We are a curious species. Best as I can tell, humans are the only genus who break our necks to amass riches merely to foolishly fritter them away. “Lesser” animals wisely gather reserves for when they’re needed. Our wealth too often disappears through ill-advised, hair brained schemes. Our “get rich quick” mentality seems interminable.
For those who foist these ploys on others, the more confusing the better. No one wants to appear to be an uninformed idiot, so most just go along with the ruse and lose their money.
Case-in-point is the NFT (Non-Fungible Token) craze that began a few years ago. It has been directed mainly at collectors. An NFT is described as – brace yourself: “A unique cryptographic holding used to create ownership of intangible digital assets including art, collectibles, and virtual real estate via a unique code stored on a blockchain acting as a decentralized ledger. An NFT buyer doesn't own an item or the copyright or trademark but rather a digital image of it. While there may be many versions of it on the internet, NFT buyers have an original in the virtual world.”
Uh, that’s as clear as mud....
Best as I can tell, buyers of NFTs own nothing tangible other than an image of something they aren’t readily able to touch or physically appreciate. Can’t we do that for free at a library or online?
The antithesis of that this month took place at an auction held by Stacks-Bowers Galleries in New York. At that sale, a very tangible and unique 2022 British coin was sold. The coin celebrated the Platinum Jubilee (70-year anniversary) of Queen Elizabeth II's accession to the throne. Ironically, even though it is in honor of her Platinum Jubilee, the coin was struck from gold.
Ever since it was first discovered around 2,400 BC, gold has fascinated us. One reason is the color. Its golden hue is both beautiful and impermeable to everything, including acid. The gleam and shine remain no matter what. It’s also incredibly malleable, durable and can be shaped into elegant jewelry. Finally, the weight. Gold is one of the densest materials, weighing seven times more than a comparable size piece of marble and much heavier than lead. (FYI, Plutonium weighs more than gold. However, if you find yourself owning any, expect a surprise visit from nuclear regulatory agency officials.)
Most gold coins prized by collectors or investors weigh between one-tenth of an ounce and one ounce. The most popular in the world is the American Eagle followed by the Canadian Maple Leaf, Chinese Panda, South African Krugerrand, English Britannia, and Australian Kangaroo. All feature images indicative of their country of issue.
The coin sold last week wasn’t one of those. In fact, it doesn’t have a particular name but does have a denomination – 7,000 pounds. As for weight, forget ounces. The Queen Elizabeth Platinum Jubilee coin weighs in at a hefty seven kilos. For us in the US, that equates to over 15 pounds of pure .999 gold.
At roughly seven inches in diameter and close to an inch thick, the coin is about the size of a salad plate. On the front it features Queen Elizabeth II dressed in parade regalia astride one of her prized horses surrounded by a leather garter from the Royal Coat of Arms. Inside that are the words, “HO·NI SOIT QUI MAL Y PENSE” meaning, “shame on him who thinks evil of it.”
The production of the unique piece was individually epic. Master craftsmen at The Royal Mint designed it to strict artistic requirements. It took four days to engrave each side. Then, the design was hand finished for two days to enhance key elements. Finally, it was hand-polished for another two days before being placed into an acrylic mount and oak display box.
In the end, the hammer price for the coin last month in New York was $660,000. The gold content alone is currently worth close to $536,000 so there is a premium for it being unique. Again, the irony is that, had it been minted from platinum – for the Platinum Jubilee – the precious metal value would be way less than half that, or around $225,000.
Whether made of gold or platinum, I guarantee a mere NFT picture of it wouldn’t come close to the gleaming beauty or incredible weight of the real deal.
For more collecting information and advice, log on to: http://prexford.com/.