Canadian 60th Anniversary of VE-Day

As I mentioned before, this beautiful and nicely arranged commemorative issue contains a sterling silver reproduction of the 1945 5-cent coin, complete with King George VI on the front. The set also features a bronze medallion. Both are inside of a tin, with great inserts.

The problem is that it came shrink wrapped and I desperately want to open it and see these treasures with my own eyes. The only reason I know that the inserts are nicely done is because I saw the picture of them from the person I bought the set from on eBay.

I’m not sure what merits may lie in keeping the shrink wrap intact. To be sure, original packaging is oh so important for collectibles such as action figures and PEZ dispensers. But what about a commemorative coin issue? Can there be any harm or loss in value from merely opening the container?

As long as the coin and medallion remain in whatever protective casing they’re in, the value shouldn’t be diminished at all. Naturally, there is a cardboard sleeve around the tin, which adds a very catching element to the packaging overall.

Besides all that, there are already tears in the shrink wrap. None so much that it looks anything less than pristine, but isn’t any value added by virtue of shrink wrap diminished with the tearing of said shrink wrap?

If the set is kept nicely and the sleeve is intact, does the value change without the shrink wrap?

I’m guessing no and will open it regardless so that my curiosity will finally be satiated.

Foreign Mint Sets

One of the easiest and quickest way to diversify one’s coin collection is to buy foreign mint sets or foreign commemorative folders. If you can get there fast enough, many of the national mints won’t charge the kinds of overhead that is always expected when purchasing from a dealer or over the internet. Several European national mints do not engage in price gouging. Germany, Austria, Netherlands, Spain, Italy, France and Finland do not charge very substantial fees for providing commemorative or mint sets as products available over the internet. The highest cost is for shipping.

At the AMA coin show here in Pittsburgh, there was such an abundance of US mint sets and proof sets, they were practically giving them away. You could walk out of there with the entire run of both types for the 1980s for just under $50, the 1990s for around $60 (because of the 1999 issue of the first state quarters). I saw a dealer selling a run of 2000s, plus the 1999 set for $90. That’s eleven years worth of US standard issue circulation coins- which includes state quarters and the bicentennial Lincoln cent issues- for $90. That’s $8 per year for a P and D uncirculated set and the S proof set. If that dealer accepted Visa, I may well have been the owner of such a run. The reason behind this saturation was the bad economy. Everyone who had a collection was selling it. Keep in mind, these poor souls paid at least $15 for the proof sets and at least $12 for the mint sets for each year. The high rates of production, coupled with easy market access, does not make US base metal mint or proof sets worth investing in.

The much lower rate of production and relative market distance allows foreign mint and proof sets far more safe as an investment for a coin collection. Canadian sets are very easy for anyone in the US to obtain and can be done so with a very low cost of shipping. The Royal Canadian Mint has obviously realized the lucrative nature of the low production for one-of-a-kind type coins and coin sets, as they have recently begun offering very specialized, highly desirable sets that might include a special ‘Loonie’ ($1 coin) or ‘Toonie’ ($2 coin). Such ‘specimen sets’ have included the special $2 coin, featuring a Lynx cat in place of the regular polar bear, and the Spotted Owl $1 coin. both of these were offered in a special collectors folder and production quantities were each limited to just about 15,000. They both contained the regular series of coins, from the 1 cent coin all the way up to and including the $2 coin. The normal issue $1 or $2 coins would then be replaced by the commemorative issue. The standard coins alongside the commemoratives in these sets usually feature highly specialized textures.

RCM also offers a wide range of lower denominated commemorative coins, such as the 5 cent Veterans coin and the 10 cent Volunteer coin. You’ll even find some of these in general circulation. Nearly every year for the past fifteen, RCM has issued at least one commemorative 25 cent coin. For the years 1999 and 2000, a series of twelve such commemorative quarters were issued each year. The 2010 Vancouver Winter Olympics provided the perfect opportunity for RCM to issue a total of 30 commemorative coins in both the 25 cent and $1 denominations.

My own collection has recently gained one such commemorative folder- that of the 2001 Year of the Volunteer commemorative 10 cent coin. It is sealed in plastic and I can barely make out the reverse commemorative design. I also added a very special commemorative to my collection in the form of the 2005 60th anniversary of victory in Europe re-issue 5 cent commemorative, with the Victory design on the reverse. The obverse features the same head of King George VI as did the 1943-1945 issues 60 years before. It comes in a tin, with a very nice insert and is accompanied by a large bronze medal weighing 26.4g. The 5 cent coin is sterling silver and weighs 5.35g. I pain just under $10 (CAD$10) for this issue and shipping was free.

This is just the type of issue that is not only inexpensive, but will likely appreciate quite a bit in a short amount of time. This issue was sold for around CAD$5 just about six years ago. Compare this 100% rise in value with the mere 15% rise in value a 2005 Marine Corps US Silver dollar issue carries. The Canadian commemorative was limited to a 60k production run, while the US produced nearly ten times that amount- 600k for its commemorative issue.

Add to that the effect of direct shipments and pre-orders that the US Mint allows for each of its issues to the effect of low and slow appreciation values for US silver commemorative issues. With few exceptions, US commemorative coins, while plentiful and abundant, don’t offer the same kind of investment value that other national mint issues have.

Coin shortage in Kenya

This was an interesting story I happened across while looking for videos on You Tube for my school’s final project. It seems that close to 2 billion Kenyan Shillings worth of coins are being kept by citizens in Kenya. Late in June of this year, the Central Bank of Kenya began a campaign to bring the coins back into circulation. They called it ‘coin week’ and it is hoped to halve the amount of coins being kept by the population.

Most of the interviewees for the story said that shops no longer accept the 50 cent coin, because of its low value. In fact, instead of giving out a 50 cent coin in change, some shops are substituting the coin for a piece of candy. Some banks do not accept coins in deposits and others charge fees for taking coins.

From the time of independence in 1963, Kenya has been using the Shilling as its currency, which is made up of 100 cents. Since about 1991, Kenyan sub-unit denominated coins have been made of plated steel. Since 1995, the 50 cent coin was the highest Shilling sub-unit coin in production. The highest denomination presently produced is the 40 Shilling coin, which makes the 50 cent coin 1/80 of the highest circulation coin- not quite as small as the US Lincoln cent, but still pretty small.

It takes about 91 Kenyan Shillings to equal $1 US.  Therefore, the Kenyan 50 cent coin is worth about a half cent. However, according to many of the comments on the You Tube video, there are still plenty of things one can buy with 50 cents- probably just a piece of candy.

Coins as Jewelry

Cha-Ching is a Pittsburgh-based business whose proprietor specializes in converting typical coins into various forms of jewelry. We found her table at the city’s central street market. The majority of pieces were earrings, bracelets and necklaces- the central focal point of each is a coin with most accompanied by beads or metal rings, etc.

While I take certain issue with the method of piercing coins with a hole in order to string a chain or rope through it, the practice is an excellent way to appreciate coins from a non-collector point of view. As long as the coin will always be used as jewelry, the value of the coin is actually quite high compared with the numismatic value of it.

When she found out that I have tons of extra coins that she might be interested in, she wrote her email address on her card and asked me to get in touch with her and suggested that if there was something that we were interested in, perhaps the value of the coins that she might want out of my collection could be put toward a purchase. Of course my better half was very excited- as there were no Dutch coins there, and I have several hundred that could easily be made into a bracelet.

Last night, I enlisted the better half to suggest which coins might make good candidates for jewelry. Most of the ones she picked had flowers or birds on them. I’m including the new US ‘shield’ pennies, of which I have several hundred. The older Singapore coins, with sea-animals are some of my favorite and I have a hard time parting with them, but at least I have several more in my collection.

The owner of Cha-Ching, Suzy, is meeting us tonight to evaluate our picks. Hopefully, out of the three pounds of coins, there is enough to equal the price of a nice bracelet made of Dutch coins, plus some left over.

Her business website is something that can’t be missed: http://www.chachingcoinjewelry.com

The Man Who Could Stop the Mint

This is a great story from PCGS website:

Bill Dickerson - March 14, 2011

Throughout the years, many interesting tales filled with history and romance have been linked to coins of the United States. One of the most notable is the one about Josh Tatum, who single-handedly caused the Mint to stop production of the nickel. The following story contains the facts surrounding what took place at that time.

In 1883, the Mint changed the design of the five cent piece. In doing so, it unknowingly presented a great opportunity to an "enterprising" young man by the name of Josh Tatum.

Mr. Tatum noticed that the new nickel was about the same size as the five dollar gold coin. He also realized that there was nothing on the coin to denote what the denomination was. The coin, which was originally named the Liberty nickel, would soon become known as the "V" nickel due to the fact that a large Roman numeral for "five" was stamped on the reverse of the coin. Young Tatum must have really become excited when he realized the potential our newest coin offered. He went right to work and struck up a partnership with a friend who was skilled in the art of electroplating over base metal. Using a 24-carat gold electroplate, they were able to convert many thousands of the new five-cent pieces into what appeared to be five-dollar gold coins.

The stage was set, and being a man of action, Josh was off and running. He went from town to town, hitting every store he could find, purchasing five-cent items. Each time he would lay down one of the newly-created "five dollar gold coins," the clerk would respond by returning $4.95 change. This was apparently a very profitable business, but as the saying goes, "All good things must come to an end," and Tatum's venture was no exception. After it was finally realized that the five dollar gold coins were only nickels, Josh was quickly apprehended and prosecuted for his crime.

A very strange thing happened in court. Tatum was acquitted of the major charge because none of the witnesses would or even could admit that he actually told them the coins were five dollar gold pieces. You see, he couldn't! Josh Tatum was a deaf mute and was unable to say anything. All he ever did was put the coins on the counter and accept, in return, the purchased five cent items and a gift of $4.95, the "change" which he happily accepted.

Tatum's efforts prompted the government to immediately suspend the minting of the new nickel and change the die to include the word "cents" under the Roman numeral "V" on the coin's reverse. By the way, many of the original electroplated coins created by Josh Tatum are still available, and many coin dealers sell what has become known as the "Racketeer" nickel, ironically for a price of $4.95.

Portrait of a Queen

Since her coronation in 1953, Queen Elizabeth II has appeared on British coinage and the coinage of the countries of which she is Head of State. The portrait is updated to reflect the Queen’s age and change in appearance. Four different effigies have been used on British coins and those of most other countries in the realm or commonwealth.

The Mary Gillick portrait was largely in use from 1953 until decimalization in Britain and Australia and roughly 1965 in most other countries such as Canada. It is one of only two portraits in regular use on coins that does not feature a crown.

Cecil Thomas designed a ‘realm portrait’ which is similar in nature and appears in the same context as that of George VI who was king before and father to Queen Elizabeth II. They bear the same crown and most of the designs of the British and realm coinage didn’t change- as is normal custom.

Arnold Machin provided the second common portrait of the Queen- this one with a crown. This was in use on all British, Australian, New Zealand ‘new’ decimal coins and in Canada. This was the most widely used portrait in all British Territorial coinage issuing bodies around the world to date. Unlike the other three common portraits, there was no variation on this portrait in any part of the Commonwealth.

Machin’s portrait is said to be a favorite of the Queen herself. When approached to pose for an updated portrait, she was most concerned about the quality of the new portrait not living up to the standards of Machin’s work.

The Machin portrait also has the distinction of longevity over the other three common portraits. It was in use for nineteen years (five more than the common portrait in use at present, as of 2011).

The third portrait comes from Raphael Maklouf and began roughly the same time everywhere between 1985 and 1986. There is a variation on the common design of the third portrait used in Britain for parts of the Commonwealth and territories; otherwise, this portrait was universal to coinage bearing the Queen’s effigy.

Canada began using a portrait designed by Dora de Pedery-Hunt in 1990. It is similar to Maklouf’s in design, but differs in orientation of the monarch. Side-by-side comparisons reveal the difference.

Maklouf era ‘realm portrait’ used for a number of commonwealth coin portraits. It replaced the Machin portrait.

The fourth and presently used effigy is the work of Ian Rank-Broadly, which has been in use on British coins since 1998. This portrait represents the first and only occurance of the designer’s initials appearing outside and separate from the effigy itself.

Canada began using a portrait similar to the Maklouf by Dora dePedery-Hunt in 1990.

In 2003, a new portrait was commissioned in honor of the 50th anniversary of the Queen’s coronation. It is by Susanna Blunt and is in use presently, but is unique to Canada. One of the more noticeable difference, aside from the actual portrait is that the Queen does not bear a crown- unlike any other presently used portrait in the world.

There are a couple variations on the present Rank-Broadly design, but none are common to circulation coins. This portrait (right) is used on a small number of commonwealth coins, including Cook Islands.

Not all of the coins bearing the effigy of Elizabeth II have changed their portraits to reflect the age of the Queen. Maundy money in Britain still retains the first Gillick portrait. Belize uses the Cecil Thomas ‘realm portrait’ on fractional coins and the Maklouf portrait on the one dollar coin.

A few coin portraits of the Queen exist on an individual basis- appearing on only one coin or one denomination- separate from the typical circulation coins:

	New Zealand issued a one dollar coin between 1979 and 1982 with such an irregular portrait. Each of the four coins have a separate portrait of the Queen from the other circulation coins issued in New Zealand during this time. This departure from the normal portrait was to commemorate the Royal Visit. The coins issued just before (1978) and just after (1983) these four, carry the Machin portrait.
	Australia issued an irregular portrait on the occasion of the Queen’s visit in 2000 on the 50-cent coin. Vladimir Gotwald was the designer of this portrait and it was one of the finalists for the 1998 update to the Queen’s effigy.
	For the duel purposes of increasing circulation and popularity of the Canadian 50-cent coin, and to celebrate the 50th anniversary of the Queen’s coronation, Canada used a variation on the Cecil Thomas realm portrait. This portrait was only used in 2003 and circulated along side the new Canadian portrait of 2003.
	Gibraltar produced coins with a Maklouf variation in 2004 to commemorate the 300th anniversary of the territory’s capture. This portrait was used for four years. The coins issued just before (2003) and just after (2008) the four-year commemoration, carry the Rank-Broadly portrait.
	A 2003 British five pound coin bore this portrait in honor of 50 years as Queen.

In 2008 and 2009, the isolated South Atlantic British Territory constituent of Tristan da Cunha which is part of the territories St. Helena and Ascension Island, issued coins bearing unique portraits of the Queen; a different portrait in both years. The denominations of the issue are 1/2p, 1p, 2p, 5p, 10p, 20p and 25p.

2008 Tristan da Cunha portrait	2009 Tristan da Cunha portrait

The Gillick and Maklouf portraits each lasted twelve years. The present portrait has been in use (as of 2011) for fourteen years. Given the upcoming 60th anniversary of her reign, it is reasonable to assume that a new portrait may be forthcoming.

During the course of the historic reign of Elizabeth II, the number of countries producing coins bearing her image decreased sharply. None of the coins that bear her portrait today are produced for circulation in precious metal. The last of these coins were mostly debased by 1965, with a few larger denominations, made in part of silver, existing only a few more years. In fact, the coins produced today represent the lowest intrinsic value in history with steel as the primary metal in content.

At one point, just over half the coins in production for circulation were made of silver. Now, only commemorative coins and special editions are silver.

Caveat emptor

A recent winning bid on eBay was from a seller who claimed to have bought an 85-pound bin of estate coins and then split it into 5-pound bags. My bid was for one of the 5-pound bags, but imagine my disappointment when I got the package and found nothing but corroded, badly damaged bits of metal. Based on the smell and the pattern of destruction wrought on these coins, I can only guess that they had been in a fire and sustained direct contact with large quantities of water or other fire suppression material.

The reason that I went so high in my bidding in the first place, was because usually coin lots with a story like this one have some really good finds in them. Also, the description hinted at a good possibility of some silver pieces.

The real disappointment is the fact that the coins that were in the haul were really good ones. Luckily, the seller agreed to give me a refund (including shipping), so I’m sending the haul back- silver pieces and all- with my best wishes.