The Under-Appreciated Platinum Eagle Proofs

Over a week ago, the U.S. Mint announced that they will begin a three-year series of the American Platinum Eagles proof coins featuring designs inspired by the Declaration of Independence. After looking at the designs and the designs of past platinum proof coins, they may be one of the most under-appreciated series of coins produced by the U.S. Mint.

Since its introduction in 1997, the U.S. Mint has produced four series of proof coins with the reverse honoring different aspects of the nation. To see the list, see the “U.S. Coins by Type” page.

What distinguishes these coins are the well-executed reverse designs that few get to see or pay attention. It may be difficult for the average collector to consider collecting these coins because of the price of platinum has been either on par or higher than the price of gold. Also, platinum is not as well regarded as gold or silver as a precious metal causing it to be overlooked.

Since many of these coins did not sell in large quantities, many could be classified as modern rarities. But do not let the lack of supply dissuade you. Prices could be in the range of their bullion value plus a modest numismatic premium because the demand is also lower.

It is too bad these designs are confined to platinum coins. Unfortunately, the authorizing laws allow the U.S. Mint to do this with the platinum coins but not with silver. Since silver is more affordable for the average collector, maybe it is worth trying to ask Congress to change the law to allow these types of series for the American Silver Eagle proof coins.

Coin images courtesy of the U.S. Mint.

POLL: Looking for Palladium Eagles after September 29

American Palladium Eagle mockup as presented to the Citizens Coinage Advisory Committee

The U.S. Mint announced today that sales of the American Palladium Eagles will begin on September 29. As bullion issues, they are being sold through with authorized channels and not directly to the public.

After seven years since the law was passed (American Eagle Palladium Bullion Coin Act of 2010, Pub. L. 111-303), these coins Will begin their sale. There is no indication whether the U.S. Mint will offer collectable versions or just release the bullion coins.

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.

No price has been announced but the current Price of Palladium is $911.63. As a reference the current spot price of metals are as follows:

Precious Metals Price Snapshot as of September 19, 2017
(This is a static chart—it does not update)

The U.S. Mint does not publish the bullion and bulk sale prices the way it does for collector coins but it is likely that these coins are sold to distributors at a premium over their spot price. I guess we will find out how much these coins will cost for investors and collectors purchase when they hit the market.

For today’s poll, are you going to buy one?
 

Are you going to purchase the new Palladium Eagle?






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Palladium Eagles are coming

American Palladium Eagle mockup as presented to the Citizens Coinage Advisory Committee

According to reporting by Coin World, the American Palladium Eagles will be released by the U.S. Mint sometime in September.

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.

125 Year Celebration

Dr. George HeathIt has been 125 years since Michigan physicist Dr. George Heath founded the American Numismatic Association in 1891. Heath, who operated a coin business on the side, began this journey by publishing his own magazine in 1888 called The Numismatist. He used the magazine as a call to other collectors to create the ANA.

The ANA will celebrate this milestone at the upcoming World’s Fair of Money. In an interesting coincidence, or maybe planning, the celebration will be help practically next door to the place called “The Happiest Place on Earth.” Irrespective of whatever issues anyone sees or perceives with regard to the ANA, you have to admit that an organization like the ANA to survive 125 years is pretty amazing.

If you are interested in a long-form history of the ANA, I recommend reading “125 Years of Collecting with the American Numismatic Association” written by Q. David Bowers. It is not a quick read, but 125 years of history was not easy to create. The current page is in seven parts with an eighth promised for next month. There is no indication if that will be the last part. Still, it is a recommended article.

Currently, if you become an ANA member or renew your membership for 3 years or donate $125, you can receive a 2016 American Silver Eagle graded MS-69 by Numismatic Guarantee Corporation with a special Anniversary Label. I there is a limit of 2,500 coins. If you become a life member or donate $500, you can receive one graded MS-70. There is a 250 limit on the higher graded coins.

There was also a set of coins created for the National Money Show with a special label. There was a renewal opportunity that allowed existing ANA members to renew and receive their coin with the National Money Show label. These were coins left over from the show in Dallas.

Not only did I take advantage of the renewal offer but added a donation to receive both versions of the coin in MS-65. Although I do not collect grading service labels, this was an opportunity to support the ANA. There may be a limited number of coins left. If you are not a member, you may want to consider joining. If you are a member, either consider a three-year renewal or donate $125 to help the ANA. I believe it is a good cause!

Image of Dr. George Heath courtesy of the ANA.

How It’s Done: Packing Bullion Coins

American Silver Eagle Monster Box

American Silver Eagle Monster Box

When I am in the mood for the mental chewing gum that is television, I love to watch what I like to call documentary entertainment. The pros call it infotainment, information entertainment. These are cooking shows or a car-related show that takes a car with a problem and shows us how to fix them. Whether I am watching Chopped, Wheeler Dealers, or All Girls Garage I can find enough interesting watching.

Another of my guilty pleasures is How It’s Made on the Science Channel. How It’s Made is simply a show that will demonstrate how every day and other items are manufactured. I am fascinated by seeing the process of manufacturing. Some of the machines that are created to make our everyday items is fascinating. Take something simple as a pencil and think about how a company makes thousands over the course of a day and the non-standard machines required to do this.

The U.S. Mint infrequently posts videos about their coins, people and operations. What I find fascinating is the How It»s Made like videos that shows how they deal with the basic manufacturing process. In the latest video, the U.S. Mint shows how they package American Silver Eagle bullion coins into tubes for shipping to dealer.

The machine is called an Auto Tuber and can be found at the West Point branch mint where bullion coins are struck. After the coins are struck, they are laid flat on trays with the trays being stacked on a rack. From the rack, a machine takes one of the trays, places it next to the Auto Tuber, and pours the coins into the tracks. Using a suction cup fingers, the machine lifts the coins and places them into tube. The tubes are capped, weighed, packaged, inventoried, and sent for shipping.

At the end of the line is a human worker who picks up the packed green boxes you might have seen some dealers advertise for sale as “Monster Boxes” and places them on a pallet for shipping. That is where the one-minute journey ends.

BONUS VIDEO

Similar to the standard production videos is the proof set production video from the U.S. Mint in San Francisco that includes a similar machine that places the coins in the holders.

Credits

  • Monster box image courtesy of Wikipedia.
  • Videos courtesy of the U.S. Mint.

Raging into March

2015 American Silver Eagle Bullion CoinWhat began as an English proverb as “March comes in like a lion and goes out like a lamb” may become a relic of history. Aside from the weather implications the markets are experiencing a lion-like robustness that even has the governors and branch presidents of the Federal Reserve issuing conflicting statements about the future of interest rates.

While the professionals are attempting to figure out what the economic numbers are saying, one thing is clear that the U.S. Mint is on pace to break its 2015 sales for American Silver Eagle bullion coins. March opens with the U.S. Mint announcing that it has another 1 million silver coins ready for sale. This is the fifth time in 2016 that the U.S. Mint has made this type of announcement.

Year to date, gold prices are up about 17-percent and silver prices are up 11-percent. This has not stopped the buying of bullion coins. One Canadian dealer recently informed me that they sold out of a specific silver issue from the Royal Canadian Mint because of high demand, especially from the United States.

This is reaching beyond collectors. While the numismatic world was focused on Dallas for the National Money Show, my business kept me in the D.C. area as a vendor at one of the largest antiques shows in the mid-Atlantic region. Although coins are a very minor part of the show, some dealers that were selling silver coins had high volumes of sales. One dealer reported that he sold out of the 30 American Silver Eagle bullion coins graded MS-70 by the middle of the show’s second day.

An informal poll of attendees to the National Money Show suggests similar sales performances.

Even though there may be areas of the economy that has not caught up to the current economic trends, it is difficult to find an analyst or pundit that does not believe that the current trends will end in the short term.

It is likely that March will go out like a raging bull, even if I could not find a one-armed economist to disagree!
 

Charging Bull by Arturo DiModica

Charging Bull by Arturo DiModica is a bronze sculpture that stands in Bowling Green Park just south of the Financial District in lower Manhattan.

December 2015 Numismatic Legislation

Congress ended the calendar year with a proverbial bang. Aside from actually passing a budget, they passed a comprehensive transportation bill that not only has the possibility of raising our infrastructure grade from a D– to a D (hey… it’s an improvement), but in a few short words will have a big impact on the U.S. Mint.

H.R. 22: Fixing America’s Surface Transportation Act
Sponsor: Sen. Rodney Davis (R-IL)
• Introduced: January 6, 2015
• Passed House of Representatives on January 6, 2015
• Passed Senate with amendments on July 30, 2015
• Conference report presented to Senate on November 5, 2015
• Conference committee convened November 18, 2015
• Conference report agreed on by the House and Senate on December 3, 2015
• Signed by the President on December 4, 2015 to become Public Law 114-94

Read the details of this law at https://www.govtrack.us/congress/bills/114/hr22

If you want to read my analysis of the impact to the U.S. Mint from this law, see the following four-part series:

  1. Transportation drives numismatic changes
  2. Now with more silver
  3. Palladium arcadium
  4. Transportation silver eagles

Transportation Silver Eagles

2015 American Silver Eagle Bullion CoinAt the end of my last report on how the recent transportation bill will have an effect on coin collectors, I said that I would discuss how the new law will impact American Silver Eagle collectors. After taking a little time off for holiday festivities, we are going to look at the impact and unintended consequences of congress.

To review, earlier this month congress passed and the president signed the Fixing America’s Surface Transportation Act or the “FAST Act” (H.R. 22; now Public Law 114-94). It is a comprehensive transportation bill that is over 490 pages long with one third of those paged dedicated to items other than transportation. Buried deep in the document is Title LXXIII, “Bullion and Collectible Coin Production Efficiency and Cost Savings” section. For today’s post, we look at Section 73002:

Sec. 73002. American Eagle Silver Bullion 30th Anniversary
Proof and uncirculated versions of coins issued by the Secretary of the Treasury pursuant to subsection (e) of section 5112 of title 31, United States Code, during calendar year 2016 shall have a smooth edge incused with a designation that notes the 30th anniversary of the first issue of coins under such subsection.

If you are not familiar with “subsection (e) of section 5112 of title 31, United States Code” (31 U.S.C. § 5112(e)), it is the part of the law that authorizes the American Silver Eagle program. It says that these coins are to 40.6 millimeters in diameter containing 31.103 grams (one troy ounce) of .999 fine silver with a symbolic design of Liberty on the obverse and an eagle on the reverse.

Along with the prescribed elements the coin will have a reeded edge. It is this reeded edge requirement that may be causing a problem.

As written, Section 73002 does not say that the 2016 coin with a smooth edge with an inscription designating as the 30th anniversary of the first issue is for a special collectible. It is written as a blanket statement for all coins issued in 2016. Because of the word issued, the U.S. Mint is going to cancel the 2015 Limited Edition Silver Proof set.

2014 Limited Edition Silver Set (LS3) will be on sale until December 30, 2015 at noon.

2014 Limited Edition Silver Set (LS3) will be on sale until December 30, 2015 at noon.

The Limited Edition Silver Proof set consists of a dime, all five quarters, and a Kennedy Half-dollar struck in 90-percent silver. The set also includes an American Silver Eagle packaged in a special case. Originally, the 2015 Limited Edition Silver Proof set was to be released on November 23. It was reported that issues with packaging has delayed the issuance of this set. Because of the delay, the U.S. Mint was supposed to start selling the set on December 30 in order to meet its legal requirement to sell the coins in the same year as issued. While they can carry over the sets to subsequent years, they have to start selling them in 2015.

However, that word “issued” causes a problem. If the coins are part of a packaging production, the coins may not have been struck in 2016 but the sets are being issued in 2016, then the 2015 could be violating the law. It is that ambiguity in a law passed by congress that will cause the 2015 Limited Edition Silver Proof set from being released.

Sausage making at its finest!

Images courtesy of the U.S. Mint

Summary of November 2015 Legislation

I know that there is little the U.S. Mint can do without congress’s permission, but sometimes sifting through what congress is doing can be tiresome. There is so much good that congress can do but the political in-fighting is so insidious that all one can do is shake their head in disgust. At least there is one interesting item to report:

H.R. 22: Developing a Reliable and Innovative Vision for the Economy Act
Sponsor: Sen. Rodney Davis (R-IL)
• Introduced: January 6, 2015
• Passed House of Representatives on January 6, 2015
• Passed Senate with amendments on July 30, 2015
• Conference report presented to Senate on November 5, 2015
• Conference committee convened November 18, 2015
• Of significance to numismatics:

  • SEC. 73002. AMERICAN EAGLE SILVER BULLION 30TH ANNIVERSARY: Proof and uncirculated versions of ASE coins during 2016 shall have a smooth edge incused with a designation that notes the 30th anniversary of the first issue of coins.

Track this bill at https://www.govtrack.us/congress/bills/114/hr22

In other words, congress is mandating a 30th Anniversary American Silver Eagle set. I wonder if it will match the 25th Anniversary set?

2011 American Silver Eagle 25th Anniversary Set

2011 American Silver Eagle 25th Anniversary Set

Image of American Eagle set courtesy of the U.S. Mint

U.S. Mint winding down Eagle production

2015 American Silver Eagle Bullion CoinAs we wind down to the end of the year, the U.S. Mint has been announcing their end of the year production availability for 2015 American Eagle bullion coins. Starting with the announcement on November 14, 2015 that the quarter ounce $10 gold American Eagle bullion coin has sold out and no more will be produced. For 2015, the U.S. Mint has sold 39,500 ounces of quarter ounce American Eagle bullion coin representing 158,000 coins. This represents a 33-percent increase from 2014.

A few days later on November 18, the U.S. Mint announced that the one-tenth ounce American Eagle gold bullion coin has been sold out. For the year, the U.S. Mint produced 980,000 of the one-tenth ounce gold American Eagle proof coins representing 98,000 ounces of gold. This year’s production is a bit more than 73-percent increase over the 565,000 coins struck in 2014.

UPDATE: In a 4:35 PM note (24-Nov-15), the U.S. Mint has announced that the one-ounce gold American Eagle bullion coin has sold out! Orders for 2016 bullion coins will begin on January 11, 2016.

The day after announcing that they will be restricting the production of the American Silver Eagle bullion coins to 1 million coins per week, the U.S. Mint announced that they will continue to produce the coins through the week of December 7, 2015. They anticipate that this will cover their full weekly allocation through Monday, December 14, 2015.

With the price of silver dropping, the U.S. Mint has produced 42,929,500 American Silver Eagle bullion coins to this point. Considering the allocation of 1 million coins per week with four weeks left of sales, the final total of silver coins should be between 46-47 million coins. This would be an increase over last year’s record of 44,006,000.

American Silver Eagle bullion coin image courtesy of the U.S. Mint.

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