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    • Abstract: Georgia NumismaticVolume 45, Issue 4Association GNA JournalFall 2009 Since 1964Inside thisissue:THE THREE TYPES OF VALUEBy Bob HartjeBoard of 2Directors What is the highest value changed for money you can

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Georgia Numismatic
Volume 45, Issue 4
Association GNA Journal
Fall 2009 Since 1964
Inside this
By Bob Hartje
Board of 2
Directors What is the highest value changed for money you can
for your coin: spending, metal spend? In the United States,
Show 2 or collecting? Knowing the nu- almost all of our money can be
Calendar ances can help make or break a used to buy merchandise. With
deal. If you buy and sell coins, the exception of limitations
Member 2 particularly if you buy and sell placed on the Trade Dollar, we
foreign coins, you need to know have not experienced demoneti-
who the market is and where zation. About the only excep-
GNA Show 5
the market is. And, you need to tion to our spending value is a
know the strength and depth of limit on the amount of small
Penny 6 the market. Finally, you need to change that can be used to pay
Machine know the particulars surround- for an item. For instance, a car
ing the three types of value. dealer does not have to accept
Board 7 Most numismatists understand payment for a $20,000 car if
the who, where, strength and the payment is made with
depth of the market; however, 2,000,000 cents. But, there
Advertising 7
many lack a working knowledge may be costs associated with
of the intricacies of value. some transactions. First of all,
Editor: if you have a large number of
Nathan Mahan
SPENDING (EXCHANGE) coins, you have to count them
Copy Editor:
VALUE. yourself, or you can have a ma-
Barry Kurian
Can you spend it? Can it be ex- chine count them for you, and
Joe Meyers Continued on page 3
GNA Scholarships for ANA
The Georgia Numismatic Association is ac- merous selections of classes are offered for
cepting applications from its members for the beginner to the advanced collector. In
two scholarships to the 2010 American Nu- addition to the daily classes, there are eve-
mismatic Association Summer Seminar. ning mini-seminars available, informative
Each scholarship will cover the week long numismatic presentations, and optional
seminar fee and transportation. tours. To learn more about the American
The seminar is held on the Colorado Numismatic Association Summer Seminar,
College campus in Colorado Springs. Nu- Continued on page 7
Page 2 Volume 45, Issue 4
Board of Directors Show Calendar
Dennis Schafluetzel Chip Cutcliff Every effort is made to ensure the accuracy
President Governor
of the information that is contained here at
[email protected] [email protected]
the date of publication however show dates,
location, and times do on occasion change.
David Crenshaw Joe Meyers
Vice President Governor Before traveling to the show please contact
[email protected] [email protected] the show’s promoters for the latest informa-
Greg Ison Carl Lester
Treasurer Governor
Georgia Numismatic [email protected] [email protected] Greater Atlanta
Todd Cofer John Phipps Coin Dealers,
The Georgia Numismatic Secretary Governor 1/17, 2/14, 3/14, 4/11, 5/16,
[email protected] [email protected] 6/13, 7/11, 8/8, 9/12, 10/10,
Association is a nonprofit organi-
zation whose purpose is (1) to ad- Ron Wichman Nathan Mahan 11/14, and 12/12, Holiday Inn
Membership Secretary GNA Journal Editor Select, 4386 Chamblee-
vance the science, education, and 770-394-4103 [email protected] Dunwoody Rd, Atlanta, GA, 9
the history of numismatics [email protected] AM-5 PM. Call Bob O’Brien,
through the study of coins, paper 770-772-4359,
money, medals, tokens, and other Member Clubs [email protected]
items related to the field of nu-
mismatics; (2) to promote numis- Anderson Area Coin Club Madison County Coin
Georgia Numismatic
matics knowledge through the use Ladonna Hawkins Club Association Coin
of educational programs, coin 864-296-3462 Michael Campbell Show,
Blue Ridge Numis. Assoc 256-337-5092 April 16–18, 2010, Northwest
rallies, scholarships, and other David Cieniewicz MACON Georgia Trade & Convention
suitable methods; (3) to cultivate 256-852-7015 Middle Georgia Coin Club Center, Dalton, GA, I-75, Exit
an atmosphere of numismatics ATLANTA Bill Lane 333, Call Dennis Schafluetzel,
fellowship among collectors and Metro. Coin Club of Atlanta 912-986-9795 423-842-5527,
Ron Wichman MARIETTA [email protected]
clubs at the local level: (4) to en- 770-394-4103 Marietta/Smyma Coin
courage members attitudes which Southern Gold Society Club Melvin Rush
attract young people to the hobby; David Crenshaw 770-436-0678
(5) to advise each member and [email protected] North Charleston
ALBANY Low Country Coin Club
club of future numismatic activi- Southwest Georgia Coin Randy Clark
ties throughout Georgia; (6) to Club [email protected]
actively promote the organization George Anderson ROCKDALE
229-4329756 Rockdale Coin Club
of new and strengthen existing
AUGUSTA David Green
clubs; (7) to sponsor one or more Augusta Coin Club 770-482-1133
annual coin shows for members. David Chism ROME
The GNA was founded in 706-541-4143 Rome Coin Club
1964 and has a membership of
Low Country Coin Club 706-234-0760
over 400 individuals and 14 clubs. Randy Clark STONE MOUNTAIN
Annual individual memberships 834-747-8714 Stone Mtn. Numis. Assoc
are $10.00. The GNA Journal is CHATTANOOGA, TN Larry Todd
Chattanooga Coin Club 770-469-9598
the official publication of the
Dennis Schafluetzel THOMASVILLE
Georgia Numismatic Association. 423-842-5527 Rose City Coin Club
For more information contact President
Chief John Ross Numis. 229-226-3272
Dennis Schafluetzel. All rights reserved.
Entire contents Copyright © 2009 by the
Dan Card Warner Robins Coin Club
Georgia Numismatic Association.
423-238-5203 John Byars
Volume 45, Issue 4 Page 3
Value (Cont.)
that machine may charge you for counting That is why I use the term “metal” value in
(usually 7%). Therefore, if you are buying a place of bullion value. And, with metal prices
collection that includes a lot of “spending soaring in recent years, the value of the com-
money” (for example, Susan Anthony Dollars), ponent metals in a coin has taken on added
you probably can’t afford to pay full face value. meaning. For instance, you can still get 95%
After all, it takes time to count and time is copper cents in circulation. Yet, with copper
money. at $2.82 per pound (approximate price on
Well, what about foreign coins? First of 9/20/09), each of these 95% copper cents is
all, you need to know if the coins are still legal worth about 1.8 cents. That is one of the rea-
tender or if they have been demonetized (no sons that the United States government has
longer accepted as legal tender). Euros, Swiss made it illegal to melt these cents.
francs or Great Britain pounds (paper, not But, the law against melting United
coins) can be readily exchanged at an interna- States cents does not apply to foreign coins.
tional airport or any bank that has a foreign And, there are a bunch of large foreign cop-
exchange department. Of course, there may be per coins out there. Plus, Canadian cents
a charge for this service. There are also dealers were composed of 98% copper right up
who will buy both foreign paper and coins. through 1996. One can imagine travelling to
But, not all foreign coins and currency can be Canada to melt United States cents, and us-
readily exchanged. If you want a good laugh, ing the “melt money” to buy Canadian cents
try exchanging money from Zimbabwe. For to transport to the United States for melting.
many countries, the only way to exchange the Now, I realize that the current prices and lo-
currency and coins is to visit the country. And gistics are not conducive to melting these
even then, some of those countries will have coins, but there are times when the stars are
limits on the amount that can be exchanged aligned and melting opportunities exist.
(e.g., Marshall Islands). Or, for some coun- Take the case of the Inco Nickel of
tries, you can mail the currency and coins to a Canada strike in the late 1960’s. Nickel is a
specific governmental department for redemp- key component in making stainless steel, and
tion in U.S. funds; however, there may be a Inco Nickel of Canada was the major source
time lag of several months. of that nickel. So, when the strike occurred,
Even with all of these drawbacks, you there was a worldwide shortage of nickel and
can still make a profit on some of these coins. the price of nickel shot through the roof.
I have often seen Euros, Swiss francs, Great Now, it just so happens that for most years
Britain pounds and German marks in “junk” between 1922 and 1989, the Canadian five
bins. If you know the approximate exchange cent piece was composed of 100% nickel. For
rates and the discounts for exchange, you may part of 1942 and all of 1943, the composition
be able to generate a small profit. Or, knowing was 88% copper and 12% zinc (this composi-
those rates and discounts may give you a com- tion was called “tombac”). For 1944-45 and
petitive edge when you are bidding on a collec- 1953-54, the composition was primarily steel.
But, for the rest of those years, the composi-
METAL (BULLION) VALUE tion was 100% nickel. According to Gary Fill-
Bullion value refers to the value of the pre- ers, a long-time Tennessee dealer, the “melt”
cious metal in a coin. But, bullion value does value of one of those nickel Canadian five
not cover the value of non-precious metals. cent pieces was right around 10 cents. Gary
Continued on page 5
Page 4 Volume 45, Issue 4
Value (Cont.)
saw opportunity and was part of a consortium are not the final word, and they do not tell
of dealers that travelled the Canadian country- the whole story.
side stopping at banks and buying bag after First of all, these guides get their infor-
bag of Canadian five cent pieces. Even with mation from “contributors.” These contribu-
the “tombac” and the steel five cent pieces, the tors are usually dealers and quite often ex-
bags brought a hefty profit. After they had lit- perts and/or “market makers.” Although
erally taken thousands of bags of nickels out some series of coins will have many contribu-
of the country, the Canadian government fi- tors, other series (usually the less-collected
nally passed a law making it illegal to ship any ones) will have as few as one contributor.
more of the five cent pieces out of Canada. By You might ask, how does the Red Book de-
then, the consortium had made what Gary cide on which varieties to include? And, who
says was “a lot of money.” has the ear of the Editor? And, who exactly
The point is that money can be made are these contributors? Just as importantly,
from coins composed of non-precious metals you need to ask, what is the agenda of the
as well as precious metals. Just a few years contributors. If a contributor is loaded with
ago, the common pre-1982 BU copper cent inventory and wants to sell, will that affect
rolls were selling at 60-75 cents per roll. the prices they provide to the publisher of the
When the price of copper went over $3 per Grey Sheets? What if they are in a buying
pound, it took a while for the roll prices to mood? So, when you read these price guides,
“catch up.” I know of a couple of dealers that please be aware that there may be outside
took advantage of this “no-risk” opportunity factors that are influencing the prices that are
by buying several thousand rolls at sixty cents listed.
and selling them within a year at over a dollar Another factor to consider is the
per roll. strength and depth of the market. In a soft
market, prices will generally be south of the
COLLECTING (NUMISMATIC) quotes in the price guides. But, how do you
VALUE know if it is a soft market? To answer this,
For most collectors, the first book they buy is you need to take the pulse of the market.
A Guide Book of United States Coins, also Visit a show and ask the dealers if they are
known as the “Red Book.” In time, they having a good show. Check the attendance
(hopefully) realize that this book has loads of and try to ascertain whether the attendees are
wonderful and insightful information, but the buying or if they are just “tire-kickers.”
price information is not always current or ac- Check the strength of auction prices
curate. Most hobbyists eventually realize that (however, be aware that these prices can
the “Red Book” primarily gives “retail” prices. sometimes be manipulated). What is the sell-
Armed with this knowledge, they then go in through rate? Compare the prices realized
search of information that will lead them to with previous years. Can you detect a pat-
“wholesale” pricing. Many of these collectors tern? And be cognizant that most of the price
(and a good deal of dealers) turn to The Coin guides will attempt to paint a rosy picture
Dealer Newsletter, also known as the “Grey even in a down market. Check it out. Go to
Sheet.” Kitco.com and try to find an article stating
Caption describing pic-
What many numismatists fail to realize that gold is not a great investment. Just as it
ture or graphic.
is that these price guides are just guides. They is in the
Continued on page 5
Volume 45, Issue 4 Page 5
gold brokers best interests to promote gold, it There are coins listed in the Grey Sheets that
also is in the best interests of the price guides simply are not available at the prices listed in
to paint a rosy picture. So, in a down market, the guides. You need to ask, how often do I
the decreases may be slow to be printed. see this coin? What are some of the actual
In addition to remembering that the prices realized? If I don’t buy it now, how
price guides are not the final word, please un- long before I see it offered again? A prime
derstand that there are areas of numismatics example is the price listed for better date
in which the market is very thin. That means Liberty Seated coins. Grey Sheet prices go
that there are very few buyers. In fact, there out the window when you are searching for
are some areas of the market for which there these elusive coins. Often, these coins will
may be virtually no market. And, these do not bring multiples of Grey Sheet bid from deal-
have to be esoteric areas. For instance, try ers. And, if they are put on ebay, they can
finding a market for a 1918 Lincoln Cent in elicit bids of ten times the listed price.
Extra Fine. The guides will give you numbers, So, next time you are buying or sell-
but those are primarily selling numbers. ing, remember the three types of value, ask a
Most dealers will either be “not interested in lot of questions and try to get a “feel” for the
buying” or will be way south of the published market that goes deeper than the price
numbers. This coin lists at $3.25, yet you will guides.
be hard-pressed to find any dealer that will
pay as much as $1.00 for this coin. They will
readily sell the coin for Grey Sheet bid, but it
is a different story if they are buying.
The pendulum swings both ways.
GNA Show Presentations and Meetings
By Norman Thomas
It is hard to believe but the 2010 GNA program please contact me. The presenta-
show is only five months away and will be tions should be about 20 to 30 minutes long
here before we know. I have volunteered to and will be followed with a question and an-
head up the educational program for the con- swer period. We are also interested in hear-
vention and I am looking for some help and ing from numismatic organizations that
ideas. Instead of doing a pre-convention would be interested in holding a meeting dur-
educational seminar we are going to have ing the convention.
some educational presentations throughout If you have any ideas, would like to do
the convention. I am looking for people to do a presentation or represent a group that
these presentations and for ideas for the would like to have a meeting, please contact
presentations. What would you like to hear me so that we can make arrangements. I can
about? be reached at [email protected] or by
My plans are to put the program to- phone at 678-859-3611. Email is preferred
gether in the next couple of months and then and please put GNA presentation in the sub-
publish the schedule of programs in the win- ject line. To be able to get the information in
ter and spring issues of the GNA Journal and the winter issue of the GNA Journal I need to
in some of our other pre-convention advertis- hear from you by early January. Thank you.
ing. If you have a suggestion for a topic or
better yet would be interested in presenting a
Page 6 Volume 45, Issue 4
Penny Machines at U.S. Space & Rocket Center
By Richard Jozefiak
Where can you make elongates of a www.pennycollector.com).
space vehicle? Why at Alabama’s number one
tourist attraction: The U.S. Space & Rocket The Penny Machine by the entrance has the
Center, located in Huntsville, AL. Huntsville’s following designs:
nickname is “The Rocket City.” Huntsville is 1. Saturn V Rocket
located in the north part of Alabama, very
near the Tennessee Stateline. 2. Astronaut in space
The U.S. Space & Rocket Center dis-
plays many historic U.S. government space 3. Space Academy logo
and rocket artifacts that date from the early 4. Astronaut in Moon Buggy on moon
days of the U.S. Space Program (1950’s)
The Penny Machine in the main museum gal-
lery has the following designs:
1. Apollo 13 capsule
Caption describing pic-
2. NASA logo ture or graphic.
3. U.S. Space Camp logo
4. Space Shuttle launch
Above are the designs from the main gallery
through the Space Shuttle of today. At the
U.S. Space & Rocket Center space hardware is
displayed in a number of galleries, and on dis-
plays outside. There is also an IMAX theater,
gift shops, food service, and other activities at
the center.
There are two Penny Machines, each Four pennies from penny machine at Mu-
with four designs on the die. Each machine is seum entrance
a hand crank model, and costs 51 cents to
make an elongate. One Penny Machine is cur- A visit to the U.S. Space & Rocket Center takes
rently located in the main museum gallery, a full day to see all the galleries and tour the
and the other one is located near the entrance. grounds. For museum hours and location in-
Both Penny Machines are made by the CTM formation, go to www.spacecamp.com/
Group (www.ctmgroupinc.com and museum/.
Volume 45, Issue 4 Page 7
Scholarships (Cont.) Board Nominations
visit their website at www.money.org. As president, according to the GNA Bylaws I call for
You must be age 13 or older and a mem- additional nominations for the GNA board members who
ber of the Georgia Numismatic Association to are willing to take responsibility for activities to benefit
be eligible for a scholarship. The deadline for the GNA for the next 2 year term. I have the following
completed applications is January 31, 2009. nominations for election to the GNA offices:
The recipients of the scholarships will be con- President – Dennis Schafluetzel
tacted no later than January 31, 2010 and an- Vice President – David Crenshaw
nounced in the spring issue of the GNA Jour- Secretary – Todd Cofer
nal. Membership Chairman – Ron Wichman
To obtain more information and schol- Treasure – Greg Ison
arship applications, members should write the Governor – Chip Cutcliff
Georgia Numismatic Association, Scholarship Governor – Carl Lester
Committee, P.O. Box 76161, Atlanta, GA Governor – Joe Meyers
30358-1161 or visit www.gamoney.org. Governor—Bob Hartje
Editor—Nathan Mahan
Any GNA member can nominate any GNA member. Ad-
ditional nominations need to be accepted by the nomi-
nee and submitted by February 15th to the GNA; P. O.
Box 76161; Atlanta, GA 30358-1161.
Journal Advertising Have an Article?
Attention to all GNA members and deal- The GNA Journal would not be what it is to-
ers: Due to the increasing cost of printing and day without the support of you, the reader, and
shipping the GNA Show Journal, effective for with the continued support I know it will con-
the 2010 GNA Coin Show, there will be a 13% tinue to grow. I encourage you to continue to
increases in the cost of all ad spaces and sizes. If submit your articles and photos. They can be
you have any questions or concerns please con- about anything: from a review on a book you
tact Nathan Mahan, Editor, at read, to a collection, a neat find in your change,
[email protected] or by mail at PO BOX 97 or how you cherry-picked a rare variety at a re-
Baldwin, GA 30511. cent show. When you are ready to submit your
article, please send it to Nathan Mahan at:
(1) Send an electronic copy in either PDF or Doc
format to [email protected]
(2) Send a copy to P.O. Box 97, Baldwin, GA
Georgia Numismatic Association
P.O. Box 76161
Atlanta, Georgia 30358-1161

Use: 0.3482