Tag Archives: Black Swan

The Lost Treasure of the S.S. Gairsoppa?

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In February 1941, a Nazi U-boat torpedoed the SS Gairsoppa, sending it to the bottom of the North Atlantic Ocean. Its holds contained a treasure…one of the largest treasures in maritime history. And now, that treasure has been recovered. What is the lost treasure of the Silver Shipwreck?

What is the Silver Shipwreck?

The SS Gairsoppa was a massive cargo ship. In 1941, it left India with silver ingots, pig iron, and tea which it intended to bring back to Britain.  Initially, it traveled with a convoy. However, with coal running low and winds running high, the vessel split off on its own and headed for Ireland’s Galway Harbor. On February 17, the Nazi U-boat U-101 spotted the Gairsoppa and subsequently torpedoed her. She sank in less than twenty minutes, leaving only a handful of survivors.

The vessel sank in 15,400 feet of water, taking with it nearly 80 crewmen…and a priceless treasure. Back in September, the famed treasure hunting / salvage firm Odyssey Marine Exploration announced it had discovered the so-called Silver Shipwreck.

A Massive Treasure Salvage?

On July 18, Odyssey reported the recovery of 1,203 silver bars, or 48 total tons of silver, from the Silver Shipwreck. At the current rate of $31.46 per ounce, the treasure is worth roughly $48 million. And this only represented 43% of the total haul. At the time, Odyssey had plans to salvage the rest of the shipwreck.

Working backward, it appears the Gairsoppa was carrying roughly 112 tons of silver at the time of its sinking. Thus, the entire treasure could be worth about $113 million. Thus, it’s probably accurate this is being called “the deepest, largest precious metal recovery in history.”

“With the shipwreck lying approximately three miles below the surface of the North Atlantic, this was a complex operation. Our capacity to conduct precision cuts and successfully complete the surgical removal of bullion from secure areas on the ship demonstrates our capabilities to undertake complicated tasks in the very deep ocean.” ~ Greg Stemm, Odyssey Chief Executive Officer

Technically, the UK government owns the treasure. It had insured the cargo and paid off the silver’s owners after the Gairsoppa sank. Under the terms of the salvage agreement, the government will keep 20% of the treasure, net costs. Odyssey will keep the rest.

Guerrilla Explorer’s Analysis

Our congratulations go out to Odyssey. This is an excellent haul. And it appears this story will end far better than the controversial “Black Swan” debacle.

Back in 2007, Odyssey secretly salvaged 17 tons of gold and silver coins from a mysterious shipwreck codenamed the “Black Swan.” The Spanish government cried foul and demanded that the wreck be handed over to it. The Spanish government’s ownership of the wreck was questionable at best and it spent none of its own time, money, or effort to recover it. Yet, numerous U.S. courts sided with the Spanish government and ruled Odyssey had to relinquish the Black Swan’s treasure.

At the time the time, we predicted that particular outcome, which was possibly influenced by secret back room bureaucratic dealings, would have extremely negative effects on the field of shipwreck salvage.

“Going forward, treasure hunters will have little to no incentive to report their findings to the world. The black market for antiquities will grow. The treasure hunting field will attract a greater number of reckless and unskilled individuals. Thus, salvage work will be done with more haste and less care.” ~ David Meyer, The Black Swan Heist

We still think that will be the case in the long-run. However, we’re pleased to see this particular salvage operation end on a happy note. Once again, congratulations to Odyssey!

Will Spain sell the Black Swan Treasure?

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Two months ago, U.S. courts forced Odyssey Marine Exploration to hand over the so-called Black Swan treasure to the Spanish government. What will Spain do with it?

What will happen to the Black Swan Treasure?

Spain’s claim to the treasure was tenuous at best and completely lacking in proof. But as you might expect, international laws regarding shipwrecks are murky and highly tilted toward governments. Regardless, the Spanish government now owns the Black Swan treasure.

We tend to think this outcome, which was possibly influenced by secret back room bureaucratic dealings, will have extremely negative effects on the field of shipwreck salvage for years to come.

“Going forward, treasure hunters will have little to no incentive to report their findings to the world. The black market for antiquities will grow. The treasure hunting field will attract a greater number of reckless and unskilled individuals. Thus, salvage work will be done with more haste and less care.” ~ David Meyer, The Black Swan Heist

The Spanish Culture Ministry has taken possession of the treasure (and to add insult to injury, is suing for legal costs as well). The Spanish government claims it merely wants to divide up the treasure to be exhibited in multiple museums. But since Spain is deep in debt, it seems possible the government will sell some of the treasure instead and use the proceeds to pay its bills. While no hard evidence exists of an upcoming sale, there are some recent clues hinting at it. Here’s more on the Black Swan treasure from NumisMaster:

On Feb. 25 Jose Ignacio Wert, Spain’s education, culture and sports minister made no mention of value, simply saying, “The legacy of the Mercedes belongs to Spain.” It is likely Spain went to all the trouble of fighting for this waterlogged hoard in court due to its value, not due to the treasure simply being a legacy rightfully belonging to Spain.

But, wait a minute. This is treasure trove dredged from the ocean floor. What kind of collector value are we really looking at?

The first hint comes from a Feb. 27 Associated Press story. Within this story is the comment, “After two centuries under water, parts of the trove of coins are stuck together in big chunks, sometimes in the very shape of the chests or sacks they were originally stored in, said Milagros Buendia, part of the specialized team that went to Florida to get the booty.”

The AP story continues that “Spain will now set about classifying and restoring the 594,000 coins and other artifacts involved before it figures out how to display them for the public.”

The word “restoring” is the key, a word that likely goes over the head of the average potential buyer of such coins. This is part of the reverse psychology that has been applied many times when someone is publicizing a hoard of coins in preparation to selling them to the public. (There is no indication at this time that Spain will seek to sell the coins.)…

(See NumisMaster for more on the Black Swan treasure)

The Black Swan Heist?

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On May 18, 2007, Odyssey Marine Exploration flew 17 tons of salvaged gold and silver coins to a secure facility in Florida. Now, five years later, U.S. courts have forced Odyssey to hand over this treasure to the Spanish government. What is the Black Swan Heist?

Odyssey & the Mysterious Black Swan Project?

Odyssey is a publicly-held marine salvage company. In other words, it’s a treasure hunting firm. Back in 2007, Odyssey completed a top-secret salvage expedition known as the Black Swan Project, uncovering some 17 tons of coins and other artifacts in the process. The operation is believed to have cost two million dollars and taken numerous years to complete.

Almost immediately, the Spanish government filed a claim on the treasure, arguing that the Black Swan was actually a Spanish vessel known as the Nuestra Señora de las Mercedes, which sank in 1804. Five years of court battles and drama followed. At one point, WikiLeaks even got involved. A secret cable revealed the American ambassador to Spain offered to help the Spanish government recover the treasure from Odyssey. In exchange, Spain was asked to compel a museum in Madrid to return a $20 million painting to a California family that claimed it had been stolen by the Nazis.

The Black Swan Heist?

In September 2011, the 11th Circuit Court of Appeals ruled against Odyssey in a highly questionable decision. In February 2012, Justice Clarence Thomas, acting on behalf of the U.S. Supreme Court, declined to hear the case. As a result, Odyssey is being forced to hand over the Black Swan treasure to the nearly-broke Spanish government. And in a slap to the face, the firm won’t receive any compensation for its work (leading many treasure hunters to suggest Odyssey return the Black Swan treasure to the ocean and make the Spanish government pay for its own recovery).

I don’t want to get into the minutia of the case here. The international laws governing shipwreck salvaging are murky and highly tilted toward governments over individuals. Suffice it to say the Black Swan wreck was never conclusively proven to be the Mercedes. And even if it was the Mercedes, that means that the vast majority of the coins were owned by merchants and not the Spanish government. Spain claims it had reimbursed the merchants back in the early 1800s and thus, was entitled to the treasure (interestingly enough, it has yet to provide any proof of this compensation).

Guerrilla Explorer’s Analysis

From my point of view, this is a short-sighted decision that will have long-term ramifications (something I discuss in my novel Chaos). Going forward, treasure hunters will have little to no incentive to report their findings to the world. The black market for antiquities will grow. The treasure hunting field will attract a greater number of reckless and unskilled individuals. Thus, salvage work will be done with more haste and less care.

As I see it, the Black Swan treasure falls under the homesteading principle. There are three possible owners of the Black Swan wreck. The dead (or their descendants), the “community” (supposedly represented by the Spanish government), or Odyssey. First, the dead merchants can no longer claim ownership. In addition, the merchants basically stole the metal for the coins from the Incas making it extremely unlikely the original owners can ever be traced (although some Peruvians are making their own claim). Second, the Spanish Culture Ministry has no legitimate claim to the treasure. Governments cannot legitimately own private property, since everything they have (including tax dollars) has been, in effect, taken at the point of a gun.

Overall, I would argue no one owned the Black Swan wreck prior to discovery. Odyssey, on the other hand, is the rightful owner of its own labor. By salvaging the Black Swan, the company added its labor to the treasure and thus, became its rightful owner.

I’m a treasure hunter. Yet I also consider myself an amateur archaeologist. As such, I’m very sympathetic to the concept of “historical preservation.” However, I don’t think that “stealing” artifacts from the treasure hunters who recover them is the best way to achieve that goal. Instead, I tend to favor the idea of privatizing archaeology.

“In other words, if “archaeological entrepreneurs” were able to sell their wares freely, they would have greater incentive to do better work in order to fulfill the demands of their customers (i.e. museums). Also, in the absence of antiquities laws, private owners would be more likely to share their artifacts with researchers, especially since subsequent research might increase the value of the artifact in question.” – David Meyer, Is Treasure Hunting Immoral

I realize I’m in the minority on this issue. But that doesn’t mean I’m wrong. Freedom has vastly improved the lot of mankind over time. I believe it could do the same thing for the field of archaeology.

The Silver Shipwreck?

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In 1941, the SS Gairsoppa was heading from India to Britain. Suddenly, a Nazi U-Boat appeared on the horizon. It fired on the Gairsoppa, sending the massive cargo ship to the bottom of the North Atlantic Ocean. Now, that ship is on the verge of being recovered. But it’s no ordinary cargo ship. Its holds are believed to contain a treasure…one of the largest treasures in maritime history.

The Sinking of the SS Gairsoppa?

In 1941, the Gairsoppa left India with silver ingots, pig iron, and tea which it intended to bring back to Britain. It was initially part of a convoy. However, with coal running low and winds running high, the vessel split off on its own and headed for Ireland’s Galway Harbor. On February 17, the U-101 spotted the Gairsoppa and subsequently torpedoed her. She sank in less than twenty minutes, leaving only a handful of survivors.

The vessel sank in 15,400 feet of water, taking with it nearly 80 crewmen…and a priceless treasure. It was believed to be carrying ~240 tons of silver, which amounts to a staggering ~$243 million. Earlier this week, the famed treasure hunting / salvage firm Odyssey Marine Exploration announced that it had discovered the shipwreck.

Odyssey Marine Exploration plans to Salvage the SS Gairsoppa?

Next spring, Odyssey will attempt to recover the treasure in what is already being called the “deepest and largest ever retrieval of a precious cargo.” According to its contract with the United Kingdom, Odyssey will keep 80% of the silver lode. The rest will go to the government, which as you might expect is “desperately looking for new sources of income.” In fact, Odyssey is being encouraged to find more valuable shipwrecks for the UK government.

But first, Odyssey will focus on completing its salvage of the Gairsoppa. It will be a difficult task due to the extreme depth of the wreck. But Odyssey doesn’t seem too worried.

“We were fortunate to find the shipwreck sitting upright, with the holds open and easily accessible. This should enable us to unload cargo through the hatches as would happen with a floating ship alongside a cargo terminal.” ~ Greg Stemm, Odyssey CEO

Will the Gairsoppa turn out to be the richest shipwreck of all time? Probably not. The mysterious “Black Swan,” which was also salvaged by Odyssey, is rumored to have been carrying treasure worth ~$500 million in today’s dollars. But the bigger question is what will happen to the Gairsoppa’s treasure once its recovered.

Guerrilla Explorer’s Analysis

After secretly salvaging the Black Swan, Spain cried foul and demanded that the wreck be handed over to it. This happened regardless of the fact that the Spanish government’s ownership of the wreck was questionable at best and that Spain had spent none of its own time, money, or effort to recover it. Surprisingly, numerous U.S. courts sided with Spain and ruled that Odyssey must turn the Black Swan over to its government.

But those judgments have come under scrutiny and deservedly so. Documents provided by Wikileaks showed that the U.S. government attempted to conspire with Spain in the matter. More specifically, it offered to help Spain retrieve the Black Swan. In exchange, it requested that a painting by Camille Pissarro, which was stolen by the Nazis and now hangs in Madrid’s Thyssen-Bornemisza Museum, be returned to an American citizen named Claude Cassirer.

“The possibility that someone in the U.S. government came up with this perfidious offer to sacrifice Odyssey, its thousands of shareholders, and the many jobs created by the company in exchange for the return of one painting to one individual is hard to believe.” ~ Odyssey Marine Exploration

Will the cash-starved British government, despite its agreement with Odyssey, attempt to seize the bulk of the treasure for itself? Let’s hope not. But until then, we can only wait and wonder.