Rare 1794 silver dollar auctioned for record $10M

6:30 PM auctioned, dollar, record, silver No Comments

Reuters – 6 days

A 1794 silver dollar, which many experts believe was the first such coin struck by the U.S. Mint, sold for a record $10 million at auction on Thursday.
The Flowing Hair Silver Dollar more than doubled the previous $4.1 million auction record for a coin set in 1999, auction house Stack's Bowers Galleries said.

Legend Numismatics, a rare-coin firm based in New Jersey, bought the coin, which was the highlight of the evening sale in New York that fetched a total of $17.2 million.

"We felt in our heart that this would be the very first coin to exceed the $10 million barrier in auction and were in fact prepared to bid much high in order to acquire this unique piece of history," the company said in a statement, adding it had no plans to sell the coin in the near future.

David Bowers, chairman emeritus of Stack's Bowers Galleries, said the coin has unique features that make it particularly valuable.

"It is the first American metal dollar struck and the finest known. You have these combinations coming together. No museum has an equal piece," he told Reuters.

The coin was part of the Cardinal Collection, amassed by the collector Martin Logies. Bowers described the collection as the "Old Masters" of coins struck during the earliest years of the U.S. Mint.

"I think it is extraordinary and I am very pleased that the first silver dollar is the first to top the $10 million threshold," said Logies, who purchased the coin three years ago.

The $10 million price includes the buyer's commission.

Like the buoyant art market, which is expecting another good year in 2013, Bowers said coins are a good investment, have a worldwide market and have risen steadily in value.

"We're continually surprised by surprises," he said, adding there are several million coin collectors around the globe. "They want to collect coins for appreciation, art, rarity and beauty."

The record-setting coin shows a profile of Miss Liberty facing right surrounded by stars representing each state in the union. The design was only used in 1794 and briefly the following year.

Another top seller in the sale of 94 lots was the 1792 Half Disme, which dates back to David Rittenhouse, the first director of the U.S. Mint. It fetched $975,000, excluding the 17.5 percent buyer's commission.

Copyright 2013 Thomson Reuters.

Read More

Fed holds rates at record lows, notes some improvement in economy

4:30 AM economy, holds, improvement, notes, rates, record No Comments

The U.S. Federal Reserve on Wednesday repeated its promise to leave interest rates on hold until at least late 2014 but offered few clues into whether it might offer additional stimulus later this year.

The Fed described the economy as expanding moderately, just as it did in March, and said the unemployment rate had declined but remains elevated.

Officials noted a pick up in inflation but said it was largely attributable to energy cost hikes that will affect price growth only temporarily.

Economic conditions "are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014," the central bank said in its policy statement.

Richmond Fed President Jeffrey Lacker again dissented against the decision, saying he believed rates would need to be raised before that time frame.

Full text of the Fed's statement here.

As Fed officials gathered on Wednesday, the government reported that orders for long-lasting manufactured goods plunged 4.2 percent in March, the biggest drop since the economy was nose-diving in early 2009.

The data was the latest to suggest the economy lost momentum as the first quarter drew to a close.

Investors wishing for clues about how the central bank views the June end-date of Operation Twist, its latest effort to keep down long-term rates, were disappointed.

U.S. economic growth has been just firm enough to weaken the case for additional stimulus through Fed purchases of government or mortgage bonds. Gross domestic product expanded at a 3 percent annual rate in the fourth quarter but is seen slowing to around a 2.5 percent pace in the first three months of this year.

The Fed will release its latest round of quarterly forecasts at 2 p.m. and Fed Chairman Ben Bernanke will follow with a news conference at 2:15 p.m., where he will likely be peppered with questions on the chances of more easing.

Most analysts think Bernanke will do whatever he can to keep his options open.

Since the central bank's last round of GDP, unemployment and inflation forecasts in January, the U.S. jobless rate has come down to 8.2 percent from 8.5 percent, and the financial situation in Europe has stabilized somewhat, although it is still troubling.

In January, the Fed saw the economy growing between 2.2 percent and 2.7 percent. That range may be revised a bit higher. At the same time, the unemployment rate forecast will likely shift down from January's 8.2 percent to 8.5 percent range.

Policymakers will also offer individual projections for when the first interest rate increase should come and how quickly borrowing costs should rise -- though these will appear on charts that do not link them to specific officials' names.

Traders are currently betting the Fed will begin raising rates in April 2014, with short-term U.S. futures contracts suggesting they see a 56 percent chance of a rate hike then.

In response to the deepest recession in generations, the Fed lowered benchmark overnight rates effectively to zero in December 2008 and more than tripled its balance sheet by purchasing some $2.3 trillion in government and mortgage bonds to keep long-term borrowing costs down.

According to a Reuters poll published last week, economists have dialed down expectations for a third round of bond purchases. The respondents saw a 30 percent chance of more bond buys, down from 33 percent in a poll in March.

A report early this month that showed job growth slowed sharply in March kept some hope of easing alive, and economists will look eagerly to the next round of jobs data on May 4 for more clues on where U.S. monetary policy may be heading.

Copyright 2011 Thomson Reuters.

Read More

15-year mortgage rate hits record low

2:35 AM 15year, mortgage, record No Comments

Mortgage rates fell over the past week, sending the 15-year benchmark to a record low, mortgage giant Freddie Mac said Thursday.

While 30-year fixed-rate mortgages are more common, low mortgage rates have made 15-year notes more realistic for some homeowners, especially those who have relatively low balances and want to pay off their principal more quickly.

The average 15-year rate for mortgage deals done over the past week was 3.11 percent, down from 3.13 percent a week ago. Monthly principal and interest payments on a $200,000 mortgage at that rate would be about $1,392.

Meanwhile the average 30-year rate fell last week to 3.88 percent from 3.98 percent. That would equate to an average monthly payment of $941 on the same $200,000 mortgage. Payments are lower on the longer-term mortgage, but interest paid over the life of the loan is far higher.

Rates fell for a third straight week in part because of last Friday's weak monthly employment report, said Frank Nothaft, chief economist for Freddie Mac.

"On a more positive note, the Federal Reserve reported hiring was steady, or showed a modest increase, across many of its districts in its April 11 Beige Book of regional economic conditions," Nothaft said.

Read More

US trade gap widens; deficit with China hits record

7:40 AM China, deficit, record, trade, widens No Comments

The U.S. trade deficit widened slightly more than expected in December, and the bilateral trade deficit with China last year soared to a record high $295.5 billion.

The monthly trade gap swelled to $48.8 billion as goods imports climbed to the highest level since July 2008, just before the financial crisis caused world trade to plunge, a report from the Commerce Department showed on Friday.

Analysts surveyed before the report had expected the December trade deficit at $48.0 billion, up from a revised estimate of $47.1 billion in November.

U.S. exports grew slightly in December, with records set for petroleum, services and advance technology goods.

For the year, the U.S. trade gap rose 11.6 percent to $558.0 billion, the highest since 2008.

Exports last year rose 14.5 percent to a record $2.1 trillion, keeping the United States on pace to meet President Barack Obama's goal of doubling exports in five years.

Imports grew 13.8 percent to a record $2.7 trillion, with records set in several categories.

Auto imports rose to the highest since 2007 and petroleum the highest since 2008. The average price for imported oil in 2011 was a record high $99.78 per barrel

The record trade deficit last year with China is certain to reinforce concerns in Congress about Beijing's currency and trade practice ahead of a meeting next week between Obama and the Asian giant's expected next leader, Vice President Xi Jinping.

U.S. exports to China jumped 13.1 percent to $103.9 billion. But that was overwhelmed by a 9.4 percent increase in imports from China, which pushed the tally to a record $399.3 billion.

Last year, the Democratic-controlled Senate passed legislation to pressure China to raise the value of its currency, but that bill hit a dead end in the Republican-controlled House of Representatives.

Many lawmakers believe that China deliberately undervalues its currency to give its companies an unfair price advantage, contributing to the huge bilateral deficit.

The U.S. trade deficits with the European Union and Canada also expanded in 2011.

Copyright 2011 Thomson Reuters.

Read More