Dec 20, 2008 | cents, coins, commemorative, dollar, Eagles, gold, quarter, state quarters, US Mint
As we end 2008 and look to 2009, numismatists are going to have a lot of options to add to their collections. There will be quite a number of coins that will excite many. But the shear numbers may be overwhelming to others. However you feel, the US Mint will have a very busy year. Let’s look at what is coming up in the new year.
First, three coins will not see any changes. The “Return to Monticello” Jefferson Nickel introduced in 2006 will not be changed. Neither will the Roosevelt Dime, in circulation since 1946, and the Kennedy Half Dollar, as it has been since 1964 except for the Bicentennial issues.
For 2009, we will celebrate the bicentennial birthday of Abraham Lincoln. In celebration, congress has authorized the 2009 Lincoln Bicentennial One Cent Program as part of Public Law 105-145. As part of this program, the Mint will issue four reverse design representing Lincoln’s birth and early childhood in Kentucky (1809-1816), his formative years in Indiana (1816-1830), his professional Life in Illinois (1830-1861), and an extraordinary presidency in Washington, DC (1861-1865).
As part of the Lincoln Cent program, the US Mint will issue a 2009-S VDB non-circulating coin that will be struck in the .950 copper alloy used when the 1909-S VDB was first struck. Also, Public Law 109-285 was passed earlier this year that created Abraham Lincoln Commemorative Silver Dollar to round out the celebration of our 16th president.
To round out the State Quarter program, 2009 will issue quarters to honor the District of Columbia and five US territories: Puerto Rico, Guam, American Samoa, the US Virgin Islands, and the Commonwealth of the Northern Mariana Islands. The DC and US Territories Quarter Program authorized by congress in an amendment as part of an omnibus budget bill at the end of 2007.
The same omnibus budget bill also removed the motto “IN G-D WE TRUST” from the edge of the dollar coins. The amendment was introduced by Rep. Virgil Goode (R-VA) who was defeated for re-election.
The Presidential $1 Coin Program continues in 2009 to honor presidents William Henry Harrison, John Tyler, James K. Polk, and Zachary Taylor. Harrison had the shortest term when he died one month into office after contracting the flu following his refusal to wear an overcoat during his two-hour inaugural address on a cold day in March, 1841. All of the packaging options with Presidential $1 Coins will not be offered in 2009 after not selling well the last two years.
Along with the presidents, the First Spouse Gold Coins will be issued for Anna Harrison, Letitia Tyler, Julia Tyler, Sarah Polk and Margaret Taylor. Letitia Tyler was the first President’s wife to die in the White House. Julia Tyler became First Lady after marrying John Tyler in 1844.
Native American $1 Coins program will begin in 2009 with a design honoring the “Three Sisters’ agriculture, in which corn, beans and squash growing in the same mound enhanced the productivity of each plant. It was a unique program that lead to the concept of crop rotation we know today. This change was authorized by Public Law 110-82 and add edge lettering to these coins.
That brings the total number of circulating coins to 18! Proof sets will have 18 coins and the uncirculated Mint Sets will have 36 coins. Although the Mint has not announced pricing, it would be fair to guess that the prices will raise with more coins in the set. Clad and Mint sets should see a modest price increase. Silver proof sets will add an additional silver quarter and is likely to see a $10-15 rise in price.
Beyond circulating coinage, the Mint will produce the 2009 Louis Braille Bicentennial Silver Dollar to honor the 200th anniversary of Braille’s birth. It is being touted by the Mint as being the first coin with readable Braille.
Precious metals programs will change in 2009. First, only the bullion issues of the American Eagle coins will be strucl. The Mint has discontinued the collector’s uncirculated coin program, eliminating the W mintmark from their portfolio. American Eagles will be available in proof and bullion coins in one-ounce, half-ounce, quarter-ounce, and tenth-ounce denominations.
American Buffalo 24-Karat Gold Coins will also continue in 2009 but without fractional issues. The Mint will offer only one-ounce proof and investor bullion coins.
Last, but certainly not least, is probably the most intriguing coin that will be issued in 2009: the 2009 Ultra High Relief Double Eagle Gold Coin. The coin’s design will be a high-relief $20 gold piece on a double-thick, 24-karat gold planchet (sometimes called a piefort) 27 millimeters in diameter. The design will feature Augustus Saint-Gaudens’ original 1907 design where the date will be in roman numerals (MMIX). The inspiration for this coin came from 1907 when the Mint tried to strike an experimental double eagle coins using two stacked $10 eagle planchets. When the Mint’s management realized that congress would have to approve the striking of the coin for circulation, the project was abandoned and the test pieces were melted. Aside from the date, the only difference between the 1907 test pieces and the 2009 bullion issue is that the the motto “In G-D We Trust” will be added over the rising sun as it appeared in 1908. It is expected that these coins will be struck in proof-only varieties.
It will be quite a year!
Nov 14, 2008 | gold, US Mint
Somewhere along the line, I stopped paying attention to the price of gold from the US Mint. Their prices have been very out of line from the market and represented a significant premium over spot. It was not worth buying these coins.
With the US Mint Clearance Sale coming tomorrow, I decided to see if there have been any price adjustments. I found that the Mint has already lowered the price for the one-ounce American Gold Buffalo Proof coin by $150. Prices for other Gold Buffalo coins have been reduced as well.
According to Mint News Blog, most precious metal products were taken off sale on Wednesday only to reappear on Thursday with their prices lowered.
Gold was $802.90 per ounce on September 7, 2008. The spot price of gold is $764.30 as I type this. When the 2008 American Buffalo proof coins were introduced in July, the spot price of gold was $975 per ounce.
Remember, the Mint’s clearance sale starts at 12:01 AM on Saturday. You can pick up some nice holiday gifts!
Oct 27, 2008 | cents, coin design, gold, history
Few noticed and seemed to care, but as numismatists, we should have been in celebration for the 150th anniversary of the birth of Theodore Roosevelt. Roosevelt was known as a reformer with a real vision as to how to modernize a nation still recovering from a bloody Civil War and draconian laws from the Victorian Age. Roosevelt was a man of strength and a man of peace. Roosevelt was the first US citizen to win Alfred Nobel’s prize, the first sitting president to be so awarded (the only other sitting president to win the Nobel Peace Prize was Woodrow Wilson for his founding of the League of Nations, the forerunner to the United Nations). He earned this honor for negotiating the 1905 peace treaty ending the Russo-Japanese War.
For us numismatists, Roosevelt initiated the “Golden Age of American Coin Design.” Using his bully pulpit, he held the designs of the US Mint’s Chief Engraver Charles E. Barber in contempt and ordered coinage whose designs were more than 25 years old to be redesigned. Roosevelt was a fan of sculptor Augustus Saint-Gaudens and asked Saint-Gaudens to redesign the small cent. Rather than use the Liberty design in an Indian Headdress for the small cent, it was used on the 1907 $10 gold coin. Roosevelt also asked Saint-Gaudens to design the $20 gold double eagle coin to rival the beauty of all classic coins.
Unfortunately, Saint-Gaudens died of cancer before he could redesign the small cent. Roosevelt continued to look to revitalize US coinage and seized on Abraham Lincoln’s 100th birthday to redesign the small cent. He was steered to Victor David Brenner, whose bust of Lincoln was used as the model for the new Lincoln Cent first issued in 1909. Not only was Lincoln the first president to appear on a circulating coin, but Brenner’s obverse is still in use today.
Roosevelt called his coinage redesign his “pet crime.”
The impact of Roosevelt’s redesign continues to be felt today. Saint-Gaudens’ image of Liberty from the $20 coin is being used today on the American Eagle Gold Bullion Coins. And don’t forget the 2009 Ultra High Relief Double Eagle Gold Coin, which is based on a reported pattern of the original Saint-Gaudens design.
It is difficult to understand why the youngest inaugurated president and the first to win the Nobel Peace Prize while in office has not had a commemorative coin made for him.
Happy Birthday, President Roosevelt. We numismatists thank you for your “pet crime!”
Oct 20, 2008 | dollar, gold, investment, Morgan, Peace
There have been reports of the coin market continues to grow as the economy is falling. One measure is the PCGS3000 index that is based on a sample of 3,000 coins. Looking at the graph (see the right side of the page), the trend (blue) line continues upward. In fact, there is no downward place on the line. A trend graph would give an indication that the market is very hot and trending upward. But is that the case for the entire market?
The PCGS3000 is supposed to be a representative sample of the coin market. But like the Dow Jones Industrial Average, it is not a complete view of the market since there are other segments that have reacted differently. One area that is more sensitive to the movement of the market is the Generic Gold Index (right). This index looks at what many consider common date gold and gold bullion coins where the coins are worth their metal value plus a nominal numismatic premium. The graph shows a volatility that can be traced to the market value of gold.
Gold is a volatile market. When I thought that rare and proof gold would be a better choice, I found that the Mint State Rare Gold and Proof Gold indices seem to be affected by the price of gold. While there may be individual coins that perform better than others, the market itself seems to belie the trend of the PCGS3000 index.
The idea from this article came when a friend asked me they should buy if they wanted to invest using coins. My friend heard that the US Mint was having problems producing gold coins and wanted to know what to do. Since I am a collector and not an investor, I had to do some research.
Researching market trends is not easy. Online price guides do not provide the historical data to make an analysis. Gold dealers are quick to tout the investment in gold and how great of an investment option it is. But I was suspicious. After all, if even rare coins are affected by the gold market, maybe gold is not the best of investments.
I started to click on the links for the other graphs at the PCGS site and stumbled upon the Morgan and Peace Dollar Index (right). I have heard some dealers say that this market was moving, but I thought that was wishful thinking. But the graph shows that in the last year, the trend is upward. This was very interesting until I looked at the 10 year graph for Morgan and Peace Dollars.
My first impression was that the graph would overlay the trends in the economy with the exception of the downward trend during the technology bubble.
I was not sure what to tell my friend. I mentioned the Morgan and Peace Dollar market as a potential investment area. I also told the story of the GSA Morgan Dollars and their worth to collectors. I suggested high grade Morgan Dollars and later date, high grade Peace Dollars. I even discussed finding various die varieties that gets some collectors excited.
Although I was having fun clicking through vamworld.com, my friend was looking for something to invest in to either preserve a investment or to make money. I finally relented and suggested reading Profitable Coin Collecting by David Ganz. It seems to be the type of book that investors may find interesting.
While it is nice to see my collection is worth more than I purchased it, I am not collecting Morgan or Peace dollars because they are or will be worth more than when I purchased them.
Graphs courtesy of PCGS.
Oct 8, 2008 | gold, platinum, RCM, silver, US Mint
Showing that the management of the US Mint does not understand how to manage a specialized manufacturing facility, it was reported that the Mint is not going to try to maintain the supply to meet the demand for precious metals. In a letter to authorized dealers, the Mint blames the fluctuating market and high demand for this decision.
For the rest of the year, the Mint will continue to strike gold and platinum coins until supplies of blanks are depleted. The supply of 24-karat Gold Buffaloes have been depleted. Silver and one-ounce gold American Eagles will continue to be available as they can be struck.
Those wanting to purchase gold may want to consider previous years or Canada Gold Maple Leafs. It is being reported that the Royal Canadian Mint continues to strike gold but has been having problems keeping up with the demand. Alex Reeves, a spokesperson with the Royal Canadian Mint, said, “[Distributors] would like more gold than we can produce but we’re supplying the best we can. Look at that as good news. We’re able to keep producing gold while the U.S. Mint has to throw up their hands and say, ‘we’re out.’ ”
Fasten your seat belts, it’s going to be a bumpy ride!
Sep 25, 2008 | coins, gold, US Mint
The US Mint sent a letter to authorized dealer announcing sales of the American Buffalo Gold Coins have been suspended.
“Demand has exceeded supply for American Buffalo 24-karat gold one-ounce bullion coins, and our inventories have been depleted. We are, therefore, temporarily suspending sales of these coins,” the Mint said in a memorandum to authorized American Buffalo dealers.
The Mint had resumed sales of American Eagle Gold Coins and said that they had a sufficient supply for dealers.
This announcement does not include collectible coins, which can be purchased via the US Mint’s online catalog.
Sep 18, 2008 | Eagles, gold, silver, US Mint
When I started writing this blog in 2005, gold was around $470 per ounce and silver was around $7.75 per ounce. The economy was going strong and the numismatic market starting to really move lead by the strong housing market. For collectors, we wondered how high gold and silver would climb and how much more our collections would be worth.
As the economy is collapsing under the pressures caused by the failures of large financial institutions, gold opened the year at $846.75 per ounce, climbed to a high of $1,006.75 on March 18, and closed at $813.00 as I write this on September 18. After the some predictions of gold closing the year over $1,000.00, gold is now down for the year by over $30.
Additional pressure on the market will be the sale of $40 billion in 35-day bonds that will help the Federal Reserve fund the AIG bailout. While some see this as good for the government, there are others who think investors will run away from the market and look to gold as a safe haven.
Overnight, it is being reported that Morgan Stanley is talking with China about cash investments and mergers.
This has made all markets a bit skittish and looking for “safer” investments. Those looking to buy American Eagle bullion coins has been having a difficult time finding coins since the Mint admitted that they have a shortage of gold and silver.
While researching a future post, I visited the Kitco website and found the following note on their front page:
In order to reflect the current strong demand for Silver Maples and Silver Eagles, Kitco is temporarily increasing its current bid (buyback) price for these particular products. Please visit our Selling to Kitco page for more details.
The good news for those buying bullion, the prices are probably the best in a year. For example, the current price for American Eagles at Kitco are selling with a 6½-percent premium for gold and 11.2-percent premium for silver. These are better prices than purchasing from the US Mint.
Given the current environment, it is difficult to say where the financial markets are going and how it will affect the market for coins. We do know that generic gold and silver (common date) coins and bullion will rise and fall with the market. But it makes it difficult to consider what will happen in the collectible market. I will have some thoughts in a few days.
Sep 15, 2008 | Eagles, gold, platinum, silver, US Mint
When I woke up this morning, I found that Lehman Brothers filed for Chapter 11 Bankruptcy protection on Sunday. Merrill Lynch, another venerable Wall Street institution, is being purchased by Bank of America. Insurance giant AIG is asking the Federal Reserve for a bridge loan to weather its own fiscal issues. As the Dow Jones Industrial Average index drops 300 points after the markets open, it is not surprising that there are worries about the fundamentals of the economy.
Those of us in numismatics, we watch the prices of precious metals for indication as to how our market is going. In recent weeks, gold, silver, and platinum have been falling to levels not seen since early 2007. As I write this, gold is up $11.80 to $775.50 per ounce (1.5-percent) while silver is up only 20-cents and platinum is down $38.00.
The general rule of thumb is that when there are problem in the capital markets, investors try to convert their cash to precious metals. While gold is the most popular investment, the relatively stable prices and average trading volumes suggest that investors are not running away.
For the collector, this means that collectibles tied to the prices of precious metals should not move much. Even though the U.S. Mint has not changed its prices during this declining market, those using American Eagle and 24-karat Gold Buffaloes as investments can find coins from previous years at lower prices.
If you are collecting rare coins, the PCGS3000 Index (a market basket price of 3,000 rare coins) shows that prices are up $4.65 for the day (0.01-percent). The PCGS3000 index has trended upward since November 2007.
As a collector and not an investor, I will take the advice of Dave Harper and wait to see what happens to the market. The currents are much to rough for a collector to jump in head first!
Sep 7, 2008 | ANA, gold, US Mint
While the beginning of a new school year wreaks havoc with some schedules, as a contractor to the federal government, my schedule is affected by the end of the government’s fiscal year. Agencies have work to do and a budget that has to be accounted for. As the year comes to a close, they look to ensure that the money is spent on worth while work—or at least their systems are securely built. I do more “emergency” information security assessment in August and September than I do during the rest of the year.
With my head assessing security risks, I continue to watch the numismatic market. There are a few things I want to comment on.
I has previously questioned the US Mint’s pricing of precious metals. Although the Mint has adjusted prices when the price of gold has gone up, they have not lowered the price when gold prices go down.
When I discussed the price and premium of the American Gold Buffalo coins released in July, I noted that the Mint was charging a premium averaging over 20-percent the price of gold for these coins. But that was on July 15, when gold was $975.10 per ounce. The gold market closed at $802.90 on September 5, a $172.20 drop in price. Yet the Mint continues to sell Gold Buffaloes at their original issue price.
Updating that table with the current price of gold, we can see the increase in premiums:
| Option |
Mint Price |
Metal Value on 7/15 |
Premium on 7/15 |
Metal Value on 9/5 |
Premium on 9/5 |
Premium Pct |
| Proof 1 oz |
$1,199.95 |
$975.10 |
$224.85 |
$802.90 |
$397.05 |
33.08% |
| Proof ½ oz |
$619.95 |
$487.55 |
$132.40 |
$401.45 |
$218.50 |
35.24% |
| Proof ¼ oz |
$329.95 |
$243.78 |
$86.18 |
$200.73 |
$129.23 |
39.17% |
| Proof 1/10 oz |
$159.95 |
$97.51 |
$62.44 |
$80.29 |
$79.66 |
49.80% |
| Proof 4-Coin Set |
$2,219.95 |
$1,803.94 |
$416.02 |
$1,485.37 |
$734.58 |
33.08% |
| Uncirculated 1 oz |
$1,059.95 |
$975.10 |
$84.85 |
$802.90 |
$257.05 |
24.25% |
| Uncirculated ½ oz |
$539.95 |
$487.55 |
$52.40 |
$401.45 |
$138.50 |
25.65% |
| Uncirculated ¼ oz |
$289.95 |
$243.78 |
$46.18 |
$200.73 |
$89.22 |
30.77% |
| Uncirculated 1/10 oz |
$129.95 |
$97.51 |
$32.44 |
$80.29 |
$49.66 |
38.21% |
| Uncirculated 4-Coin Set |
$1,959.95 |
$1,803.94 |
$156.02 |
$1,485.37 |
$474.58 |
24.21% |
About.com’s Susan Headley posted an article about the Mint’s pricing policies with a proposal to tie the price of the coin to market conditions.
If you follow me on Twitter, you will notice that the image I use is a digitally altered image of a 1964-D Peace Dollar. Trial Peace Dollars were struck very briefly at the Denver Mint in 1965 to use to gain approval for their issuance. Because of the silver shortage in 1964, the Mint was urged to cease production and melt these coins. Collectors’ Universe forum user “savoyspecial” posted an image of a May 31, 1973 letter from the Mint explaining the fate of the 1964-D Peace Dollar. Although the letter says all coins were destroyed, I have a feeling that a few examples missed the smelting pot and not in the government’s possession.
Let me close by offering my condolences to family, friends, and associates of Radford Sterns. Dr. Sterns was a prolific exhibitor at the American Numismatic Association conventions and former governor. His specialty was Georgia colonial currency. I met Dr. Sterns at an ANA convention and asked questions about colonial currency and aspects of Georgia history. He was very gracious and engaging. The hobby was better for his participation and will miss his contributions.
Image of US Mint letter courtesy of CU Forum user savoyspecial
Image of Radford Sterns courtesy of Numismatic News
Aug 15, 2008 | Eagles, gold, silver, US Mint
Several sources are reporting that the US Mint has suspended sales of American Gold Eagle bullion coins to dealers. There has been no announcement but the Mint has refused to take orders.
American Eagle Gold Proof and collector uncirculated coins are still for sale at the Mint’s online catalog. All coins appear to be available with no backorder messages.
Gold has fallen below $800 during today’s trading. In this week’s trading, gold dropped 8.4-percent for the week. Silver also fell 16.4-percent. The fall is attributed to the strengthening of the US dollar.
Since gold reached $1,004.30 on March 17, the price has dropped more than 20-percent over the five months.
Silver has not been immune to the a change in value. From the high of $21.24 and a close of $20.64 on March 17, the current price of silver is $12.75, a 38-percent drop in value.
Currently, the US Mint has not indicated that they would revalue collectibles in the light of the market downturn. One reason could be that the Mint bought the metals at the higher prices and need to recoup their investment in these metals as part of their real cost of doing business. However, if the price of metals drop and sales of Eagles decline, then the Mint will have to adjust its prices.
Last year, we speculated about what it would take for the Mint to raise prices. What will it take for the Mint to lower prices?
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