Assessing the impact of the bankruptcy of National Gold Exchange on numismatic business generally has only just begun. It has also been changing day by day since the legal papers were filed July 24.

"I think it's a shame," said Kirk Kelly of the Coin Depot, Greenville, S.C. "I think the hobby will miss their not being in the business."

The St. Petersburg Times reported July 29 that even though the firm had filed for Chapter 11, which means it intends to reorganize and continue functioning, that NGE was effectively shut down when its primary lender, Sovereign Bank was permitted by the court to continue taking coins that had been pledged as collateral.

Judge Michael Williamson heard allegations that employees were smuggling coins out the back door and he called this development "serious and troublesome."

These allegations were called innuendo by NGE's attorney.

The paper first broke the story July 25 accompanied by a photograph of Mark Yaffe's $25 million home in Avila, Fla., and an allegation that it was financed in part with collateral pledged to Sovereign Bank.

American Numismatic Association President Barry Stuppler, who operates his own coin business in California, offered a general reaction and then became a little more specific in his take on the matter.

"I doubt it will have any impact on the coin business. In the great scheme of things it's not significant. He was a wholesaler. He helped supply a lot of dealers. I don't think it will have any significant impact on the coin market other than bad press," Stuppler explained.

But there are lessons to be learned, he said.

"I think that in general dealers should set up acceptable criteria for who they give credit to and I think that has always been lacking in our community."

This he said should be done on a dealer-to-dealer basis.

But as he thought about specifics, Stuppler said, "The wholesale end of the business will probably get more concentrated. The other wholesalers will probably benefit from it."

Gus Tiso of Salisbury, Md., thought the impact would be more dramatic.

"I haven't done any business with them, but as far as the gold there are a lot of dealers involved and it's going to hurt. Its going to be a domino effect until it's sorted out. It's going to take a while."

Numismaster