Covid-19
Two weeks have now passed since the cancellation of the 50th NUMISMATA 2020 in Munich (Germany). The virus Covid-19, which was first discovered in Wuhan (China), has since then kept the world in suspense as a pandemic (classified by the WHO) and provides us with new reports almost every hour. A long fight was declared against the virus and with the 21st of March 2020, an initial restriction was imposed on the whole of Bavaria. Among other things, the apartment may only be left for very valid reasons such as going to work, shopping or visiting the doctor. Social visiting contact with the family must also be avoided. These restrictions had to be imposed because many young residents did not understand the seriousness of the situation and, due to school closures, met for example in the park for so-called corona parties. It was celebrated cheerfully in the fellowship with the consumption of alcohol and shishas. Every fourth citizen feels that the situation is just pure panic-mongering (survey by Bitkom e.V.). The high risk of infection is completely disregarded, and the number of infected people is increasing sharply every day. Often a comparison is made with influenza, but the fact that a pandemic can take on far different dimensions in an uncontrolled manner is not understood. The aim of the restrictions is therefore to prevent overburdening the health care system and to avoid conditions similar to those in the subtropical zones - the mortality rate in Italy or Spain is almost 10% (as of March 24, 2020) and hospitals are on the verge of collapse. The German Chancellor Dr. Angela Merkel gave an earth-shattering speech to the nation on March 18, 2020. The Corona crisis is the biggest challenge since the Second World War and the current situation is serious. She estimated the possible infection rate at 60-70% in the entire population. EU Commission President Ursula von der Leyen had to admit that she had underestimated the virus at first. The leading Robert Koch Institute (RKI) classified the risk situation from Covid-19 as high. The RKI does not expect vaccination until spring 2021 and the pandemic could even last for two years.
However, there are also positive news to report: The People's Republic of China has managed to get the virus under control through strict quarantine measures and by the consistent behavior of the population. With its experience, China is now providing other affected countries with helpful support in the form of doctors and urgently needed protective clothing. For this, structurally important institutions are very grateful, which, despite the crisis, sacrifice their own health for the public every day in their services.
Precious Metals Market
Since the Covid-19 crisis, stock markets and precious metals have plummeted to historic lows. Precious metals that are used for industrial purposes, such as silver or platinum, have been especially affected.
Large quantities of precious metals are sold on the market that are only on paper (certificates). On the other hand, an extreme increase in the purchase of physical precious metals is registered. Many dealers are far overstrained with the current run and have stopped selling or refer to delivery times of up to six weeks. The current hamster purchases of food and hygienic articles have expanded to include precious metals. Nevertheless, the demand cannot be slowed down and this although sometimes a surcharge of up to 70% over the spot price is charged. For many new buyers, the precious metal is a hedge for the crisis and serves for possible barter transactions. The one ounce of silver costs no more than a pack of toilet paper on Amazon at this special time. The shortage of precious metals will be accelerated by the closure of Swiss refineries due to the Covid-19 crisis - Switzerland has covered 70% of the world's gold bullion production so far.
50th NUMISMATA 2020 Munich
In view of the current happenings it is not surprising why the 50th Anniversary Fair of the NUMISMATA in Munich (7-8 March 2020) had to be cancelled only a few hours before.
In retrospect, many people wonder why this international and second largest coin fair in Germany with 5,000 expected visitors and hundreds of exhibitors was not cancelled earlier.
Let us look back at the beginning of March with the knowledge of today. The crisis was still far away at that time and only very few could have guessed what was in progress. The first cases of the disease were in Italy, South Tyrol and the west of Germany. Only trade fairs with over 100,000 visitors were cancelled. For the organizer of the NUMISMATA (Coins Modes) there was therefore no hurry. The requirements for hygiene conditions set by the Health Department were followed, which included the installation of hygiene dispensers and more thorough cleaning of frequently touched surfaces. One week before the start, the trade visitor tickets were sent out. For 30 Euro per pass, admission for bargain hunters would have been possible from 07:30 on both days of the fair. The regular opening would have taken place at 09:30 a.m., here thousands of visitors waited in the entrance hall for admission during the last years. This year the ticket prices were 12 Euro for both days, 10 Euro for Saturday and 6 Euro for Sunday. The situation gradually worsened three days before the start, contagions in Italy increased rapidly and in Germany the media reports overflowed. The organizer received many worried calls on this day as to whether the fair would be hold safely. Shortly afterwards the official homepage was updated with the words: "The NUMISMATA will take place!!!". This message was additionally highlighted with a strong red color tone. The organizer had the permission of the city of Munich and a cancellation of the fair would have been associated with financial costs. Dealers from risk areas such as Lombardy and Milan in Italy were disinvited, although some had apparently already arrived.
NGC International GmbH and the Professional Association of German Coin Dealers have made a wise and foresighted decision to cancel their participation for reasons of caution. A few more dealers followed suit. In the social media, discussions suddenly flared up after incidents continued to escalate as to why the fair is not simply cancelled. Several visitors announced that they will avoid crowds of people in order not to risk a possible infection and that they will completely refrain from visiting other fairs this year. On Friday, the 6th March 2020, Germany's largest stamp fair Philatelia, which like the NUMISMATA is also located at the MOC Event Center Munich, opened its doors for the collectors.
NGC International GmbH and the Professional Association of German Coin Dealers have made a wise and foresighted decision to cancel their participation for reasons of caution. A few more dealers followed suit. In the social media, discussions suddenly flared up after incidents continued to escalate as to why the fair is not simply cancelled. Several visitors announced that they will avoid crowds of people in order not to risk a possible infection and that they will completely refrain from visiting other fairs this year. On Friday, the 6th March 2020, Germany's largest stamp fair Philatelia, which like the NUMISMATA is also located at the MOC Event Center Munich, opened its doors for the collectors.
Dealers from all over the world travelled for many hours and with a lot of luggage for the NUMISMATA and moved into their hotel. The individual booths were finished, decorated and the coins stored in the vault room - the 50th NUMISMATA was thus ready for the start on the following day. After painstaking work, the dealers once again checked with the security personnel present to make sure that there really was no cancellation - this was negated. To relax, they went back to the hotel to be fit for the next day.
Many visitors to the fair also travelled from all over the world. Around 23:00 o'clock late in the night the sudden message came on the NUMISMATA homepage that the fair has been prohibited and please nobody should come to the venue anymore. On the same day, the South Tyrol, so popular for Munich, was declared to be a risk area. Presumably it was simply too dangerous for the health authorities due to the advancing threat with the previously very low requirements for the fair. Only few dealers and visitors received this information in time. On the day of the opening numerous visitors appeared, who stood in front of a closed entrance and had to read disappointedly the cancellation on the posted flyers. The employees of the district administration department (KVR) controlled the observance of the closing. The uncertainty of many dealers was immense, because their equipment and the valuable coins were in the exhibition hall. A rumor quickly spread in a video message that a positively tested collector of stamps had visited the Philatelia on the previous day, as this fair had also been cancelled for Saturday. The author of the now deleted video explained his displeasure and his view of things.
The organizer of the NUMISMATA apologized on the homepage for the inconvenience caused, such as the long travel distances, and at the same time thanked for the understanding of some dealers who were aware that the fair could be cancelled at a short notice.
The organizer has sent a letter to the participating dealers. In this letter the short-term cancellation is regretted. The KVR of the city of Munich decreed new requirements for the fair on March 6, 2020. For example, every exhibitor would have had to undergo a smear test for Covid-19 before the start of the fair and present the negative test result. In addition, every visitor would have had to submit a written declaration about possible stays in risk areas. This was impossible to implement until the start of the fair and without this, high penalties would have been threatened.
A few disappointed dealers have now sought legal advice, as many are sitting at their expense and have suffered immense damage. This is about possible compensation payments and refunds of the booth fees. As there has never been such a situation before, the legal situation is unclear and has yet to be clarified through the organizer's lawyers. Nevertheless, the organizer hopes to find a satisfactory solution for both sides.
In retrospect, it was the right way to cancel the fair, albeit somewhat belatedly. Many other coin fairs and smaller collectors' exchanges worldwide have followed suit and cancelled their events. All further events are already forbidden in Germany, as an accumulation of more than two persons is no longer allowed. Let us hope for a more successful year 2021, the 50th Anniversary Fair of the World Money Fair in Berlin will take place here. Afterwards in March we hope for the NUMISMATA, which is a firm part of the international numismatics. The Covid-19 crisis represents a new exceptional situation for the organizers and all numismatists.
Right now, we should all stick together and not blame anyone, but instead support the organizer with comfort and encouragement.
I wish you and your families good health in this difficult time