Maya Mint Jade Slab from Guatemala

Maya Mint Jade Slab from Guatemala
Photo Credit: paul’s rok shop

Maya Mint Jade Slab from Guatemala

Buy It Now Price: $130 (price as of 2018; item no longer available)

Pros:

-Guatemala is the source of this pleasingly chunky slab of jade.  The name “Maya mint” refers to the characteristic, light-green color of this variety of Central American jadeite jade.

-This block of Maya mint jade measures 5.25 inches (13.3 cm) long by 2.75 inches (7.0 cm) wide by 0.88 inches (2.2 cm) thick.  It weighs in at a substantial 657 grams (1.45 pounds).

-There are actually two types of true jade: nephrite and jadeite.  Although they are chemically distinct from each other, they both possess very similar physical characteristics, including extreme hardness and toughness.

-This specimen of Maya mint jade is the jadeite variety.  Jadeite is generally rarer than nephrite and usually commands a higher price.

-We can verify that this slab is jadeite jade by calculating its density, which is weight divided by volume.  In this case, the formula is 657 gm/(13.3 cm x 7.0 cm x 2.2 cm), which comes out to 3.21 gm/cm3.  This is very close to the theoretical value of 3.30 gm/cm3 for jadeite.  However, this trick only works with regularly-shaped blocks of rough jade.

-Being a metamorphic rock, jade is only found in locations with substantial tectonic plate activity.  So it shouldn’t come as a surprise that nearly all commercial jade deposits originate in the seismically active “Ring of Fire”, which encircles the Pacific Ocean.

-This Maya mint jade slab has a very tight-grained, compact crystal structure.  You can tell this because the edges of the block are quite sharp, without any raggedness or chipping.  This is important because the more compact and denser a piece of jade, the finer a finish it will take.

-This example of Central American jade was almost certainly mined in the Motagua River valley, which sits on the geologically active boundary of the North American Plate and the Caribbean Plate.  The Motagua River was the primary source of jade exploited by the ancient Meso-American cultures, such as the Olmecs, the Mayans and the Aztecs.

-Unlike Burmese jadeite, Guatemalan jadeite is almost never treated to enhance its color or clarity.  This is a tremendously important consideration because bleached or dyed jades are often brittle and can fade in color over time.  In contrast, it is obvious that all-natural jades – like this Maya mint green specimen – will be very desirable in the future.

-Although it might seem a little far-fetched right now, I am firmly convinced that rough jade slabs and blocks are excellent tangible investments, especially when paired with gold and silver bullion.

-With an asking price of only $130, this piece of jade is just under $200 per kilogram.  This is an exceptionally low price for such an excellent block of Maya mint jade.

 

Cons:

-The most valuable types of jade are highly translucent, but Maya mint jade is opaque in nature.  However, if this specimen were translucent, you can bet it would cost a whole lot more money.

-Guatemalan jadeite jade is less valuable than high quality, untreated Burmese jadeite.  Of course, this is offset by the fact that an estimated 90% of Burmese jade on the market today has been either bleached or dyed (or both).

 

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Vintage Must de Cartier Watches – The Perfect Starter Luxury Wristwatch

Vintage Must de Cartier Watches - The Perfect Starter Luxury Wristwatch
Photo Credit: Guy Sie
Here is a magnificent example of a vintage Must de Cartier wristwatch, circa 1980.  Notice the cobalt-blue spinel crown, superb build quality and classic styling of the piece – characteristics shared by all Cartier watches.

The rectangular Cartier Tank wristwatch is one of the world’s most iconic watches.  First developed in 1917, the Cartier Tank borrowed its design language (and name) from the most technologically advanced battlefield weapon of its time – the British Mark IV tank.  Since that time, Cartier has continuously produced highly coveted luxury watches using this simple, yet instantly recognizable design.

Unfortunately, with a price tag easily exceeding $25,000, an original 1920s Cartier Tank wristwatch is beyond most people’s budget.  But what if I told you there was a vintage Cartier Tank model that not only proudly displayed the rich traditions of the storied luxury house, but was also within financial reach?

Welcome to the wonderful world of Must de Cartier watches!  These underrated timepieces are, in my opinion, the perfect starter wristwatch for the fledgling horological aficionado.

Must de Cartier’s origins date back to the early 1970s, when, according to legend, an employee who had been prompted for marketing ideas at a meeting exclaimed “Cartier, it’s a must!”  This unique philosophy guided the luxury goods company as it sought to create a line of less expensive tank wristwatches that would be more widely accessible.  Finally, in 1977, the world renowned Must de Cartier watch line was officially launched.

Because they were targeted at a lower price than traditional Cartier watches, Must de Cartier watches were designed as fashion accessories by the venerable luxury house.  In fact, Must de Cartier watches became identified with haute couture in the 1980s after celebrated French fashion designer Yves Saint Laurent prominently wore one in his iconic 1983 photo portrait.

 

-Saint Laurent by Irving Penn

Irving Penn’s iconic 1980s black and white photo of the famously shy French fashion designer Yves Saint Laurent showing off his Must de Cartier wristwatch.  Photo Credit: Delectant

 

As a result of this fashion-forward thinking, Cartier produced these watches in a dizzying array of styles.  Although they all share the ubiquitous tank shape and Must de Cartier nameplate, a surprising number of dial colors and effects can be found.  This almost ensures that there will be a vintage Must de Cartier wristwatch that will appeal to you, regardless of your tastes.

Although they were a tremendous commercial success for many decades, Cartier eventually discontinued its Must de Cartier tank line of watches in the mid 2000s.  This was done because the company wanted to preserve its image as an extremely exclusive luxury brand, and felt that having a Cartier Tank available under the $2,000 price point might erode its reputation.

 

Cartier Tank Wristwatches for Sale on eBay

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Consequently, Must de Cartier watches are often treated as an afterthought in today’s vintage watch scene.  This is a tragedy, as these high quality timepieces were built to very exacting standards.  They allow the aspiring watch collector to own a genuine vintage Cartier Tank – a bona fide luxury watch – at a surprisingly reasonable price.

As a result of being frequently overlooked, information about classic Must de Cartier watches is difficult to come by.  I hope that this article will prove to be a useful resource to any watch enthusiast interested in these beautiful horological treasures.

First let’s run down the specifications of vintage Must de Cartier watches.  These Swiss-made, uni-sex luxury wristwatches measure approximately 30 mm (1.18 inches) long (including the lugs) by 23 mm (0.90 inches) wide.  This makes them rather small by today’s standards.  But, by the same token, they are also a refreshing change of pace from the grotesquely oversized 45mm+ sport watches that seem to be everywhere these days.

Vintage Must de Cartier watches are found with two different types of movements: a high quality quartz movement or a manual-wind mechanical movement.  Quartz movements were more commonly employed, including the 4-jewel Cartier caliber 057, the 4-jewel Cartier caliber 157, the 7-jewel Cartier caliber 90 and the 7 or 8-jewel (opinions vary) Cartier caliber 690.  Cartier produced these reliable in-house quartz movements in a joint-venture with the well-regarded Swiss firm of Ebel, one of the most prominent watchmakers of the 1980’s/1990’s.

Sometimes you’ll find Must de Cartier watches sporting the 17-jewel, manual-wind Cartier caliber 78-1 movement.  This particular caliber is based on the ETA 2512-1, a workhorse movement that saw extensive use from the late 1970s through the early 1980s due to its compact size, durability and precision.

This list of Must de Cartier watch movements is undoubtedly incomplete.  However, in my experience, Cartier always used good quality, well-finished movements in its Must de Cartier tank line.  I find this to be especially remarkable given the relatively modest retail price points that the firm was targeting for these watches.  This situation is a far cry from some modern Swiss luxury watch brands (cough *Tag Heuer* cough) that offer plastic cases and unfinished, $10 quartz movements on models in the $1,000 to $2,000 price range!

Now, under most circumstances I don’t recommend that you purchase vintage luxury watches (or new luxury watches for that matter) with quartz movements – especially if resale value or investment return is important to you.  Vintage quartz watches almost always trade at substantial discounts to similar vintage mechanical watches in the secondary market.

 

Mechanical Vintage Must de Cartier Watches for Sale on eBay

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However, classic Must de Cartier watches are a notable exception to this rule.  Vintage quartz and mechanical versions seem to sell for about the same price, provided they are in comparable condition.  This is a testament to the outstanding reputation and timeless appearance of these vintage timepieces.

In addition, because both quartz and mechanical Must de Cartier watches are readily available, you can simply purchase whichever type of movement you prefer.  This is a real boon to the budding watch addict!

Another benefit shared by all Must de Cartier watches is the fact that they were produced by a globally recognized luxury brand.  This becomes especially important if you ever want to resell your watch.  Wristwatches from no-name or second tier manufacturers are very difficult to sell for good money.  The Cartier name, however, carries considerable cachet.

But let’s not make the mistake of believing that Must de Cartier watches have nothing but their good name going for them.  To the contrary, Cartier spent considerable effort to ensure that this line of entry-level luxury watches met their exacting quality standards.

For example, they are made of vermeil, which is a solid sterling silver base coated in a thick layer of gold plating.  Obviously, Must de Cartier watches couldn’t be made from solid karat gold or they would be far too expensive to hit their intended price point.  But if you must gold plate a watch, this is absolutely the way to do it.

The underlying metal, sterling silver, is a precious metal in its own right.  Most gold electroplated watches, on the other hand, use a copper-alloy base.

And the gold electroplate layer on vintage Must de Cartier watches is a full 20 microns (millionths of a meter) thick.  This might not seem very impressive until you realize that the gold plating on most good quality fashion jewelry is only 2 or 3 microns thick.  Cheap costume jewelry might only have a plating 0.5 microns thick!

In my experience, gold plate over sterling silver also wears much better than gold plate over a base metal.  In the latter instance, any scratches or pinholes through the plating will quickly develop green spots or other corrosion.  But scratches on vermeil – even deep scratches – will remain inert, allowing for a much more attractive, longer wearing watch.

Even heavily worn vermeil, where a significant amount of the underlying sterling silver is exposed, will still tone to a charming patina over time.  Of course, having your well-loved vintage Must de Cartier wristwatch re-plated is always a viable option.  These horological prizes are certainly worth the effort.

The fit and finish of Must de Cartier watches are also excellent – oftentimes equal to timepieces costing 2 or even 3 times as much money.  They are held together by individual, miniature screws that perfectly secure the two halves of the watch case together.  There are no sharp edges or sloppy joints.  For being entry-level luxury timepieces, Must de Cartier watches are superlative.

 

Quartz Vintage Must de Cartier Watches for Sale on eBay

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The stunningly deep-blue synthetic spinel cabochon embedded in the crown of each watch is another famous hallmark of Cartier elegance.  It is these small touches that set vintage Must de Cartier watches apart from lesser fashion timepieces.

But perhaps the best aspect of Must de Cartier watches is their relative affordability.  Examples in mint or near-mint condition can be found in the $1,000 to $2,000 range.  More worn specimens might trade for $600 to $1,200.  In a world where vintage solid gold watches from well-regarded watchmakers such as Omega, Rolex or Vacheron Constantin typically sell for $5,000 and up, vintage Must de Cartier watches represent exceptional value.

Unfortunately, the popularity of the Cartier name means that it isn’t uncommon to come across fake Must de Cartier watches.  This is slightly surprising, as I normally wouldn’t expect a $1,000 or $1,500 watch to be frequently counterfeited.

In any case, I recommend looking at the build quality of the case for clues to a prospective watch’s authenticity.  The fit and finish should be superb, with no pitting, burrs or other manufacturing imperfections.  In addition, the case should be screwed together absolutely seamlessly, without any misalignment.  The dial should be similarly impeccable, with crisp lettering and markers.

The back of a Must de Cartier tank watch case should be inscribed with the French word for silver, “ARGENT” and either “PLAQUE OR G” or “PLAQUE OR G 20 M”, indicating the 20 micron thick gold plating.  It should have full Swiss silver hallmarks as well, typically a canard (duck) inside an octagon border, in addition to two or three other stamps.

Moreover, the movement should always be Swiss-made, with the Cartier name clearly inscribed on it.  A supposedly vintage Must de Cartier wristwatch housing a Japanese quartz movement is a clear indicator of a fake!

A Must de Cartier tank that comes with its original box and papers is another sign of authenticity, although this isn’t always foolproof.

As always, the best defense against accidentally purchasing a counterfeit Must de Cartier wristwatch is to buy from a reputable watch dealer, preferably one with an unconditional guarantee of authenticity and a warranty program.  And remember, if a deal seems too good to be true, then it probably is!

Of course, watch lovers who aren’t satisfied with vintage Must de Cartier tanks can always step up to one of the luxury firm’s higher-end tank wristwatches.  Current models include the Cartier Tank Française, the Tank Anglaise, the Tank Américaine, the Tank Solo, the Tank Louis Cartier and the Tank MC.  However, don’t expect to be able to touch any of these watches for less than about $2,500.  And some of them sell for far, far more money than that.

Regardless of which tank watch strikes your fancy, rest assured that you are getting Cartier quality and a classic, heirloom quality timepiece.  If you are an aspiring watch enthusiast, vintage Must de Cartier watches are undoubtedly some of the best entry-level luxury wristwatches out there.  The fact that they will also appreciate in value over time, just like any other high quality investment, is simply icing on the cake.

 

Read more in-depth Antique Sage vintage watch investment guides here.


Vintage Walking Liberty Half Dollar Roll

Vintage Walking Liberty Half Dollar Roll
Photo Credit: APMEX

Vintage Walking Liberty Half Dollar Roll

Buy It Now Price: $128.40 (price as of 2018; item no longer available)

Pros:

-This vintage Walking Liberty half dollar roll contains $10 face value of circulated U.S. 90% silver coins that were struck over 70 years ago.

-The Walking Liberty half dollar is a substantial coin, with a gross weight of 12.5 grams and a diameter of 30.6 mm (1.2 inches).  Like all pre-1965 U.S. dimes, quarters and half dollars, it was struck from 90% silver for a net precious metal content of 0.3617 troy ounces per coin.  The entire roll is assumed to contain 7.15 troy ounces of silver (after accounting for a small wear allowance).

-The seller is APMEX – a well-respected precious metals dealer based in Oklahoma City, Oklahoma.  APMEX is the world’s largest online precious metal retailer with aggregate sales of over $10 billion since its founding in 1999.

-Pre-1965 U.S. 90% silver coins are, without a doubt, the absolute cheapest way to buy fractional silver in the market today.  Junk silver is also widely recognized, making it an extremely liquid investment.

-Designed by the American sculptor Adolph A. Weinman, the Walking Liberty half dollar was minted between 1916 and 1947.  It is widely regarded as one of the most beautiful coins in U.S. history – so much so that its portrayal of Liberty was resurrected in 1986 for use on the tremendously popular American Silver Eagle bullion coin.

-With silver trading at $14.64 per ounce, each Walking Liberty half dollar roll has a melt value of just under $105.  This means the rolls are selling for a premium over melt of just 22.6%, a very reasonable sum for such desirable semi-numismatic coins.

-Silver bullion is a tremendously undervalued asset in today’s market.  Consequently, junk silver is a fantastic way to protect yourself from the near-continuous depreciation that the U.S. dollar has experienced over the past 90 years.

-If you are interested in investing in silver, it is tough to go wrong with a vintage Walking Liberty half dollar roll.  These old coins will undoubtedly see strong future demand from both coin collectors and silver stackers.

 

Cons:

-This Walking Liberty half dollar roll contains semi-numismatic coins that are in average circulated condition.  This could include lower grade coins that are in VG-8, G-4 or even AG-3 condition.  For collectors looking for higher quality coins, APMEX has rolls of XF Walking Liberty half dollars available for about $170 each.

-This Walking Liberty half dollar roll is not the cheapest junk silver available.  A $10 face value roll of pre-1964 Washington quarters or 2 $5 face value rolls of pre-1964 Roosevelt dimes would cost you about $10 less.  However, a lot of people prefer the history and beauty of the Walking Liberty design and are willing to pay a small premium for them.

 

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Are U.S. Federal Reserve Notes Backed by Anything?

Are U.S. Federal Reserve Notes Backed by Anything?

When someone asks if anything backs the U.S. dollar anymore, the answer is usually: nothing but confidence in the United States economy and/or government.  And this evaluation is true…sort of.  After having conducted some in-depth financial research, I can confirm that this assessment isn’t technically correct (which, as everyone knows, is the best kind of correct).

It is a little known fact that Federal Reserve notes are legally backed by certain assets sitting on the balance sheets of the United State’s 12 Federal Reserve Banks.  I have pulled a pertinent explanation from the notes of the Federal Reserve’s 2017 audited financial statements:

Federal Reserve notes are the circulating currency of the United States.  These notes…must be fully collateralized.  All of the Reserve Banks’ assets are eligible to be pledged as collateral.

To satisfy the obligation to provide sufficient collateral for outstanding Federal Reserve notes, the Reserve Banks have entered into an agreement that provides for certain assets of the Reserve Banks to be jointly pledged as collateral for the Federal Reserve notes issued to all Reserve Banks. In the event that this collateral is insufficient, the Federal Reserve Act provides that Federal Reserve notes become a first and paramount lien on all the assets of the Reserve Banks.

At December 31, 2017 and 2016, all Federal Reserve notes outstanding, net, were fully collateralized.  At December 31, 2017, all gold certificates, all SDR certificates, and $1,554 billion of domestic securities held in the SOMA were pledged as collateral.  At December 31, 2017, no investments denominated in foreign currencies were pledged as collateral.

So surprisingly, the currency in your pocket is actually backed by something more than unicorns and fairy dust!

Now for the caveats.  This backing only applies to physically printed U.S. Federal Reserve notes.  It doesn’t include digital U.S. dollars, like those in your checking or savings account.  This is in spite of the fact that dollars in deposit accounts can generally be freely exchanged for Federal Reserve notes on demand.

It also excludes U.S. coinage, which is considered fiduciary money.  Incidentally, this is the same reason you can’t use a dump truck full of pennies to pay off your mortgage.

 

Federal Reserve Assets Pledged As Collateral Against Federal Reserve Notes

 

Book Value Market Value
Dec. 31, 2017 Exchange Dec. 31, 2017
in millions Rate in millions
Gold Certificates  $            11,037 @  $42.22/$1302.50  $         340,477
SDR Certificates  $             5,200 @  $                     1.42  $              7,405
Treasuries & MBS  $     1,554,000  $      1,554,000
Grand Total  $      1,570,237  $      1,901,882

 

The first collateral specifically mentioned in the Fed’s financial statements is gold certificates.  These are holdovers from the pre-1934 era, when the United States was still on the gold standard.  Originally, $20.67 was exchangeable for a single troy ounce of fine gold.  However, gold was gradually revalued during the 20th century until its official government price was frozen at $42.22 in 1973.

So the $11 odd billion in gold certificates on the Fed’s balance sheet actually represents a claim on approximately 261.4 million troy ounces, which is very nearly the entirety of the United State’s gold reserves.  At the December 31, 2017 spot price of $1,302.50, these gold certificates had a market value of over $340 billion.

The next asset used to collateralize Federal Reserve notes is SDR certificates, otherwise known as Special Drawing Rights.  SDRs are composed of a basket of national currencies that are important in global trade and finance.  Right now each SDR is composed of 0.58 U.S. dollars, 0.39 euros, 0.09 British pounds, 1.02 Chinese Yuan and 11.90 Japanese Yen.

The SDR currency basket is reweighted every 5 years to reflect changing economic positions, with the next reassessment scheduled for 2021.

The Federal Reserve Banks have pledged all 5.2 billion of their SDRs as collateral against outstanding Federal Reserve notes.  Each SDR had an exchange rate of $1.42 at December 31, 2017, giving this collateral a total value of $7.4 billion.

The final collateral backing Federal Reserve notes are domestic SOMA (System Open Market Account) securities.  SOMA securities consist primarily of U.S. Treasuries and government agency MBS (mortgage-backed securities) that the Fed has purchased on the open market.  As of Q4 2017, there were $2,546 billion of Treasuries on the Fed’s balance sheet and $1,818 billion of MBS.

Because the Federal Reserve Banks have only pledged $1,554 billion of these SOMA securities as collateral against Federal Reserve notes, it is anyone’s guess as to how much of the collateral is Treasuries versus MBS.

The Federal Reserve measures compliance with its collateralization requirements by using the book value of its pledged assets (excepting SOMA securities, which use par value).  Using market value instead results in a slight over-collateralization, mostly due to the Fed’s gold certificate holdings.  So at the end of 2017, the $1,571 billion of U.S. paper currency in circulation was actually backed by $1,902 billion in Federal Reserve assets.  This represents a 121% collateralization ratio.

Of course, all this talk of real assets backing our cash sounds great at first blush.  But there are still some serious drawbacks to the arrangement.

For one thing, U.S. currency is not officially redeemable for anything – not even the collateralizing assets!  In fact, it is difficult to conceive of a situation in which the Fed would be forced to redeem Federal Reserve notes using its pledged assets.

The next stumbling block is that gold certificates and SDRs represent the lion’s share of the central bank’s “hard” (i.e. non-dollar denominated) assets.  There is simply no way the Fed (or the U.S. Government for that matter) would allow these vital anchor assets to be paid out to currency holders.

In addition, the bulk of the collateralizing assets (81.7% by market value) are Treasury and MBS securities.  But if these were actually paid out to dollar holders, it would only entitle them to receive more currency in the future, which would presumably be Federal Reserve notes too!  The logic here is a bit circular, as you can tell.

As a final blow, the provision requiring all Federal Reserve notes to be collateralized does nothing to restrict additional future issuance.  All the Fed must do in order to legally issue more currency is purchase additional Treasury or mortgage-backed securities on the open market (with digital dollars created out of thin air) and then pledge these fresh assets as collateral against newly printed Federal Reserve notes.

So in the final analysis, the Federal Reserve assets backing U.S. paper currency is more of an accounting relic from a bygone era of responsible central banking, than a true safety net.  Because of this, I recommend that investors hedge some of their dollar exposure with tangible assets like precious metals, antiques and gemstones.  That way, if the worst should ever happen, you don’t have to hope that the Fed makes good on its (almost certainly) empty promises.

 

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