Kill The Penny!
Posted on 12.01.11 by Danny Glover @ 8:26 pm

I don’t know much about monetary policy, but as a coin collector, I do know this much about “money” policy: America could save a bundle of money by killing off the penny:

The same goes for dollar bills, which is why I’m a fan of the Dollar Coin Alliance. But a government that has overspent by trillions of dollars can’t be expected to care about the mere $5.6 billion it could save over 30 years by eliminating currency that has no relative value any more.


Filed under: Coin Collecting and Government and News & Politics and Video
Comments: None

Paul Farhi’s Penny Hatred
Posted on 08.17.10 by Danny Glover @ 6:26 pm

Journalists feign objectivity for the public, but get them in a free-wheeling chat and they’ll spout opinions about anything — even the merits of coins.

Hence this Q&A today with Paul Farhi of The Washington Post:

READER: I was fairly shocked to see that they have redesigned the back of the penny. Does this seem like a waste of time to you?

PAUL FARHI: Yes. We should ban the penny and round everything up or down. Maybe take the nickel with you while we’re at it. Waste of resources, seems to me.

I happen to agree with Farhi about the penny, an annoying coin of no value in a country where inflation long ago made the penny worthless. I also happen to be an objective journalist in one format who still spouts opinions every day.

But Farhi’s condemnation of the penny — and of the dollar coin — came in the context of an online chat where he cautioned other journalists to choose their words wisely so they wouldn’t be suspended for revealing personal bias. How ironic.

I guess it’s safe to assume that Farhi won’t be covering any future debates about the merits of the penny.


Filed under: Coin Collecting and Media
Comments: 1 Comment

The Gold And Silver Racket
Posted on 04.09.10 by Danny Glover @ 4:22 pm

Gold and silver have been hot commodities for months. You can’t watch cable television for more than an hour without seeing at least one commercial inviting you to BUY GOLD NOW, and other companies are setting up shop in hotels around the country to buy people’s precious metals.

Beware both the sellers and the buyers.

The companies pushing gold and silver as sound investments know the metals market is in a bubble, just like real estate was a few years ago and dot-com stocks before that. Wait for the gold and silver bubble to burst, and then start buying, which is what those companies did years ago.

As for the firms that buy gold and silver in bulk, avoid them altogether. You will not get anywhere close to the true value for your coins, jewelry or bullion.

One newspaper in Texas has done its community a great service by attending the gold- and silver-buying bonanzas where out-of-town companies try to part residents from their valuables. The newspaper sends a reporter to the events with a collection of gold and silver whose fair-market value already has been determined. Then it compares that price with the offers from buyers.

The gap between the two numbers is huge, as is evident in this report:

Another out-of-state gold buying company has set-up shop in a local hotel in hopes of separating local citizens from their valuable gold, silver and collectible items.

This week, GoldRush took out a full-page advertisement in the Beaumont Enterprise announcing “Top Dollar Paid” on items brought to its sale at the Hilton Garden Inn. But just like three previous companies that have come through town promising big payouts but offering pennies on the dollar, GoldRush was right on cue.

On Tuesday, The Examiner brought in its entire supply of coins, scrap gold and bullion - valued at more than $43,000 — and was offered $11,600, or about 25 cents on the dollar.

The company representative went ballistic when the reporter confronted him about the discrepancy. “It is business. It is as simple as that,” he said. “When you go to buy a used car, is it worth what they are charging you. Your newspaper is not worth a dime, I can tell you that right now. You are as low as low gets.” Methinks he did protest too much.

I have a small stash of worn and common silver coins that I may sell once it’s worth enough to buy a digital camera, but if I do, I won’t be dealing with a shyster in a hotel. I’ll find a reputable, local coin or bullion dealer. Everyone should do the same.


Filed under: Business and Coin Collecting
Comments: None

Telling The Bible’s Stories In Coin
Posted on 12.10.09 by Danny Glover @ 6:01 pm

I’m a big fan of American coins, especially the older designs that contain something more creative than images of presidents. But with the exception of Guatemalan coins because that’s where our children were born, I’ve never paid much attention to foreign coins.

I’ve been missing a good series. Since 1995, Israel has been striking coins about biblical stories. This year’s coins, available in gold and silver and in different sizes, illustrate the story of Israeli judge Samson killing a lion with his bare hands.

Past coins have featured the Big Three patriarchs — Abraham, Isaac and Jacob — and characters such as Joseph, Moses and his sister Miriam, Solomon and the prophet Isaiah. The Tower of Babel makes an appearance, too.

Meanwhile, on $1 coins here in the United States that nobody uses, this year we’re celebrating presidential powerhouses William Henry Harrison (dead one month after his inauguration because he didn’t have, as the cliche says, the sense God gave a lemon), John Tyler, James K. Polk and Zachary Taylor.

It’s enough to make an all-American guy want to start collecting coins from Israel.


Filed under: Coin Collecting and History and People and Religion
Comments: None

A Gold Coin Worth $3.4 Million
Posted on 10.24.09 by Danny Glover @ 9:24 pm

The Royal Canadian Mint made five humongous gold coins in 2007. One is now the star of a high-security tour in the country before it is auctioned in 2011.

The “Million-Dollar Coin,” which is actually worth $3.4 million just for the gold content, weighs 220 pounds and is more than an inch thick and about 20 inches in diameter. Behold her beauty!


Filed under: Coin Collecting
Comments: None

The Government’s Gold Coin Grab
Posted on 09.18.09 by Danny Glover @ 12:08 am

About 75 years ago, the federal government minted a batch of $20 gold coins but decided not to release them publicly. Most were melted, but a few found their way out of the U.S. Mint. Those 1933 Saint Gaudens “double eagles” are among the most famous coins in history, and now they’re in the news again.

Back in 2003, Roy Langbord found not one but 10 of the coins in a long-forgotten family safe-deposit box. The only 1933 double eagle ever sold netted $7.6 million in 2002, the most for any single coin in history. Langbord and his family were suddenly rich.

Or so they thought. But when they gave the coins to the government to authenticate that they weren’t fakes, Uncle Sam kept them, claiming that Langbord’s grandfather, Israel Switt, had stolen them. The government offered no evidence to prove its claim — and apparently has none — so now the case is in court.

It’s entirely possible that Switt was a criminal and stole the coins. But in America, he’s innocent until proven guilty — and his family members are definitely innocent.”Maybe they were stolen in the 1930s,” a leading numismatist told The New York Times, “but they certainly weren’t stolen by the people who are holding them now.”

Amen to that. At a minimum, the government should do what it did in 2002 — let the coins go to auction and split the proceeds 50-50 with the family. But I hope the family gets all of they money. They deserve it after the government’s greedy gold coin grab.


Filed under: Coin Collecting and Government
Comments: 2 Comments

The Coin Find Of A Lifetime
Posted on 08.26.09 by Danny Glover @ 12:16 pm

I love a good coin story, and this is the best one I’ve read in a while:

A few weeks ago Orlando firefighter Brad Lehnen and the crew at station 10 hit the streets like they do every year, collecting money for the Muscular Dystrophy Association, dollar after dollar filling the boot. But what Lehnen didn’t realize is there was a little surprise inside when he dumped out his boot. “I started counting all the bills. Sifting through the change and their was a gold coin at the bottom,” said Lehnen.

[T]his is the first time the MDA in central Florida got a rare coin, a 1912 gold coin with an Indian head on it. … [A coin dealer told Fox News] the two-and-a-half dollar coin is worth about $200.00.

That news account reminded me of my favorite coin story of all time. It’s my favorite because it involved friends of ours.

Our friends regularly frequented the “Too Good To Be Trash” facility at our local dump, where people took old or broken items they didn’t want anymore but that other people might be willing to whip back into usable shape. Our friends scored some great finds over the years, including a grandfather clock that needed a minor repair but was otherwise in fantastic shape.

One day while our friend was scouring the non-trashy goods on the grounds with her daughter, they caught a glimpse of something shiny on the pavement. At first glance, they thought it was just toy money, but a closer inspection made them think it was real gold. And indeed it was.

I don’t recall the denomination or the exact year, but it was a U.S. gold coin from the 1800s. It wasn’t extremely valuable (maybe $150), but it was absolutely free — and a great piece of history. Even better, it’s now a family heirloom with a great story behind it.


Filed under: Coin Collecting and Friends and History and Human Interest
Comments: None

Barack Obama Gets His Own Money
Posted on 06.16.09 by Danny Glover @ 7:07 pm

As president, Barack Obama has done nothing but spend money the U.S. government doesn’t have. But that’s OK. The island nation of Vanuatu has coined new money in his image.

We can use it to stimulate the economy, run Government Motors, fund the government option for health care and save us all from the global warming induced by cow farts. Or we can all move to Vanuatu once Obama has destroyed the economy here.

Parting thought: Vanuatu sounds an awful lot like Xanadu, don’t ya think? What was it that Olivia Newton-John sang about that fantasy world?
(more…)


Filed under: Coin Collecting and Entertainment and Human Interest and People
Comments: None

A Stimulus Penny Spent, A Job Lost
Posted on 06.10.09 by Danny Glover @ 10:08 pm

The coin collector in me loves the guy behind the Political Math videos. He doesn’t just create great visuals of how the Obama administration is wrecking the federal budget and failing to “save” the economy; he also collects the old “wheat” pennies from the piles.

The latest video casts light on how miserable the administration is at its own political math calculations. President Obama told the country that Congress had to spend nearly a trillion dollars, and now, to stimulate the economy and “save or create” millions of jobs. Congress spent the money, but far more jobs disappeared than predicted.

While the math in the video is arguably a little off, the Obama team’s math is far worse. It sounds like they went to the Ma & Pa Kettle School Of Cipherin’.

The video storyteller behind Political Math is going to need all of those pennies, including the ones with wheat ears, and then some if the next four years goes like Obama’s first few months.


Filed under: Coin Collecting and Entertainment and Government and News & Politics and People and Video
Comments: 2 Comments

Stuck Holding The Bag Of Pennies
Posted on 06.09.09 by Danny Glover @ 10:12 pm

Last month, I blogged about the sudden interest in the least valued of American coins, the penny. People are buying them both because of the new designs implemented this year and because the rush to collect them is actually making the penny worth something.

I’d love to have some of the new pennies for my collection, but as I said then, I’m willing to wait out the rush rather than rush into a market rife with speculators.

Now comes word that the speculators may be stuck holding bags of relatively worthless pennies because the U.S. Mint responded to consumer demand and produced and sold tens of thousands more rolls of the second design (250,500) than the first one (96,000).

Yes, I’ll say it … I told you so.


Filed under: Coin Collecting
Comments: None

An Appeal For Penny-Ante Lobbying
Posted on 05.27.09 by Danny Glover @ 6:48 pm

Have you seen any of the new Lincoln pennies in circulation — either of the two designs that feature a log cabin and Abraham Lincoln reading on a log? Neither have I. And I don’t expect to see either of the other two designs when they are released later this year.

Coin dealers and collectors are hoarding the pennies by the roll and selling them for exorbitant premiums over face value. Earlier this month when the second design was released, people stood in long lines in Indiana and Washington, D.C., for the chance to buy the pennies. In the nation’s capital, the supply of rolls lasted only 30 minutes.

One policy advocate is blaming the U.S. Mint for the lack of supply when the public is demanding so many pennies, and he wants you and me to yell at Congress. From Numismatic News:

The failure of the United States to put enough of the special cents issued to commemorate [Lincoln] has led to price gouging by the Mint, which can command 10 times face value for coinage, and by dealers commanding 100 times face value in the marketplace. …

How much are we to suffer? Not everyone enjoys the special treatment Congress gets with their special credit union obtaining the precious coins for distribution. Are they perhaps in on the effort that has us collectors paying ridiculously high margins for circulating coins?

Let’s face it folks, the Mint is in trouble! They can’t secure the planchets to meet the demand for bullion silver and gold collector coins, and now circulating coins are suffering. In the race to gain levels of seigniorage like the Post Office (people buying coins to put away and not use), they have created a monster and we collectors are paying huge gains to a few connected individuals.

I’m as disappointed as anyone that I don’t have any new Lincoln pennies at face value for my collection yet, but I’m not inclined to start screaming at Congress. It’s the free market at work. If people are willing to pay outrageous premiums to get the new pennies in their prime, and if dealers are willing to speculate that they will maintain their value, more power to all involved.

Eventually people will realize that their 2009 penny hordes will be virtually worthless over the long run because the Mint produced hundreds of millions of them, and there will be a glut on the market. That’s when I’ll buy.


Filed under: Coin Collecting and Government and History and Human Interest and News & Politics
Comments: 3 Comments

President Obama’s 1/4-Cent Budget Cut
Posted on 04.27.09 by Danny Glover @ 7:11 pm

President Obama made a big media show as a fiscal leader a week ago with an admonition to his Cabinet to cut $100 million from the federal budget.

Sounds like a lot of money, right? It’s not. This video puts the plan in perspective:

One-fourth of a cent cut from a mountain of pennies — that’s math an enlightened redneck can understand. For more perspective, take a look at what $1 trillion looks like, which is only slightly less than what the Democratic-led Congress has spent at Obama’s behest or with his consent since he took office. Multiply it by 3.6 and you have the amount Obama has budgeted for fiscal 2010.

No wonder so many bean counters and policy experts are laughing at the president.


Filed under: Coin Collecting and Government and Human Interest and News & Politics and Video
Comments: 3 Comments

Beagle Bites
Posted on 04.13.09 by Danny Glover @ 3:07 pm

Or maybe the headline should be A Penny For Your Pup. Whatever the case, alliteration and puns are definitely in order for a story like this:

Penny is a money-hungry beagle and she’s no penny pincher. When the West Reading dog, whose full name is Penelope Olivia, gave in to her craving for pennies, she didn’t stop at just one.

Penny scarfed down 75 pennies and change — a quarter, two dimes and a nickel, to be exact — totaling $1.25. …

On Tuesday, when Nancy and her husband, Don, left for the dentist, Penny went hunting. She sniffed out Don’s cache of pennies, neatly wrapped and stored in a box upstairs.

The dog broke into the box, chewed off the wrappers and feasted on six dozen or so of the metal wafers inside. When Nancy and Don returned, they found Don’s pennies missing and Penny looking pleased and plump.

The vet couldn’t wait for the pennies to pass through Penny’s system the old-fashioned way (assuming that would have been possible) because the zinc in the coins could have poisoned her. If I were Penny’s owner, I’d be grateful that I didn’t have to deal with the mess.


Filed under: Coin Collecting and Human Interest and Just For Laughs and Pets
Comments: None

The Liberty Dollar And The Barter Economy
Posted on 03.13.09 by Danny Glover @ 7:32 am

Several months ago at a local McDonald’s, I saw a man buy a meal for his family with a $20 silver coin. I couldn’t believe the employee took the money.

I tried to do my civic, and numismatic, duty by informing the worker, who was of another nationality, that there is no such thing as a legal tender $20 coin. Only Congress has the right to “coin money” and regulate its value. It’s in the Constitution (see Article I, Section 8).

The man buying the meal didn’t appreciate my interference and insisted that the Liberty Dollar is legit. McDonald’s sided with him and took the funny money.

That scenario, minus the enlightened redneck coin collector who can’t mind his own business, appears to be playing out more often these days. Both businessmen and consumers see silver, which has been mostly increasing in value since late last year as the economy worsened, and buy into the notion that the Liberty coins are “inflation-proof.”

The presidential campaign of Ron Paul, who decried the government’s “monopoly over artificial money” when asked about a 2007 raid over the “Ron Paul Liberty Dollar,” has helped spur interest in such monetary alternatives.

Libertarians, who are pushing the coins as an “inflation-proof” alternative to the greenback, call it a revolutionary act. “It’s about trying to take power away from the Federal Reserve and return it to private citizens,” Leobald said. …

For years, those who obsessed about the Gold Standard and tried to pass so-called “private money” were considered fringe nutcases.

With predictions of the dollar weakening and consumer fears of inflation strengthening, there is sudden new interest in alternative money - even in New York City. “I ask the merchants if they would rather be paid in green pieces of paper or real silver, and more often than not, they want the silver,” said Karl Reile, 47, who says he spends Liberty Dollars on a daily basis at gas stations and restaurants.

He said store owners almost always accept the pieces.

Both the numismatist and the historian in me appreciate the appeal of Liberty coins. I long for the days when coins had intrinsic value because they were made of precious metals and when “silver certificates” and other paper money were backed by those same metals.

It’s a bad idea for the government to be able to print money at will. Inflation and the ridiculous spending of trillions of dollars by Congress as we’ve seen the past few months are inevitable. Sometimes I wonder if we wouldn’t be better off with the barter economy of yore.

But the gold standard is history and would never work in today’s economy. The Constitution, furthermore clearly denies citizens like Bernard von NotHaus the right to make their own money and distribute it at will. I don’t trust “Uncle Bernard” any more than I trust Uncle Sam. He’s just in it to make a buck.

If people want to buy Liberty dollars as an investment, go for it. Lots of people are investing in gold and silver in these days when property and stocks are proving to be bad investments. Liberty coins can be melted for their metal value just like old coins, modern bullion and jewelry.

But stop using them to buy Big Macs, please. You risk further undermining the economy for the rest of us.


Filed under: Business and Coin Collecting and Government and History
Comments: 2 Comments

Five-Dollar Coins For Five-Star Generals
Posted on 03.04.09 by Danny Glover @ 6:42 pm

I can’t think of anyone more deserving of commemorative recognition than the few five-star U.S. generals who would get coins in their honor under new legislation before Congress.

The bills call for $5 gold, $1 silver and 50-cent clad coins in honor of George Marshall, Douglas MacArthur, Dwight Eisenhower, Henry (Hap) Arnold and Omar Bradley.

CoinNews.net has the details:

With passage, the United States Mint would strike up to 100,000 $5 dollar gold coins, 500,000 $1 dollar silver coins, and 750,000 half-dollar copper-nickel clad coins for issuance in 2013. Respective surcharges of $35, $10, and $5 would be paid to the Command and General Staff College Foundation, a not for profit organization that is chartered to support the CGSC.


Filed under: Coin Collecting and Government and Human Interest
Comments: None

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