Pre-Long Beach Auction (#110) 06/02/2019 10:00 AM PST CLOSED! Buyers Premium of 20.00% added to each and every lot

Lot 762 of 2707:
Lincoln Cent. 1959-D The Unique Wheat Ears Reverse! MS60  

Click image to enlarge
Lot closed - Winning bid:$50,000
Description:

1959-D The Unique Wheat Ears Reverse!. MS-60+. Brown. This coin has created quite a bit of controversy in the past, and it's time the allegations and innuendo get laid to rest. For some reason, the few independent grading services who have examined this coin can't seem to decide on its genuine status, although no one can define any reason to consider it counterfeit, they also won't render an opinion to support the coin as a genuine mint product. Hence, the opinions of most remain that no decision can be made on the coin unless further tests are conducted.

The known history of this unique cent begins in 1986. A retired police officer named Leon Baller advertised in his local Walnut Creek, California newspaper that he would purchase rare and unusual coins. A local coin collector saw the ad and contacted Baller about an unusual 1959-D wheat reverse cent that he had found, and Baller soon arranged to meet with him and then purchased the coin for $1,500. Baller sent the coin to the United States Department of the Treasury for authentication in early 1987. Jim Brown, a forensic lab authenticator for the Department of the Treasury examined the coin and found no indication that it was counterfeit. The coin was returned to Baller on February 7, 1986 with a letter signed by Richard M. McDrew,
Special Agent for the Department of the Treasury. The letter states as follows:

"Enclosed is your United States 1¢ coin, dated 1959-D, with wheat reverse. This coin was microscopically examined by our Forensic Services Division in Washington, D.C. and it is their opinion the coin is genuine."

Baller eventually sold the coin to Heritage Rare Coin Galleries in 1987. The cent was then sold to a private collector where it remained until recently.
The current owner of the coin is a business syndicate whose members' names have not been disclosed, and their representative is Larry Choate, a Southern California collector. Choate took the bold move in 2002 to resubmit the coin to the Department of the Treasury and Secret Service for a more comprehensive review of the 1959-D wheat cents authenticity. Choate realized that if the coin was considered a counterfeit, it would be seized and destroyed. In addition, Choate took the risk that the coin was produced at the Denver Mint but illegally spirited out, and could be seized on those grounds as well. Frankly, the Department of the Treasury has a checkered list of such seizures, and only a few coins have been seized over the years. It is important to note here that this coin will not be confiscated as the Treasury Department has returned the coin twice to the owner after reviewing the coin and returning it as genuine. It is also considered legal tender by the Treasury Department.

The most recent and very public seizure was the 1933 double eagle which the Government seized and wanted to destroy in a mindless bureaucratic fashion. Mercifully for collectors, the original owner of the 1933 double eagle was Egypt's King Farouk, and he obtained an export license which allowed him to take the coin with him out of this country to Egypt. After protracted litigation, the government and owner of the coin, British dealer Steve Fenton, agreed to have the coin sold and the proceeds would be divided. Thus, the Farouk 1933 double eagle would be the only currently "legal" specimen that could be obtained. Rumors have long swirled that other 1933 double eagles exist in private collections, but the Government claims title to any that may be in private hands and they would be seized if found as Government officials have publicly stated. This unique rarity just sold for $7,590,020. at auction in July 2002.

In recent years a bonanza of mint "errors" have turned up in collectors hands. Some of these have included error commemorative gold coins which were so mistruck as to not fit into the government holders. Another example would be the recently released Sacagawea/Quarter mules, or even the 1964 Peace silver dollar. Rumors persist, and in some cases these coins would be seized if they appeared at public auction. Normally, years after the original production, the probability of seizure seems to drop, and the seizure cases normally involve coins that were illegally removed from the mint where the perpetrators can be rounded up and jailed after due process, as the coins were simply not just normal production errors which escaped into circulation.
These distinctions are important, because if a coin is seized, it is seldom returned and any value paid for the coin would be lost. Under such circumstances, the Government goes after the mint employees involved, and many have been arrested and prosecuted for these crimes.

Getting back to our 1959-D cent, Choate knew that he was taking a big risk by submitting this coin back to the United States Secret Service, as it could be seized if it was determined to be a counterfeit, or illegally taken from the Denver Mint. However, after extensive examination by the United States Secret Service Office of Investigations Counterfeit Division a report was issued dated May 17, 2002, under their case number Log: 119-726-FY2002-018.
This report, which of course accompanies this lot, states as follows:

"Exhibit Examined Q1 One 1959-D Lincoln cent, bearing the wheat reverse, described on the subject letter."

"Background: From 1909 until 1958, the United States Mint cent bore a portrait of President Lincoln on the obverse and two curved stylized heads of wheat on reverse. In 1959, the design was changed to bear the Lincoln Memorial on the reverse."

"Results of Examination Physical and microscopic examinations were conducted on the submitted Lincoln cent (Exhibit Q1; see figure 1). [photo of obverse and reverse].

Page 2:

"Optical and scanning electron microscopic examinations conducted on the submitted coin (Exhibit Q1) revealed that the coin's obverse does not exhibit any indications of alterations to the date or surrounding field (see figure 2). [two scanning electron micrographs of the final 9 of the date are included, the first is enlarged 180 times, the next is enlarged 200 times].

Below these photos the report continues: "Enlargements show no indications of alterations--metal shows smooth transition from numbers to the field. An alteration at these magnifications would be evident by tool mark striations or seams with solder or glue. Alteration from within the coin (embossing) would result in less defined numerals and disturbances on the surface of the numerals."

The report goes on:

"Further, the edge and rim of the submitted coin (Exhibit Q1) was examined for evidence of seams or alterations that would suggest that the submitted coin was a composite of a 1959-D obverse with a separate wheat reverse (see figure 3)." "Figure 3: Micrographs of the rims of the submitted coin (Exhibit Q1)" show the obverse rim near the W of WE, and the reverse rim near a wheat ear and are magnified 60 times. Below the micrographs the Report states: "Enlargements show no indications of alterations or seams. The metal shows smooth transition from the field to the rim and then to the edge. An alteration at these magnifications would be evident by tool mark striations or seams with solder or glue."

Page 3 continues:

"No evidence of manipulation or alteration to the edge of the submitted coin (Exhibit Q1) was observed (see figure 4)." "Figure 4: Optical micrograph of the edge of the submitted coin (Exhibit Q1)" which shows the edge of the coin and concludes: "Enlargements show no indications of alterations or seams in the edge. The metal appears undisturbed, as does the oxidation (toning). An alteration at these magnifications would be evident by tool mark striations or seams with solder or glue."

The Report next examines the die polish lines as follows: "The submitted Lincoln/wheat cent (Exhibit Q1) displays prominent die polish (raised striations in the field, but absent in the raised devices) on the obverse and reverse (see figures 5 through 7). During the course of examination, the subject coin was compared to one 1959 cent and two 1959-D cents that had similar die polish on the obverse. No significant differences in the appearance of the polish were observed." Two greatly enlarged micrographs of the field and ERTY follow: "Figure 5: Optical micrograph of the die polish on Exhibit Q1 and Figure 6: Optical micrograph of the die polish on Exhibit Q1."

Page 4 continues: Figure 7: Optical micrograph of die polish on the reverse of submitted coin (Exhibit Q1)" with a very large micrograph of the central reverse which shows die polish lines in the field.

The Report continues: "Nondestructive physical examinations conducted on the submitted coin (Exhibit Q1) revealed that the coin is consistent in mass, diameter, and thickness of genuine 1958/1959 cent coins. Additionally, surface measurements by energy dispersive x-ray spectroscopy revealed that the coin is consistent in elemental composition with genuine 1958/1959 cent coins (see table 1).

"Table 1: Composition, diameter, thickness, and Mass of Exhibit Q1
Exhibit Cu(%) Zn & Sn (%) Diameter (mm) Thickness (mm) Mass (g)
Genuine* 95.0 5.0 19.05 1.58 3.11
Q1 ~95 - 97 ~3 - 5 19.1 - 19.2 1.5 - 1.6 3.09
*The numbers presented in this row are the Mint specifications for genuine 1947-1962.

Given this evidence, the Report goes on:

"CONCLUSIONS"

"Although the submitted 1959-D Lincoln Cent (Exhibit Q1) exhibits the wheat reverse, instead of the Mint specified memorial reverse, the submitted coin exhibits physical characteristics, such as device detail, metal flow, die polish, thickness, diameter, mass and composition, consistent with genuine 1958/59 Lincoln cents. Further, the submitted Lincoln/wheat cent does not exhibit any indications of alterations to the date or evidence of edge alteration, indicating that the submitted coin was a result of combining two genuine coins. Additionally, no characteristics associated with counterfeit coins, such as tool marks, file marks, raised metal or unusual oxidation ("toning") were observed."

Page 5 begins:

"In the absence of any evidence that the submitted 1959-D Lincoln/wheat cent (Exhibit Q1) is not consistent with having been manufactured by the US Mint, the coin was determined to be a genuine mule cent."

The page continues with remarks which discuss the way the coin was handled, and the fact that it was returned to the owner, and the Report was signed by Marc J. Surrency, Counterfeit Specialist and Approved by Anthony M. Chapa, Special Agent in Charge.

In another specialized reference work, The Authoritative Reference on Lincoln Cents by John Wexler and Kevin Flynn, the authors devote 3 pages to this coin. They note that in 1993 this coin was submitted to the ANA for authentication. Michael Fahey, the examiner at the ANA "could find no evidence of it being counterfeit. However, because there was no evidence the Mint could have produced it and it is hard to conceive how this could happen accidently. Since only one specimen has ever been found, the ANA returned the coin with a "no decision". J.P. Martin, chief authenticator for the ANA, said that when he examined the coin he could not find any evidence that the coin is counterfeit, but also stated that his gut instinct is that the coin is not genuine." J.P. Martin followed up with a letter which is quoted at in full in the Wexler Flynn reference, and we quote the relevant portion here "All in all, the attention given to the die as shown by the die polish is the most bothersome. I challenge any readers to match the shown die polish to the 1959-D obverse or the wheat reverse. Though this piece appears to be suspicious, no absolute technical condemnation can be made. Especially without a comparison example from the same dies. For this reason, the coin was given a "No Decision" by American Numismatic Association Authentication Bureau. This was circa 1993. Since that time, J. P. Martin has left the ANA to be one of the founding partners of the ICG grading service.

J.P. Martin here touches on what will likely resolve the questions swirling about this controversial coin. In 2002 when Larry Goldberg discussed the coin with Rick Montgomery, he said that if other Lincoln cents of the 1958-D reverse and 1959-D obverse dies were submitted, there is a better chance the mule coin could get graded. Given the obvious die lines on the present mule specimen, it should only be a matter of searching to locate matching dies to both the obverse and reverse! It is very unlikely that new dies were used just to coin this one specimen, and the dies were very likely normal production dies which happened to be available when the new reverse was being adapted by the mints.

Okay, let's do some simple math. Walter Breen states in his Encyclopedia that die life for Lincoln cents produced during this period was around 700,000 coins per die (page 233). Mintage for 1958-D cents (it being reasonable to assume the reverse die would have been a 1958-D) was 800,953,000 divided by 700,000 coins per die equals approximately 1,145 dies. Now, let's do the obverse die, 1959-D mintage was 1,279,760,000 divided by 700,000 equals 1,828 obverse dies. Well, while daunting, the task at hand is not insurmountable! Examining circulated coins will not work (I tried that), as the die lines quickly disappear after limited circulation. Thus, this endeavor will best be completed by purchasing bags and bags of 1958-D cents (about $5 per roll of 50 coins) and bags and even more bags of 1959-D cents (about $1 per roll) and quick examination of the coins will hopefully produce an exact match to the unique die lines seen as a signature on this coin. Matching the two dies from regular issue coins to this mule piece will prove that the coin was struck from genuine Denver Mint dies, and given the absolute assertion that the coin is genuine by the United States Secret Service Counterfeit Division it would be hard for anyone to refute the coins authenticity. Once the dies are matched up, we are confident the grading services will have to certify and grade the coin as a genuine Mint product.

How did this coin come about? It is very difficult to imagine that somehow just one slipped out and got into circulation, although anything is possible given the massive production of coins each year at the Mint (stranger things have happened). It was more likely made during a quiet moment at the Denver Mint, under similar circumstances to the one known 1943-D copper cent, a special striking as it were, not unlike dozens and dozens of other famous rarities produced during the last 209 years at the various United States mints.
Valuing this unique cent is virtually impossible. We feel confident that it will bring less than the similarly unique 1933 double eagle at $7,590,020. Perhaps it will bring a price similar to the unique 1943-D copper cent, which realized $82,500 way back in 1996 at a Superior Sale, or the more current example of the extremely rare 1943-S copper cent which was NGC MS-61 Brown which realized $115,000 in our February 2000 Sale.

For those out there in coinland who have the time and inclination, the dies could quite possibly be matched up just from the photos in the Wexler Flynn reference, or from the photos in this catalog, prior to the auction of this coin in September. If there isn't time, it is likely the matching dies could be found and the coin resubmitted with the additional evidence and a copy of the Treasury Report.

In particular, please note the die lines which should be easy to match up when compared with other mint 1958-D and 1959-D cents, on the obverse look for the die line which connects the lower loop of the B in LIBERTY to the upper half left side of the upright of the E. The reverse is very easy to identify, there is a long die line from the middle serif of the F in OF up to the center of the upright of the E in CENT. Also, we note two or three parallel die lines extending down at an angle from the left wheat ear near the top. These are very clearly visible on the coin under magnification, and are also seen in excellent detail on page 335 of the Wexler Flynn reference book.

While controversial, this coin seems to be turning the tide in its favor with the Treasury Report, and with a little research, could soon be die linked to other existing 1958-D and 1959-D cents, which will likely lay the controversy to bed, and the coin can finally be accepted by the grading services and other experts in the Lincoln cent series.

As the controversy still swirls around this mule, both PCGS and NGC have given a NO DECISION. Nevertheless, we feel that if someone took the time to locate other examples of the obverse and reverse dies which were used for normal production coins, combined with the more thorough Secret Service Authenticity Report of 2002, there would be a better chance that the coin may get graded in the future.

The property is not guaranteed to be authentic, and is marketable as is, and can not be returned. Estimate Value $50,000 - UP
Ex: Goldberg Sale #17 Lot 159 Feb 2003 realized $48,300.

Categories: U.S. Silver Coins, Small Cents

Terms and conditions

    Buyers Premium of 20% added to each and every lot.

 

An additional handling fee of 2.5% charged to the total invoice if paying by credit card.

These Terms and Conditions of Sale set forth the terms of a public auction sale conducted in Los Angeles, California by Ira & Larry Goldberg Coins & Collectibles, Inc., a Nevada corporation, California Auction Bond No. 3S95453300 (hereinafter, the “Auctioneer” or “Goldberg”). The Terms and Conditions of sale, the glossary, if any, and all other contents of this catalog are subject to amendment by us by the posting of notices or by oral announcements made during the sale. By participating in any sale, you acknowledge that you are bound by these terms and conditions.

 

1 This catalog contains the description of property of multiple consignors (the “Consignors”), and may include consignments from Goldberg, its principals, and affiliated or related companies and their employees, officers, or principals.  All persons seeking to bid, whether in person, through an agent or employee, or by telephone, facsimile or mail, must have a catalogue and register to bid at the auction, either by completing a registration card or by completing the bid sheet incorporated into the catalogue.  The Purchaser acknowledges that an invoice describing a lot by number incorporates the catalogue by reference.

 

2 By submitting a bid, whether in person, by mail, by phone, by facsimile or through an employee or agent, the Bidder acknowledges (i) receipt of the catalogue, (ii) that the Bidder has read the Terms and Conditions of Sale and the descriptions for the lots on which they have bid, and (iii) that they agree to adhere to these Terms and Conditions of Sale. Acceptance of Bids: Anyone wishing to place bids on lots who will not be attending the live auction must submit their bid(s) at least six (6) business hours prior to the  auction session. Bidder is responsible for verifying said bids were received by Goldberg.

 

3 Each Bidder’s determination of it’s bid should be based upon its own examination of the item(s), rather than the grade represented in this Catalogue or elsewhere.  In any purchase or sale, the value of the item(s) is determined by the price.  THE PURCHASER HEREBY ASSUMES ALL RISKS OF VALUATION CONCERNING ANY AND ALL PURCHASES.  All Floor Bidders acknowledge that the Auctioneer can decline to accept bids from the a Floor Bidder who is known to have not, in fact, examined the lot prior to the sale.

 

4 All material shall be sold in separate lots to the highest Bidder as determined by Auctioneer.  If any dispute arises during or immediately after the sale of a lot, Auctioneer shall have the right to rescind the lot offered and put the lot up for sale again.  In all cases, Auctioneer’s decision shall be final.  For the protection of any Mail Bidder, no “unlimited” or “buy” bids will be accepted.  Goldberg shall have the right in its sole and absolute discretion to reject any such bid received.  When identical bids are received for a lot, preference is given to the first bid received as determined by the Auctioneer.  A mail bid will take precedence over an identical floor bid; a Floor Bidder must bid higher than the highest mail bid to be awarded any lot.

 

5 Bids must be for an entire lot and each lot constitutes a separate sale.  No lot will be broken up unless the Auctioneer determines otherwise.  Lots will be sold in their numbered sequence unless Auctioneer directs otherwise.

 

6 All lots may carry a reserve. For purposes of these Terms and Conditions of Sale, a reserve means a confidential price below which the Auctioneer will not sell an item or will re-purchase on behalf of the Consignor or for the account of Goldberg.

 

7 The Auctioneer may open the bidding on any lot by placing a bid on behalf of the seller; a Bidder by mail, telephone or facsimile; or any other participant in the sale.  The Auctioneer may also bid on behalf of the Consignor up to the amount of the reserve, by (i) accepting bids from floor agents on behalf of the Consignor, or any affiliated or related company of the Auctioneer or the Consignor; (ii) by placing successive or consecutive bids for any lot; or (iii) by placing bids in response to other Bidders.

 

8 Auctioneer reserves the right, at his sole discretion, (i) to accept or decline any bid, (ii) to accept or decline any challenge to any bid or bidding increment, (iii) to reduce any mail bid received, (iv) to open the bidding of a lot at any level deemed appropriate by the Auctioneer, and (v) to determine the prevailing bid.  Bids will not be knowingly accepted from persons under eighteen (18) years of age without a parent’s written consent containing an acknowledgment that the Terms and Conditions of Sale herein and indicating their agreement to be bound thereby on behalf of the Bidder.

 

9 It is unlawful and illegal for Bidders to collude, pool, or agree with another bidder to pay less than the fair value for a lot.  Bidders in the sale acknowledge that the law provides for substantial penalties in the form of treble damages and attorneys’ fees and costs for those who violate these provisions.

 

10 Goldberg reserves the right to withdraw any lot at any time, even after the hammer has fallen, until the Purchaser has taken physical possession of the lot.  No Consignor who has registered to bid at the sale (or at any other time unless otherwise provided in the consignment agreement), or any Purchaser or prospective Bidder shall have a right to claim any damages, direct, consequential or otherwise, if a lot is withdrawn, even after the sale.

 

11 GOLDBERG IS NOT RESPONSIBLE FOR ERRORS IN BIDDING.  A Bidder should make certain to bid on the correct lot and that the bid is for an amount (plus the twenty percent (20%) Buyer’s Commission that he or she is willing and able to pay.  Since other Bidders (by mail, facsimile or other electronic media and in person) will be present, and since a re-offering could damage the momentum of the sale, once the hammer has fallen and the Auctioneer has announced the winning Bidder, such Bidder is unconditionally bound to pay for the lot, even if the Bidder has made a mistake.

 

12 THIS IS NOT AN APPROVAL SALE. All lots sold to the highest Bidder as determined by Auctioneer are final.  Floor Bidders are encouraged to carefully examine all lots which they are interested in purchasing because all sales of items viewed by Purchasers in advance of a sale, even if the sale is by mail, telephone or facsimile, and all lots bid upon by the Floor Bidders, together with all those presenting Goldberg with a resale cer tificate, out of state resale certificate, or similar evidence that they are acting as a dealer ARE FINAL AND SUCH ITEMS MAY NOT BE RETURNED.  If the description of any lot in the catalogue is incorrect, the lot is returnable if returned within five (5) calendar days of receipt, and received by Goldberg no later than twenty-one (21) calendar days after the sale date.  No return or refund of any auction lot will be considered except by reason of lack of authenticity, unless otherwise provided in these Terms and Conditions of Sale.  All lots are sold under the condition that any claims challenging grading, authenticity or methods of manufacture must be made in writing within five (5) calendar days of receipt of material.

 

All disputed lots must be returned intact as received in their original, sealed and unopened container.  Late remittance or removal of any lot from its original container constitutes just cause for revocation of all return privileges for any reason.

 

13 All prospective Bidders who are allowed the opportunity to examine lots prior to the sale shall personally assume all responsibility for any damage they cause in so doing. Goldberg shall have sole discretion in determining the value of the damage caused, which shall be promptly paid by the prospective Bidder.

 

14 Title to any lot remains with Consignor, any secured party of the Consignor, or assignee of Consignor, as the case may be, until the lot is paid for in full by Purchaser.  Goldberg reserves the right to require payment in full before delivering any lot to the successful Purchaser. In the event the lot(s) are delivered to the successful purchaser prior to full payment, Goldberg reserves the right to file a UCC Financing Statement to secure full payment.

 

15 It is the Purchaser’s responsibility and obligation to have the lots fully insured while in his or her possession.  Purchaser assumes any and all RISK OF LOSS once the lot(s) is in Purchaser’s possession.

 

16 BUYER’S COMMISSION OF TWENTY  (20%). will be added to all purchases made by all Purchasers, except Consignors, regardless of Purchaser’s affiliation with any group or organization, and will be based upon the total amount of the final bid. 

 

17 Pursuant to a separate agreement with Auctioneer, Consignors or their agents may be permitted to bid on their own lots in the sale and may receive a rebate commission in whole or in part if successful.  Under some circumstances, Goldberg may agree with a Consignor (i) not to require the Consignor to pay for all or part of any items bid upon or re-purchased by the Consignor; (ii) when or where an advance has been made, to have the Consignor pay an agreed upon difference to Goldberg; or (iii) to allow an offset against other transactions with Consignor.  Where the Consignor has re-purchased a lot and the lot is either returned to the Consignor or otherwise dealt with or disposed of in accordance with the Consignor’s direction, or pursuant to contractual agreement, Goldberg reserves the right to so note in the prices realized or to omit a price from the price realized.  Every Consignor who registers to bid in the sale, whether to “protect” a lot, or for any other purpose, agrees to all other Terms and Conditions of Sale per this agreement.

 

18 Lots must be paid for  within 14 days of receipt of invoice or delivery. Unless otherwise agreed in writing, auction sales are strictly cash above $2,500.00 in U.S. Funds payable through a bank in the United States.  Contact Goldberg for wiring instructions before sending a wire.  Goldberg reserves the right to decline to release lots for which funds have not yet cleared.  Credit card (Visa & Mastercard only)purchases will be accepted on totals not exceeding $5,000.  On any cash transaction or series of transaction exceeding $10,000, Treasury Form 8300 may be filed. 

 

19 Purchaser agrees to promptly pay, on demand, any sales tax, or any other tax, if required by law to be collected, postage, handling, and shipping insurance plus the twenty percent (20%) Buyer’s Commission and any other taxes required by law to be charged or collected, together with any interest or penalty that may be assessed.

 

20 Purchaser grants to Goldberg or its assigns the right to offset any sums due, or found to be due Purchaser by Goldberg, and to make such offset from any past, subsequent or future consignment, or items acquired by Purchaser in possession or control of Goldberg or from any sums due to Purchaser by Goldberg.  Purchaser further grants Goldberg a purchase money security interest in such sums or items to the extent applicable, and agrees to execute such documents as may be reasonably necessary to grant Goldberg such security interest.  Purchaser agrees that Goldberg and its assigns shall be a secured party with respect to items bought by Purchaser and in the possession of Goldberg, to the extent of the maximum indebtedness, plus all accrued expenses, until the indebtedness is paid.  

 

21 By bidding in this sale, Purchaser personally and unconditionally guarantees payment.  If the Purchaser is a corporation, the officers, directors, and principals of the corporation hereby agree to personally and unconditionally guarantee payment as part of the corporation’s agreement to bid.  The authorized representative of any corporate Purchaser who is present at the sale shall provide Goldberg or its agent, prior to the commencement of the bidding (or at the time of registration), with a statement signed by each principal, director and officer that they each personally and unconditionally guarantee any payment due Goldberg.

 

22 No bids will be accepted from Floor Bidders and Mail Bidders who have not previously established credit with Goldberg unless they first (i) furnish satisfactory credit references or (ii) deposit at least twenty-five percent (25%) of their total bids for that session(s), or such other amounts as Goldberg may require, in its sole and absolute discretion.  Any deposits made pursuant to this paragraph will be applied to such Bidders purchases.  Any unused portion of such deposit will be promptly refunded upon clearance of the funds.

 

23 On any accounts past due, Goldberg reserves the right to extend credit and impose periodic charges, pursuant to these Terms and Conditions of Sale or as set forth in the Purchaser’s invoice.  If the auction invoice is not paid in full when due, the unpaid balance will earn interest at the rate of one-and-one-half percent (1 1/2%) per month until paid.  In the event this interest rate exceeds the interest permitted by law, the same shall be adjusted to the maximum rate permitted by law.  Goldberg further reserves the right to resell the merchandise, or to have an affiliated or related company do so.  Purchaser agrees to pay all reasonable attorneys’ fees, court costs and other collection costs incurred by Goldberg or any affiliated or related company to collect past due invoices, including reasonable costs of any resale of the merchandise. Purchaser also agrees to pay the difference between the resale price and any previous disbursements. Money realized from the resale shall be applied as follows: (i) to pay sums due to the consignor, (ii) to pay Goldberg standard commissions and fees for the resale, (iii) to pay Goldberg any sums owed to it by purchaser, and the remainder, if any, will be paid to the Purchaser. Goldberg reserves the right to assign its interest to any third party. 

 

24 Goldberg may at its sole and absolute discretion, make loans or advances to Consignors and/or prospective Purchasers. 

 

25 The Auctioneer may bid for his or its own account at any auction (even though it may not be required to pay a Buyer’s Commission, or other charges that other Purchasers may be required to pay) and may have access to information concerning the lots and items contained therein that is not otherwise available to the public.  Any conflict of interest or claim of competitive advantage resulting therefrom is expressly waived by all participants in the sale.

 

26 If a dispute arises concerning ownership of a lot that has been bid upon, Goldberg reserves the right to commence a statutory interpleader proceeding at the expense of the Consignor and successful Purchaser and any other applicable party, and in such event Goldbergs shall be entitled to its reasonable attorney’s fees and costs. 

 

27 In the event of a successful challenge to the title to any goods purchased, Goldberg agrees to reimburse any Purchaser in an amount equal to the successful bid price actually paid by Purchaser at auction plus any Buyer’s Commission actually paid, in full and complete satisfaction of all claims, such reimbursement once tendered by Goldberg, relieves and releases Goldberg from any responsibility whatsoever to the Purchaser, even if the instrument is not cashed or is returned.

 

28 Goldberg reserves the right to post-pone the auction sale or any session thereof for a reasonable period of time for any reason whatsoever, and no Bidder or prospective Bidder shall have any claim as a result thereof, including consequential damages.

 

DISCLAIMERS AND WARRANTIES

 

ALL ITEMS OFFERED IN THIS CATALOGUE ARE GUARANTEED TO BE GENUINE. THIS IS A LIMITED WARRANTY THAT THE ITEM SOLD IS NOT COUNTERFEIT, THAT ITS DATE OR MINTMARK HAS NOT BEEN ALTERED AND THAT THE COIN HAS NOT BEEN “REPAIRED.”  

 

29 Any other warranty is expressly disclaimed; Goldberg offers no representation that a numismatic item has or has not been cleaned; that any toning is natural or artificial; that any coin will meet the standards or grade of any independent grading service; that any item has a particular provenance or pedigree, or that a numismatic item is struck or produced in a particular style.  Any statement concerning such matters reflects an opinion only.  Questions regarding the minting of a coin as a proof or as a business strike relate to the method of manufacture and not to authenticity.

 

a. The descriptions contained herein represent the Cataloger’s good faith opinion, or the opinion of an independent grading service, as to the state of preservation and strike.  When a grade from an independent grading service is utilized, the information is provided strictly for the convenience of the bidder by mail, telephone or facsimile.  Bidders and Purchasers acknowledge that (i) grading is an art, not a science; (ii) the grades contained in the catalogue represent the opinion of the Auctioneer based upon its experience; (iii) it is possible that two people will not always grade the same items alike; and (iv) as market conditions change, grading standards change, and will most likely continue to do so in the future.

NO WARRANTY, WHETHER EXPRESSED OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY, IS MADE WITH RESPECT TO ANY GRADE DESCRIPTION, WHICH IS MERELY AN OPINION THAT IS LIKELY TO DIFFER, EVEN AMONG EXPERTS. PURCHASER HEREBY ASSUMES ALL RISKS CONCERNING AND RELATED TO THE GRADING OF A LOT BY AN INDEPENDENT GRADING SERVICE.

 

b. Grading or condition of rare coins may have a material effect on the value of the item(s) purchased; and the opinion of third parties (including independent grading services) may differ from the independent grading service’s opinion or interpretation of Goldberg.  Goldberg shall not be bound by any prior or subsequent opinion, determination or certification by any independent grading service.

 

c. All oral and written statements made by Goldberg and its employees (including affiliated and related companies) are statements of opinion only, and are not warranties or representations of any kind, unless stated as a specific written warranty, and no employee or agent of Goldberg has authority to vary or alter these Terms and Conditions of  Sale.  Any alteration shall be effective only if in writing and signed by an officer of Goldberg authorized to do so.

 

d. Bidders shall have no recourse against the Consignor for any reason whatsoever.

 

e.a Notwithstanding anything to the contrary in these Terms and Conditions of Sale, COINS LISTED IN ANY CATALOGUE GRADED BY PCGS, NGC, ICG, SEGS, ACCUGRADE, PCI, NTC OR ANACS CACHET MAY NOT BE RETURNED FOR ANY REASON WHATSOEVER.  Please note that lack of a CAC seal does not necessarily mean that a coin was rejected. Not all coins were submitted for examination.

 

30 By bidding in the sale, (whether in person, by mail, telephone or facsimile, or through an agent), Bidder expressly consents to the following 

 

Waiver and Releases

 

Purchaser, for himself, his heirs, agents, successors and assigns, generally and specifically waives and releases, and forever discharges Goldberg, and its respective affiliates, parents, shareholders, agents, subsidiaries, employees, members of their respective boards of directors, and each of them, and their respective successors and assigns from any and all claims, rights, demands and causes of action and suites, of whatever kind or nature, whether in law or equity, whether known or unknown, suspected or unsuspected, which Purchaser may claim to have with respect to and/or arising out of, or in connection with any challenge to the title to any good purchased, the sale itself and/or the auction, except for reimbursement in the amount equal to any bid actually paid by Purchaser, plus any Buyer’s Commission actually paid by Purchaser where such reimbursement is authorized in these Terms and Conditions of Sale. It is the intention of Purchaser that this waiver and release shall be effective as a bar to each and every claim, demand, cause of action and suit that may arise hereunder, and Purchaser hereby knowingly and voluntarily waives any and all rights and benefits otherwise conferred upon him by the provisions of  the California Civil Code, which reads in full as follows:

 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”

 

31          Neither Goldberg nor any affiliated or related company shall be responsible for incidental or consequential damages arising out of any failure of  the  Terms and Conditions of  Sale of the auction or the conduct thereof and in no event shall liability for any such failure exceed the purchase price paid.  

 

32 The sole remedy that any Purchaser in the auction shall have, whether such Purchase is bidding in person,  by mail, by facsimile, by telephone, or through an employee or agent, for any claim or controversy arising out of the auction shall be a refund of the original purchase price and premium paid, if any.

 

33 Upon payment of any disputed sum, which in no event shall be greater than the original purchase price actually paid by Purchaser plus any commission or premium actually paid by Purchaser to Goldberg, Auctioneer and its employees shall be deemed released from any and all claims of the Bidder arising out of or in connection with the sale of such property.  Purchaser agrees to execute prior to delivery of any refund, any documents reasonably requested to effect the intent of this paragraph.  Should the Purchaser decline to do so, Purchaser hereby grants to Goldberg a limited power of attorney to unconditionally effect such release. 

 

34 Rights granted to Bidders and Purchasers under these Terms and Conditions of Sale are personal and may not be assigned or transferred to any other person or entity, whether by operation of law or otherwise.  Any attempt to assign or transfer any such rights shall be absolutely void and unenforceable.  No third party may rely on any benefit or right conferred on any Bidder or Purchaser by these Terms and Conditions of Sale and terms of warranty.  “Purchaser” shall mean the original Purchaser of the property from Goldberg and not any subsequent owner or other person who may acquire or have acquired an interest therein.  If Purchaser is an agent, the agency must be disclosed in writing to Goldberg prior to the time of sale, otherwise the benefits of the warranty shall be limited to the agent and not transferable to the undisclosed principal.

 

35 If the Purchaser fails to comply with one or more of these Terms and Conditions of Sale, then in addition to all other remedies which it may have at law or in equity, Goldberg may at its sole option, either (a) cancel the sale, retaining all payments made by Purchaser as liquidated damages, it being recognized that actual damages may be speculative or difficult to compute, or (b) sell some or all of the property and (some or all other property of the Purchaser held by Goldberg, if Goldberg deems necessary), in a quantity sufficient in the opinion of Goldberg to satisfy the indebtedness, plus all accrued charges.  More than one such sale may take place at the option of Goldberg.  Such sale may take place without notice to Purchaser.  If Goldberg gives notice, it shall be by U.S.P.S. Certified Mail, Return Receipt Requested to the address utilized on the Bid Sheet, Auction Consignment and Security Agreement or other address known to Goldberg.  Such sale will be at Goldberg standard commission rates at public or private sale, within California, or at another location outside of California to be determined by Goldberg.  At the time of sale the defaulting party shall not bid nor be permitted to bid.  The proceeds shall be applied first to the satisfaction of any damages occasioned by Purchaser’s breach, and then to the payment of any other indebtedness owing to Goldberg, including without limitation, commissions, handling charges, the expenses of both sales, reasonable attorneys’ fees and costs, collection agency fees and costs and any other costs or expenses incurred thereunder.  If a lot or item is not paid for, and is sold by Goldberg for Purchaser’s account, in accordance with the Uniform Commercial Code, Goldberg shall not be required to account to the Purchaser for any excess proceeds.  Purchaser shall remain liable to Goldberg if the proceeds of such sale or sales is insufficient to cover the indebtedness. If other property of Purchaser is also sold, any excess of proceeds will be remitted to the Purchaser after first deducting the expenses set forth above.  If Purchaser fails to remit sums due to Goldberg, Purchaser grants to Goldberg a lien with respect to such sum, with interest to accrue thereon at the legal rate, until actually paid, which lien shall apply against any property of Purchaser, including any future goods of Purchaser coming into possession of Goldberg.  To the extent permitted by law, Purchaser hereby waives all the requirements of notice, advertisement and disposition of proceeds required by law.

 

36 These Terms and Conditions of Sale and the auction shall be construed and enforced in accordance with, and governed by, the laws of the State of California, whether or not the auction is and these Terms and Conditions of Sale are fully performed in California.

 

37 Purchaser acknowledges and agrees that the competent courts of the State of California shall have exclusive jurisdiction over any dispute(s) arising hereunder, and Purchaser hereby agrees that any dispute arising hereunder shall be litigated exclusively in the courts of the State of California, and not elsewhere, regardless of any party’s current or future residence or domicile.  Purchaser further agrees that venue shall be in the Superior Court of Los Angeles, in the State of California.

 

38 ATTORNEY FEES AND COSTS

The Bidder/Purchaser shall pay to Goldberg all costs and expenses of collection of amounts due herein, or to otherwise enforce any or all provisions of these Terms and Conditions of Sale, the subject matter of these Terms and Conditions of Sale, or any other agreement entered into with Goldberg, including but not limited to, reasonable attorney fees and costs incurred before legal action, if any, is commenced.  The Bidder/Purchaser further agrees that in any litigation or other proceeding based upon, arising out of or related to these Terms and Conditions of Sale, the Bidder/Purchaser shall pay to Goldberg its attorney fees and other expenses and costs incurred in connection with the litigation or other proceeding if Goldberg is the prevailing party.

 

39 If any section of these Terms and Conditions of Sale or any term or provision of any section is held to be invalid, void, or unenforceable by any court of competent jurisdiction, the remaining sections or terms and provisions of a section shall continue in full force and effect without being impaired or invalidated in any way. AS STATED IN THE TERMS AND CONDITIONS OF SALE Certain lots may be reserved by the Consignor. If the Auctioneer identifies a Consignor bidding on his own property, an announcement will be made that the Consignor is now bidding.  If the Consignor places a bid in the mail bid book and is successful, the Auctioneer will announce that the lot has been passed.

 

40 These Terms and Conditions contain the entire agreement and understanding between Goldberg and Bidder concerning the auction and any items bid on or purchased at the auction. Bidder acknowledges that Goldberg has not made any promises, representations or warranty to bidder, not contained herein concerning the auction and any items bid on or purchased at the auction.