Corruptio Optimi Pessima

By Jon Nadler

As mentioned this morning, gold prices were under the potential threat of an outside factor dragging them down to the important $915 support area. That market-moving factor turned out to be the combination of cause and effect fallout from rising US consumer confidence, a strengthening dollar and a fresh drop crude oil on the heels of waning demand. According to one seasoned trader (RBC's own George Gero, who just made it to the ranks of grandfathership) the "pullback in gold from early trading intensified as crude sold off, dollar improved, and the Dow improved accordingly. In addition, [gold] open interest [was] off 16,000 as contract rollovers are almost complete and the "not in the money" options were abandoned. August first notice day is almost here and funds traders reluctant to put up full money on long positions were now sellers as the appeal of gold waned."

Of course, if you were to visit various gold forums, you would once again hear that the yellow metal was the sacrificial lamb as sinister manipulative forces try to prop up Western civilization and its financial instruments. The reality is that thus far, the yellow metal has offered little more than a technical bounce after last week's significant drop and remains range-bound in the absence of larger-scale external market-moving developments. If there was one sacrificial animal today, well, it was oil - it revisited a 14-week low on the surging dollar and on irrefutable evidence of demand destruction in the US. This, despite 'sour grapes' laments/ rhetorical questions from Iran as to why Western nations can be allowed to possess nukes.

Demand destruction appears to have finally caught up with black gold as it was revealed that Americans drove 10 billion fewer collective miles in the month of May, and as gasoline use in the US coincidentally (not) declined for 13 weeks in a row. In yesterday's comment we alluded to oil lobbyists bearing gifts. Turns out such strange men bearing gifts come in large numbers. Today, longest-serving Republican Senator Ted Stevens of Alaska was indicted on seven criminal charges. Among the revelations was the fact that he is alleged to have accepted gifts valued at over a quarter million dollars from...oil services company. So says the DOJ. How the mighty have fallen. Corruption of the best is the worst of all.

A sharply rising US dollar (showing a gain of .76 @ 73.42 on the index) and a major decline in oil (off $3 cents @$121.72 a barrel) underscored the unfavourable conditions in commodities and the yellow metal sold off quite heavily during the majority of today's New York session. Some support was found near $912, in an augmented replay of Monday's action. Much of what little support was indeed found, was related to financial woes over at Merrill Lynch whose $5.7 billion writedowns and $19 billion of losses over the past year have CEO John Thain pedaling harder than anyone in the latest Tour de France to shore up the firm's credit ratings, capital position, and shareholder confidence/patience.

New York spot gold was last showing a $12.00 loss quoted at $918.00 as participants started to fret about the possibility of a sub $900 dip. Bullion futures closed at more than a one-month low. The metal needs to keep above the water line at $915 in order not to induce additional liquidations among position holders. The euro traded much lower at $1.55 but all is not well in Euroland as the contagion from the US housing market is showing all of the signs of a full replay over in another hitherto white-hot market: Spain.

The implosion in that country's formerly soaring real estate has become a headache of first order of magnitude for the ECB's Mr. Trichet. Anyone for (more) covered bonds? Silver fell 19 cents to $17.30 while the noble metals presented a continuing negative picture as platinum fell $21 to $1734 and palladium was off $6 at $381 per ounce. In the background, thousands of unsold SUVs are choking dealer lots and one look at the emerging Kelley Blue Book values was enough to give a firm like Chrysler the final push - they are out of the auto leasing business. How is that for a reality check?

Presidential candidate Mr. Obama met with leaders from the world of money yesterday in Washington as he tackles the economy's challenging issues following his overseas 'foreign policy preview' tour. Though the timing of events was coincidental, the release of a projected deficit of $482 billion for 2009 by the Bush bean counters will have the Democratic contender up at night not only as he chooses monetary and fiscal managers but also as he selects what policies to put into motion (tax hikes, economic stimuli, etc.). Good thing he works out at the gym daily. He will need it. He is next slated to meet with Messrs. Bernanke and Paulson for more mental workouts. Speaking of working out, here is an interesting twist on possibly ameliorating the mortgage situation that has gripped the US and is now spreading to Don Quixote land. Covered Bonds. The NY Times fills us in on a home debt concept that has been quite familiar in Europe for some time now...

"The financial establishment came together Monday in search of a new way for banks to come up with cash for home mortgages. Regulators, bankers and traders, led by Treasury Secretary Henry M. Paulson Jr., all pledged to do their best to get a “covered bond market” going in the United States.

"Covered" seems to be a synonym for collateralized, but it also has other meanings that may be appropriate in this effort to salvage the housing market. Think of covered wagons, which can be circled in times of crisis. With banks reluctant to lend their own money for mortgages, and the private securitization market quiescent if not dead, the cost of mortgage loans has been rising even as housing prices fall, making a bad situation worse. At best, a covered bond market would provide a cheaper source of financing for banks while reassuring investors that their money is safe.

Essentially investors would buy into a pool of mortgages that would be kept on the balance sheet of the bank that made the loans. These would be high-quality loans, and at the first sign of trouble in the underlying mortgages, those mortgages would be replaced in the mortgage pool. Thus, investors would be assured of repayment unless the underlying mortgages suffered major losses and the issuing bank failed. That might make investors burned by existing mortgage securities more willing to return to the market.

At best, a covered bond market would provide a cheaper source of financing for banks while reassuring investors that their money will be safe. It is highly unusual for the government to take such a major role in getting a market established, but Treasury officials said their action was needed to get more money into housing loans.

"We spoke to 50 or 60 market participants," a senior Treasury official said, speaking on condition of anonymity because he was not authorized to describe the process publicly. "It became clear that if we took the lead, we had a real chance to kick-start this market."

In Washington, Mr. Paulson said that "as we are all aware, the availability of affordable mortgage financing is essential to turning the corner on the current housing correction. He was joined by officials from the Federal Reserve, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and the Office of Thrift Supervision.

“We are at the early stages of what should be a promising path, where the nascent U.S. covered bond market can grow and provide a new source of mortgage financing," Mr. Paulson said. Four major banks — Bank of America, Citigroup, JPMorgan Chase and Wells Fargo — said they hoped to issue such bonds, and a larger group of investment banks and brokerage firms pledged to establish desks to trade the securities.

What remains to be seen is if there will be buyers. Mr. Paulson said the bonds appeared to be attractive to major banks, which would be able to pledge them to obtain loans from the Fed, and to some institutional investors. The F.D.I.C., which takes over failed banks, promised to respect the terms of the bonds, so that bondholders would be repaid from the value of the mortgages, even if other bondholders in the failed bank suffered major losses.

Covered bond markets exist in many European countries. In some of them, laws make the legal standing of such bonds clear, but Mr. Paulson and the other agencies concluded that no legislation was needed, and that policy statements by regulators would suffice. It is expected that Bank of America will be the first issuer. Bank of America has issued such bonds in Europe, and did one $2 billion American offering of covered bonds in June 2007, before antipathy to mortgage securities intensified.

The covered bond markets in some European countries have suffered to some extent from house price declines, but the markets have not closed down as the private-label securitization market has in this country. In the United States, those securities were backed by mortgages that were not guaranteed by either the federal government or by Fannie Mae and Freddie Mac, the two government-sponsored housing finance enterprises. Fannie and Freddie became the principal buyer of mortgages after the private securitization market closed down, but their own financial health has deteriorated, and provisions for their own bailout, if necessary, are pending. In normal times, an American covered bond market would bear little resemblance to traditional mortgage securitizations, in which the investors are paid from the interest and principal payments on underlying mortgages (and thus suffer all the risks involved in such loans).

Instead, a bank that issued such bonds could do so on any terms it and investors agreed on. The bond payments would come from general corporate funds, and would not have to be tied to terms of the mortgages. Under a set of "best practices" issued by the Treasury and rules issued by the F.D.I.C., the bonds could have maturities from one year to 30 years. The mortgages securing them would be of high quality, and for no more than 80 percent of the home’s market value. That market value would be adjusted according to regional trends in home prices; if home prices declined, mortgages covering those homes might have to be replaced in the pool.

Any mortgage on which payments were at least 60 days overdue would also have to be replaced, so at least in theory the pool would always include good loans, and their value would have to total at least 105 percent of the outstanding bonds. The mortgages would remain on the books of the bank that issued them, and the bank would stand to lose if the loans went bad. That was not the case in recent years when mortgages were sold to securitization pools. That led to an erosion of lending standards because the lender profited when the loan was made and sold, whether or not it was eventually repaid.

For the covered bond market to become a major source of mortgage money in the United States, investors will have to be willing to buy the bonds, accepting interest rates at least a little lower than the banks could get by borrowing money directly. The banks also will to need to be comfortable in making mortgage loans that they will keep on their balance sheets, tying up capital. In past decades, banks took for granted that they would do that. But in recent years fewer loans were kept on balance sheets. They were sold off as mortgage-backed securities, freeing up capital and enabling the banks to report higher profits.

Many of the risks of those mortgages stayed in the banking system, however, as banks kept some of the securities they issued or bought from other banks. That led to multibillion-dollar losses, which have made it harder for some banks to raise money and have made virtually all banks less willing to make mortgage loans. The covered loan market could bring in cash for mortgages, if both the banks and the investors are willing to cooperate. Those are not exactly sure things. "There’s not 100 percent certainty that it ever will become very significant," Mr. Paulson said.

Sector rotation out of commodities and into whatever bargains may abound in other sectors (the Dow was ahead 210 at last check) continues to manifest itself as the summer rolls on. We cautioned about the dollar. This time, it rose without jawboning, on a bad day for Merrill. Not a sign to take lightly. Something is clicking. Or, could it be...ticking?

Mint Sculptor-Engraver Receives ANA Award

By US Mint

The United States Mint announced today that Sculptor-Engraver Jim Licaretz has been named the recipient of the 2008 Numismatic Art Award for Excellence in Medallic Sculpture (NAAEMS). The award, conferred by the American Numismatic Association (ANA), will be presented to Mr. Licaretz on August 2, 2008, at the ANA World’s Fair of Money® in Baltimore.
“We are pleased the panel of judges recognized Jim’s body of work,” said United States Mint Director Ed Moy. “Jim’s artistry is helping the United States Mint achieve a new level of design excellence.”

Mr. Licaretz’s works are included in numerous private collections, as well as the British Museum; the Royal Coin Cabinet; the National Museum of Economy, Stockholm, Sweden; the American Numismatic Society; and the Smithsonian Institution. His recent works for the United States Mint include the reverse design of the 2008 Bald Eagle Proof Silver Dollar Coin and the obverse design of the Andrew Jackson Presidential $1 Coin.

“To be honored with the American Numismatic Association’s award is quite a welcome surprise,” said Mr. Licaretz. “There is a great responsibility in giving form to one’s experience of life. Medallic sculpture is a unique way of recording and sharing these experiences.”

Mr. Licaretz was employed as a United States Mint Sculptor-Engraver from 1986 to 1989, and returned to the agency as a Medallic Sculptor in 2006. He also was a sculptor at Franklin Porcelain and the Franklin Mint in Pennsylvania, a master sculptor at Mattel, Inc. in California, and manager of the Sculpting Department at Artistic Solutions in California. In addition, he served as a faculty member at the Fleisher Art Memorial, Philadelphia; Otis School of Art and Design, Los Angeles; and the Academy of Art College, San Francisco.

Currently, Mr. Licaretz is president of the American Medallic Sculpture Association, and a member of the National Sculpture Society and the Federation International de le Medaille.
A native of Philadelphia, Mr. Licaretz graduated from the Pennsylvania Academy of the Fine Arts in Philadelphia. He received a Traveling Scholarship, as well as the Edmund Stewardson Prize for Figurative Sculpture, and a Philadelphia Board of Education four-year scholarship.

The ANA is a nonprofit educational organization dedicated to educating and encouraging people to study and collect money and related items. Established by the ANA in 1966, the NAAEMS recognizes a living artist whose cumulative lifetime achievement in the field has been of the highest order. Past United States Mint winners of the NAAEMS include Sculptor-Engraver Don Everhart and John Mercanti, Supervisory Design and Master Tooling Development Specialist.

Superb Gem 1879 $4 Stella aluminum

By Stacks

What about rarity? This is the only example ever graded by NGC—in any grade!
What about grade? Consider Proof-67 Cameo!
What about fame?
The $4 Stella is one of the most heralded of American rarities, and among the two designs, the Coiled Hair, by George T. Morgan, is the rarer.

All set to cross the auction block in Stacks Baltimore sale is this rarest of the rare pattern, Judd-1640, a glittering Proof in aluminum—a rare format even more elusive that an gold impression.

Here is some background, from Dave Bowers’ Whitman book on type coins (excerpt, adapted):

The $4 Stella
The Stella or $4 gold coin is among the most famous and desired of American rarities. The vast majority were struck in gold, with just a few in other metals. The presently offered aluminum striking provides the opportunity for some historical information:

The $4 piece was the brainchild of Hon. John A. Kasson, who had served as a minister to Austria. In Europe coins of slightly less value than the American $5 piece (the British gold sovereign being but one of many examples) were popular in trade. Kasson thought that an American $4 piece would serve as an international medium of exchange. This stands as one of many such notions that reached pattern coin form, but never resulted in issues made for general circulation. Others include the international $5 of 1868 and Dana Bickford’s impressive $10 of 1874.

However, logic dictated that the familiar $20 pieces were more convenient for international trade, easier to count, and were already in place. Besides, although the $4 Stella was set as being worth $4 American dollars, it still was not of the same value as even a single other current variety of European gold coin, and change would have to be made in transactions, just as it would have to be made for the standard $5 half eagle.

Patterns were prepared in two styles for Kasson’s proposal, called the Stella from the five-pointed star on the reverse. The most familiar today is the 1879 with Miss Liberty having flowing hair, the work of Charles E. Barber, son of chief engraver William Barber. The attractive and curious $4 Flowing Hair Stellas, as they are designated today, with the type in capital letters, were distributed in significant numbers to congressmen and others. An early story, true per testimony of the era, is that these became favorite gifts to madams and others in the demimonde of Washington, where ladies were always pleased to cater to the pleasure of male legislators distant from home. As a result, more than just a few $4 pieces in existence today show evidence of having been used as jewelry. As to how many 1879 Flowing Hair Stellas were struck, no one knows, with 425 being a popular figure. My estimate is about 700.

In the same year, 1879, George Morgan created his version of the Stella, with Miss Liberty having coiled hair, the design offered here, in aluminum. Apparently, no records at all were kept of the quantity made, and later factual-appearing statements as well as guesses have ranged from 10 gold impressions upward. In 1880 both Flowing Hair and Coiled Hair versions were made, again in small numbers. In 1879 and 1880, information about the three rare varieties (1879 Coiled Hair and both of 1880) was kept under wraps, and it was not until decades later, well into the 20th century, that illustrations of each of these appeared in print!

Finder of Viking Coin Treasure Gets $600,000

By CoinNews.net

Isle of Man MapA treasure hunter who discovered nearly 500 silver Viking coins by metal detecting on the Isle of Man will finally receive $600,000 in compensation.

Andy Whewell found 464 silver Viking coins, 26 silver ingots and an armlet in a field in Glenfaba in March 2003.

The coins were declared Treasure Trove in August of that year, with resulting expectations of receiving fair market value for the hoard.

However, Whewell and Manx National Heritage, the government agency responsible for protecting and promoting the cultural historical heritage of the Isle of Man, could not come to an agreement over the value of the coins and other artifacts.

According to Isle of Man Today, after several appraisals and a wait of nearly five years, an agreement was finally made for an amount of £300,000, or about $600,000 (US).

Andy Whewell wrote an article detailing his discovery. In his interesting narration, he describes how he uncovered the coins but didn’t have a container to carry them.

"I had to leave everything beside the refilled hole and walk back to my car for a container. Well, I actually ran all the way back. All I had was a cassette box. It seemed ages before I arrived back at the find spot, thinking all the time of the hoard I had left sitting in an open field."

Whewell provided the type of coins buried in the field:

Anglo-Saxon pennies (Aethelred II and Cnut) = 80, Hiberno-Scandinavian pennies = 324, One cut halfpenny, ‘Irish Sea’ imitation pennies of Cnut’s quatrefoil type = 11, Hiberno-Scandinavian/Manx transitional pennies = 30, 12 pennies that appear to be related to the Hiberno-Scandinavian/Manx series One Scandinavian imitation coin of Aethelred’s Long Cross type, and 5 coins that were unidentified Reportedly, Whewell will continue to look for more treasures with his metal detector.

Treasure Coins on Block

By Numismatic News

Treasure coins brought up from the wreck of the S.S. New York in the Gulf of Mexico will highlight at pre-American Numismatic Association convention auction to be held July 27-28 by Stack's in Baltimore.

Gold and silver coins from Southern Mints will be among the highlights.
A privately produced Christopher Bechtler $5 gold piece, K-19, graded AU-58 by Numismatic Guaranty Corp. will go on the block.

A remarkable 1845-D quarter eagle, brought up from the ocean floor, is now considered probably the finest known at NGC MS-64.

There are other gold pieces from the Dahlonega, Charlotte and New Orleans Mints as well as from Philadelphia.

Gold coins of the world recovered from the wreck will also be sold. These include British sovereigns and gold 8 escudos pieces from Latin America.

Some coins show the ravages of ocean water and are labeled with various "shipwreck effect" letter grades A-C. Those that show no adverse impact from their time in the sea are graded normally.

Hard Times and Merchants token collection assembled by James E. Dice and M. Lamar Hicks were given their own separate Stack's catalog for a July 28 session.

The sale also features Continental currency, American paper money and American Bank Note Co. archive material.

For more information, check Stack's Web site at www.stacks.com.

Kagin’s Free Platinum Coin

By Kagin's, Inc

Well-known numismatic firm, Kagin’s, Inc. (http://www.kagins.com/) of Tiburon, California, founded in 1933 by Arthur M. "Art" Kagin, will celebrate the company’s 75th anniversary during the upcoming American Numismatic Association World’s Fair of Money convention in Baltimore.

A lucky visitor to the Kagin’s booth (#531) will be awarded a free half-ounce American Eagle platinum coin valued at over $1,300 in a random drawing, and all visitors can enjoy a slice from a huge anniversary cake while it lasts.

"This is our platinum anniversary, so it’s appropriate we give away a platinum coin to celebrate," said Donald H. Kagin, Ph.D., son of the founder and a well-known numismatic researcher and dealer of pioneer gold and U. S. paper currency.

Kagin, the first to receive both a Bachelor of Arts and Doctorate degree in numismatics has managed the company since 1988.

"At 75 years, I believe we are the second oldest family-owned rare coin dealership in the United States. The tradition continues with my sister, Judy, who can be seen at major currency shows, and my nephew, Jeremiah, who is taking an active role with the company," said Kagin.
"Throughout the years, numismatics has not been just a business to us, but rather a passion and a way of life. We don’t just build collections, we build relationships."

Company founder Art Kagin, widely known as the "Dean of American Numismatics," passed away in 2005. He started collecting as a youth while selling newspapers and magazines when a woman gave him an 1883 "No Cents" Liberty Head nickel.

At the age of 13 he began working part-time selling coins, stamps and paper money in Minneapolis, Minnesota.

Later he worked for over 30 years with his brother, Paul, buying and selling coins nationally through auctions from Des Moines, Iowa. At one point they had five offices in the Midwest including one in Omaha managed by another brother, Julius.

"Dad cataloged more auctions than anyone else, almost 350," said Kagin.

As a national goodwill ambassador for the hobby for decades, Art Kagin frequently emphasized, "Numismatics is like a marriage. It has to be shared to be enjoyed."

He organized and developed the first numismatic college courses in the nation at Roosevelt University in Chicago, and he and Don started the Foundation for Numismatic Education that continues to fund numismatic research projects.

The family’s philosophy of promoting numismatic education continues with Don teaching and lecturing at schools, service organizations and ANA Summer Seminar programs. His innovative, one-man shows, "The Oldest Living Pioneer" and "Colonial Man," have educated, entertained and delighted thousands of collectors and non-collectors around the country.

Both Art and Don served on the ANA Board of Governors and as Chairman of the Education Committee.

Under Don’s management, Kagin’s moved its headquarters in the 1980’s to Tiburon, California, just North of San Francisco. In 2006, the company acquired Holabird Americana of Reno, Nevada, managed by well-known geologist and Western Americana expert and researcher, Fred Holabird.

Kagin’s also utilizes the expertise of highly-regarded numismatic researchers David McCarthy, Cherie Schoeps and Meredith Hilton. The company specializes in pioneer gold, patterns, U.S. colonials, American paper currency, California fractional gold, errors, early type coins, classic rarities and Western Americana. The company has taken a lead role in raising over $4.75 million for the renovation of the Old San Francisco Mint Museum.

For additional information, contact Kagin’s, Inc., 98 Main St., Suite 201, Tiburon, California 94920. Phone: (415) 435-2601. Online: http://www.kagins.com/


About Kagin’s, IncNumismatist Donald H. Kagin has unique credentials as a numismatic authority. He earned the first Bachelor of Arts degree in Numismatics granted by Northwestern University, simultaneously earning another B.A. in history. Graduate and post-graduate studies at Northwestern, Drake University, John Hopkins University, the American Numismatic Society Museum, the Smithsonian Institution, and the Union Graduate School earned Don the first Doctorate in Numismatics ever granted in the United States.

Dr. Kagin’s fields of expertise are private gold coins and United States currency. He authored the most comprehensive book on the former, Private Gold Coins and Patterns of the United States, which won the Numismatic Literary Guild’s “Best Book of the Year” award. He has also authored the most comprehensive book on rare coin investing, Donald Kagin’s Personal Guide to Rare Coin Investments, which was awarded the “Best Investment Book” by the Numismatic Literary Guild.

First Australian Saint Coin

By Royal Australian Mint

Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law, today launched the first coin in the Inspirational Australians’ coin series which features the Australian people’s saint, Blessed Mary MacKillop.

The Inspirational Australian coin series recognises and celebrates individual achievements and commemorates unique Australians who have made an extraordinary contribution to our society.
"As the Australian people’s saint, and someone who could be called Australia’s saint in waiting, Mary MacKillop is a fitting choice for the first coin in the Inspirational Australian series."
"The Royal Australian Mint’s world class coin designer Vladimir Gottwald has designed a coin which depicts Mary MacKillop guiding future generations.

Mary was an exceptional Australian woman who stands as an example of great courage, trust and compassion and as our first saint, she will forever inspire our nation," said Minister Sherry.
Minister Sherry was joined by Janine Murphy, CEO, Vladimir Gottwald, coin designer from the Royal Australian Mint and Sister Sheila McCreanor, Secretary General of the Congregational Leadership Team of the Sisters of St Joseph.
Mary MacKillop, born in Victoria 1842, was a teacher and Catholic nun. Mary founded the Order of the Sisters of St Joseph and set up a parish school for underprivileged children in South Australia.

This was the first religious order to be founded by an Australian. Under Mary’s guidance, the order established schools and charitable institutions across Australia and was devoted to the care of orphans, neglected children, the homeless, sick and aged.
In 1995, Mary MacKillop was beatified by Pope John Paul II. The process which could lead to her canonisation is underway. It is hoped she will be declared Saint Mary MacKillop.
# # #
Mary MacKillop coin specificationsDenomination $1 Metal AL/Bronze Mass 9.00 grams Diameter 25.00 mm Finish Uncirculated Mintage Unlimited
Purchase location Coins may be purchased online through the Royal Australian Mint page:
2008 $1 Uncicrulated Coin - Mary MacKillop

About the Royal Australian Mint
His Royal Highness, The Duke of Edinburgh, officially opened the Royal Australian Mint, Canberra, on Monday 22nd February 1965. The Mint was commissioned to produce Australia’s decimal coinage, which was to be introduced into circulation on 14th February 1966. The Royal Australian Mint holds a place in history as the first mint in Australia not to be a branch of the Royal Mint, London.

Since opening in 1965 the Mint has produced over eleven billion circulating coins and has the capacity to produce over two million coins per day, or over six hundred million coins per year.
The Royal Australian Mint has struck coins for a number of South Pacific nations. Export coins were first struck in 1969 for New Zealand and, since then, coins have been produced for Papua New Guinea, Tonga, Western Samoa, Cook Islands, Fiji, Malaysia, Thailand, Nepal, Bangladesh, Israel and Tokelau.

ANA Awards Medals of Merit

By ANA

ANA Awards Medals of Merit to Gordon Donnell, Jim Majoros and William Rau

Gordon R. Donnell, Jim Majoros and William G. Rau will receive American Numismatic Association Medal of Merit awards at the World’s Fair of Money® in Baltimore, July 30-August 3.

The annual award is presented to individuals who have dedicated numerous years of service to the Association and to promoting the hobby.

Gordon R. Donnell Gordon R. Donnell of Oakland, Calif., is always willing to share his love of the hobby and actively recruits new collectors.

A member of many local, regional and national clubs, he served as president of the Pacific Coast Numismatic Society, San Francisco Coin Club, Alameda Coin Club, Northern California Numismatic Association and International Organization of Wooden Money Collectors; and as vice president of the Liberty Numismatic Society and Diablo Numismatic Society.

An ANA member since 1988, Donnell was a district delegate from 1993 to 2007 and received the Outstanding District Delegate Award in 1997 and Outstanding Club Representative Award in 1998.

He was a member of the local committees for ANA conventions in Sacramento (1995) and San Francisco (2005). He received the ANA Presidential Award in 1994 and Glenn Smedley Memorial Award in 2004.

He was named a Numismatic News Numismatic Ambassador in 2003.

Jim MajorosJim Majoros of Toms River, N.J., has actively promoted numismatics in his home state for many years and served as vice president of the Garden State Numismatic Association.
When he became president of the Ocean County Coin Club in 1995, he reacted to its lack of a young collector program by developing one that not only sparked an interest and provided learning tools, but also helped club membership grow.

Majoros’ experience and enthusiasm was contagious, and he served as the ANA’s National Young Numismatist Coordinator from 2002 to 2005.

An ANA member since 1990, he was named the ANA’s 2007 Adult Advisor of the Year. In addition, he received the ANA Presidential Award in 2002 and Glenn Smedley Memorial Award in 2005.

William G. RauWilliam G. Rau of Frankenmuth, Mich., has been a collector since the 1950s. Retirement afforded him more time to actively promote and assist the Flint Flying Eagle Coin Club, which he currently serves as vice president.

His other club affiliations include the Michigan State Numismatic Society, Central States Numismatic Society and Numismatic Bibliomania Society.

Rau has donated his talents and many volunteer hours to the ANA’s Dwight N. Manley Numismatic Library by inventorying more than 26,000 auction catalogs and 19,000 fixed-price lists.

He also has assembled a database of more than 100,000 auction records of U.S. pattern coins from the 1850s to the present.

# # #
About American Numismatic Association The American Numismatic Association is a nonprofit educational organization dedicated to encouraging people to study and collect money and related items. The ANA helps its 32,000 members and the public discover and explore the world of money through its vast array of education and outreach programs as well as its museum, library, publications, conventions and seminars. For more information, call 719-632-2646 or visit www.money.org.

Mint Unveils Design for First U.S. Braille Coin

By U.S. Mint

United States Mint Director Ed Moy unveiled the design for the 2009 Louis Braille Bicentennial Silver Dollar at the National Federation of the Blind’s annual convention in Dallas, Texas, during the March for Independence on July 2, 2008.

“The United States Mint is proud to present the 2009 Louis Braille Bicentennial Silver Dollar coin design. It will be the first coin ever minted in the history of our country to contain readable Braille characters,” said Director Moy. “I am looking forward to presenting the design for this unprecedented coin, and I am pleased that the United States Mint is playing a role in the cause of bringing literacy to all blind and visually impaired Americans.”

A prototype was displayed at the convention for the attendees to examine and experience the Braille on the coin prior to being available for purchase.

The coin will go on sale in the spring of 2009, the bicentennial anniversary of Louis Braille’s birth.

In addition to commemorating the life and work of Louis Braille-the inventor of the Braille reading and writing system-surcharges from the sale of the coin are authorized to be paid to the National Federation of the Blind to help fund Braille literacy initiatives. Braille did not become the official method of reading and writing for the blind in the United States until the 20th century.

Previously, the Alabama commemorative quarter-dollar, one of the coins in the United States Mint’s popular 50 State Quarters® Program, used Braille in the image honoring Helen Keller. The 1995 and 1996 Paralympic Silver Dollars, minted to commemorate the 1996 Atlanta Olympics, also featured Braille. The Braille on those coins was too small to be read by the visually impaired.

Besides the readable Braille on the 2009 Louis Braille Bicentennial Silver Dollar, the coin has distinguishing features apparent to the visually impaired community, such as size, weight and reeded edges, as do all coins issued by the United States Mint.

Hessler to Receive Zerbe Award
Hendrickson Named Numismatist of the Year

By ANA

Gene Hessler is the 2008 recipient of the American Numismatic Association’s highest honor, the Farran Zerbe Memorial Award for Distinguished Service. He will be presented the accolade Aug. 2 during the Awards Banquet at the World’s Fair of Money® in Baltimore. Hessler, of Cincinnati, Ohio, is best known in the numismatic world as a paper money expert, who coined the term “syngraphics.”

He is the author of The Comprehensive Catalog of United States Paper Money, which garnered the Nathan Gold Memorial Award and the Robert Friedberg Award; An Illustrated History of U.S. Loans, 1775-1898; U.S. Essay, Proof & Specimen Notes; The Engraver’s Line: An Encyclopedia of Paper Money and Postage Stamp Art; and The International Engraver’s Line. A prolific writer for numismatic periodicals, he edits Paper Money, the Society of Paper Money Collectors’ journal.

From 1967-77, Hessler served as curator of the Chase Manhattan Bank Money Museum in New York’s Rockefeller Center. He also became the first full-time curator of the Mercantile Money Museum in St. Louis, where he worked from 1986-88.

An active advocate for the hobby, Hessler has been an expert source of numismatic information for publications including Time, Newsweek and the Encyclopedia Britannica; appeared on radio and TV shows such as “The Today Show,” “Wonderama,” “Voice of America” and “What’s My Line?.” His scripts for “Money Talks,” a daily National Public Radio broadcast, earned him a Peabody Broadcasting Award nomination in 1993.

An accomplished trombonist, Hessler worked with music legends Stan Kenton, Woody Herman and Buddy Rich. As a member of Broadway pit orchestras for The Music Man, Camelot and a dozen other shows, he performed with Robert Preston, Julie Andrews, Barbra Streisand, and a variety of other singers and entertainers in the 1950s and ´60s. Hessler won the ANA’s Glenn Smedley Award in 1993, the Medal of Merit in 1995 and a Presidential award in 1998. He received the Numismatic Ambassador Award in 1993 and the Numismatic Literary Guild’s Clemy Award in 2007.

The Farran Zerbe Memorial Award is given annually in recognition of numerous years of outstanding, dedicated service to numismatics. Past winners include Joseph E. Boling (2005), Anthony J. Swiatek (2002), Arthur Kagin (2000), and Kenneth and Bert Bressett (1998).

Leon Hendrickson named Numismatist of the Year
Leon Hendrickson is the recipient of the American Numismatic Association’s 2008 Numismatist of the Year for his many contributions to the hobby. He will be presented the award during the ANA Membership Reception at 4 p.m. Aug. 1 during the World’s Fair of Money® in Baltimore.

Hendrickson is widely known as the founder and president of Silver Towne, a coin dealership and mint he founded in 1949 in Winchester, Ind. He began by selling coins out of a cigar box stashed under the counter of his restaurant, and the business grew from there. Today, Silver Towne employs 100 people and features a coin shop, jewelry and collectibles departments, and custom mint.

“It’s just beyond my imagination how much business is out there. But the hobby’s fellowship has meant so much more to me than the money,” Hendrickson said. Hendrickson is an active member of more than 30 numismatic organizations and a tireless advocate and promoter of the hobby. He is a former president of the Professional Numismatists Guild, Central States Numismatic Society and Indiana State Numismatic Association.

An ANA life member, Hendrickson previously won the ANA Medal of Merit (1990) and Presidential Award (2003). He has received lifetime achievement awards from the National Silver Dollar Roundtable, the Blue Ridge Numismatic Association and the Professional Numismatists Guild.

“Whenever the hobby community has presented a challenge to him with a request for his participation, Hendrickson has simply done what was asked and what was right,” ANA Governor Clifford Mishler said. “He always has time for the individual collector seeking information, or a marketplace for buying or selling coins. It doesn’t matter if the object is a proof set or an 1804 dollar.”

The ANA Numismatist of the Year Award is given annually for career achievement in the field of numismatics. Past winners include John Dannreuther (2007), Mark Salzberg (2006), Adna G. Wilde (2005) and Kenneth E. Bressett (2004).

Early Quarter Eagles Catch Fire with Husky Collection

By Doug Winter

I never give these blogs titles but if I were going to, I’d call this one “it’s my blog and I’ll brag if I want to.” The brag topic? Early quarter eagle values and how this area of numismatics, which I’ve been literally begging people to buy for years, seems to suddenly have caught fire.

In the recent Stack’s Husky Collection auction, there was a date run of early quarter eagles. In fact, with the exception of the ultra-rare 1804 13 Stars and the 1834, I believe that every major variety of quarter eagle produced between 1796 and 1834 was present. The prices realized for these coins was impressive and they represent further validation of my beseeching collectors of early gold to give this series the same attention that has been lavished on the half eagles and eagles of this era. Apparently, at least a few people listened.

Instead of boring you with a coin-by-coin dissertation, I thought it would be interesting to focus on four coins in the sale: an example of the Draped Bust Right type of 1796-1807, an example of the one-year type of 1808, and one example each of the 1821-1827 and 1829-1834 Capped Bust types.

My favorite Draped Bust Right quarter eagle in the Husky Sale was Lot 2036, a nice NGC AU58 1806/4 with pleasing original color and choice surfaces. This was the sort of coin that probably would have graded AU55 a few years ago but, even so, I liked it a lot and was willing to pay around $25,000 for it. Back around 2000, before early gold was on most collectors’ radar, a coin of this quality was worth around $13,000-15,000. Five years later, when early gold was starting its inexorable climb upwards, this same coin was worth around $17,500-20,000. In the Husky Sale it sold for $32,200; a level that exceeds the current Trends value of $30,000 or the CDN Bid of $23,000.

I’ve never been quite as enamored with the 1808 as other dealers but the fact that it is a one-year type coin (and a scarce issue in higher grades) has always made it extremely popular. Back around 2000, you could still buy a “slider” example for around $50,000 and even as recently as a few years ago, a nice Uncirculated piece could be obtained for $75,000 or so. The Husky: 2039 coin was graded MS60 by NGC and I liked the coin a lot for the grade; in fact, I thought it might upgrade to MS61 if resubmitted. It sold for $155,250 which seems to be the going rate these days for an MS61.
The 1821 quarter eagle in the Husky Sale was graded MS61 by NGC. I had mixed feelings about the coin. It was well struck and flashy but a bit on the bright side for my taste. Nonetheless, it is a highly important issue as the first quarter eagle of this type. Back in the late 1990’s, an MS61 example would have brought around $15,000-17,500 at auction. In 2005, an NGC MS61 was sold for $27,600 by Superior. The Husky: 2040 example brought $48,875 which I believe is a record for an 1821 quarter eagle in MS61.
The quality of the Fat Head quarter eagles (i.e., those produced from 1829 to 1834) in the Husky Sale varied greatly. There were two graded AU53 and two in MS64. I was interested in the 1833 which was graded MS64 by NGC and assumed it would bring around $42,500. It is interesting to look at auction records of this date. All the way back in 1998 the Heritage 1/98: 7517 coin graded MS64 by NGC brought $32,200 and in January 2007 a similarly graded piece (Heritage 1/07: 3400) realized $40,250. The coin in the Husky sale sold for $48,875.
So what do the results from the Husky Sale prove? What I learned is that, for the most part, early quarter eagles have probably doubled in value since 2005 and tripled since 2000. This is impressive but, more than any other type of early U.S. gold, I feel that early quarter eagles are still a good value - even at the new 2008 levels. I certainly don’t expect prices to double again in the next three years (although it isn’t totally out of whack to think that an 1833 in MS64 could be worth $95,000-100,000 in 2011 if the coin market doesn’t get whacked between now and then…) but I like the upside of these coins more than just about any other early gold denomination.