Coin Collecting News

Spectrum Group International, Inc. announced that the American Numismatic Association (ANA) has renewed Spectrum’s Collateral Finance Corporation (CFC) contract as the exclusive official numismatic lender of the ANA until 2011.

The ANA is a Congressionally-chartered, 32,000-member nonprofit association, and is the world’s largest organization dedicated to educating and encouraging people to study and collect money and related items.

CFC, a wholly-owned subsidiary of A-Mark Precious Metals, Inc., which conducts Spectrum Group International’s trading operations, provides loans to dealers, collectors and traders in the rare coin and bullion market. These loans, which are offered on monthly, six-month or one-year terms with an origination fee, are secured by the coin and bullion assets of the borrower, whether part of the investor’s collection or in the dealer’s inventory. CFC also provides loans against coins that are in the process of being independently certified for authenticity and grade by Numismatic Guaranty Corporation (NGC) or Professional Coin Grading Service (PCGS). CFC offers final loan amounts – ranging from $25,000 to over $5 million – of up to 70 percent of the collateral value of coin assets, and 90 percent of the collateral value of bullion assets, based on its in-house expert valuations of the collateral.

Greg Roberts, President and CEO of Spectrum Group International, Inc., commented, “The price volatility of precious metals continues to fuel greater interest in rare-coin collecting and bullion trading. With our experience in collateral lending, we formed CFC to meet the growing demand for capital to fund the investment in rare coins and bullion.”

Mr. Roberts continued, “Currently, CFC offers competitive lending rates to dealers and traders, and we have expanded these lending services to individual collectors through our dealer relationships and our renewed relationship with the ANA.” Continued

1795 half eagle, 1856-O double eagle and 1880 Coiled Hair stella among the offerings from Heritage, July 31-Aug. 2, in Beverly Hills

DALLAS, TX – Legends of TV and film will surrender the Hollywood spotlight for a night when a different kind of American star takes to the podium at the Hyatt Regency Century Plaza in Beverly Hills: A historic 1854-S quarter eagle, graded VF35 NGC, will lead the Platinum Night offerings of Heritage Auction Galleries’ August 2009 Los Angeles U.S. Coin Auction

“This coin is truly a legendary rarity,” said Greg Rohan, President of Heritage, “and one of just a dozen known survivors from the first quarter eagle issue produced by the San Francisco Mint. In Heritage’s in-house condition census of the surviving 12, this example is rated fifth overall.”

Just 246 examples of the 1854-S quarter eagle were struck since the San Francisco Mint focused on making larger denominations such as the eagle and double eagle, and the relative “small change”denomination of the gold dollar, leaving the quarter eagle and half eagle relatively neglected. Despite the tiny mintage for the 1854-S quarter eagle, the coins that were produced found ready acceptance in California commerce; virtually the entire mintage was lost through attrition.

Every known 1854-S quarter eagle shows evidence of circulation, whether slight or extreme. The Choice VF example Heritage is offering exhibits moderate wear, but the surfaces show few of the usual marks that coins accrue while circulating and its eye appeal is remarkably strong.

“For decades, the 1854-S quarter eagle has been an underrated rarity,” said Rohan, “but a select cadre of collectors has long coveted the issue, and recent years have brought greater awareness of and appreciation for this emblem of the California Gold Rush.” Continued

A consumer watchdog organization has recovered nearly $900,000 for buyers who paid far more for coins than they were worth.

The money represented full refunds in 16 recent disputes, according to the New Jersey-based not-for-profit group, the Numismatic Consumer Alliance, Inc. (NCA).

The consumers had purchased the coins – mostly overpriced bullion coins and other modern issues – on the basis of telemarketers’ sales pitches, NCA said. It said the Alliance was able to obtain full refunds totaling $884,769 for coins which were worth a fraction of their purchase price.

“Many of these buyers,” NCA said, “were senior citizens with no knowledge of coins who also lacked the Internet savvy to check out what they were buying and who they were buying it from.”

The Alliance has now recovered a total of more than $4 million for such consumers since becoming operational in 2005. NCA intervenes on these buyers’ behalf, engaging legal and other professional assistance if necessary, in an effort to ensure that coin consumers are getting their money’s worth.

The Alliance is reviewing other disputes involving coins for which consumers paid more than $10 million.

NCA seeks no compensation when it enters a dispute on behalf of an aggrieved consumer – even though it frequently incurs substantial legal bills and other expenses in the process. Funds to cover such costs are contributed by coin dealers and collectors who share its concerns. On several occasions, consumers who were aided by NCA subsequently donated funds to help it continue its work on behalf of others. Continued