Always a great selection of U.S. collector coins

September 2007

GOLD SURGES PAST $700 PER OUNCE

For the first time since the spring of 2006, the price of gold has topped $700 per ounce. Silver has rebounded from its low of the year set during August but, as of September 14, was still about $2.00 per ounce below its high for 2007.

The increase is partially attributable to a slumping U.S. dollar, which has recently set new lows against the Euro. Gold is a dollar denominated commodity, meaning its price is quoted in U.S. dollars on major exchanges throughout the world. A weaker dollar makes such commodities less expensive in terms of other currencies. Concerns about the health of the economy and volatility in equity markets are also driving some investors to gold, which has long been considered a financial safe haven in times of uncertainty.

Precious metals prices are closely watched by investors and affect the economy in general. Prices at which some coins are bought and sold are directly correlated to the spot price of the precious metal they contain. Moreover, rising precious metal prices typically stoke interest in collectable coins. Stronger demand for collector coins may lead to price increases that far exceed the change in their bullion value. (Falling metals prices often have the opposite effect.) Whether it's in the hope of reselling at a profit or to continue building a collection before possible price increases, greater interest in coins is already apparent at shops, shows and online.

In response to the recent run-up in the price of gold, the U.S. Mint has suspended sales of 2007 uncirculated gold American Eagles with a 'W' mintmark. Sales are expected to resume at higher prices in the near future.

CURRENT SPECIAL

2007 clad and silver proof sets have recently been released by the U.S. Mint. In addition to the complete sets, we offer the coins individually by denomination, so collectors of modern series can update their sets without having to purchase unwanted coins.

Our annual proof coin sale is now underway. Prices for 2007 and selected other recent proof coins have been reduced through October 5. Among the sale items is the complete 2007 Presidential Dollar Proof Set (containing all four Presidential Dollars being released during 2007) at $1 below the Mint issue price. Please see our Current Special page for all of the sale prices.

"FIRST STRIKE" LAWSUIT SETTLEMENT REACHED

In past issues of our newsletter, we reported that a collector had filed class action lawsuits in Florida against two prominent third party grading companies for their designation of certain coins as "first strikes" and that one of the companies subsequently discontinued those designations. The suits have alleged that the companies violated unfair trade practices laws of their home states by giving the designation when the actual time at which the coins were struck had not been determined.

A proposed settlement has been reached with Numismatic Guaranty Corporation (NGC). Terms of the settlement are available online. Briefly, NGC will pay $650,000. Up to 30% of that amount will be paid to the plaintiff's attorneys for fees and costs, $7,500 will be paid to the plaintiff, and the balance will be donated to the American Numismatic Association (ANA) or other not-for-profit organization. A final hearing on the proposed settlement has been scheduled for December 13, 2007.

A separate lawsuit concerning the "first strike" designation against Professional Coin Grading Service (PCGS) has reportedly been settled out of court. Terms have not been disclosed.

-----

Telesphere Numismatics

Our newsletter is also distributed by e-mail on a strictly opt-in only basis. To subscribe, simply complete the form below. Instructions for unsubscribing are included with each issue.

Index of Other Available Issues

Subscribe!

Receive our free newsletter by e-mail! Messages sent about once a month feature announcements of new purchases, special offers and updates at our web site. Each issue also includes at least one article containing news and/or commentary pertaining to the world of numismatics.

To receive future issues of the Telesphere Numismatics newsletter by e-mail, enter your name and e-mail address in the form below and click the "Subscribe Now" button.

Our newsletter is strictly opt-in only. No one will be added without requesting it. To protect your privacy, subscriber info will not be available to anyone else. Requests to unsubscribe are promptly honored.

Your Name
Your e-mail address