Sunken Treasure Worth $500 Million Found Off England 157
An anonymous reader writes "In a modern day (and underwater) version of Indiana Jones, the AP is reporting that Odyssey Marine Exploration has recovered an estimated $500 Million in colonial coins from a 400 year old shipwreck in the Atlantic. The exact location of the wreck is still undisclosed. Odyssey is a for-profit, publicly traded company. 'In seeking exclusive rights to that site, an Odyssey attorney told a federal judge last fall that the company likely had found the remains of a 17th-century merchant vessel that sank with valuable cargo aboard, about 40 miles off the southwestern tip of England. A judge granted those rights Wednesday. In keeping with the secretive nature of the project dubbed ''Black Swan,'' Odyssey also is not discussing details of the coins, such as their type, denomination or country of origin. Bruyer said he observed a wide variety of coins that probably were never circulated. He said the currency was in much better condition than artifacts yielded by most shipwrecks of a similar age. The coins -- mostly silver pieces -- could fetch several hundred to several thousand dollars each, with some possibly commanding much more, he said.'"
ZEUS remotely operated vehicle (ROV) (Score:5, Informative)
It was originally designed for the maintenance of deep-ocean fibre optic cables, and has manipulators and high-resolution video feeds that allow items to be handled with great precision
http://shipwreck.net/zeus/ [shipwreck.net]
Motley Fool profiled the Odyssey corp. (Score:3, Informative)
from 2003:
"Odyssey does not have enough assets to list on the Nasdaq National Market, so it trades on the highly speculative Bulletin Board exchange, a place investors should all but categorically avoid. We all dream of finding a hidden gem cheap and riding it to riches, but you're much more likely to find your fortune on the Nasdaq or NYSE, trading in double digits.
We're looking at Odyssey today as an exception, because it's August, half of you are on vacation, and this company has a heck of a fun story -- but all the fun is in the treasure hunting, not the stock.
Like flotsam (or a dead fish), the stock has drifted without purpose from moon to moon, just waiting for a current to carry it. In July, Odyssey announced the discovery of an unnamed steamer, and over the next month speculators lifted the shares from $1.50 to $2.95. After news of the SS Republic broke last weekend, Odyssey's stock opened Monday above $5, valuing the company at $140 million -- a price rivaling the maximum value of the discovery."
Now the stock is over $8.
Re:Federal Judge (Score:5, Informative)
http://en.wikipedia.org/wiki/Territorial_Waters [wikipedia.org]
Re:Federal Judge (Score:5, Informative)
The wreck appears to be in international waters. Therefore, the company may obtain an order for admiralty arrest from a competent court of any nation. In the general case, admiralty arrest is the approximate equivalent in admiralty law of a lien on property. In a case such as this, what it amounts to is a declaration by the court that the ship has been abandoned by its original owner and that the applicant therefore has exclusive salvage rights.
Re:As the sunken vessel lies in international wate (Score:3, Informative)
Comment removed (Score:5, Informative)
Re:As the sunken vessel lies in international wate (Score:5, Informative)
a ship abandoned or sunk in international waters has no owners anyway
Unless it is a war grave. In that case, the ship is forever owned by the government of the country that it sailed for, or its internationally recognised sucessor, no matter whose waters the wreck is located in. HMS Hood is property of the UK government, despite her position in international waters. KM Bismarck is property of the German government (I don't know which Germany would have been considered owner between 1945 and 1990, but it doesn't matter: either one would have been "done the trick").
International Law and traditional maritime law (Score:5, Informative)
Longstanding tradition has included a law of salvage and a law of finds. The law of salvage covers vessels in peril or goods lost that are still claimed by its owner. There is also a long tradition of ignoring the law of savage when nobody was around to enforce it. The law of finds covers vessels like this that have been abandoned by its owners. Such vessels become the property of the first person to start recovery attempts, although there are provisos when such discoveries are made in areas owned by others and would interfere with those others' rights (e.g. you can own treasure found on somebody else's property, but not necessarily if you have to dig it up).
The US and several other nations assert an exception for military wrecks; they claim that such wrecks remain the property of the flag country, even if sunken in territorial waters of other nations. Recovering artifacts from such ships is equivalen to boarding them.
Outside of those considerations, nations may regulate recovery activities in various zones of authority.
There are five legal navigational zones: inland waterways and lakes; territorial seas (12 mile limit); contiguous seas (24 mile limit); and the exclsuive economic zone (200 miles), and the high seas. Within the 12 mile limit, nations are sovereign. Within the twenty four mile limit, they may impose certain regulations, including retrieval of underwater artifacts of archaelogical or historical significance.
Outside the 24 mile limit, they may not regulate recovery of underwater artifacts AFAIK. The 200 mile EEZ only applies to natural resources.
So, given the apparent location of the wreck in question, the UK does not have authority to grant or deny ownership to anywone per se; but they can recognize title gained by private individuals under traditional international maritime law.
International conventions have been proposed to protect underwater culutral heritage -- human made artifacts and vessels that have been underwater for more than 100 years -- on the high seas. The conventions state that any archaeological wreck is to be managed with the benefit of humanity in mind; preferably preserved in situ, but otherwise disposed of in a way consistent with it being the common heritage of all humanity. These conventions have not been ratified by enough nations to be considered in force. The US is one of the nations which objects, primariliy because we claim sovereignty over military wrecks. I dont' doubt that the spirit of the new conventions are loathsome to the current administration's principles.
Re:why coins? (Score:5, Informative)
An ounce of precious metal is going to be worth whatever the going rate for an ounce of precious metal is, plus any value it may have as an artifact. Given that being in the form of an antiquity is only going to increase the value of the metal, it generally doesn't make sense to melt down coins. In the case of silver, these days the going rate is only $13 an ounce, so the value is mostly coming from the the fact that they are old and rare, not that they are made of silver. Odyssey says they have 17 tons of coins, which sounds like a lot, but that's only 17 tons * 2200 lbs/ton *16 oz/lb * $13/oz = $7,779,200 worth of silver, which is 1.5% of what they say the haul is worth.
Supply and demand do dictate that bringing up 17 tons of colonial-era coins will decrease their rarity, which will tend to decrease their value. There are a few ways the company can offset this. First, they can control the flow of the coins onto the market so it doesn't end up flooded. If they sell just 5% of the coins per year for the next 20 years, or $25 million per year, the market will be able to absorb it much better than if they dump a half-billion on the market all at once. The other issue is, of course, that marketing. If the company can increase the demand for the coins by getting more people to look at rare coins either as a hobby or an investment, the value may not decrease that much, or could even increase.
Long term, Odyssey's biggest problem may be other wrecks. They plan on making this a business model, so they are looking at another wreck with half a billion worth of gold aboard, and looking into exploring several more wrecks, so they are going to keep bringing rare coins onto the market. And if that keeps making money, it will encourage copycat operations. Actually, Odyssey's business model isn't original either, the only difference between what they did, and the group who salvaged the Central America did, is that Odyssey had an IPO, whereas the Central America salvage company is not publicly traded. Ship of Gold and the Deep Blue Sea has a really excellent account of what went into the Central America salvage operation.
Re:International Law and traditional maritime law (Score:2, Informative)
http://www.elmundo.es/elmundo/2007/05/19/cultura/