter. Since energy availability is affected as often by political actions as technological issues, ATE regularly covers politics and economics. The recently released August 2008 issue of ATE contains an essay titled "Printing Capital." With Dr. Robinson's permission, here are some cogent sections related to gold:

"Most capital is stored in kind as factories, power plants, roads, buildings and other useful products of human effort. It can also be temporarily stored in smaller quantities as money - the medium of exchange ... Money is, however, not capital.

"All sorts of things have been used as money. Thousands of years of experimentation has determined, however, that the best money is silver and gold, especially gold. Gold is convenient in many ways. One important way is that it cannot be counterfeited and is costly to obtain from nature. This difficulty keeps the supply of gold approximately constant so that prices remain stable.

"The rise of the United States as a free, prosperous industrial civilization was greatly facilitated by the use of gold as money ... In addition, the great industrial productivity of the American people - a greatness that resulted from our freedom, not from our genetics - and the stability of our gold-backed currency made the U.S. dollar the world reserve currency. Throughout the world, people trusted the U.S. dollar as money.

"Then - the counterfeiting began. The U.S. government ... printed new money as a way of funding its activities. As the supply of money rose, prices rose concomitantly.

"Printing money can be used, however, as more than a mechanism of hidden taxation. It can be used as a weapon against freedom.

"Gold money has been correctly called 'coined freedom.' Even today when few Americans are old enough to remember the use of gold coins as money in the United States, the U.S. government realizes that gold provides a measure of its economic dishonesty  and works through surrogates to minimize the rising price of gold. It also taxes gold in such a way that gold cannot serve as a store of value ... because the gold itself is gradually confiscated through taxation by claiming that its price rise is 'income' or 'capital gains.'

To obtain the entire August 2008 issue of Access To Energy or for subscription information, go to their Web site at www.accesstoenergy.com.

I have concrete examples relayed to me personally how gold buys freedom.

I have met a number of Southeast Asian refugees over the years, including many who have come to my coin shop to buy gold. In almost every instance, these refugees were able to escape with their lives because they owned gold to buy their way out. The general public would be surprised how many of these refugees still want to own gold even though they might consider the United States a "safe haven."

A few years ago, I bought the surviving pieces of a hoard stored in a Dutch cookie jar. When the Germans overran The Netherlands in 1940, the gold coins were used to pay for the escape to the Western Hemisphere of many of this Jewish family's members.

So, buy gold (and silver) for all the right financial reasons. But keep in mind that some physical gold in your possession may someday save your life and freedom.
Source: numismaster.com

How Many 'Round Pounds' are Counterfeit?

What percentage of British £1 coins in circulation are counterfeit? The latest official figure released by the British Royal Mint indicates about one in 40 coins or about 2.5 percent of all "round pounds" in use are fakes. This is an increase from the number of counterfeits detected in the past, but is the figure accurate?

Not according to the British Broadcasting Corporation. In an April 8 BBC report the BBC relied on figures provided by a private British company called Willings for statistics. Willings manufactures counterfeit coin detection machines for businesses and other organizations that work with coinage.

The BRM inspects a random sample of circulating coinage twice a year. During the last quarter of 2008 the mint removed 270,000 bogus £1 coins from circulation. Only 97,000 coins of this denomination were removed from circulation during all of 2007.

These statistics may be troubling, but if the BBC and Willings statistics are reliable the mint has underestimated how many bad £1 coins are actually in circulation. Willings spokesman Andy Brown told the BBC the company study indicates one in 20 coins, or five percent of the £1 coins the company tests have proved to be fakes.

Brown did not elaborate on why the company's study should be considered to be more accurate than is the study done by the BRM. Brown did not present anything through the BBC report that indicated the Willings survey was a balanced national survey similar in scope to that done by the BRM, or if the Willings survey concentrates more in specific areas of coin intensive commercial activity than does the semi-annual mint survey.

Not to be overly critical of the BBC report and of Willings, but there was also no indication in the April 8 BBC report regarding if Willings counterfeit detection devices took normal differences in tolerance in genuine British £1 coins into consideration.

Brown did indicate coins checked by Willings were sent to the company from "car parking firms, vending machine operators, local councils, and even banks."

Brown said of the Willis findings, "We would estimate as many as five percent of coins we test are fakes. We've been collating them for the past four months or so, and already have a collection of several hundred."

Brown then added, "The figures quoted by the Royal Mint were wide of the mark."

The BBC report also quoted former Queen's Assay Master Robert Matthews as saying, "The mint is really trying to play down the problem and keep it as low key as possible. They've not produced any publicity material for banks etcetera to tell us how to differentiate between real and fake coins. They don't want to undermine public confidence in the coins; you might get people refusing to take them."

In fact, the BRM works with banks, the postal service, the vending machine industry, and law enforcement agencies to limit the number of bogus £1 coins in circulation.

Matthews continued, "There's a whole raft of organizations who should have been tackling this who haven't been tackling it. It's like a game of pass the parcel. In the final analysis it's the Treasury who should be dealing with this  and checking the work of the cash centers."

Brown did make some valid points in the BBC article. If a coin is identified as a fake while in circulation the person who owned it last loses, since the coin is then confiscated. Brown said, "Provided the coins are just being accepted and passed through the system nobody cares. It's only when people start rejection the coins that people come to us."

Brown added, "We can manage a 50 to 60 percent detection rate while the machines being used by the Royal Mint can only pick up around 30 to 40 percent. That means even when fake coins do pass through security checks at accredited cash centers, two thirds will come right back into circulation."

You have to admit it sounded like a sales pitch when Brown continued, saying: "Their [British Royal Mint] percentage will go up as they get better at detecting fakes."

I guess the Willings firm must have more experience with assaying coins than does the 1,000 year old plus mint. I'm not saying the Willings company couldn't have something better to offer, but until somebody comes forward to prove their sampling is similar to the sampling made by the BRM how does anyone know for certain if the number of counterfeit coins in circulation is truly understated by the mint or if we are comparing two totally different sample markets.

Perhaps since the De La Rue printing company doesn't plan to make a bid for the BRM perhaps Willings would like to purchase the mint? A discredited mint should sell for a bargain price.
Source: numismaster.com

Gold investment continues to be attractive

Fears of future inflation and ongoing financial uncertainty led investors to continue to flock to gold in the first three months of 2009.

Total demand for gold in the first quarter of 2009 went up by 38 per cent (year-on-year) to 1,016 tonnes, a 36 per cent rise in value terms to $29.7 billion.

However, in India, traditionally the world’s largest gold market, demand declined significantly under pressure from record rupee prices and a major deterioration in the domestic economy. Demand fell 83 per cent.

According to figures published by World Gold Council (WGC), investment demand for gold, which includes exchange traded funds (ETFs), bars and coins, was the major source of growth in the quarter, reaching 596 tonnes, up 248 per cent.

A record level of investment was witnessed in ETFs.

Similarly, net retail investment (total bar and coin demand) remained highly robust. Germany was the single biggest bar and coin market in the first three months of the year, while Switzerland came second followed by the U.S.

However, the impact of recession on consumer discretionary spending continued to take its toll on both jewellery and industrial demand. Gold jewellery demand was down 24 per cent from the earlier year levels, with most countries suffering a decline as consumers responded to the high and volatile gold price, which reached record levels in some countries.

According to World Gold Council CEO Aram Shishmanian, “There has been a seismic shift away from capital appreciation towards wealth preservation and we believe this trend will define the investment behaviour in the next decade. Gold, as one of the few assets that has held its value during the current economic crisis, has been sought after by investors who are drawn to its proven protective attributes as well as safeguarding themselves from the erosive effects of future inflation”.

Source: hindu.com