Portrait of George Santayana by Samuel Johnson Woolf (1880-1948)
One of the most popular aphorism was written by philosopher and essayist George Santayana: “Those who cannot remember the past are condemned to repeat it.” Although it was one line in Volume 1 of his five volume The Life of Reason, the statement is so profound that it stands out as a seminal statement.
Events this past week in Charlottesville, Virginia are forcing us to heed Santayana’s warning and look at our history to understand how we got here and why. Regardless of how anyone feels about the issues behind the divisions we cannot condone the use of violence to try to force opinions on others. This is what was tried in the past, which is why we have to learn from it because it seems to repeat itself time and again.
We should not hide our history behind political correctness. We need to put both the good and the bad out front for all to see. We need to learn from both and improve going forward. And this is not only about the Civil War. The United States has had a long record of abuses to the native tribes in the 19th century that we should be ashamed of. In fact, this country continues to abuse the native tribes and violate treaties that were designed to protect both sides. For an example, see the Dakota Pipeline project.
Americans want to celebrate their past and learn from the mistakes but are we continuing to make the same mistake? For every Civil Rights Act of 1964 Silver Dollar (2014), there are stories of the internment of Japanese-Americans during World War II whose only “crime” was to have Japanese ancestry.
Commemorative coins have always been used to help raise money for one cause or another. Members of Congress would bring the request to Washington from their home state and use the support of these bills to bargain with their fellow members to support other bills. It became so bad that the commemorative coins programs were ended following the 1954 release of the George Washington Carver Half Dollar.
During the early period of commemorative coins, Congress authorized the issuance of three commemoratives with themes tied to the Civil War. Two were created to memorialize battlefields and the other a memorial that is causing controversy today.
Stone Mountain Memorial Half Dollar
Stone Mountain Half Dollar Coin Specifications
Year Issued: 1925 Designer: Gutzon Borglum Composition: .900 Silver, .100 Copper Weight: 12.50 grams Diameter: 30.6 mm Authorization: Public Law 68-46 Mintage: 1,314,709 in Philadelphia
The 1925 Stone Mountain Memorial Half Dollar features the images of Generals Robert E. Lee and Stonewall Jackson. The monument was commissioned by the Stone Mountain Confederate Memorial Association to create a monument to the leaders of the south on the large granite face of the mountain. Both the coin and the monument was designed by Gutzon Borglum. Borglum was the same designer of Mount Rushmore.
The project began in 1916 by the United Daughters of the Confederacy. They were deeded the side of the mountain by the Venable Brothers, who used to mine the stones. Sam Venable used Stone Mountain as a central meeting place as part of the resurgence of the Ku Klux Klan.
The carved memorial was supposed to be a 12-year project. Aside from funding issues, Borglum, who was known to associate with the Ku Klux Klan, quit the project in 1925. That lead to having many problems with funding and maintaining sculptors throughout the years. After the mountain was purchased by the State of Georgia in 1958, there were two attempts to complete the memorial. It was finally completed in 1970.
Congress authorized a production of 5 million coins. These coins were struck in batches of 500,000 at a time in Philadelphia. The coins were sent to the Stone Mountain Confederate Memorial Association which offered them for sale. Despite brisk sales, they only sold about 1.3 million coins. The balance of the last run was returned to the U.S. Mint to be melted.
Battle of Gettysburg Half Dollar
Gettysburg Half Dollar Coin Specifications
Year Issued: 1936 Designer: Frank Vittor Composition: .900 Silver, .100 Copper Weight: 12.50 grams Diameter: 30.6 mm Authorization: Public Law 74-91 Mintage: 26,928 in Philadelphia
The 1936 Battle of Gettysburg Half Dollar issued to commemorate the 75th anniversary of the Civil War’s bloodiest battle. The obverse features generic the profiles of Union and Confederate soldiers with the words “Blue and Gray Reunion” under the portraits.
During this time, the Gettysburg Battlefield Memorial Association had been transferred from the War Department to the National Park Service for administration. But the area needed additional infrastructure and support. As part of the plans to commemorate the 75th anniversary of the Battle of Gettysburg, the commemorative coin was used to Pennsylvania the necessary money. As with many of the commemorative coins issued during The Great Depression, the program fell short.
Congress authorized a production of 50,000 coins. These coins were struck at Philadelphia and sent to the Pennsylvania State Commission which offered them at $1.65 each. They sold just under 27,000 coins. The rest were returned to the U.S. Mint to be melted.
Battle of Antietam Half Dollar
Antietam Half Dollar Coin Specifications
Year Issued: 1936 Designer: William Marks Simpson Composition: .900 silver, .100 copper Weight: 12.50 grams Diameter: 30.6 mm Authorization: Public Law 75-160 Mintage: 18,028 at Philidelphia
The 1937 Battle of Antietam Half Dollar was issued to commemorate the 75th anniversary of the battle which General Geroge B. McClellan preventing the invasion of Maryland by General Robert E. Lee’s Army of the Potomac near Antietam Creek. Although Lee’s army was able to withdraw back to Virginia, President Abraham Lincoln relieve McClellan because it was felt that the battle did not defeat Lee’s army.
Similar to the Gettysburg Half Dollar, Maryland proposed a commemorative half dollar in order to improve the infrastructure around the battlefield and cemetery. One of the differences between Antietam and Gettysburg was the network of roads built around the battlefield area that Sharpsburg, the main city along Antietam Creek, was a gateway across the Potomac River into these western areas even before the Civil War. As a natural crossing point, Lee’s army was going to use it to attack the Union from the west.
Congress authorized a production of 50,000 coins. These coins were struck at Philadelphia and sent to the Washington County (Maryland) Historical Society which offered them at $1.65 each. They sold about 18,000 coins. The rest were returned to the U.S. Mint to be melted.
Learning from History
During the times that these commemorative coins were proposed, the commemoratives were met with little interest and even with some disdain that the U.S. Mint would be required to produce so many commemoratives.
Specifically, regarding the Stone Mountain Memorial half dollar, a review of newspaper archives does not mention an outrage over the production of the coin. However, there was plenty of stories about the Jim Crow laws. Predictably, northern newspapers were against them and southern newspapers defended them.
Stone Mountain itself has had an interesting history even after the passage of the Civil Rights Act. In the 1980s, Daniel Carver, former Grand Dragon of the “Invisible Empire, Knights of the Ku Klux Klan” donated money to the Stone Mountain Memorial Association to upgrade the park. In return, the organization was going to rename the park in his honor until protests convinced the organization otherwise. Carver would go on to make a spectacle at the park during the week before the 1988 Democratic National Convention that was held in Atlanta.
History is addressed to understand the context. It is easy to look back and ask, “What were they thinking?” By understanding the history, it does provide an insight into that answer.
But Continue to Collect History
History is a great teacher but it is not enough to have the words. We build museums with artifacts of history so that we can learn from the past. We collect artifacts of history so that we can preserve the past. We study these artifacts to understand “What were they thinking” because it is important to the context of history.
Whether it is for curiosity, pride, interest in the subject, or the thrill of the chase, collecting historical artifacts is not only educational but also vital to ensure we do not forget the history regardless of whether it is good or bad.
If your passion is classic commemoratives, make sure you include a Stone Mountain Memorial Half Dollar in your collection.
If your passion is Confederate currency, some were well made and will make for an interesting collection.
If your passion is military medals and awards of the Civil War or of the Confederacy, make sure you find as many as possible. Document what your find. Research their provenance. Understand what they mean because it is important that history is remembered.
Whatever you collect, share it with the rest of us because we all need to learn about history so that we do not repeat the mistakes of the past.
Over the last few weeks, I have been working on a few writing projects that include primers about collecting numismatics. While some of these articles have allowed me to repurpose blog posts, I have had to create some content not posted before.
In the past, I posted a few including the series on small dollars and about Seated Liberty Dime Varieties. They were posted as regular articles because I thought they would be of general interest.
A few may not make for exciting reading but could be used as a reference for those interested. Last week, I added one of those articles rewritten for the blog and posted it under the Collector’s Reference menu.
“A Collector’s Guide to Understanding U.S. Coin Grading” is a simple overview of coin grading. It starts with a short narrative that explains the origin of coin grading and its standardization. It is not an extensive overview. It is just the basics to give a collector an idea of the evolution.
This is followed by three tables:
Coin Grading Scale correlates the words with the expected grade that might be printed in an advertisement or on a grading service label along with a definition of what that grade means. These definitions were adapted from The Official American Numismatic Association Grading Standards for United States Coins edited by Kenneth Bressett. I own the 6th Edition but I am sure it has not changed much between then and the 7th Edition!
Strike Quality is the attributes of a coin that signifies the strike and the wearing of the dies. Each of these designations begins with “Full” like “Full Bands” or “Full Steps.”
Surface Quality is those grade attributes assigned to the quality of the coin’s fields. These are for proof coins designated as “Deep Cameo” or a business strike exhibiting “Proof Like” surfaces.
It ends with a section on a summary of the “eBay Coin Grading Policy.” There are aspects of their grading policy I did not know until I read eBay’s rules carefully.
If you find these types of write-ups helpful, let me know. I can convert some of the other guides into posts for the community.
The reasons why counterfeiters are successful is that people do not pay attention. Even when people do allegedly pay attention, it is almost as if the brain is not engaging.
A report from the U.K. says that people returning from mainland Europe are trying to pass euros because they look like the new £1 coin.
Obverse of the new 2017 12-sided £1 coin
Standard obverse of the €1 coin
Although both coins are bi-metallic, the new pound coin is 12-sided meaning that there are 12 distinct “corners” that should be able to be felt on the coin. The euro is round with a milled edge that should have a different feel.
Even though the outer ring of both coins is made of nickel-brass, the ring of the euro coin is thinner than the outer ring of the new 12-sided pound coin.
The final clue in telling the difference is that the pound coin, like all legal tender coins minted by the Royal Mint, the coin features the portrait of Her Majesty Queen Elizabeth II while the euro features a map of Europe and the denomination.
The cost for not paying attention is a loss of about 9 pence since one euro is worth about 91 pence.
Two of the rarest one cent coins ever made have sold at auction for a combined total close to half a million dollars. A 1943 Lincoln Penny fetched $282,000 while a 1792 Birch Cent which had been thought to have been lost for 130 years sold for $211,500. → Read more at dailymail.co.uk
HOLDREGE — Robert Kinkaid of Lexington had worked to get the book “Forgotten Colorado Silver” published since 1982. His efforts paid off, and the book was published this year. One of the authors, Robert D. → Read more at kearneyhub.com
The new £5 Prince Philip coin that has been released to celebrate his 70 years of service could be worth a fortune in the future. The coin costs £13 to pre-order through the Royal Mint and will be shipped in late August. → Read more at metro.co.uk
UK’s Royal Mint will supply Argentina with 150 million peso coins, after the institution won a contract to assist with the minting of a new coin series. Announced on social media by UK chancellor Philip Hammond, the mint will work closely with its Argentine counterpart – Sociedad del Estado Casa de Moneda – to produce blanks for the new coin series. → Read more at en.mercopress.com
Holidaymakers returning from Europe are trying to pass off euro coins as the new pound coins in British shops because they look so similar. Shopkeepers are warning staff to be vigilant after noticing the huge increase in one euro coins being found in takings. → Read more at metro.co.uk
His initials are on every British coin minted since 2015, but who is the Jiu Jitsu enthusiast who designed the Queen's head, despite never having met her? He is an artist whose most famous portrait has been reproduced billions of times, and you probably have one in your pocket right now. → Read more at bbc.com
Ancient Romans used to measure time by the position of the stars. One of the stars they observed was Sirius because it was the brightest star in the sky. During their observations, they found that starting about 20 days prior to its apex and 20 days that follow, the temperatures would be its hottest. This coincidence suggested to that Sirius was the cause of the heat and humidity.
Sirius is the brightest star in the constellation Canis Major (big dog). Because ancient Romans thought Sirius contributed to the heat and humidity, this period would be called the Dog Days.
Astrologically, the Dog Days begins on July 3 and runs through August 11.
Today’s society has attached many meanings to the Dog Days of Summer. Usually, it is associated with the time following July 4 through whenever school starts. In baseball, it is the jockeying for position to get ready for the pennant races. Football begins training camps, politicians warm up to run for office (sometimes a year early), and the temperatures are rising with the east getting too wet and the west not getting wet enough.
On the numismatic calendar, the Dog Days begin after the World’s Fair of Money and leads up to the start of school. Although this period is changing as some school districts are now starting earlier in an attempt to hedge against the potential for weather-related closings during the winter months.
With Congress on vacation, it also means that any numismatic-related legislation will remain in committee until they return.
Leading into the fall season, some mints will release some new coins, but these will be non-circulating legal tender (NCLT) coins. Very few significant releases will be made in the next few weeks leaving some of us to clean off the top of our desks and organize the collection (guilty as charged).
But your intrepid numismatic blogger is here ready to comment on whatever comes to mind… or a topic you suggest. I do take requests!
Time for some mindless levity. While looking for numismatic-related stories around the interwebs, I came across this video. With 200 coins that appears to be the size of a quarter, the presenter builds a bridge of coins that loops off the edge of the table.
I guess things went well at the American Numismatic AssociationWorld’s Fair of Money. There seems to have been a little reaction on social media and some input from the regular numismatic media, but for the most part, I am going to have to wait until my coin club meeting on Tuesday to speak with those who attended.
A recent purchase of six Canadian Tokens
My week has not been without the ability to acquire numismatic items. While rummaging through an estate sale I found some Canadian tokens. Since I own a copy of the Breton book, Illustrated History of Coins and Tokens Relating to Canada, this will give me a chance to look into the few token I was able to buy at a very inexpensive price. Who knows, maybe this will spark another collection interest!
Finally, I want to wish my brother Joel a Happy Birthday. I cannot believe the old man is 53!
As far back as he can remember, he has collected coins. As a young boy, he tagged along with his father to coin club meetings and exhibitions, gaining an interest in Canadian pennies and U.S. cents. "I don't remember not collecting," said Hallenbeck, who owns Hallenbeck Coin Gallery at 711 N. → Read more at gazette.com
OSKALOOSA — Jerry Jenkins, a former Oskaloosa resident who now lives in Texas, recently mailed two old coins to the Oskaloosa Herald. Jenkins said he wanted the coins to be donated to Nelson Pioneer Farm and Museum as part of Mahaska County history. → Read more at oskaloosa.com
BENGALURU: Investors and history lovers made a beeline this weekend for Nanyadarshini 2017. This was the first edition of the annual numismatics exhibition post-demonetisation by the Karnataka Numismatic Society at Shikshakara Bhawan on Kempegowda Road in the city. → Read more at economictimes.indiatimes.com
In 2013, David McCarthy spotted a rare coin in an auction catalog and immediately had a hunch it was the first coin minted by the fledgling United States of America in 1783. Not the first run of coins, mind you, but the very first one. → Read more at npr.org
WASHINGTON (AP) — Old inns along the Revolutionary War trails boast of George Washington sleeping there. But coin experts say they have found the first silver piece minted by the United States — one likely held by the most en vogue of Founding Fathers, Alexander Hamilton. → Read more at seattletimes.com
A picturesque stretch of land in Michigan’s Upper Peninsula is set to grace a special quarter the United States Mint unveils for 2018. The Pictured Rocks National Lakeshore is among the places featuring on the reverse side for the America the Beautiful Quarters program, officials announced Wednesday at the American Numismatics Association’s World’s Fair of Money. → Read more at detroitnews.com
The design for a coin representing Voyageurs National Park was unveiled this week along with the designs for four other national sites to be included in the United States Mint multi-year "America the Beautiful Quarters" program. → Read more at ifallsjournal.com
The Royal Mint is celebrating Prince Philip‘s retirement the same way they celebrate, well, all big royal milestones: with a new coin. The Queen‘s 96-year-old husband retired from official duties on Wednesday, after 64 years of service on behalf of the royal family. → Read more at people.com
ULAN BATOR, Aug. 3 (Xinhua) — The Central Bank of Mongolia has issued a commemorative coin dedicated to the Gobi brown bear which is on the verge of extinction. The coin made of pure silver has the shape of a circle with a diameter of 38.61 mm and a price of 300,000 togrog (122 U.S. dollars). → Read more at news.xinhuanet.com
Recently in The Hill, we heard former Reps. Jim Kolbe (R-Ariz.) and Tim Penny (D-Minn.) promote currency reforms as a way to save taxpayers money. Unfortunately, their proposed solution, The Currency Optimization, Innovation, and National Savings (COINS) Act of 2017, misses the mark completely and would move the country in exactly the wrong direction. → Read more at thehill.com
As part of the lame duck session following the 2010 midterm elections, Congress passed the American Eagle Palladium Bullion Coin Act of 2010 (Pub. L. 111-303) telling the U.S. Mint strike one-ounce .9995 fine palladium bullion coins as part of the American Eagle Bullion Program. The coin will have a $25 face value and require that “the obverse shall bear a high-relief likeness of the ‘Winged Liberty’ design used on the obverse of the so-called ‘Mercury dime’” making it yet another bullion coin that will feature a design from the early 20th century. For the reverse, the law says that the coin “shall bear a high-relief version of the reverse design of the 1907 American Institute of Architects medal.” Both the Mercury Dime and 1907 AIA medal designed by Adolph A. Weinman, whose Walking Liberty design is used on the American Silver Eagle coins.
The catch to the law was that the U.S. Mint was to perform a feasibility study to determine if there will be market demand. Although the study showed that there is a market for palladium coins, it was not overwhelming. Based on the wording of the law, the U.S. Mint opted not to strike palladium coins.
This did not sit well with Rep. Dennis “Denny” Rehberg (R), Montana’s only member of the House of Representatives since the primary source of palladium in the United States is the Stillwater Mine in Montana. The mines, which also provides the U.S. supply of platinum group metals (PGM), is owned and operated by the Stillwater Mining Company. Rehberg added an amendment to the Fixing America’s Surface Transportation Act or the FAST Act (Public Law 114-94, 129 STAT. 1875, see Title LXXXIII, Sect. 73001) that took away the U.S. Mint’s option and added the word “shall.”
The FAST Act was also the law where the law was changed to allow the U.S. Mint to use better than 90-percent gold and silver in commemorative coins by changing the wording to say “not less than 90 percent….”
Palladium Eagle coins may have roughly the same impact on the market as the Platinum eagles since palladium is about $100 less expensive than platinum, 69-percent of the price of gold, but 53-times the price of silver. Based on the way the U.S. Mint prices precious metal products, the Palladium Eagle should cost within $100 of the platinum coins.
Precious Metals Price Snapshot as of August 4, 2017 (This is a static chart—it does not update)
Although palladium is only the fourth metal to have an official ISO currency code (XPD), it is not readily thought of as a precious metal that is used to hedge against financial disaster. Gold (XAU) and silver (XAG) are usually thought of first. Sometimes, platinum (XPT) is part of the discussion, but not as frequently as gold or silver.
Palladium does have industrial uses. Because of its ability to absorb hydrogen and compounds with hydrogen, like hydrocarbon, its major use is in catalytic converters used in every gasoline powered vehicle. It is also seen as a key element in the potential of cold fusion because of its ability to absorb hydrogen.
It is likely the American Palladium Eagle will be as popular as the Platinum Eagle. Maybe the U.S. Mint will sell more of these coins because they will be slightly cheaper and have a design more appealing to collectors, but neither of these coins will approach the sales totals of the gold or silver version of the American Eagle coins.
It is not a coin I am likely to collect. However, I will probably purchase the 2017 coin to have one from the first year of issue just as I did with the 2007 American Buffalo 24-karat Gold Proof coin.
Palladium Eagle images courtesy of the U.S. Mint via Coin World.
As part of my bill tracking, I am including the status of the Saint-Gaudens National Historical Park Redesignation Act even though it does not have numismatic content. Given the impact of Agustus Saint-Gaudens to the numismatic world, it seems fitting to watch the status of this bill. Converting it from a National Historic Site to a National Park is being done for funding reasons. Although it will continue to be operated by the National Park Service, as a National Park there will be more money available for its operations.
H.R. 965: Saint-Gaudens National Historical Park Redesignation Act
Sponsor: Rep. Ann M. Kuster (D-NH)
Introduced: February 7, 2017
This bill redesignates the Saint-Gaudens National Historic Site, in New Hampshire, as the "Saint-Gaudens National Historical Park."
Referred to the Subcommittee on Federal Lands. — Feb 23, 2017
Ordered to be Reported (Amended) by Unanimous Consent. — Jul 26, 2017
A while ago, I received the following question from a reader:
Why do coins that were made NOT for circulation, like Silver Eagles, Commemoratives Productions, etc have any value other than their face value? I do not see the value of collecting something that was never meant for circulation.
2013 American Eagle West Point Two-Coin Silver Set with reverse proof and enhanced uncirculated coins.
Starting with the first question, the face value of any coin is assigned by the legal authority that produces the coin. In the United States, the face value of any coin is determined by Congress. In other countries, the central bank or the treasury ministry makes the determination.
The American Silver Eagle Program was the result of the Reagan Administration wanting to sell the silver that was part of the Defense National Stockpile to balance the budget. Originally, the plan was to auction the bullion. After intense lobbying by the mining industry warning that such an auction would damage their industry, the concept was changed to selling the silver as coinage.
Changing the sales to coinage allowed for market diversification. Rather than a few people attempting to corner the market at an auction, selling coins on the open market allows more people to have access to the silver as an investment vehicle.
As codified in Title II of the Statue of Liberty-Ellis Island Commemorative Coin Act (Public Law 99-61, 99 Stat. 113), the “Liberty Coin Act” defines the program as we know it today including the phrase “The coins issued under this title shall be legal tender as provided in section 5103 of title 31, United States Code.”
As a legal tender item, the coin’s basic value has the backing of the full faith and credit of the United States government. Regardless of what happens in politics and world events, the coin will be worth at least its face value. Being minted by the U.S. Mint is a guarantee of quality that is recognized around the world making worth its weight in silver plus a numismatic premium.
Coins are perceived by the market as being more desirable than medals. Medals have no monetary value except as an art object. When it comes to investments, they do not hold a value similar to that of a legal tender coin. This is because medals are not guaranteed by the United States government, a key factor in determining its aftermarket value.
Once the coin has been sold by the U.S. Mint, its value is determined by various market forces. For more on how coins are priced, see my two-part explanation: Part I and Part II.
Why do American Silver Eagles have a One Dollar face value? Because the law (31 U.S.C. Sect. 5112(e)(4)) sets this as a requirement.
Why are the coins worth more than their face value? Because the law (31 U.S.C. Sect. 5112(f)(1)) says that “The Secretary shall sell the coins minted under subsection (e) to the public at a price equal to the market value of the bullion at the time of sale, plus the cost of minting, marketing, and distributing such coins (including labor, materials, dies, use of machinery, and promotional and overhead expenses).”
Can you spend the American Silver Eagle as any other legal tender coin? In the United States, you can use any legal tender coin in commerce at its face value. This means that if you can find someone to accept an American Silver Eagle, it is worth one dollar in commerce. However, it would be foolish to trade one-ounce of silver for one dollar of goods and services.
Commemorative programs are different in that the authorizing laws add a surcharge to the price of the coin to raise money for some organization. Using the 2017 Boys Town Centennial Commemorative Coin Program (Public Law 114-30) as an example, Rep. Jeff Fortenberry (R-NE) introduced a bill (H.R. 893 in the 114th Congress) to celebrate the centennial anniversary of Boys Town. As with all other commemorative bills, the bill specified the number, type, composition, and denomination of each coin.
The Boys Town Centennial Commemorative coin features Fr. Edward Flanagan, founder of Boys Town
For example, the law says that the U.S. Mint will issue no more than 50,000 $5 gold coins that weighs 8.359 grams, have a diameter of 0.850 inches, and contains 90-percent gold. The law also has design requirements including being “emblematic of the 100 years of Boys Town.” The sale price of the coin will have “a price equal to the sum of” “the face value of the coins; and, the cost of designing and issuing the coins (including labor, materials, dies, use of machinery, overhead expenses, marketing, and shipping).”
As with other commemorative, the coins will include a surcharge. Each gold coin will include a $35 surcharge, $10 for a silver dollar, and $5 for each clad half-dollar coin. When the program is over, the surcharges “shall be paid to Boys Town to carry out Boys Town’s cause of caring for and assisting children and families in underserved communities across America.”
The 2017 Boys Town Centennial Uncirculated $5 Gold Commemorative Coin is selling for $400.45 and the proof coin is selling for $405.45 suggesting that the process of producing a proof coin costs the U.S. Mint $5 more than the uncirculated coin.
What goes into the price of the coin? After the face value of $5, there is a $35 surcharge added that will be paid to Boys Town, there is the cost of the metals used. Here is a workup of the cost of the gold planchet using current melt values:
Metals Base Rate
Total metal value
Even though the melt value of the coin is $304.79, there is a service charge the U.S. Mint has to pay the company that creates the planchets. Thus, before the labor, dies, use of machinery, overhead expenses, and marketing is calculated into the price, the coin will cost $344.79 even though the legal tender face value of the coin is $5.
Taking it a step further, the average profit the U.S. Mint makes from gold commemorative coins is 8-percent (based on the 2015 Annual Report). If they are charging $400.45 for the uncirculated gold coin, the coin costs $368.41 to manufacture, $373.41 for the proof version.
Why collect these coins?
American Silver Eagle bullion coins were created for the investment market even though the authorizing law saw the benefit of allowing the U.S. Mint to sell a collector version. All of the Eagle coins are sold for investment or because people want to collect them for their own reasons. Some collect the collector version as an investment.
Commemorative coins are collected for their design or the buyer’s affinity for the subject and to support the cause which is being sponsored by the sale of the coin. Some collect commemorative coins like others collect series of coins.
Even though modern commemorative coins are sold for more than their face value, that does not mean they are not worth collecting. After all, can you buy a Morgan Dollar, Peace Dollar, Walking Liberty Half-Dollar, or a Buffalo Nickel for its face value?
Collecting bullion, commemorative, and other non-circulating legal tender (NCLT) coins is a matter of choice. If you choose to collect these coins, know that they will be worth more than their face value. And while they are legal tender coins, they are not meant for circulation. They are collectibles.
If you like these collectibles, enjoy your collection. Along with coins produced for circulation, I own American Silver Eagle coins, commemoratives, and other NCLT because I like them.
Some of the NCLT coins in my collection
2013 American Eagle West Point Two-Coin Silver Set with reverse proof and enhanced uncirculated coins.
2015 March of Dimes Commemorative Proof set
2014 National Baseball Hall of Fame commemorative proof dollar graded by PCGS PR70
2012 Star-Spangled Banner Silver Commemorative Obverse depicts Lady Liberty waving the 15-star, 15-stripe Star-Spangled Banner flag with Fort McHenry in the background. Designed by Joel Iskowitz and engraved by Phebe Hemphill.
1936 Long Island Tercentenary Half Dollar
Reverse of the 2016 Chinese Silver Panda coin
2006 Canada silver $5 Breast Cancer Commemorative Coin
2007 Somalia Motorcycle Coins
2010 Somalia Sports Cars
Boys Town commemorative coin image courtesy of the U.S. Mint.
I do not believe there should be a problem with this.
Previously, I wrote about something I called “numismentos,” mementos created from numismatic items. It was prompted when NGC announced they struck a deal with Edmund C. Moy, the 38th Director of the U.S. Mint and currently the last full-time director, to autograph labels. I also noted that NGC also had autograph deals with Elizabeth Jones and John Mercanti, the 11th and 12th Cheif Engravers of the U.S. Mint, respectively.
You can see the list of available NGC Signature Labels here.
But NGC is not the only one in this game. Professional Coin Grading Service has had similar promotions including Philip Diehl, another former Director of the U.S. Mint and a long list of Baseball Hall of Fame inductees who signed labels used in the encapsulation of the 2014 National Baseball Hall of Fame commemorative coins.
A Goodacre Dollar encapsulated by ICG
Famously, Glenna Goodacre, who was paid $5,000 for her design of the Sacagawea dollar, asked to be paid in the new dollar coin. She sent the coins to Independent Coin Graders to be encapsulated with special labels. Goodacre then sold the coins at a premium. She did not sell out of these coins. Later, about 2,000 coins were acquired by Jeff Garrett who submitted them to PCGS. The coins were encapsulated with a special attribution on the PCGS label and included an insert with an autographed by Philip Diehl.
ICG also had some of the designers of the State Quarters autograph labels.
Does anyone else remember when the original PCI was still in business and they hired J.T. Stanton as company president and they had him autograph labels of coins he graded?
Although all of the grading services include special attribution for coins, NGC and PCGS have special labels that they use for certain coins.
In all cases, these grading services are creating these numismentos for customers interested in having the label be significant to their collection.
The only problem I have with the label designation is the “First Strike” or “First Strike” labels. There are questions as to the validity of these designations that causes an unnecessary premium to be added to these coins.
Besides, If I took any other stance, I could be accused of hypocrisy. In a few cases, I have purchased numismentos. My collection includes a pair of ICG holders with 2001-P and 2001-D New York State quarters autographed by designer David Carr that is part of my New York collection.
2000-P New York quarter with Daniel Carr’s autograph on ICG label
2000-D New York quarter with Daniel Carr’s autograph on ICG label
As part of my Bicentennial Collections, I own a Bicentennial PCGS Signature set. The set consists of the three proof coins with the special bicentennial reverse in PCGS slabs with the autographs of Jack L. Ahr, Seth Huntington, and Dennis R. Williams, the designer of the coins. There is a business strike version of this set but I find the proof coins more appealing.
1976-S Silver Proof Bicentennial Autograph Set
The only reason that there appears to be some umbrage taken with the autograph by Rick Harrison is that he is a relentless self-promoter whose style is not welcome by everyone. Harrison is not the first non-numismatic-related celebrity to autograph inserts but may be the most controversial to some people.
As I have previously suggested, we can call these types of numismatic-related collectibles numismentos. Numismento is a portmanteau of numismatic + memento.
I suggest the name to distinguish collecting the coins from collecting the slabs, show-related ephemera, buttons, or anything else that is not numismatics.
If collecting numismentos makes you happy? Enjoy yourself!