Natural British Columbian Gold Nugget Weighing 12.75 Grams

Natural British Columbian Gold Nugget Weighing 12.75 Grams
Photo Credit: nuggetsbygrant

Natural British Columbian Gold Nugget Weighing 12.75 Grams

Buy It Now Price: $696.50 (price as of 2016; item no longer available)

Pros:

-Alluring and precious, this 12.75 gram (0.4099 troy ounce) natural gold nugget was found near the town of Atlin in British Columbia, Canada.

-Atlin, Canada is within the Alaska-Yukon-British Columbia gold corridor.  Along with Australia, this area is one of the most prolific sources of gold nuggets today.  This corridor is best known as the location of the famous Klondike Gold Rush from 1897 to 1899, when tens of thousands of often ill-prepared prospectors descended on the wilds of Alaska and the Yukon Territory looking to strike it rich in the remote gold fields.

-This British Columbian gold nugget has a very distinctive, water-worn appearance.  This is due to the extensive hydraulic action gold nuggets undergo when deposited in the fast flowing rivers and streams of the region.  This characteristic look helps confirm that the gold nugget’s British Columbian provenance is most likely correct.

-This natural gold nugget has an interesting, wonderfully organic shape and a deep, rich gold color.  Both of these attributes are highly desirable when considering the investment merits of a gold nugget.  Nuggets with pale, washed-out colors or boring or awkward shapes typically sell for substantially lower prices.

-Weighing in at a substantial 12.75 grams (0.4099 troy ounces), this British Columbian gold nugget is nearly the size of a U.S. quarter.  Natural gold nuggets this large are rare, highly desirable and in strong demand from collectors and connoisseurs alike.

-With spot gold trading at $1,270 a troy ounce and assuming a purity of 90%, our British Columbian gold nugget has a melt value of approximately $468.  Therefore, the nugget’s asking price represents a premium of 48.8% over bullion value.  This is a reasonable premium to pay for a nugget of this size and obvious quality.

 

Cons:

-Although this British Columbian gold nugget is sizable, even larger, more desirable natural gold nuggets are available.  However, prices escalate very quickly above about 0.5 troy ounces (15.5 grams).  This nugget isn’t quite there size-wise, but it is knocking on the door of greatness.

-Natural gold nuggets that are still embedded in matrix (parent rock) typically trade at higher valuations than a “clean” nugget like this one.

The Decline of American Retail

The Decline of American Retail

The United States is a consumer oriented society.  We have more retail square footage per capita than any other nation on earth.  We developed the concepts of “retail therapy” and “shop ’til you drop” as (unhealthy) ways to manage psychological problems in our lives.  There is no way around it; Americans love to shop.

But the retail space has been changing rapidly over the last 20 years.  The rise of internet retail – with Amazon.com as its poster child – is just one example of the epochal change that is taking place.  Many people would call this sort of change a good thing, ultimately.  And I won’t argue with them.  But there is another, darker side to the changes in retail that is important for both investors and consumers to understand.

Our bubble prone economy has massively overbuilt commercial retail space.  A corollary of this assertion is that we have far too many retailers.  Put quite simply, there aren’t enough retail dollars spent in an average year to support the companies and infrastructure currently occupying the retail sector.  Up until now, this fact has been obfuscated by three poorly recognized trends.  But these trends are reaching their conclusion, leaving the United States with a potential retail apocalypse on its hands.

As the pool of discretionary retail dollars shrank in the aftermath of the 2008-2009 Great Financial Crisis, small retailers tended to feel the pinch first.  These were the proverbial mom and pop shops, with a handful of store locations or less.  While the nature of these retail establishments could vary considerably – florists, convenience stores, antique & consignment shops, restaurants, specialty retailers, etc. – they all had one very important element in common.  None of them had access to the capital markets.  They could issue neither stock nor bonds to raise capital.

This placed these small businesses at a distinct competitive disadvantage compared to larger chain retailers.  In our current era of near zero interest rates, large companies could easily tap cheap public market financing to support their operations while sole proprietorships couldn’t.  Consequently, in the years since the Great Financial Crisis, a massive number of these small retailers have gone out of business.  See my related articles on The Bittersweet Goodbye of the Physical Antique Store and The Great Boston Antique Store Massacre of 2011-2012 for more details.

The second overarching trend has been consolidation among the remaining American retail chains.  A perfect example of this phenomenon was the 2005 merger of Federated Department Stores (owner of Macy’s) with The May Department Stores Company (owner of Filenes, Marshall Fields and Lord & Taylor).  Once two large corporations merge, overlapping store locations can be closed and smaller, non-core operations can be sold or spun-off.  These actions help reduce competition and stretch the limited pool of available retail dollars further.

But even these developments didn’t keep up with the decline of the American consumer, beset as he is by excessive consumer debt, lack of salary increases and anxiety over job security.  So, over-levered corporate retailers began to liquidate next.  These American retail companies had tapped the high yield bond market until even the stupidest bubble-head money manager won’t lend them another dime.  Electronics retailers like Circuit City (2008) and RadioShack (2015), book seller Borders (2011), video rental shop Blockbuster (2010) and home goods store Linens & Things (2008) are all examples of national retailers that have declared bankruptcy and subsequently liquidated due to the difficult retail environment.

I think it is important to note that the first two trends I listed above leave equity and bond investors in the retail space completely intact.  Wall Street loves this, in spite of the fact that it is cannibalistic behavior.  The large, stronger corporate retailers eat the small, weaker mom & pop shops first.  When there are no more small retailers to feast on, the big corporations begin to devour each other in mergers.  But once all the mergers that make sense (and some that don’t) have happened, the weaker national retailers begin to fail.

Now we are progressing to the next ominous phase of our peculiarly American retail disease: poor sales results from previously strong national retailers.  Target, J.C. Penney and Macy’s are just a few of the large physical retailers that have reported disappointing sales numbers in 2016.  These massive corporations are caught between the inexorable pressure of ultra-low margin online retailers like Amazon.com on the one side and overextended consumers who are relentlessly cutting back on spending on the other.

The future is clear; more American retail chains will liquidate in bankruptcy.  In fact, it is probable that household names that have defined their respective retail spaces for generations will come to an ignominious end.  One dead store walking that comes to mind is Sears, an original pioneer of mail order catalogues back in the late 19th and early 20th centuries.  They were, ironically, the Amazon.com of their day.  And they will soon be gone.

The world is changing.  And investors holding shares or bonds in the affected companies who do not take heed will feel the pain.  It is yet another reminder that your investment dollars may very well be safer in investment grade art and antiques than traditional financial instruments.

Smoking Hot – Antique Silver Cigarette Cases and Cigar Cases

Smoking Hot - Antique Silver Cigarette Cases and Cigar Cases
Pictured is a fine example of a high-end, early to mid 20th century antique cigarette case.  The body of this piece is crafted from blued steel, giving it a characteristic, gunmetal gray finish.  Although not sterling silver, this antique cigarette case has other attributes typically found on expensive specimens, like a fine, natural blue sapphire cabochon mounted in the thumb-push, an applied, solid gold monogram and decorative gold trim.

Made in China is a term that we encounter nearly every day – and that is rarely a good thing.  That Blu-ray player you bought for $40 at Wal-Mart that doesn’t work quite right?  It was made in China.  The two-week old toaster that almost burned down your house when it shorted out in a brilliant pyrotechnic display?  Also made in China.  The no-name vacuum cleaner that went on a savage rampage and tried to eat your cat, Mr. FluffyBottom?  Undoubtedly made in China.

Today Chinese goods are synonymous with poor quality, mass produced junk.  And this debris has invaded our lives, overwhelming us with inferior, low quality household items of every description.  In many ways the phrase “made in China” is a metaphor for the increasingly debased nature of the post-modern experience.  And yet there are alternatives to a life crammed full of crudely manufactured consumer trash – for example, a tasteful collection of fine antique silver cigarette cases or cigar cases.

Solid silver antique cigarette cases and cigar cases, along with vintage cigarette holders, are one of the sleeper hits of the objet d’art world.  Long underappreciated, this genre of the popular tobacciana field is starting to see renewed collector interest.  Once the province of gilded age gentlemen’s clubs and aristocratic smoking rooms, vintage tobacco paraphernalia and advertising are increasingly appreciated by modern connoisseurs.

Especially popular from the late 19th century until the mid 20th century, antique silver cigarette cases and cigar cases were indispensable accessories for the high-class smoker.  In addition to being irrefutably stylish, they also served the very practical function of keeping fragile cigarettes or cigars dry and undamaged during poor weather.

Just because you aren’t a tobacco user, doesn’t mean you can’t admire and collect these overlooked vintage gems.  While certainly in demand from current-day smokers, elegant antique silver cigarette cases are sometimes repurposed by corporate professionals to tastefully hold business cards.  Men and women with a luxury retro aesthetic also find that they make great billfolds, wallets or credit card holders, too.

Master silversmiths employed a dizzying array of stunning decorative techniques in the production of these cosmopolitan luxury items.  Beautifully engraved or chased designs were perennial favorites.  High contrast niello was a painstakingly exacting technique commonly used on Russian and Siamese cases.  Colorful enameling and dazzling engine turning were both staples of the language of early 20th century design.  Gilding, popular across every age and country, was employed to impart a classy, tasteful appearance.

Some fine cigarette and cigar cases were crafted with solid gold applied motifs or initials, giving a look of understated elegance.  A few of the more sumptuous examples were even mounted with sparkling cabochon cut sapphires, rubies or other glittering gemstones.

 

Antique Silver Cigarette Cases with Applied Gold Decorations for Sale on eBay

(This is an affiliate link for which I may be compensated)

 

Antique cases of the 19th century were dominated by ornate Victorian tastes, with copious use of chased and engraved floral designs.  By the turn of the 20th century, Art Nouveau, with its naturalistic, flowing aesthetic, had come into vogue.  A common hallmark of Art Nouveau cigarette cases was the portrayal of languorous, sinuous women – either partially or fully nude.

Starting in the 1920s, Art Deco came to the fore, extensively employing engine-turned and enameled geometric motifs on silver cigarette cases.  The 1940s and 1950s were characterized by the streamlined, minimalist look of Mid-Century design.  During this period silver cigarette cases and cigar cases had either subtle or no embellishment whatsoever, leaving large expanses of unadorned silver as the artistic focal point.

Tremendously beautiful silver cigarette cases and cigar cases were made throughout Europe and the United States.  The firm of Asprey & Co., a storied London-based luxury goods retailer and holder of a royal warrant, was one of the leading British manufacturers of cases.  In the United States, Tiffany and Gorham were renowned for producing exceedingly high quality work.  Silver cigarette cases made by the French jeweler Cartier were synonymous with extravagant luxury.

However, perhaps the most outrageously sumptuous cases were produced in Czarist Russia.  Russian silversmiths, including the esteemed Faberge workshop, often employed niello, precious stones and applied gold motifs when making these miniature masterpieces.  Keep in mind that the aforementioned silversmiths are just a few outstanding manufacturers among many; other silversmiths not mentioned here also produced truly excellent work.

When investing in silver cigarette cases or cigar cases it is important to avoid damaged examples.  Accordingly, steer clear of cases with significant dents, chipped enamel, or loose or broken hinges.  Minor dents or scratches are acceptable; they are expected on silver items that are almost a century old.

Monograms generally have little impact on value unless they are artfully incorporated into the design of the piece.  In these (admittedly uncommon) instances a monogram can boost the case’s value.  Inscriptions can be desirable if they reference historical events, people or add interest to the item.

 

Antique Silver Cigar Cases for Sale on eBay

(This is an affiliate link for which I may be compensated)

 

Conversely, a full set of silver hallmarks aid in identification and are highly desirable.  Ever popular British pieces will almost always be fully hallmarked while continental European cases can be more hit or miss in this regard.  American examples are usually stamped “sterling” in addition to having a maker’s mark.

Good quality cases in heavier silver generally start at only around $100.  Cases by notable makers are always of a consistently high quality and generally run into the several hundreds of dollars.  Exceedingly fine, jewel encrusted examples can command more than $1,000.  Exceptional Russian cases from the Czarist period can easily fetch thousands of dollars.

A discriminatingly assembled collection of quality silver cigarette cases and cigar cases is not only likely to steadily appreciate in value, but is also a joy to own.  Few things would be as subtly impressive as offering your friend a Cuban cigar from your pre-revolution, Czarist Russian silver cigar case.  One can just imagine his expression as he glimpses the magnificent case – silver shimmers with delicate yet bold niello scrollwork, solid gold initials glint elegantly and the royal blue of a precious sapphire cabochon glitters seductively from the thumb-catch.

Made in China is a reality that we must live with in many aspects of our lives today.  But that doesn’t mean we have to resign ourselves to being surrounded exclusively by cheap Chinese junk.  A small collection of fine, antique silver cigarette cases and cigar cases may be the perfect way to set yourself apart in a world inundated by undesirable clutter.

 

Read more in-depth Antique Sage tobacciana investment guides here.

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Read more in-depth Antique Sage antique silver investment guides here.


Vintage Wakmann Chronograph Wristwatch from the 1950s

Vintage Wakmann Chronograph Wristwatch from the 1950s
Photo Credit: lukedequ

Vintage Wakmann Chronograph Wristwatch from the 1950s

Buy It Now Price: $1,350 (price as of 2016; item no longer available)

Pros:

-This is a sharp-looking, manual wind, two-register, vintage Wakmann Chronograph wristwatch from the 1950s.  Chronograph is just a fancy way to say the wristwatch in question functions as a stopwatch.

-The wristwatch measures 35 mm (1.38 inches) wide, excluding the crown.  The watch case is chrome-plated base metal and the back of the case is stainless steel.  These are fairly typical materials for the time period.

-The Wakmann Watch Company, founded in New York City in 1946, was an importer and producer of high quality wristwatches, particularly chronographs.  The company partnered with the well known European watch manufacturer Breitling for much of its existence.  After several prosperous decades, the Wakmann watch brand finally succumbed to the flood of cheap quartz watches in the 1970s.

-This vintage Wakmann Chronograph wristwatch sports the legendary Swiss Landeron calibre 48 movement.  Starting around World War II, the 17 jewel calibre 48 brought professional grade chronograph features within reach of the average individual for the first time.

-Between 1937 and 1970, over 3.5 million Landeron calibre 48 movements and related models were produced, making it one of the most successful chronograph watch movements ever developed.

-The movement appears to be in good condition, with no evidence of rust.  Rust is the number one pitfall to avoid in a vintage mechanical wristwatch movement.

-The original dial has not been refinished and is in excellent condition.  Both the style of the dial and the Landeron calibre 48 movement are consistent with a 1950s attribution for this watch.

-Based on the attractive appearance and relatively clean condition of this vintage Wakmann Chronograph wristwatch, I think the $1,350 asking price is fair.

 

Cons:

-Although Wakmann produced some very fine wristwatches, the brand does not have the same cachet associated with top tier vintage watch manufacturers like Rolex, IWC, Jaeger-LeCoultre or its longtime partner, Breitling.  A vintage chronograph wristwatch from one of these luxury producers would be more desirable, as well as substantially more expensive.

-The chrome plating is pitted or worn through on several small areas of the watch body and crown.  Assuming the movement is in good order, this is the most significant condition problem that the watch has.  While it does lower the value of the piece somewhat, I think this defect is relatively minor.

-The seller states that this vintage Wakmann Chronograph wristwatch keeps good time.  It would still be wise to have the watch professionally inspected and serviced, however.  This could cost another $100 to $300 on top of the purchase price.