Adam Crum – Monaco Rare Coins

Critics Believe Second Round of Quantitative Easing By the Fed Will Further Devalue the Dollar and Create Inflation

Federal Reserve Chairman Ben Bernanke has been quoted as saying he would fly over the United States and drop dollars from a helicopter should it be necessary.

Sans helicopter, for the time being at any rate, the Federal Reserve has announced that it plans to breathe new life into the economy with additional quantitative easing, a series of Treasury purchases starting with $600,000,000 that may ultimately total $1 trillion or more according to some sources. With the U.S. economy expanding at just 2 percent annually in the third quarter of this year and the jobless rate apparently stalled at about 9.6 percent, the Fed was pressured to do something to stimulate the economy.

Bernanke explained to students at Jacksonville University that a second round of easing will enable the Fed to accomplish its two Congressional mandates, ensuring full employment and stable prices while preventing deflation and generating some “good” inflation.

Critics say the dollar will weaken and create inflation

Critics believe that the dollar will weaken as these purchases (accomplished by printing money) increase the Fed’s balance sheet. Inflation is fueled by a weaker dollar as the real price of goods and services becomes more expensive. Using past research and her own models, Goldman Sachs strategist Robin Brooks suggests the dollar will need to drop a great deal more than the Federal Reserve thinks in order to meet the central bank’s inflation target.

“Substantial additional monetary stimulus is needed for the Fed to meet its dual mandate on inflation and employment,” wrote Brooks after the Fed’s announcement. She has raised her estimate for the total size of this second round of quantitative easing from $1 trillion to $2 trillion. “If indeed the Fed sees the dollar as one of its key policy levers for preventing inflation from staying below its mandate for a prolonged period, the dollar needs to fall a lot further from here,” says Brooks.

The big question is when Bernanke discovers that the plan isn’t working, how much farther could the dollar fall? This controversial plan of additional quantitative easing takes the Fed into essentially uncharted waters and puts the dollar at risk of crashing. Frankly, these additional bond purchases could be more destructive than critics even think if inflation is ignited when the economy finally comes around. (more…)

By Doug Winter – RareGoldCoins.com

As someone who is pretty attuned to the strengths and weaknesses of the rare gold coin market, I can accurately rate how well (or poorly) a specific series is performing. 2010 was an interesting year for gold coins. We saw tremendous price increases in gold bullion but many areas of the coin market were flat. In the first annual DWN Rare Gold Coin Market Heat Index (cue sizzling sound effect…), I am going to discuss the relative position(s) of the most commonly traded areas of the market.

This totally non-scientific study is keyed to the following ratings, which go from 1 to 10:

1. This series is so cold you couldn’t give the coins away
2-5: This series ranges from ice cold to moderate strength
6-9: This series ranges from strong to very strong
10: This series is en fuego

And without further ado, let’s talk hot or cold gold…

I. Gold Dollars

There is pretty solid overall collector support for gold dollars. While there do not appear to be many specialists working on complete sets, there are a number of collectors working on focused subsets; i.e., Dahlonega dollars, Civil War issues, etc. I would say that Type One branch mint dollars are probably the strongest overall segement of this market and the weakest is, clearly, high grade non-branch mint Type Two coins.

In the Type Three series, I am noticing some strength in very high quality Philadelphia issues from the 1870’s and 1880’s. In most cases, the coins that are the strongest are PCGS graded MS67 and better pieces with great eye appeal. The Charlotte and Dahlonega market is very bifurcated. Top quality original pieces in all grades are very strong while overgraded, non-original pieces are hard to sell even at a serious discount.

OVERALL RATING: 5. This denomination is collector-driven and reasonably strong as of the end of 2010. The coins showing the greatest demand include the very rare Dahlonega issues (1855-D, 1856-D and 1861-D), mintmarked Type Two coins in “collector grades” and Finest Known or high Condition Census Type Three issues graded by PCGS and approved by CAC.

II. Quarter Eagles

This is perhaps the most mixed denomination in the entire U.S. gold oeuvre as the heat index ranges from borderline frigid to pretty toasty. Early quarter eagles are showing mixed collector support. These coins are still undervalued when compared to other early gold denominations but they are no longer “cheap.” Some weak auction results for overgraded 1796 No Stars and 1808 quarter eagles have lowered Trends but nice examples of these two significant dates are still in demand. Collectors of early quarter eagles are looking for value. They want either very rare issues that are underpriced (such as the 1826/5 or the 1834) or coins that are choice and original. (more…)

Alledged “Coin Broker” Convinced Elderly Woman to put Life Savings Into Gold Coins, then Steals them Back

The Manhattan DA’s office announced the indictment of a “rare coin broker” who allegedly convinced an elderly woman and her daughter to invest their life savings in rare gold and silver coins, and then stole $430,000 worth of the coins back from them.

The “Coin Broker/Advisor”, Stephanie Brown of Paradise Valley, Arizona, has been charged with grand larceny, fraud and forgery to name a few, and DA Cy Vance said, “The defendant preyed upon the victims’ fears of a national financial collapse and convinced them to sink their life savings into collector coins.”

According to a Wall Street Journal Article,”Over the next two and a half years, the 83-year-old mother ensnared in the alleged scheme spent $1 million — her life’s savings — and her daughter paid $80,000 to acquire about 160 coins, according to prosecutors. Brown earned $100,000 in commission on the sales.Brown began selling them coins in March of 2007, and soon convinced them to “liquidate all financial investments they held and to invest their life’s savings in gold coins.” The mother and daughter combined spent about $1.1 million on the coins, and Brown  reportedly earned commissions of about $100,000.

Brown then allegedly convinced the two to keep the coins at home, and then gained entry to their house, after which she was left alone with the coins. She is accused of destroying the documents identifying the coins and stealing 57 of their 160 coins, worth $430,000. Prosecutors have now recovered 16 of the stolen coins, which Brown had resold.

Brown is currently under investigation in connection with coin sales in California and Arizona, prosecutors said, but she has not been charged in those states. She was a former employee of ITM Trading and began her own business, GBA Gold, a/k/a GBA Investments LLC ( The Web Site has been suspended) 26546 N. Alma School Road #230 Scottsdale, AZ 85255 ( Better Business Member with an A- rating joined on 7/20/2010)

Editors Note: If you read through a number the articles written about this story, it is amazing to read certain statements and characterizations.

For example, Ms Brown was described as a “Rare Coin Expert” in one WSJ article. Funny, i thought she was just a thief and a con artist. Is she indeed a “Coin Expert” or just a person selling coins? You decide. Here is a link to a brief profile on Ms. Brown.

In another article the Daily News writer made the following comment on the Gold market; “While gold has traded at an all-time high, topping $1,400 an ounce in the past few days, collectible coins are not as safe as gold because they are gilt, not solid gold.”  Even Assistant District Attorney Adam Kaufmann gave his opinion on the coin market saying.”Gold coins are not a great hedge in these economic times” REALLY?

Finally Minyanville.com took a more political angle on the story with their headline “Gold Coin Scammer Takes Page From Glenn Beck’s Playbook” Somehow I don’t think this story has anything to do with Glen Beck, Fox News, Goldline or NY Rep Wiener. Give it a rest….

Stolen Coins Removed from London Auction

The Sofia News Agency reported that Bulgarian medieval coins which were to part of a Nov 10th auction by Classical Numismatic Group, Inc in London has been removed from the sale, including a very rare silver penny of despot Dobrotitsa, minted in Kaliakra.

In 2007, a collection of 500 medieval crosses and 2 000 medieval coins, including the said silver penny, were stolen from the home of one of the authors of the book titled “Bulgarian Antique Coins from the 9th to the 15th Century Period” , published in 1999.

After the joint operation between the Main Directorate “Criminal Police,” the Bulgarian Culture Ministry, and the Supreme Prosecutor’s Office of Cassations, the Bulgarian medieval coins have been taken off the auction site and their sale halted. (more…)