Coins Archives - Page 4 of 10

AU-58 Coins – A Stealth Numismatic Investment

Photo Credit: Silver Torch66

AU-58 coins are one of the best-kept secrets in numismatics. But coin investors and collectors alike have started to grasp the potential of these underrated gems.

In order to appreciate the unique appeal of AU-58 coins, we must first understand the Sheldon grading scale. Invented by the numismatist William Herbert Sheldon in 1949, it was first intended for grading U.S. Large Cents. The scale ranges from 1 to 70, with higher numbers representing better states of preservation. For example, a Poor-1 coin is an almost worn-smooth slug and a Mint-State-70 coin is absolutely perfect.

The Sheldon grading scale was updated to apply broadly to all coins in the 1970s. Today, it is the global standard used by the two largest and most respected third-party grading services – NGC (Numismatic Guaranty Corporation) and PCGS (Professional Coin Grading Service).

The Sheldon grading scale designates MS-60 through MS-70 as Mint-State. This means that all coins in this range are technically uncirculated, with no wear whatsoever. Instead of using wear as a grading criteria, Mint-State coins are sorted according to the quality of their strike, along with the presence of mint luster, marks or hairlines and any attractive/unattractive toning.

So an MS-70 coin should be perfect, with no visible marks, a strong strike and full mint luster. In contrast, MS-60 coins have a combination of distracting imperfections, unsightly tarnish and a weak strike. As a result, it is almost axiomatic that low-grade Mint-State coins, like MS-60 and MS-61 examples, are relatively unattractive specimens with little eye appeal. In fact, they are often downright ugly!

However, coins below the MS-60 designation are primarily graded according to the amount of wear they have received. So coins graded from AU-50 to AU-58 fall in the About Uncirculated category. These coins have received anything from very light, even wear to only a hint of rub on their highest surfaces. Original mint luster is the only other criteria for AU coins, with higher grades within the classification requiring more luster.

You can probably see where I’m going with this analysis.

If AU-58 coins acquire that grade purely because they have an almost imperceptible amount of rub on their highest points, then there is no reason that an AU coin with good eye appeal can’t look better than an MS-60 or MS-61 coin.

This is a numismatic revelation for coin investors.

PCGS & NGC Certified AU-58 Pre-1933 U.S. Gold Coins for Sale on eBay

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You see, eye appeal is one of the most important traits an investment-oriented coin can possess. Relatively small increases in eye appeal can have a major impact on the desirability – and thus value – of a rare coin. After all, coins are miniature works of art. If one coin with a particular type, date and mintmark looks objectively better than another example, it only stands to reason that it would be more valuable.

Normally, we would expect coin prices to rise as we ascend the Sheldon grading scale. After all, each successively higher grade should have more detail, luster and (indirectly) eye-appeal than the one below it.

And this is indeed the behavior we tend to observe in the rare coin market, particularly for Mint-State coins. Once you ascend to coins graded MS-63 and higher, it isn’t unusual for each step-up in grade to be accompanied by a large – or even massive – price increase. And this is in spite of the fact that it is difficult for the layman to distinguish the minute visual differences between these grades. For instance, the average person can’t reliably distinguish between an MS-64 and MS-65 coin.

About Uncirculated coins, particularly AU-58 coins, are the only potentially systematic wrinkle in the rare coin market’s continuum of Higher Grade = More Eye Appeal = Higher Prices.

This brings us to the concept of the elusive “AU-64” coin. What if there was a beautiful MS-64 coin that had somehow received the tiniest bit of wear or rub sometime in the distant past? It could no longer be properly called Mint-State anymore, because it isn’t technically uncirculated. The best grade it could hope to achieve on the Sheldon grading scale would be AU-58. Oh, but what a glorious AU-58 coin it would be!

PCGS & NGC Certified AU-55 & AU-58 Carson City Morgan Silver Dollars for Sale on eBay

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It is easy to see how an AU-58 coin with the eye appeal of an MS-64 coin would sell at a significant premium over your run-of-the-mill MS-60 or MS-61 coin. In fact, it would be easy to see how a superior AU-58 specimen could achieve MS-62 or even MS-63 price levels, provided it has stellar eye appeal.

Simply put, AU-58 coins are a numismatic loophole that every serious coin investor and collector should be exploiting.

And, in all honesty, a lot of knowledgeable coin enthusiasts have been taking advantage of the wonderful potential of good-looking NGC and PCGS AU-58 certified coins over the last 15 to 20 years. For example, many desirable 19th century U.S. coin series command high premiums for AU-58 pieces with strong eye-appeal. In fact, it can be difficult to find AU bargains in series like Capped Bust half dollars or Trade Dollars because of this trend.

But the U.S. rare coin market is the most forward-looking, sophisticated coin market on the planet. So although the advantages of AU-58 coins may already have been recognized in 19th century U.S. coins, it still hasn’t been widely applied elsewhere.

This means there are still AU deals to be found in 20th century U.S. coins & world coins. I especially like European gold coins in AU-58 condition. They haven’t been picked over yet, giving the numismatic enthusiast a lot of great examples to choose from.

PCGS & NGC Certified AU-58 European Gold Coins for Sale on eBay

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I should also point out that some AU-55 coins can also share the phenomenal eye appeal of AU-58 specimens, just with a touch more wear. So although I’ve been talking about AU-58 coins throughout this article, the same concept can also apply to AU-55 examples, just somewhat less frequently.

For instance, one of my recent Spotlight posts featured a stunning 1882 French 100 franc gold coin certified AU-55 by NGC. This impressive gold coin, with a mintage of only 37,000 pieces, looks far better than your average MS-60 or MS-61 example. But it is selling for a ridiculously low 38% premium over its bullion value!

Of course, I should also point out that not all AU-55 or AU-58 coins have great eye appeal. Unlike with Mint-State coins, the AU grades primarily designate wear, not eye appeal. So it is certainly possible to run into ugly or sub-par AU-58 coins. A certain amount of patience and discretion is necessary to cherry pick a gem AU example.

Let me part with a word of caution. There is an old numismatic saying: always buy the coin, not the holder (or the grade on the holder, for that matter). This dictum has never been more important than when dealing with AU coins. But although it requires discipline, AU-58 coins are one of the best ways I know of to score a deal in the world of rare coins. And that little bit of knowledge is worth its weight in gold.

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World War II and the Bankruptcy of the British Empire

Photo Credit (CC 2.0 license): Smabs Sputzer

World War II is one of most interesting periods in financial history, particularly because the sweeping conflict caused the bankruptcy of the British Empire to unfold with stunning speed. It took barely more than 10 years for the British pound sterling to go from a respected global reserve currency to a second-class credit.

Between the World Wars, from 1919 to 1938, the British Empire ostensibly reached the zenith of its power. It achieved its greatest geographical extent in the early 1920s, when it controlled almost 1/4 of the world’s surface area and nearly the same proportion of the earth’s population. Unfortunately for the British, this façade of colonial dominance was largely an illusion.

But it was a very powerful illusion all the same. Throughout the 1930s, Great Britain was viewed as one of an elite group of superpower nations that included France and the United States, as well as upstarts Germany and Japan.

And Britain’s currency, the pound sterling, supported this mainstream narrative. Until 1931, the pound had been the world’s reserve currency, with each pound equal to a British gold sovereign containing 0.2354 troy ounces (7.32 grams) of pure gold. Even after the Great Depression forced Great Britain off the gold standard, the pound still traded for around $5 on the FX markets during the mid to late 1930s. This was actually a slightly stronger rate than when both the U.S. and the U.K. had been on the classical gold standard before the early 1930s.

But the outbreak of World War II shattered this fantasy and quickly ushered in the bankruptcy of the British Empire. The first inkling of the disaster to come occurred when the pound plummeted from $4.61 to $3.99 in the harrowing month of September 1939, after it became apparent that Nazi Germany wasn’t backing down in its quest for European hegemony.

Pre-1931 British Gold Sovereigns for Sale on eBay

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Because the United Kingdom was ill-prepared for the outbreak of hostilities, it naturally sought to procure additional supplies and materials from abroad – most notably from the United States. But the U.S. was keen to preserve its neutrality in the European conflict.

As a result, the U.S. government adopted a “cash and carry” approach to selling goods in November of 1939. This allowed any combatant nation to purchase materials from the United States, provided they pay in hard money (gold, U.S. dollars or U.S. securities) and find a way to transport the material themselves.

Great Britain found itself in an excellent position to take advantage of the United State’s cash and carry policy. The British Empire was primarily a maritime power and still maintained a tenuous control over the all-important North Atlantic shipping lanes, despite attempts by Nazi U-boats to disrupt those routes. So the U.K. transported massive amounts of gold bullion, U.S. dollars and U.S. securities to the United States in exchange for desperately needed supplies.

But as Hitler’s Wehrmacht steamrolled through Continental Europe, Britain’s prospects dimmed considerably. The surrender of France in June 1940 was a particularly devastating blow to the U.K.’s war effort. In the summer of 1940, as the Battle of Britain raged over English air space, Winston Churchill and his cabinet began to come to the realization that the bankruptcy of the British Empire was quickly approaching if drastic action wasn’t taken.

First Britain resorted to some creative financing. The U.S. had previously expressed interest in leasing airfields in certain British possessions for military purposes. Although Churchill had initially rebuffed the proposal, the exigencies of total war soon forced him to reconsider.

On September 2, 1940, the U.S. and Great Britain formalized their Destroyers for Bases Agreement. In exchange for 50 obsolete U.S. Navy destroyers, Britain agreed to give the U.S. 99-year, rent-free leases on naval and air bases in various locations in Newfoundland and some Caribbean islands.

Around the same time, Churchill approved a vitally important secret mission that is commonly known as the Tizard Mission today. Named after its leader, British scientist Henry Tizard, it was the wholesale transfer of cutting-edge British technologies to the United States in September 1940. This was done in the hope that the U.S. could perfect and mass produce these inventions in time to have a significant impact on the outcome of the war.

These top-secret technologies included microwave radar via the cavity magnetron, the proximity fuse, schematics for a prototype jet engine and the Frisch-Peierls memorandum on the viability of a nuclear bomb, among others.

The technology passed to the Americans during the Tizard Mission was theoretically a gift, with no explicit, reciprocal payment demanded. However, it is reasonable to assume that Churchill secretly hoped such a generous gesture would obligate the Americans to continue supplying the British war effort, even if the teetering Empire was not able to meet the strict guidelines of the United State’s cash and carry philosophy.

World War II Era British Currency for Sale on eBay

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By late 1940, the British Empire’s bankruptcy was imminent. On December 8, 1940, Prime Minister Churchill wrote a letter to this effect to President Roosevelt. In it Churchill stated:

The more rapid and abundant the flow of munitions and ships which you are able to send us, the sooner will our dollar credits be exhausted. They are already, as you know, very heavily drawn upon by the payments we have made to date. Indeed, as you know the orders already placed or under negotiation…many times exceed the total exchange resources remaining at the disposal of Great Britain. The moment approaches when we shall no longer be able to pay cash for shipping and other supplies.

Consequently, President Roosevelt pushed the U.S. Congress for the passage of the Lend-Lease Act. This legislation would drop the pretense of American neutrality by authorizing the shipment of weapons, ammunition and other war materials to the Allied countries (primarily Britain, Free France and China) in exchange for the leasing of military bases in Allied territory during the war. No money would change hands; instead this would effectively be a U.S. donation to the Allied cause.

But as a prerequisite for the passage of the Lend-Lease Act, the United States demanded that Great Britain open its books, thus revealing the intimate details of its financial insolvency to the U.S. Secretary of the Treasury, Henry Morgenthau.

In addition, the Roosevelt administration insisted that an important British-owned, U.S.-domiciled company be sold in order to confirm that they had definitively run out of liquid U.S. dollar assets. The British duly complied, announcing the March 1941 fire-sale of the American Viscose Corporation – a manufacturer of synthetic textiles and the largest U.K. holding left in the U.S. The company only realized a fraction of its appraised value.

The Lend Lease Act was finally passed on March 11, 1941. U.S. weapons and supplies soon flowed into the bereft British Empire in massive quantities.

To compound difficulties for the British, it soon became apparent that the crown jewel of their empire, India, would not remain under British rule for long once the war was over. This political development made it impossible for the British to attempt to partially recover the cost of the war from India. And to make the British Empire’s grave financial situation even worse, it was clear that many of its other colonies would also demand their independence once the war concluded.

When World War II finally ended, the pound-dollar exchange rate was $4.03, the level it had been pegged at by the Bank of England at the beginning of the conflict in 1939. But the British Empire’s fiscal situation had deteriorated massively during the intervening years, leaving its currency extremely overvalued.

World War II Era British Silver Coins for Sale on eBay

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As part of its war-time negotiations with the United States, Great Britain had agreed to open up its consumer markets to U.S.-made goods after the war. This severely undercut post-war profits for British businesses. In addition, by 1945 the British economy had completely converted to a war-footing and was slow to retool to meet domestic consumer demand.

Like all warring nations, Great Britain had borrowed heavily to help fund its war effort. In 1945, Britain’s aggregate debt (much of it held by foreign interests) was a staggering £21 billion, which was equivalent to over 75,000 metric tons of gold at then current exchange rates. This was more than 2.5 times the combined national gold reserves of every country on earth at the time!

In other words, it was a sum that could never be paid back without resorting to currency devaluation.

Britain’s initial emergency move was to remove all silver from her circulating coinage. From 1920 until 1946, every British denomination from the tiny 3-pence to the massive crown (5-shilling coin) had been struck from 50% fine silver. Starting in 1947, the British Royal Mint changed over to a base-metal, cupro-nickel alloy, allowing the government to save money on coinage costs. In addition, the British Royal Mint could “mine” the existing circulating coinage for its silver content, gradually replacing it with less expensive base-metal coins.

But the coup de grace came on September 19, 1949 when the British Chancellor of the Exchequer, Stafford Cripps, was finally forced to devalue the once prestigious pound sterling from $4.03 to $2.80 – an overnight 30% loss of purchasing power. With this stunning act, the British pound definitively lost its global reserve currency status. The bankruptcy of the British Empire was complete.

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U.S. Dollar Debasement – A Unique Historical Timeline

Before Dollar Debasement: The Classical Gold Standard

Before the Great Depression, the United States operated under a gold standard. This meant that most U.S. currency could be freely exchanged at banks or the U.S. Treasury for gold coins. This was done at the rate of $20.67 for one troy ounce of gold. In other words, a $20 gold certificate could be redeemed for a double-eagle gold coin which contained almost a full troy ounce of pure gold.

This conversion mechanism constrained growth in the money supply, meaning that there was effectively no inflation for as long as the system remained in place. In addition, silver certificates that were directly redeemable for silver dollars also circulated in the economy, providing additional protection against U.S. dollar debasement.

The classical gold standard provided unprecedented financial stability and economic growth – not only in the United States, but also in other countries that had adopted it, including Great Britain, France, Germany and Japan. It was only with the arrival of World War I that the international gold standard began to weaken.

Early 1900s – The U.S. economy is dominated by a variety of high quality currency instruments. Gold certificates, silver certificates, United States Notes and Federal Reserve Notes (after 1914) all circulate side-by-side, along with gold and silver coins.
1913 – The Federal Reserve is founded as a “banker’s bank” with the stated purpose of preventing financial panics. The new institution’s policies will profoundly impact the trajectory of dollar debasement in the decades to come.
1914 to 1918 – World War I forces most belligerent nations to abandon the gold standard. The United States is a notable exception to this trend, which cements the country’s position as an international economic power.
1920s – A decade of economic expansion is driven by strong fundamentals and the newly formed Federal Reserve’s outrageous “coup de whiskey” monetary policy. This has grave consequences because it foments a massive Wall Street stock market bubble that surreptitiously undermines the economy.
1929 – The Great Wall Street Crash in October signals the start of the Great Depression.
1931 – The collapse of Credit-Anstalt, a major Austrian bank, ushers in the most virulent phase of the Great Depression.
1931 – Great Britain is forced off the gold standard in September of this year, greatly increasing monetary pressure on all countries that still maintain gold convertibility, including the United States.
1933 – Franklin Delano Roosevelt assumes the Presidency and immediately calls a banking holiday. He simultaneously suspends the gold convertibility of the U.S. dollar. A short time later, on April 5, FDR effectively nationalizes the country’s gold, declaring that all privately-held gold coins and gold certificates must be exchanged for non-gold currency.
1934 – FDR increases the price of gold from $20.67 to $35 per troy ounce. This effectively devalues the U.S. dollar by 41%. The classical gold standard in the United States is officially dead and the modern era of dollar debasement begins.
1934 – The U.S. Treasury commissions a final series of gold certificates. These are not intended for public circulation, but are instead used for bank reserves and inter-bank transfers.
1935 – FDR passes a law allowing the U.S. Treasury to issue small-denomination, government-backed bonds, otherwise known as savings bonds, directly to the public. Savings bonds allow U.S. citizens to invest in a safe Treasury instrument with a competitive interest rate.

Dollar Debasement Begins: The Bretton Woods System

In the wake of the widespread devastation wrought by the Great Depression and World War II, a new international monetary framework was desperately needed. As a result, in July 1944, 44 representatives of the allied nations, including Great Britain, the United States, France and the Soviet Union, gathered at Bretton Woods, New Hampshire to hammer out a new monetary system.

It was finally decided that the U.S. dollar would be convertible into gold at the rate of $35 for each troy ounce. But only foreign governments and central banks would be allowed to exercise this conversion feature, not individuals. In addition, all other countries would tie the value of their currencies to the dollar.

Although silver certificates and silver coins freely circulated in America during this period, gold bullion was illegal for U.S. citizens to own. Each $1 silver certificate was exchangeable into a silver dollar containing 0.77344 troy ounces of pure silver. United States Notes and Federal Reserve Notes also circulated and could be exchanged for fiduciary silver coinage (90% silver dimes, quarters and half dollars) which contained 0.7234 troy ounces of silver per $1 face value.

1944 – The Bretton Woods system is formalized. This monetary structure is quickly adopted by most nations that are not part of the Soviet Communist Bloc.
1950s – A period of international prosperity exists, with the United States acting as both the world’s monetary hub and primary export destination. However, the United State’s huge silver and gold reserves are gradually drawn down to pay for this flood of foreign imports.
Early 1960s – The rising price of silver in the international market makes it clear that the U.S. government will soon have difficulty redeeming silver certificates at their traditional rate.
1964 – The U.S. government suspends the Treasury’s obligation to redeem silver certificates for silver dollars, but still allows redemption for raw silver granules or bullion bars for a limited time.
1964 – U.S. citizens are allowed to legally own gold certificates again. While they regain their legal tender status, they are no longer redeemable for gold.
1966 – The U.S. Mint strikes its last 90% silver coins meant for circulation (which are dated 1964 due to a date freeze). The only circulating U.S. coins with any precious metal remaining are 40% silver Kennedy half dollars. Most U.S. coinage is now copper-nickel slugs.
1968 – The U.S. Treasury discontinues redeeming silver certificates in their entirety, although the notes still remain legal tender.
1969 – The U.S. Treasury withdraws high denomination currency from circulation due to fears that it facilitates organized crime. But honest citizens who crave financial discretion and safety are most impacted. This policy applies to the $500, $1,000, $5,000 and $10,000 bills. These large denomination notes are not, however, demonetized.
1970 – The 40% silver Kennedy half dollar is discontinued and replaced with a copper-nickel base metal version. There are now no coins produced by the U.S. Mint for general circulation that contain any silver.
1971 – In August, President Richard Nixon stops redeeming U.S. dollars presented by foreign governments and central banks for gold. This ends the last formal link that the U.S. dollar has to precious metals, marking a new era in dollar debasement. All currencies in the world are now fiat currencies with floating exchange rates.
Early 1970s – By this time, nearly all 90% U.S. silver coinage (especially dimes and quarters) have been pulled from circulation due to Gresham’s Law.
1973 – An international oil crisis is precipitated when Arab nations refuse to exchange their oil for now depreciated U.S. dollars at the traditional rate.
1975 – After more than 40 years of being illegal, gold ownership for U.S. citizens is re-legalized.

Dollar Debasement Accelerates: The Bretton Woods II System

After the monetary chaos of the 1970s, which was characterized by persistently high inflation and frequent recessions, a monetary reform was necessary. The U.S. Federal Reserve raised short-term interest rates to a dizzying 20% in 1980 in order to break the economy’s deleterious inflationary cycle. Once confidence in the dollar had been reestablished, a reconstituted global monetary system emerged.

Unlike the original Bretton Woods System, the Bretton Woods II System was entirely informal. While the U.S. dollar remained at the center of the global monetary system as the world’s reserve currency, it was no longer exchangeable for gold or silver at a fixed rate. Instead, all currencies floated freely against each other.

The United States also remained the world’s primary destination for exported goods, gradually leading to a slow deindustrialization of the country.

1980 – A bubble in precious metals – gold, silver and platinum – finally bursts after the Federal Reserve raises short-term interest rates to unbelievably high levels.
1982 – The U.S. Government bans the issuance of new bearer bonds. This is a blow to financial anonymity because these corporate promissory notes are similar to cash; whoever holds them receives their interest and principal payments. However, existing bearer bonds are allowed to mature naturally. Because the maximum term of a bond is typically no more than 30 years, the last of these bearer bonds mature by 2012.
1980s – A period of relative economic prosperity develops as the Federal Reserve’s relatively cautious interest rate policies discourage widespread speculation.
1986 – The U.S. Mint begins striking American Gold and Silver Eagle bullion coins, giving small investors a good way to accumulate precious metals with confidence.
Late 1990s – The advent of the original technology bubble ushers in an era of destabilizing, serial boom-bust financial markets. This development is encouraged by a profligate Federal Reserve that reliably “bails-out” bubble speculators.
Mid 2000s – The Federal Reserve holds short-term interest rates too low for too long, giving rise to the Housing Bubble.
Mid 2000s – Due to the rising price of precious metals, the last remnants of pre-1970 silver coinage finally disappear from circulation. Looking through rolls of coins from your local bank in hopes finding the odd silver Kennedy half dollar or silver war nickel is now a lost cause.
2008 – The Great Financial Crisis strikes when the Housing Bubble bursts. The Federal Reserve lowers interest rates to almost zero, causing significant dollar debasement. The Fed, in effect, subjects the American people to intense financial repression in order to recapitalize the irresponsible banking system.
Late 2000s – The U.S. Treasury systematically lowers the interest rates it pays on savings bonds, making them far less attractive investments to small savers than they used to be.
2009 – New York City’s centralized clearinghouse for stock settlements adds a $500 fee to the cost of issuing new paper stock certificates, effectively ending their creation. However, existing paper stocks certificates are allowed to remain outstanding.
2012 – The U.S. Government states that it will no longer issue physical savings bonds certificates. From now on all U.S. savings bonds are digital only, with only one minor exception. This is the death knell of the U.S. savings bond program.
2013 – The Depository Trust & Clearing Corporation (DTCC) proposes the elimination of all physical stock certificates. This would make it impossible to hold stocks anywhere except for a brokerage account or DRIP plan.
2010s – The Federal Reserve again suppresses short-term interest rates, inflating a grotesque, hybrid Real Estate/Stock Market/Bond Market/Crypto-Currency Bubble. When it finally bursts, the economic fallout will be catastrophic.
2016 – Several stories run in the media in favor of discontinuing the $100 bill – ostensibly because of their alleged use in criminal transactions. This is in spite of the fact that a $100 bill in 2016 only has the same purchasing power as a $10 bill in 1950.

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Invest Like a Czar with Imperial Russian Antiques

As an antique investor, I’m constantly on the lookout for the next big thing. Well, I think I’ve found it. I’ve already written an article about investing like the Russian Gokhran. But if that doesn’t interest you, maybe you should invest like a Russian Czar instead!

Imperial Russian antiques are tangible reminders of a glorious, but doomed empire that had a population of 170 million subjects and covered almost 1/6 of the world’s landmass. Fine antiques from the Russian Empire have always been popular among collectors, but the recent 100th anniversary of the collapse of Czarist Russia has sparked renewed interest.

Pre-revolutionary Russia is a fascinating place and time in human history. The Russian Empire was headed by the glamorous Romanov Dynasty during this period – a family that has entered into popular mythology over the past century. The personal triumphs and tragedies of the Russian royal family have been recounted countless times in books, movies and television since the overthrow of the monarchy in 1917.

The history of the Romanovs reads like a fiction novel. The dynasty first came to power in 1613, after the tumultuous Time of Troubles – a period in Russian history punctuated by famine, political infighting and foreign invasion. However, the establishment of the Romanov bloodline put an end to this chaos, ushering in their 300 year reign as the nation’s autocratic rulers.

The Romanov Dynasty ruled over a Russia that was still largely medieval in its administration and outlook, even into the 19th century. For instance, the Russian Empire only emancipated its serfs (peasants tied to land owned by the aristocracy) in 1861. Unlike Great Britain and other Western European nations, Russia’s aristocracy lacked the counterbalance of a rich and powerful industrial or mercantile elite. As a result, the aristocracy’s power was only effectively checked by the authority of the Czar and his administrators.

The end of the Russian Empire is all too familiar to students of history. Imperial institutions, while originally dynamic and vital, gradually became ossified and ineffective over the centuries. The Romanov monarchs systematically resisted any attempt to meaningfully curb their power or reform the government. The Russian State Duma, a rudimentary parliament of sorts, was belatedly established in 1905. But the Russian old guard could not abide sharing power, rendering it a token institution.

World War I was the final nail in the coffin for the vast, but teetering empire. Widespread food shortages and a series of military setbacks strained the Russian people to their breaking point. The Romanovs sat secluded and unaware in their lavish palaces while political and social chaos swirled around them. Finally, the last Czar, Nicholas II, was forced to abdicate on March 15, 1917.

For anyone interested in investing in Imperial Russian antiques, I have good news. There is a multitude of aesthetically pleasing objets d’art for the savvy connoisseur to choose from, many of them rendered in gold, silver and precious gemstones. And while prices are usually somewhat higher than for comparable antiques from Western Europe, given the Russian Empire’s romance and history, they are well worth the cost.

The first Imperial Russian antiques I want to showcase are Czarist era silver and gold coins. The Russian Empire’s main currency unit was the rouble, with kopeks acting as the equivalent of cents. Denominations from the tiny 5 kopek coin to the substantial 1 rouble coin were all struck in silver. Gold coins were struck in 3 rouble, 5 rouble, 7.5 rouble, 10 rouble and 15 rouble denominations.

These attractive coins feature the head of the reigning Czar on the obverse and the iconic double-headed Romanov eagle on the reverse. Alternatively, some coins have the denomination surrounded by a legend or wreath in place of the Czar’s bust.

If you are interested in collecting these compelling Imperial Russian antiques, I suggest that you stick to the higher denomination silver coins or the gold coins. The larger silver coins like the half-rouble and rouble are impressive mementos of Czarist Russia and are the most likely (among the silver coins) to appreciate in value. Any Imperial Russian gold coins are highly desirable and there is always strong demand in the market for these covetable pieces.

Imperial Russia even struck platinum coins for a brief period from the late 1820s to the mid 1840s. These unusual pieces were the only platinum coins ever intended for general circulation in history. Unfortunately, they were not popular with the Russian people, who were not familiar with platinum as a precious metal. As a result, few of these platinum coins were minted and they are very scarce and expensive today.

One caveat when buying high value Imperial Russian coins is to watch out for fakes. Because they are in perpetual demand, a significant number of counterfeit specimens have been produced over the decades. In order to avoid this pitfall, I strongly recommend that any Czarist Russian coin you consider purchasing with a value of more than $100 be certified by a third-party grading service, either NGC or PCGS. This advice applies doubly for gold and platinum pieces, which are the most often counterfeited.

Jewelry is another category of Imperial Russian antiques that is well loved by collectors and investors alike. Even though it was heavily influenced by contemporary Victorian and Edwardian stylistic trends, Czarist jewelry has a uniquely Russian look.

For example, Imperial Russian jewelry often incorporates native Russian gemstones from the Urals or Siberia. This includes fabled gems such as green demantoid garnet, reddish-purple Siberian amethyst, glowing Baltic amber and vibrant nephrite jade.

Imperial Russian jewelry also often employs fantastic enamel-work, especially guilloche enamel. This is the translucent, luminous enamel that the renowned Faberge workshops were famous for. Cloisonné enamel – opaque enamel where different colors are partitioned by thin metal strips – was also a specialty of 19th and early 20th century Russian jewelers.

Like most Imperial Russian antiques, Czarist jewelry is in very high demand. This has driven prices up considerably over the last few decades. At this point, it is difficult to find anything worthwhile for less than about $1,000. And the sky’s the limit on the high-end of pre-revolution Russian jewelry.

Any overview of Imperial Russian antiques would be incomplete without mentioning Czarist silverware. It is some of the most beautiful antique silver produced in pre-World War I Europe. A fine silver flatware or tea set was de rigueur for any respectable pre-revolutionary Russian noble family.

Antique Russian silver is normally found in two different finenesses: 84 zolotniks and 88 zolotniks. The zolotnik fineness standard originated in medieval Russia and was gradually phased out after the Russian revolution. 96 zolotniks is pure silver, meaning 84 zolotniks is equivalent to .875 fine silver while 88 zolotniks is .917 fine silver. Occasionally high end antique Russian silver was made from 91 zolotnik silver, which is 94.8% fine – purer than sterling silver.

Imperial Russian silver often relies on a handful of characteristic silversmithing techniques. The first of these is bright-cut engraving, where a design or scene is shallowly cut into the otherwise plain surface of a silver object. The second technique commonly encountered is cloisonné enamel, something Imperial Russian silver has in common with Czarist jewelry. Finally, niello, a blackened alloy of sulfur, silver, copper and lead, was often inlaid into antique Russian silver as a contrasting decorative element.

Czarist era Russian silver is highly desirable and almost always sells for a premium versus other antique Continental European silver. Very little good material can be found for less than around $200. Nonetheless, pre-revolution Russian silver represents a superlative way to invest in Imperial Russian antiques.

Czarist Russia represents a lost, almost legendary, way of life in which nobility and royalty lived carefree lives of sumptuous excess while factory workers, peasants and soldiers wrestled with the drudgery of everyday life. We might not have wanted to live there ourselves, but it sure is amazing to be able to peek inside their world. Luckily, Imperial Russian antiques give you that rare (and lucrative) opportunity.

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