PMG will begin use of a new generation holder on January 3, 2011. All notes encapsulated after that date by PMG will automatically be placed in the new holder. Additionally, the new holder will be used for on-site grading during the Florida United Numismatists (FUN) convention in January. This holder marks the first design iteration of the PMG holder since the company launched in 2005. The second-generation PMG holder is made from the same high-quality inert materials and is very similar in shape and overall aesthetics; however, it features new, highly sophisticated anti-counterfeiting and tampering-prevention technologies.

While PMG has not had any reported instances of holder tampering or counterfeiting, the company’s mandate requires periodic reviews of the security of its products. PMG was able to take advantage of advances and technologies used by other Certified Collectibles Group companies, including NGC, in their own certification holders. Ultimately, the holder was upgraded to maintain PMG’s leadership role and the strong preference for its certification holder among currency collectors.

“Our newest label and holder fully satisfies PMG’s combined objectives of exceptional visual display, security and long-term preservation,” comments PMG Grader Richard Stelzer.

Some of the changes will be almost invisible. For example, the label in the second-generation PMG holder includes a conservation-grade UV fiber paper, as did the previous version, but also includes a new UV watermark. These features are not visible under normal light, but when viewed under ultraviolet light these features help confirm the authenticity of PMG product.

Additionally, spot metallic-foil and holographic patterns have been added to the label design and borders. A state-of-the-art hologram is also now fused directly to the label paper. All of these features combine to make the PMG label virtually impossible to reproduce.

The outside holder itself has also undergone important changes. The holder’s sealed edges now include an embossed pattern. The custom design relies on a unique safe-sealing method pioneered by Certified Collectibles Group. The complex repeating texture includes the PMG logo and other elements within the seal that also confirm the quality and thoroughness of the holder seal.

For more information or to have your notes encapsulated in the newest PMG holder, contact PMG customer service at 1-877-PMG-5570 or service@PMGnotes.com.

Related posts:

1. NGC Unveils New Holder Design
2. New NGC Holder Enters Next Phase of Release
3. TELETRADE To Auction Collection Of PCGS “Green Holder” Coins Today, June 1st 2008

Spectrum Group International, Inc. (SPGZ.PK) announced today that its subsidiary Bowers and Merena Auctions, one of the world’s pre-eminent auctioneers of rare coins and currency, has entered into an agreement with Stack’s, the oldest rare coin retail and auction company in the U.S., to combine their operations.

The new company, which will be known as Stack’s-Bowers Numismatics, with a world coin division to be known as Stack’s-Bowers and Ponterio, will be owned 51% by Bowers and Merena Auctions and 49% by Stack’s. The closing, which is subject to the satisfaction of customary conditions, is expected to take place in early 2011.

Greg Roberts, president and chief executive officer of Spectrum Group (SGI), commented, “We believe that this combination, once consummated, will create a major player in the coin industry. Stack’s had over $65 million in aggregate sales in 2010 and between them, the two companies have handled many of the significant coin collections that have sold at public auction, including the Eliasberg Sales, the Norweb Sales and the Ford Collections.”

Bowers and Merena Auctions president Chris Napolitano, who will serve as president of the combined company, said, “I am honored and excited to lead this new venture, which combines two of the leading names in our industry. We consider Stack’s to be the crown jewel of coin auction houses and with this partnership, we have assembled a numismatic team that we believe to be unequaled in the industry. We look forward to continuing and expanding Stack’s auction and retail locations in mid-town Manhattan, which serve not only the greater New York metropolitan area but also the entire east coast.”

Added Mr. Roberts, “A significant factor for SGI in pursuing this merger was the opportunity to partner with Charles, Joel and Harold Anderson and the rest of the Anderson family, who own a controlling interest in Stacks. For years I have enjoyed a strong personal and professional relationship with the Andersons and now look forward to a long-lasting association with the family through Stack’s-Bowers Numismatics. We intend to continue the long tradition that the Stack family developed over many decades in New York. For years it has been a goal of ours to have a presence in NYC. With this partnership, we will achieve that goal at one of the most famous and prestigious addresses in the numismatics industry: 123 West 57th Street, New York, New York.”

Joel Anderson commented, “We are looking forward with great enthusiasm to the successful combination of these two fine companies. Both have rich histories of service with integrity to the numismatic community and together their combined resources and talents will bring new levels of service and value to the numismatic market. In addition, Charles, Harold and I have assembled some nice collections and we are pleased that Stack’s-Bowers Numismatics will be there for us when the time comes to sell.”

Concluded Mr. Roberts, “Consistent with our goal of creating long-term value for our shareholders, we have made the decision to focus our energy on growing our core trading and numismatics businesses, and this transaction is a key part of that strategy. For those same reasons, we have entered into an agreement to sell our arms and armor auction company, Greg Martin Auctions, back to Greg Martin and his partners, following its January auction in Las Vegas. Under Mr. Martin’s leadership, we have every expectation that Greg Martin Auctions will continue its tradition of providing expert appraisal and auction services to collectors of antique firearms.”

ABOUT SPECTRUM GROUP INTERNATIONAL, INC.

Spectrum Group International, Inc., named to the Fortune 500 list in 2010, is a global trading and collectibles network. We are a trader of precious metals and an auctioneer of coins, stamps, wine, and antique arms, armor and historical memorabilia, serving both collectors and dealers. We are also a merchant/dealer of certain collectibles. Our collectibles offerings span the price spectrums from modest to ultra-high end. Furthermore, we offer loans to coin dealers, collectors and investors back by their precious metals, rare coin and other collectibles as collateral.

Our Trading business is conducted through A-Mark Precious Metals, Inc. and its subsidiaries. A-Mark is a full-service precious metal trading company, and an official distributor for many government mints throughout the world. A-Mark products include gold, silver, platinum and palladium for storage and delivery in the form of coins, bars, wafers and grain, and our services include financing, leasing, consignment, hedging and various customized financial programs. A-Mark’s subsidiary, Collateral Finance Corporation, which is the official Numismatic Lender of the American Numismatic Association, provides financing on a wide array of bullion and numismatic products.

Our Collectibles business operates as an integrated network of leading companies concentrating on numismatic (coins) and philatelic (stamps) materials, and rare and fine vintage wine. We have offices and auction houses in North America, Europe and Asia. In addition to traditional live auctions, we also conduct Internet and telephone auctions.

Our Collectibles companies in the philatelic field are auction houses H.R. Harmer Global Philatelic of Irvine, California, Corinphila Auktionen of Zurich, Switzerland, Heinrich Köhler Auktionshaus of Wiesbaden, Germany, Corinphila Veilingen B.V., Amstelveen, Netherlands, and John Bull Stamp Auctions, Ltd of Hong Kong. Spectrum Group’s Collectibles companies in the numismatics field include Bowers and Merena Auctions (rare coin and currency auction house), Ponterio & Associates (world and ancient coins and currency auction house), Teletrade (online coin auctions) and Spectrum Numismatics International (wholesale rare coin dealer), all based in Irvine, California. Spectrum Wine Auctions is engaged in the sale by auction of rare and fine vintage wine.

Related posts:

1. Bowers And Merena Auctions To Reopen Direct Buying & Selling Division, Bowers And Merena Rare Coin Galleries
2. BOWERS AND MERENA AUCTIONS NAMES MATTHEW QUINN DIRECTOR OF CURRENCY AUCTIONS
3. Chris Napolitano Named President of Bowers and Merena Auctions

Odyssey Marine Exploration, Inc. (NasdaqCM: OMEX) a pioneer in the field of deep ocean exploration, was named in several U.S. State Department cables obtained by WikiLeaks and furnished to the media worldwide. Some of the released cables suggest that the State Department offered special assistance in the “Black Swan” case to Spanish officials in exchange for assistance in acquiring a French painting confiscated by the Nazis during World War II and now controlled by Spain.

The cables indicate that the U.S. Government also provided confidential documentation on Odyssey to Spain.

Other State Department cables contradict Spain’s claims and support Odyssey’s previously stated version of events relating to the company’s activities in Spain, including the HMS Sussex project and the boarding of Odyssey’s vessels.

“While we are obviously concerned about these implications regarding the ‘Black Swan’ case, we are attempting to obtain additional information before taking any specific actions. I have personally sent a letter to the Secretary of State, Hillary Rodham Clinton, requesting additional information and a review of the position taken by the U.S. in the ‘Black Swan’ legal case,” stated Greg Stemm, Odyssey CEO. “The possibility that someone in the U.S. Government came up with this perfidious offer to sacrifice Odyssey, its thousands of shareholders, and the many jobs created by the company in exchange for the return of one painting to one individual is hard to believe. The WikiLeaks cables clearly show that we have worked cooperatively and transparently with both Spain and the State Department for many years, in spite of claims to the contrary. That fact makes the revelations all the more disappointing. The cables also make us wonder what other agreements may have taken place between U.S. Government officials and Spain regarding the amicus brief filed in support of Spain’s position in the ‘Black Swan’ case.”

“We’ve wondered why the United States changed its long standing position on sovereign immunity, which prior to this case was consistent with U.S. law, international law and U.S. naval regulations that in order for a foreign country’s ships and cargo to be immune from the jurisdiction of the U.S. courts they must be engaged in military, non-commercial activities,” stated Melinda MacConnel, Odyssey Vice President and General Counsel. “These released cables do call into question the motivation behind the amicus brief filed by the Executive Branch supporting Spain in the ‘Black Swan’ case.”

Additional cables released support Odyssey’s statements that, contrary to allegations of certain Spanish officials, the company always cooperated with the Spanish Government and that permits from the Spanish government were granted for work on the HMS Sussex project. The cables also demonstrate the obstructionist activities carried out by certain Spanish officials who had personal reasons for trying to prevent Odyssey from working on the Sussex. These obstructions took place even though Odyssey has an exclusive contract for the archaeological excavation of this UK sovereign immune warship (which was on a strictly military mission when it sank in 1694 off the coast of Gibraltar). Odyssey filed an affidavit in 2007 with a chronology of Odyssey’s interactions with the Spanish Government since 1998. It can be accessed at http://shipwreck.net/pdf/ExhibitE.pdf. The document contains entries that are corroborated by information in the State Department cables, which directly contradict claims by some Spanish officials and the Spanish media.

About the “Black Swan”

In May 2007, Odyssey announced the discovery of the “Black Swan,” a Colonial-period site located in the Atlantic Ocean which yielded over 500,000 silver coins weighing more than 17 tons, hundreds of gold coins, worked gold, and other artifacts. Odyssey completed an extensive pre-disturbance survey of the “Black Swan” site, which included recording over 14,000 digital still images used to create a photomosaic of the site.

The coins and artifacts were brought into the United States with a valid export license and imported legally pursuant to U.S. law. Odyssey brought the artifacts under the jurisdiction of the U.S. District Court by filing an Admiralty arrest action. This procedure allows any legitimate claimant with an interest in the property to make a claim.

The Kingdom of Spain filed a claim to the treasure alleging that the coins originated from the Nuestra Senora de las Mercedes, a Spanish naval vessel which sunk in 1804. Spain claimed that it owned all of the coins and that the treasure was immune from the jurisdiction of the U.S. Court under the Foreign Sovereign Immunities Act (FSIA). Although it has not been conclusively proven the recovered cargo came from the Mercedes, Odyssey presented clear evidence to the trial court (including the ship’s manifest) that shows the primary purpose of the Mercedes’ last voyage was commercial in nature and the vast majority of coins on board were owned by private merchants, not by Spain. The United States filed an amicus brief in the case changing its previous position and supporting Spain in the “Black Swan” case by setting forth a re-interpretation of the language in the Sunken Military Craft Act (SMCA) to allow government owned vessels on commercial missions to enjoy sovereign immunity.

A number of individual private descendants (whose ancestors were transporting goods on the Mercedes) as well as the country of Peru have filed claims in the case.

Without conducting a hearing, the district court sided with Spain and ruled that the treasure should all be turned over to Spain. The case is currently on appeal at the Eleventh Circuit.

For more information on the “Black Swan,” visit www.shipwreck.net/blackswan.php.

Odyssey’s significant legal filings in the “Black Swan” case can be viewed at http://www.shipwreck.net/blackswanlegal.php.

Related posts:

1. Odyssey Marine Exploration Files Appellate Brief in “Black Swan” Case
2. Odyssey Marine Exploration Challenges Claims by Spain in Its “Black Swan” Appellate Reply
3. Odyssey Marine Exploration Files Admiralty Arrests on Two Shipwreck Sites

For the past few years, arguably the main annual event for the rare coin market has been the massive Heritage auctions at the Florida United Numismatists convention, a major coin show that will take place during the first week of the new year in Tampa Jan. 6 to 9.

The multiday auctions and the packed bourse floor at FUN set the tone of the market for at least the year’s early months, as dealers reposition their inventories, and collectors make their first buys of the year.

Some expensive coins were sold at the 2010 FUN Heritage auction, including $3,737,500 realized for one of finest known examples of the 1913 Liberty Head 5-cent coin, tying the third-place record for the largest sum ever paid at auction for a single U.S. coin.

Two other million-dollar coins traded hands in the 2010 Heritage FUN auctions: a 1927-D Saint-Gaudens gold $20 double eagle graded Mint State 66, which sold for $1,495,000, and an 1874 Dana Bickford gold $10 eagle pattern in Proof 65 deep cameo, which sold above expectations for $1,265,000.

In total, more than $36.5 million in coins traded hands at the 2010 Heritage official FUN coin auctions.

While the new year’s first auction lacks an obvious million-dollar superstar on the level of the 1913 Liberty Head 5-cent piece, three exceptional coins could prove dazzling.

Perhaps the most noteworthy is an 1852-O Coronet $20 double eagle graded MS-65. It is the finest known example of the date and the catalog description states that it is “quite likely the finest New Orleans twenty of any date.”

In 2009, a Specimen 63 1856-O Coronet double eagle realized $1,437,500. In addition, 1850 to 1866 New Orleans Mint double eagles enjoy a healthy popularity.

Since the offered 1852-O Coronet double eagle has been off the market for more than 30 years, it’s anyone’s guess as to what this grand condition rarity will bring.

Another New Orleans Mint gold coin may also soar – the finest collectible 1909-O Indian Head $5 half eagle, graded MS-66. The lot description counts 19 examples graded MS-64 to MS-66 and the issue is the key to the series. The offered example last sold publicly in May 1998 as part of the Thaine B. Price Collection for $374,000, where it was described by auctioneer David Akers as “the finest collectible example of the rarest issue in the entire series.”

While the Indian Head half eagle lacks the broad popularity that Coronet double eagles enjoy, coins that are undoubtedly the “best of the best” have thrived in the current market.

A third coin that could surprise is a Proof 67 1907 Indian Head, Normal Rim gold $10 eagle, formerly in the collection of Mint Director Frank A. Leach and held by his family for more than 100 years.

It’s the finest example known, and the catalog makes an argument that it may be a trial piece. With an impeccable provenance and nearly unparalleled beauty, this coin has broad mass appeal.

Related posts:

1. Bowers and Merena Auctions to Host Boston Rarities Auction
2. Strong bourse + auctions at Baltimore coin show; Rarities keep soaring
3. Coin Rarities & Related Topics: Southern California Auctions and Market Realities

The US mint does not distribute its bullion products directly to the public, but rather uses a network of 11 “Primary Distributors” who purchase the coins from the US Mint at $9.75 over the spot price of silver, and then in turn mostly wholesale these out to retail dealers. Few of these Primary Distributors have retail facilities.

Here is a list of the Primary Distributors:

• A-Mark Precious Metals
• Coins ‘N Things Inc.
• MTB
• Scotia Mocatta
• Dillon Gage of Dallas
• Prudential Securities Inc.
• The Gold Center
• American Precious Metals Exchange, Inc. (APMEX)
• Commerzbank International (Luxembourg)
• Deutsche Bank A.G. (Germany)
• Tanaka Kikinzoku Kogyo K.K. (Japan)

As part of the December 1st announcement, the Mint surprisingly drastically reduced the mintage’s for the much anticipated 5 oz  America the Beautiful Bullion coins from an anticipated 100,000 coin  (for each of the 5 designs this year), to a mere 33,000.

After the announcement, APMEX decided to offer the 2010 5 coin set to customers and allow them to pre-order the coins from their website. Apmex is one of the few Primary Distributors that maintains a retail presence  through their website (which is excellent by the way). The 5 coin set was being offered at $1,395.

Obviously with such limited supplies, the large (3 inches in diameter) bullion coins were expected to be in hot demand .

However within hours of this pre-launch offering, complaints started to be registered with the US Mint because Apmex, responding to the anticipated demand and low mintages, had placed a $130.00 premium per coin on the set.

Apmex customers didn’t seem to mind the hefty premiums too much because within 19 hours after the posted  pre-launch offer, they had sold 1000 sets. But the US Mint did mind. In fact they halted the release of the new 5 oz coins to review the situation.

In a statement released by the US Mint, and posted on CoinUpdate the Mint made the following statements:

The United States Mint is aware of reports of concern by many consumers about the high prices and premiums being charged in the market for the newly released America the Beautiful Silver Bullion Coins.  We are evaluating these reports and collecting information in order to assess the appropriate course of action to make certain that our customers are best served in the distribution of the coins, and to ensure the widest possible availability, accessibility and affordability of these coins.

The same day, the US Mint sent the following memo to primary distributors:

The United States Mint issued a press release on December 1, 2010, announcing the December 6, 2010, availability of the 2010 America the Beautiful Ounce Silver Bullion Coins through the established network of Authorized Purchasers who, in turn, would make them available on the secondary market.   Due to the limited availability of the 2010 America the Beautiful Silver Bullion Coin coins, public anticipation has been extremely strong.  Since the press release was issued, the United States Mint has received numerous calls and inquiries from the public regarding premiums being charged for these coins.  As a result, we are delaying the launch of this program.  No America the Beautiful Ounce Silver Bullion Coins orders will be confirmed today.

New Terms and Conditions for Primary Distributors

1.  Authorized Purchasers shall make available for sale to the public all 2010 America the Beautiful Silver Bullion Coins that they acquire.  The intention of this condition is to ensure that all 2010 America the Beautiful Silver Bullion Coins minted and issued by the United States Mint are sold to the public.

2.  Authorized Purchasers may charge to their customers a price no higher than ten percent above the price at which the Authorized Purchasers acquire 2010 America the Beautiful Silver Bullion Coins from the United States Mint.  Authorized Purchasers may charge their customers a reasonable shipping and handling fee; however, Authorized Purchasers may not charge any other fee, premium, or other expense to their customers to circumvent this ten-percent markup limitation.  The intention of this condition is to ensure that members of the public can obtain these coins at a reasonable and affordable purchase price.

3.  Authorized Purchasers must establish and enforce an order limit of one coin of each design for each household.  A household is defined as all persons of a family, or living as a family, at a single mailing address.  The intention of this condition is to ensure the broadest and fairest public accessibility to 2010 America the Beautiful Silver Bullion Coins, which are limited-mintage United States Mint products.

4.  Authorized Purchasers may not sell, either directly or indirectly, 2010 America the Beautiful Silver Bullion Coins to their officers or employees.  The intention of this condition is to ensure that 2010 America the Beautiful Silver Bullion Coins are available to the public and that Authorized Purchaser officers and employees do not have an unfair advantage over members of the public.

Bottom Line: The New America the Beautiful 5 oz Bullion coins are supposed to be released today, December 10th. The Primary Distributors have been restricted to charge no more than a 10% premium for the coins. Those Primary Distributors who do not agree with the New Terms and Conditions issued by the US Mint and/or do not purchase their allocation, with have the coins allocated to them re-distributed to other Primary Distributor no latter than December 20th.

All in all an interesting situation, and one that raises many questions that I am sure will be discussed for months to come. We will be doing a follow-up article on this in the near future.

Related posts:

1. US Mint to Start production of 5 oz Bullion Coin with “America the Beautiful Quarter” Designs
2. US Mint Unveils First Five Coins in America the Beautiful Quarters Program
3. The Story of America’s Most Beautiful Coin