Hot On the Heels of Coin Dealers Peddling Fakes; Rare Coin Market Weathering Pandemic Well
Acting on a tip from the AntiCounterfeiting Educational Foundation (www.ACEFonline. org), federal and local California law enforcement agents now are investigating the attempted sale of $400,000 of counterfeit coins including a fake example of the historic 1879 Coiled Hair gold $4 “Stella” that brought $300,000 at auction last year. The seller also is a suspect in an earlier case involving fakes, according to Doug Davis, director of the ACEF AntiCounterfeiting Task Force (ACTF).
The bogus Stella was housed in a counterfeit Numismatic Guaranty Corporation (NGC) holder with a fake insert label printed with the same NGC PR63 grade and certification number as the genuine coin.
Davis, a former Texas Police Chief, alerted the U.S. Treasury Department Office of Inspector General (OIG) and is assisting investigators in this case.
“We were alerted to this case by
Ryan Moretti of Orange County California, the senior numismatist of Colorado-based American Rarities. He was contacted by an individual offering to sell several expensive coins allegedly in NGC holders, including the 1879 Coiled Hair $4 Stella, of which only about dozen genuine examples are known,” said Davis.
The other counterfeit coins offered by the seller were a 1793 AMERICA Chain cent, NGC VF20, an 1800 Draped Bust dollar, NGC AU58, and an 1871-CC Seated Liberty dollar, NGC AU55.
When he received the coins, Moretti suspected that they and the NGC holders were counterfeit based on his years of experience as a professional numismatist. The suspicions were confirmed after inspection by other numismatic experts, including NGC representatives.
“When we entered the suspect’s name into the ACTF crime and intelligence database, it linked him to another case in which he reportedly attempted to sell counterfeit coins to a Minnesota dealer in December 2019. ACTF alerted agents with the Minnesota Department of Commerce and U.S. Treasury
OIG. Those coins were seized, and a joint investigation is currently continuing,” explained Davis.
Federal and local investigators are reviewing both the Minnesota and California cases to determine appropriate jurisdiction to initiate prosecution against the suspect for possession and distribution of counterfeits with the intent to defraud.
“Well-made fakes are flooding the U.S. marketplace and the integrity of the numismatic community is under attack. These recent cases spotlight the significant technological advancements of counterfeiters and their agents as well as the all-too-easy availability for the sale of fake coins and precious metals housed in counterfeit third-party authentication and grading holders,” Davis cautioned.
“The Anti-Counterfeiting Educational Foundation and it’s Anti-Counterfeiting Task Force will continue its vigorous commitment to protecting the numismatic profession and collectors from adversaries who manufacture and sell counterfeit coins and precious metals. And, we’ll continue to educate the public to encourage them to only work with reputable dealers,” said Davis.
U.S. RARE COIN MARKET QUITE ACTIVE DESPITE PANDEMIC, REPORTS PNG
The market for high-quality, rare United States coins remained active during the first six months of 2020 despite pandemic-related closures of many retail locations and cancelation of dozens of coin shows and numismatic conventions across the U.S., according to the Professional Numismatists Guild (www.PNGdealers.org). The PNG is a nonprofit organization composed of many of the country’s top rare coin and paper money experts.
“Even with economic uncertainty and the lack of face-to-face transactions and in-person floor bidding, major auction firms reported selling more than $167 million of U.S. rare coins in online public auctions first half of the year. Dozens of record prices were established for coins selling for five, six and even seven figures,” said
PNG President Richard Weaver.
One of the many examples of superb-quality rare coins commanding record prices was the $101,251
winning bid for the finest-known
1905 Barber design silver quarter-dollar graded PCGS MS68 CAC offered by Great Collections Coin Auctions. It sold for four times its price guide value.
Over a half dozen coins brought $1 million or more. The two most valuable U.S. coins sold at auction so far in 2020 were:
• Record-setting $2,160,000 for a 1927-D Saint-Gaudens gold
$20 (Double Eagle) graded
PCGS Mint State 65+ CAC sold by Heritage Auctions.
• $1,920,000 for an 1854-S gold $5 (Half Eagle) graded PCGS
About Uncirculated 58 CAC sold by Stack’s Bowers Galleries. In addition to the reported auction results, PNG conservatively estimates that at least another $150 million of U.S. coins were sold by these auction firms in private transactions in the first half of the year.
“Sales of precious metal bullion coins, such as gold and silver
American Eagles, also have been active and premiums over their intrinsic value have risen as supplies dwindled due to pandemic-related interruptions of coin production at the United States Mint,” said Weaver.
Weaver also emphasized research and partnering with reputable dealers. “As always, to avoid counterfeits, we recommend that buyers of rare coins or bullion coins should only purchase from reputable, knowledgeable dealers, such as members of the Professional Numismatists Guild and its Accredited Precious Metals Dealer program (www.APMDdealers.org).”
Information from nearly 15 auction houses was compiled to formulate the report.
NEWLY ISSUED NEWMAN GRANTS SUPPORT NUMISMATIC RESEARCH
In-depth research into six unique and distinct topics in numismatics recently gained support from the Eric P. Newman Numismatic Education Society (EPNNES).
The support comes in the form of financial grants awarded to individuals researching aspects within the following numismatic topics, colonial and obsolete paper money, black numismatics, colonial coinage, and medallic art. This is the second set of grants awarded annually by EPNNES.
The 2020 Newman Grant recipients and their areas of study include:
• James Ehrhardt, a professor emeritus at the University of
Iowa, and co-author, with Steven J. Sweeney, of the book Iowa National Bank Notes, is researching Iowa obsolete currency between central and branch banks.
• Harcourt Fuller, a Fulbright Global Scholar, associate professor at Georgia State University, and documentary filmmaker, is producing a documentary about black money.
• Chris McDowell, an experienced researcher on the topic of Fugio cent restrikes, will continue his study of Fugio cents.
• Angel Navarro Zayas, a previous contributor to The Numismatist. Zayas will examine the General Archives of the Indies, in Spain. William Nyberg, author of Robert Scot: Engraving Liberty. Nyberg’s research centers on the U.S. Mint’s involvement in the production of early 19th-century revenue stamps.
• Steve Roach, former Coin World editor-in chief, researches the relationship between numismatic works and other commissions received by U.S. Mint engravers of the early 20th century.
PCGS CONFIRMS NEW 1795 FLOWING HAIR HALF DOLLAR VARIETY
Professional Coin Grading Service (www.PCGS.com) has confirmed a new die marriage for the 1795 Flowing Hair Half Dollar. The coin was struck with a previously unknown obverse die and is now recognized as the new Overton 133 variety.
It is the first new major die variety to be discovered on a 1795 Flowing Hair Half Dollar in more than 90 years, according to PCGS.
“The new die marriage was discovered by an advanced Early and Capped Bust Half Dollar collector who wishes to remain anonymous at this time,” explains Colorado coin dealer W. David Perkins. He submitted the discovery coin to PCGS and will be offering the 1795 O-133
Flowing Hair Half Dollar for sale.
The coin has been graded PCGS F15 Overton 133 and has the “Discovery Coin” designation on the label.
“The discovery of this variety, struck from a new and previously unknown die mated to a known and previously used reverse die, was previously sold as an unattributed piece, which highlights why having the experts at PCGS attribute your coins can be so important,” says PCGS President Brett Charville.