Last week, the U.S. Mint sent a notice on its press list to announce the Citizens Coinage Advisory Committee meeting on Tuesday, July 22 at 3 PM. As usual, the meeting will be held at the U.S. Mint Headquarters located at 801 Ninth St. NW, in Washington, DC. What caused a buzz amongst the numismatic press was the agenda:
“Discussion of a potential 2015 24K Gold Ultra-High Relief Coin and accompanying silver medal.”
In 2008, it became then Mint Director Edmund Moy’s “pet project” to create the ultra-high relief Augustus Saint-Gaudens double eagle design in a manner that Saint-Gaudens originally envisioned. The result was the 2009 Ultra High Relief Gold Coin. The design was based on the plaster casts originally made by Saint-Gaudens that was digitized and the equipment purchased that would be able to strike the coin.
Moy is no longer Director but the U.S. Mint still has the equipment used to strike the coin. The question is what does the U.S. Mint have in mind for creating a high-relief coin?
Also, what do they have in mind for an accompanying silver medal and how do they justify creating a medal? While the U.S. Mint can use the same law that authorizes the 24-Karat Gold Buffalo coin (31 U.S.C. § 5112(q)), it is uncertain what can be leverage for the silver medal. It is possible that the U.S. Mint might be leveraging 31 U.S.C. § 5111(a)(2) that says The Secretary of the Treasury “may prepare national medal dies and strike national and other medals if it does not interfere with regular minting operations but may not prepare private medal dies.” Before we pass further judgement we will wait to hear what the U.S. Mint says.
As for the subject, since they Saint-Gaudens double eagle design as been used, what other high-relief design has issues? The only design that comes to mind is the Anthony de Francisci Peace dollar. But not just the Peace dollar, but the original design with the broken sword.
The broken sword was not well received. According to numismatic researcher Roger Burdette, he discovered a editorial that appeared in the New York Herald that summarized the feeling about the broken sword:
A sword is broken when its owner has disgraced himself. It is broken when a battle is lost and breaking is the alternative to surrendering. A sword is broken when the man who wears it can no longer render allegiance to his sovereign. But America has not broken its sword. It has not been cashiered or beaten; it has not lost allegiance to itself. The blade is bright and keen and wholly dependable. It is regrettable that the artist should have made such an error in symbolism. The sword is emblematic of Justice as well as of Strength. Let not the world be deceived by this new dollar. The American effort to limit armament and to prevent war or at least reduce its horror does not mean that our sword is broken.
1921-D Peace Dollar
Aside from being too high of a relief for efficient striking, U.S. Mint Chief Engraver George Morgan modified the models using fine engraving tools under extreme magnification at the last moment to remove the broken sword. De Francisci was asked to be in Philadelphia as Morgan made the modifications to ensure the work met with his approval. As part of the modification, Morgan extended the olive branch and removed some of its parts to make it look as if it was de Francisci’s original work. Morgan also sharpened some of the details, strengthened the sun’s rays and straightened the eagle’s leg to give it a better appearance. The work was done so well that nobody realized that Morgan made these changes until Burdette uncovered the details in his research.
Although struck in Denver in late December 1921, the 1921-D Peace dollar was released into circulation on January 3, 1922.
Later that year it was determined that the high-relief design was causing dies to break at a faster pace than planned. The Mint then lowered the relief in order to keep striking coins at the rate required by law. This became the second type of the Peace dollar series.
Because 2015 will be 95 years since the first Peace dollar, I suspect that the high-relief gold coin will be a 2015 tribute to that first Peace dollar.
Artist’s conception of a 1964-D Peace dollar.
As for a companion silver, there is an interesting story about an attempt to produce the Peace dollar in 1964. In 1964 the price of silver rose to new heights that it made the value of ordinary circulating coins worth more for their metals than their face value. Because of this, silver coins were being hoarded by the public and becoming scarce in circulation. Western states that relied on hard currency including the gaming areas of Nevada needed the U.S. Mint to strike additional coins for circulation.
The striking of a dollar coin had a powerful ally: Senator Majority Leader Mike Mansfield, Democrat from Montana, whose state would be directly affected by the new coins. Although the numismatic press was not in favor of the measure because of its limited ability to solve the coin shortage, Mansfield pushed a bill through congress to authorize the Mint to strike 45 million silver dollars.
After much discussion, the Mint looked for working dies but found that few survived a 1937 destruction order. Those that did survive were in poor condition. Mint Assistant Engraver Frank Gasparro, who would later become the Mint’s 10th Chief Engraver, was authorized to create new dies of the Peace dollar with the “D” mintmark. Since the coins would mostly circulate in the west it was logical to strike them closest to the area of interest.
When the coins were announced, coin dealers immediately offered $7.50 per coin which would ensure that they would not circulate as intended. Everyone saw this as a poor use of Mint resources during a time of severe coin shortages. Adams announced that the pieces were trial strikes never intended for circulation and were later melted under reportedly heavy security.
There have been reports that some Peace dollars were struck using base metals (copper-nickel clad) as experimental pieces in 1970 in anticipation of the approval of the Eisenhower dollar. The same reports also presume these coins have been destroyed.
While we are speculating, the companion silver medal could be a modern tribute to the 1964-D Peace dollar by minting a 1915-D silver medal with the same design but without a denomination. It would be the same design but with out “ONE DOLLAR” struck on the reverse.
A high-relief 24-karat gold Peace dollar design and a silver version without the denomination. That’s my prediction, what’s yours?
2009 Ultra-High Relief image courtesy of the U.S. Mint 1921-D Peace dollar courtesy of the author. Artists conception of the 1964-D Peace dollar courtesy of PCGS.
U.S. Mint mock-up of the 24 karat gold 50th anniversary Kennedy half dollar
Those waiting for the U.S. Mint to release the Kennedy Half-Dollar coin 50th Anniversary Products will be happy to learn that the U.S. Mint announced the products that will be available.
The coin that seems to be the most anticipated is the 50th Anniversary Kennedy Half-Dollar Gold Proof Coin (U.S. Mint product code K15) that will be struct at the West Point facility using three-quarters of a troy ounce of .9999 fine, 24-karat gold. The dual-dated coin will be encapsulated and issued in a wood box, probably similar to the wood boxes used for past special issue gold coins starting with the 2009 Ultra High Relief Gold Coin.
Sales of the gold coin will begin on August 5, 2014 at noon Eastern Daylight Time through the U.S. Mint’s online catalog or by phone. They will also sell the coin at the 2014 Chicago World’s Fair of Money in Rosemont. The price will be set based on the prevailing price of gold when the sale begins. If you want to anticipate the costs, you can see the U.S. Mint 2014 Pricing of Numismatic and Commemorative Gold and Platinum Products. [PDF]
Fans of silver coins and the variations on the silver design will have to wait until the Fall for the release of the 50th Anniversary Kennedy Half-Dollar Silver Coin Collection. The four coin set will include 90-percent silver coins from each of the U.S. Mint’s facilities in four different styles:
One reverse proof coin from West Point
One proof coin from Philadelphia
One enhanced uncirculated coin from San Francisco, and
One uncirculated coin from Denver.
The press release says that the “encapsulated coins are secured in coin wells within an embossed leatherette-type folder that includes the same image of John F. Kennedy that appears on the coins in this set, with patriotic imagery of stars and stripes.” Since this sounds like a new packaging style, we may have to wait until the set is released to truly understand the presentation.
Finally, for the budget conscious, the 50th Anniversary Kennedy Half-Dollar Uncirculated Coin Set will feature two uncirculated half-dollars from Philadelphia and Denver in a commemorative folder. Although the set will go on sale on July 24, 2014, the U.S. Mint has created a catalog page for the set.
50th Anniversary Kennedy Half-Dollar Uncirculated Coin Set
Are you going to buy any of the 50th Anniversary Kennedy Half-Dollar tribute coins?
Yes, I am buying all three sets! (30%, 40 Votes)
Yes, I am buying the silver coin set only. (24%, 32 Votes)
No, I am just not interested. (16%, 21 Votes)
Yes, I am buying the gold coin and silver coin set. (14%, 18 Votes)
Yes, I am buying the gold coin only. (13%, 17 Votes)
Yes, I am buying the uncirculated set only. (3%, 4 Votes)
U.S. Mint mock-up of the 24 karat gold 50th anniversary Kennedy half dollar
Recent events have caused the amateurs to come out of the woodwork to decry that the U.S. Mint is doing something illegal. While the U.S. Mint is an agency run by fallible humans, they are less prone to issues as seen in other bureaus within the Department of the Treasury. However, understanding what the U.S. Mint can or cannot do is a matter of understanding the law.
It has been an ongoing theme written on this blog, the latest was about the nonsensical $1 Trillion coin, is that all you have to do to understand what the U.S. Mint can and cannot do is clearly documented in Title 31, Section 5112 of the United States Code (31 U.S.C. § 5112), Denominations, specifications, and design of coins.
You can read Section 5112 without having to obtain a law degree. It is very readable. It is the section that covers all of the specification for every coin struck by the Mint. It describes the size, weight, content, and the design of the coin. Very little is left up to the Mint in coinage design. But as the U.S. Mint is run by fallible humans, these laws were written by even more fallible humans: congress. This means that some of the laws are very clear while others are open to some interpretation.
First, it has been questioned whether the U.S. Mint can strike more 2014 National Baseball Hall of Fame commemorative coins since they sold out of the gold and silver coins. The answer to that question can be found in law (31 U.S.C. § 5112(m)). This is the section that describes the legal requirements for commemorative coins. Paragraph (2)(B) (31 U.S.C. § 5112(m)(2)(B)) says (emphasis mine):
If the Secretary determines, based on independent, market-based research conducted by a designated recipient organization of a commemorative coin program, that the mintage levels described in subparagraph (A) are not adequate to meet public demand for that commemorative coin, the Secretary may waive one or more of the requirements of subparagraph (A) with respect to that commemorative coin program.
2014 National Baseball Hall of Fame commemorative silver dollars and gold commemoratives are sold out at the U.S. Mint.
Since subparagraph (A) codifies the limits of commemorative programs, and if the mintage levels are not adequate to meet public demand, then the Secretary can authorize high limits for the commemorative coin program.
As was the case with the 2005 Marine Corps Commemorative Silver Dollar, a quick sellout of the coins does satisfy the evidence necessary for the Secretary to make the decision to increase the production limits. In 2005, then Secretary of the Treasury John W. Snow authorized the U.S. Mint to produce 100,000 additional silver dollars. This was the last commemorative program sellout prior to the Hall of Fame coins.
However, the proposal to increase the production of the National Baseball Hall of Fame coins is speculation. This rumor has not been acknowledged by the U.S. Mint or the Department of the Treasury.
The other claim is that it is illegal or questionable that the U.S. Mint can produce the 2014 Kennedy Half Dollar gold coin. In an op-ed printed in Coin World, William T. Gibbs wrote, “The Mint is using what it cites as existing authority to produce a .9999 fine gold half dollar struck at the West Point Mint, with a 1964–2014 dual date and the higher relief 1964 portrait. The logic behind this coin is hard to understand. We’ve never had a gold half dollar before and the Mint’s legal authority to issue it is open to debate.”
Equating the fact that the U.S. Mint has never produced a gold half dollar coin is a parochial discussion and not whether the U.S. Mint can legally produce the coin. After all, the U.S. Mint produces quarter dollars made of five ounces of silver.
Congress makes the laws and they can change at almost any time!
The U.S. Mint is allowed to mint the coin under the authority of 31 U.S.C. § 5112(q), the law that authorizes the Gold Buffalo bullion coin. According to the law, the U.S. Mint is only required to produce the coin with the James Earl Fraser Type 1 Buffalo design the first year. Any changes in subsequent years must then be vetted by the Citizens Coinage Advisory Committee and U.S. Commission of Fine Arts.
The same questions were raised when the U.S. Mint issued the 2009 Ultra High Relief Double Eagle Gold Coin. The coin was based on the 1907 design by Augustus Saint-Gaudens was produced in .9999 fine gold and was issued under the Gold Bullion Coins provision of the law (31 U.S.C. § 5112(q)).
Gibbs further says, “When the Mint struck gold versions of the 2000 Sacagawea dollar and announced plans to sell them to the public, Congress stopped the Mint, stating that Mint officials lacked constitutional authority to issue the dollar coin in gold” as an additional argument against the U.S. Mint producing the Kennedy gold coin. In 2000, the law authorizing the U.S. Mint to strike 24-karat coins did not exit. The Buffalo Gold Bullion coin program that the decision is based was signed into law on December 22, 2005 as part of the Presidential $1 Coin Act of 2005 (Public Law 109–145 [PDF]).
The U.S. Mint may not be the most perfect agency and you may not like their decisions, but to accuse them of questionable legal practices is a bit naive.
This will be the third time that the U.S. Mint has launched a gold coin at a coin show. Last year, the U.S. Mint sold out of the 2013 Reverse Proof 24-karat Gold Buffalo coin at the World’s Fair of Money. They received a secondary shipment which also sold out. Similarly, the National Baseball Hall of Fame commemorative was sold at the Whitman Coin and Currency Expo this past March. It also sold out even after receiving a secondary shipment.
Although past performance does not guarantee future results, there is significant anecdotal evidence that the Kennedy gold coin will also sell very well.
So let’s see what you think. Will you buy this coin?
Are you going to buy the 2014 Gold John F Kennedy Half Dollar tribute coin?
Yes, I will buy the gold, silver, and clad set if it is offered (29%, 19 Votes)
Yes, I will buy the gold coin. (25%, 16 Votes)
No, a gold coin would be too expensive (25%, 16 Votes)
No, I'm not interested (20%, 13 Votes)
I don't buy any coins from the U.S. Mint (2%, 1 Votes)
Total Voters: 65
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For those who cannot afford gold, the U.S. Mint is planning on producing silver coins with just the 2014 date. The set will feature coins from all four branch mints and include a proof coin struck in Philadelphia, a reverse proof produced in West Point, an enhanced uncirculated from San Francisco, and an uncirculated coin minted in Denver.
Although the U.S. Mint has not announced the price of these coins, they plan to place order limits to prevent the situation that happened with the National Baseball Hall of Fame commemorative coin that appears to have been bought out by dealers.
As part of the design process, Frank Gasparro sculpted different variations of the presidential eagle in plaster.
2014 National Baseball Hall of Fame Commemorative Proof $5 gold coin obverse
The U.S. Mint reports that the $5 gold National Baseball Hall of Fame Commemorative Coin has sold out. It may be the fastest sell out of any gold commemorative coin in the modern commemorative era lasting only through the first weekend.
It has been speculated that the U.S. Mint will strike more coins than the law (Public Law 108–291 [PDF]) allows on order from the Secretary of the Treasury. No official decision has been announced by either the U.S. Mint or the Department of the Treasury. However, it is questioned whether it is legal for the Secretary to make this decision unilaterally or requires an act of congress. There seems to be evidence that someone had previously approved an increase for the 2005 Marine Corps Commemorative dollar, but there is no authoritative source for proof.
Collectors who have contacted me are not happy with the U.S. Mint. Many believe that the high limit (50 coins per “household”) was too high. When I posted images of the graded baseball coins, several commented that they felt that dealers “abused” their access to the immediate supply of coins that were available in the U.S. Mint booth at the Whitman Baltimore Expo that many collectors did not have a fair chance.
None of my correspondents would bemoan a dealer’s ability to make money on the secondary market. But to do so by taking advantage of the U.S. Mint’s inability to manage its market as the lone producer of U.S. commemorative coins was considered excessive by many. Although I sympathized with their point of view since I could not purchase one for my collection, I questioned whether the U.S. Mint has an obligation to just sell the coins or satisfy market forces. But as many pointed out, the U.S. Mint is a government agency and has a responsibility to the people of the United States and not just the corporations.
While at the Whitman show I spoke with one of the U.S. Mint employees who said that they should have limited the number of coins someone can purchase at one time. Although they did enforce lower limits on the supply of coins sold on Saturday, the damage had been done leaving collectors to scramble to buy the coins on the secondary market or order them online. Those of us who order the coins from the U.S. Mint online catalog will have to wait until June 21, according to the notice sent to me. However, the website is saying that the proof dollar is backordered until July 7 while the clad proof half-dollar is will be available on April 10.
Cassie McFarland holds up Baseball Hall of Fame Commemorative Dollar with her design
Like many of my correspondents, it is difficult to believe that anyone at the U.S. Mint would be afraid that this commemorative would not sell. A simple search using your favorite search engine would have shown that the coverage of the striking of the first curved coin in U.S. Mint history was seen world wide. Even the image of Cassie McFarland, the artist whose design was selected for the obverse of the coin, holding one of the first strikes in her gloved hand was reproduced on news outlets throughout the world. You cannot buy that kind of publicity.
We are talking about baseball, America’s pastime. America’s game. Regardless of the accepted story of its founding, it is generally accepted that Major League Baseball was founded in 1869 making it the oldest organized league in North America. Not only was the coin released just before Opening Day for 2014, but the National Baseball Hall of Fame and Major League Baseball have been promoting this coin since the bill was signed.
One of the 1,427 “Saddle Ridge Hoard” buried treasure gold coins certified by PCGS.
Kagin’s, the rare coin firm hired by the couple who found the Saddle Ridge Hoard, partnered with Amazon.com to sell the coins online. At some point, I will contact Kagin’s to ask why they chose this route to sell these coins, but I find it an interesting choice.
In the middle of the 20th century, recognized sales expert Elmer Wheeler came up with the phrase, “Don’t sell the steak, sell the sizzle.” Wheeler says, “it’s the sizzle that sells the steak and not the cow.” He has a point. How many relatively common coins sell at higher prices because of their pedigree. How many coins have sold for more than expected because they were ex-Eliasberg, ex-Norweb, ex-Bass, or ex-Ford pedigrees? Right now, the Saddle Ridge Hoard has a lot of sizzle. Even in a few months at an auction, can you imagine the interest that would be generated by opening these coins up for public bid?
For this week’s poll, I am not going to ask if you are interested in purchasing a coin from the Saddle Ridge Hoard. Given the sizzle, I am sure many people would love to own one of the coins. Rather, given what may be seen as an unusual way of selling these coins, how much do you think the collection will realize? Of course if you have a different opinion, add it as a comment. I would love to know what you think!
How much do you think the Saddle Ridge Hoard will bring in?
More than the $10 million estimate. (49%, 23 Votes)
Why aren't they selling it at auction? (23%, 11 Votes)
Less than the $10 million estimate. (19%, 9 Votes)
Right around the $10 million estimate. (9%, 4 Votes)
One of the cans found as part of the Saddle Ridge Gold Coin Hoard
Anyone following the main stream media has heard of the Saddle Ridge Hoard, the 1,427 gold coins found in cans buried under a tree somewhere in California. The couple who found the coins and their location has been kept confidential to prevent potential prospectors on their property. Reports have surfaced that the find has opened a new gold rush in California.
This is not to say that treasures can only be found in California. As someone who has started a business dealing with collectibles, I have found interesting items at good prices in the most unexpected places. The concept is not to start digging where someone else made their discovery but look for clues to new finds elsewhere. Chances are that the next find will not be the same area.
One of the more interesting aspects of the Saddle Ridge Hoard story is the speculation of where the coins came from and why were they buried in that location. The most entertaining was the story that these coins were stolen in 1901 from the U.S. Mint in San Francisco. Even though it sounds plausible, the details of what would have happened based on historical record does not support this theory.
The old San Francisco Mint building built in 1874
Based on the response of David McCarthy, senior numismatist for Kagin’s, the firm working with the family, the two factors that debunks the theory that the coins were stolen from the Mint is that the coins in the hoard were mixed dates with the latest being six years prior to the theft and many of them were circulated. If they were stolen from the Mint, they would be all uncirculated, one date, and all with S-mintmarks.
Also, the U.S. Mint is not a bank. It does not save inventory. Records† show that over the years, the U.S. Mint loathes keeping inventory for long periods of time. These sources report a revolving inventory suggesting that only the 1933 Double Eagles may have been kept in the vaults longer than other coins while the policies about gold coins were being settled.
Anticipating the question about the GSA Hoard of silver dollars, those coins were not stored by the U.S. Mint. Those dollars were delivered to the Department of the Treasury to use as backing for silver certificates. The storage areas where the coins were found were either facilities used or leased by Treasury. Coins that were melted under the Pittman Act for sale to the British to help them fund their defense in World War I were coins held by the Treasury. Coins struck to replace the melted coins were then stored in Treasury facilities.
When the General Services Administration (GSA) worked to consolidate and reduce office space in the 1960s, millions of mostly Morgan dollars struck in Carson City were found in several buildings including in storage areas off the historic cash room in the Treasury Building in Washington, D.C. Coins were sold the public by sealed bid over five auction sales between 1972 and 1974 with one final sale in 1980.
Up until 1964, anyone could trade a silver certificate for silver coin at par (e.g., $1 silver certificate for one silver dollar). This ended when silver rose in price making the price of silver more expensive than par value.
One of the 1,427 “Saddle Ridge Hoard” buried treasure gold coins certified by PCGS
Even though the Treasury issued gold certificates, the gold backing were stored in limited vaults—and eventually Fort Knox. While there was some trading of gold certificates for gold coin, which is where the problems of the 1930s came from, gold was handled differently. The U.S. Mint had a cash operation where they would trade gold for coin (after it was assayed) and gold certificates for coins. This type of trade could also be accomplished at assay offices. But banks of the time were not required to make the trade. While many did as a service, with a service fee of course, there is no record of the government hoarding gold coins in the way silver dollars were hoarded.
Saying that the Saddle Ridge coins were once stolen from the Mint makes for a good headline. Good headlines makes for page views and page views translates into more advertising dollars for those blindly reproducing the erroneous story without checking the facts. Unfortunately, the truth cannot be explained on a bumper sticker or in a sensational headline—but that does not mean I will not try!
See the Saddle Ridge Hoard at Whitman Baltimore
It is being reported that Don Kagin will bring many of the coins in the Saddle Ridge Hoard to the Whitman Expo that will be held March 27-30, 2014 at the Baltimore Convention Center. If you need an excuse to come to Baltimore aside from attending the largest coin and currency show that is not run by the American Numismatic Association, coming to see the Saddle Ridge Hoard before it is broken up and sold later this year.
† A good reference for U.S. Mint statistics is a government-produced publication named Domestic and Foreign Coins Manufactured by the Mints of the United States: 1792-1965. It has been scanned several times and can be found on one of the many archive sites. The problem is that I found only one good scan, and it is not the best, but forgot where I downloaded it from. Printed copies are even more difficult to find.
Credits
Image of the can of gold coins from the Saddle Ridge Hoard courtesy of Kagin’s.
Image of the old San Francisco Mint courtesy of Wikipedia.
Image of the graded eagle courtesy of Professional Coin Grading Service.
Last week, when the U.S. Mint announced a meeting of the Citizens Coinage Advisory Committee will be held on February 11, they included an agenda item mentioning a discussion regarding a 24-karat gold Kennedy half-dollar special product for 2014.
No further information is available from the U.S. Mint prior to the CCAC meeting.
Shortly after Kennedy’s, U.S. Mint Director Eva Adams and Chief Engraver Gilroy Roberts reported that there was discussions about putting Kennedy’s portrait on a silver coin. Since Jacqueline Kennedy did not want to replace Washington’s portrait on the quarter, it was decided to use the half-dollar. Roberts used models from the inaugural medal for the obverse design and Assistant Engraver Frank Gasparro prepared the reverse design using the Presidential Seal.
Since the law stated that coinage design could not be changed more often than 25 years, and that the Franklin Half was only 15 years old, it required Congress to authorize the change. The Act of December 30, 1963 allowed the design to be changed.
When the coin was released in 1964, the 90-percent silver coin was saved by a grieving nation wanting something that represented the fallen President. Over 273 million coins were struck in Philadelphia and 156 million in Denver.
This year, the Kennedy half-dollar will celebrate its 50th anniversary. It appears that as part of that anniversary, the U.S. Mint will use the authorization it has to strike 24-karat gold Buffalo coins and use it to create a Kennedy half-dollar tribute.
Today’s poll asks if you like the idea of a gold tribute coin and whether you would buy one?
What do you think about the idea that the U.S. Mint will produce a 24-karat gold tribute to the 50th anniversary of the Kennedy half-dollar?
I like the idea and will buy at least one of the coins. (40%, 28 Votes)
I like the idea but gold is too expensive for me. (24%, 17 Votes)
Why don't they strike a silver half-dollar like the silver coin that came out in 1964? (21%, 15 Votes)
i do not like the idea (7%, 5 Votes)
Where's the reverse proof? I want a reverse proof! (6%, 4 Votes)
It doesn't matter what the U.S. Mint does. I don't buy any of their products! (1%, 1 Votes)
The collecting public has been enamored with the American Silver Eagle reverse proof. By making the fields look matte and the effigy of Adolph A. Weinman’s Walking Liberty design in a stunning mirror finish, the coin has become a favorite with collectors. Prior to this year, the U.S. Mint produced the American Silver Eagle for the 2006 20th Anniversary Silver Eagle set, 2011 25th Anniversary Silver Eagle set, and the 2012 75th Anniversary of the San Francisco Mint set.
This year, the reverse proof was included in the “2013 American Eagle West Point Two-Coin Set.” The coins were struck as the U.S. Mint branch facility in West Point, New York. The coins feature the “W” mintmark.
Included with the reverse proof coins was a coin that the U.S. Mint called “enhanced uncirculated.” While it looks like a proof coin, the enhanced portion are the selective frosting of elements. Introduced earlier this year, the new laser frosting technique allows the U.S. Mint to selectively apply the frosting texture to areas of the dies in a matter that leaves fine details of the coins. For the enhanced American Silver Eagles, the selective frosting leaves the folds of Miss Liberty’s skirt mirrored and is used to show off the flag she is holding. Weinman’s Walking Liberty image is one of the best designs every to appear on a U.S. coin. Enhancing it in this manner just makes it pop in a way Weinman could never imagine.
2013-W American Silver Eagle reverse proof
2013 American Eagle West Point Two-Coin Silver Set with reverse proof and enhanced uncirculated coins.
2013-W American Silver Eagle enhanced uncirculated coin
In a recent conversation with Acting Mint Director Richard Peterson, he said that the U.S. Mint’s most successful coin launch in recent history was the American Buffalo reverse proof coin. The coin was first offered for sale at the World’s Fair of Money this past August, the U.S. Mint did not have enough inventory in order to meet the demand.
2013-W American Buffalo gold reverse proof obverse
Reverse of the 2013-W American Buffalo gold reverse proof
1913 Buffalo Nickel Type 1 Reverse
The 24 karat gold coin that was first issued in 2006 featuring the 1913 Type 1 Buffalo Nickel, was issued to celebrate the 100th anniversary of the design by James Earle Fraser. Fraser, who had a reputation as being a finicky artist, would likely be happy to see his Type 1 Buffalo nickel design as a gold reverse proof coin. Black Diamond never looked so good!
Although it has not been announced, Peterson suggested that the Kennedy half dollar may see an enhancement. Since 2014 will be the 50th anniversary of the Kennedy Half Dollar, expect the U.S. Mint to do something for this anniversary. It would not be a surprise to see a set with reverse proof and enhanced uncirculated coins.
Using the enhanced uncirculated treatment, if a 2014-S coin paid tribute to the Bicentennial reverse, can you imagine how good that would look?
Two discussions that transcended numismatics is what to do about the one dollar coin and common one-cent coin. Both coins cause different problems depending on who is doing the arguing. I find it amazing that the logic that is used to support the argument is not used consistently.
Dollar coins have been around since the beginning of the republic. In fact, the coin that currently holds the record for being the most expensive coin sold at auction is a 1794 Flowing Hair dollar. The coin is reported to be amongst the first dollar coins minted at the newly created Mint was bought by Legend Numismatics for more than $10 million. Laura Sperber, one of the principals of Legend Numismatics, was quoted as saying that she was prepared to bid higher for the coin.
If that is not enough to show how important the dollar coin has been in our history, there is always the 1804 Bust dollar, also known as “The King of Coins.” The U.S. Mint ceased to strike dollar coins in 1804 because of hoarding when the price of silver rose. The dollars that were struck in 1804 were struck using dies dated 1803 and are indistinguishable from the coins struck in 1803. The U.S. Mint continued to strike “minor coinage” to encourage circulation.
In 1834, eight dollar coins were struck with the 1804 date to include in a special set created as a gift for the King of Siam (the area known today as Thailand). One coin was included in the set, one was retained by the U.S. Mint for its collection that is now part of the National Numismatic Collection at the Smithsonian National Museum of American History, and the six others were kept as souvenirs by Mint officials and eventually landed in private collections. Between 1858 and 1860 seven more specimens were surreptitiously by U.S. Mint employee Theodore Eckfelt. It is alleged that Eckfelt created 15 coins. Six are in private collection, one is now part of the National Numismatic Collection and the others were reported to be destroyed when seized by the government.
The Coinage Act of 1873, known as “The Crime of ’73,” ended the free coining of silver and put the United States strictly on the gold standard until the western states where silver was being mined became upset. Two weeks later, congress passed the Bland-Allison Act to required the Department of the Treasury to buy the excess silver and use it to strike the Morgan Dollar. Morgan dollars, especially those struck at the branch mint in Carson City, Nevada are popular with collectors because of their ties to the days of the old west. Collectors can find quite a few nice examples of Morgan and the Peace dollars that were struck from 1921 through 1938 because many did not circulate. These coins were held as backing to silver certificates in circulation and did not get released to the general public until the GSA Hoard sales that begin in the 1960s.
Such a colorful history also has a downside that is used as fodder against the dollar. After ending the production of the Peace dollar in 1938, no dollars were struck until 1964 when the U.S. Mint struck 316,076 1964-D Peace dollars in May 1965. The coins were never put into circulation and the entire population of 1964-D Peace dollar were allegedly destroyed. There have been reports that some Peace dollars were struck using base metals (copper-nickel clad) as experimental pieces in 1970 in anticipation of the approval of the Eisenhower dollar. The same reports also presume these coins have been destroyed.
The Eisenhower dollar was not well received because of its size. The 38mm coin was seen as too big for modern commerce and with the exception of dollars struck with the special bicentennial reverse in 1975 and 1976, most coins did not circulate.
The Susan B. Anthony dollar coin was introduced in 1979 with much fanfare for being the first coin to honor a woman. The coin was a failure because it was confused with a quarter
To try to improve circulation someone came up with the idea of the small dollar as part of an attempt to honor suffragette Susan B. Anthony. The copper-nickel coin was very close in size to the Washington quarter, had reeded edges like the Washington quarter, and on a simple glance was consistently confused with the Washington quarter. I even have heard coin collectors use the fiasco of the Susie B.’s as a reason not to pursue the dollar coin.
Since the introduction of the Sacagawea dollar in 2000, the dollar coin’s size has remained the same but with the addition of manganese has a golden color to be visually different from other coins. For the visually impaired, the reeding was removed from the edges. Today, the Presidential $1 coins and the Native American $1 Coins have edge lettering that keeps it tactically different from the quarter dollar. However, people continue to bring up the Susan B. Anthony dollar as a reason not to use dollar coins.
Historically, dollar coins has been more popular in the western regions of the United States where the east prefers paper. Financial centers and big city government prefers paper for its alleged ease of handling. When circulated side-by-side, the public tends to choose paper over coin.
When we look around the world for examples of how to handle this situation, we find that the United States is the only country where the unit currency is available in both paper and coin. Other countries did not give people a choice. Rather, their governments made a decision based on overall economic benefits of using a coin with a predicted 30-year lifespan over paper currency that can last 18-24 months in circulation. Instead of the argument being of practical economics where every other country and the European Union have put on their proverbial long pants and made a decision that is in their best economic interest, factions in the United States comes up with mind boggling arguments of alleging that taking the paper dollar away is akin to taking away our freedom.
Obverse of the 2013-S Lincoln proof cent. Lincoln’s portrait, designed by Victor D. Brenner in 1909, is the longest running design of any United States coin.
Then why is that not an argument that can be used to figure out what the do about the one cent coin? Are we not giving up the same freedoms by forcing those who pay for good and services using cash to sacrifice their ability to pay what is due and not over pay?
The United States has a history of using its currency to boost the economic status of its citizens, aside from the various silver laws and the laws that eventually took the United States off the gold and silver standards, the creation of the half-cent was made because of the economic status of its citizens. Following Alexander Hamilton’s Treasury Secretrary’s report to congress “On the Establishment of a Mint,” Secretary of State Thomas Jefferson had another idea. Jefferson thought it would be better to tie subsidiary coins tied to the actual usage of the 8 reales coin. At the time, rather than worry about subsidiary coinage, people would cut the coin into pieces. A milled dollar cut in half was a half-dollar. That half-dollar cut in half was a quarter-dollar and the quarter-dollar cut in half was called a bit.
The bit was the basic unit of commerce since prices were based on the bit. Of course this was not a perfect solution. It was difficult to cut the quarter-dollars in half with great consistency which created problems when the bit was too small, called a short bit. Sometimes, short bits were supplemented with English pennies that were allowed to circulate in the colonies.
As an aside, this is where the nickname “two bits” for a quarter came from.
Jefferson felt that in order to convert the people from bit economy to a decimal economy, the half-cent was necessary to have 12½ cents be used instead of a bit without causing problems during conversion from allowing foreign currency to circulate as legal tender until the new Mint can produce enough coinage for commerce.
The half-cent would come into focus in the 1850s when the cost to produce the United State’s copper coins was nearly double their face value. In 1856, the Mint produced the first of the small cents, the Flying Eagle small cent, and produced 700 samples to convince congress to change to the small cent. As part of the discussion was the elimination of foreign currency from circulation making the U.S. Mint the sole supplier of coins.
There is no record of outcry from the public on the elimination of the half-cent. Its elimination came four years after the Coinage Act of 1853 that created the one-dollar and double eagle gold coins in response to the discovery of gold in North Carolina, Georgia, and California. The gold rush caused a prosperity and inflation that not only made the half-cent irrelevant but not something on the public’s mint. In that light, the Mint and congress felt that it just outlived its usefulness and would not be necessary with the elimination of foreign currency from circulation.
More controversy was generated in 1857 over the demonetizing foreign coins in the United States than the elimination of the half-cent. While the half-cent continued to circulate, it was estimated that one-third of the coins being circulated were foreign, primarily reales from Mexico. Redemption programs did not go smoothly, but in the end foreign coins were taken out of the market and the American people adapted and it could be said we prospered as a nation.
Like the 1850s, the last seven years have found that the cost of the copper used to make the one-cent coin has increased to more than the coin’s value. Combined with the labor and manufacturing costs, it costs the U.S. Mint between 1.6 and 1.8 cents for each copper-coated zinc cent struck. Although people argue that the cent is not needed and is barely useful, the U.S. Mint reports that 65-percent of its production are for one-cent coins that are ordered by the Federal Reserve to be circulated in commerce.
Eliminating the cent has caused controversy from those concerned with the economic welfare of the less fortunate. Many are using the same arguments that Jefferson made in 1791 to create the half-cent in order to keep the one-cent coin in circulation while others point to what other countries are doing. Canada is currently the country with the largest economy to eliminate its lowest denomination coin. Proponents of eliminating the cent point to Canada’s rocky success (withdrawal of the cent had been delayed twice) as an example of how the United States can handle the situation.
Canadian 1-dollar and 2-dollar coins. The 1-dollar coin is called a Loonie because its reverse depicts a common loon. “Toonie” is a play on the Loonie nickname.
Canada also does not circulate paper currency smaller than their 5-dollar banknote. Rather than paper (or polymer as they are converting away from rag-bond paper), Canada circulates a one-dollar (Loonie) and two-dollar (Toonie) that is regularly used in commerce. The Bank of Canada is also considering eliminating their 5-dollar note in favor of a 5-dollar coin that would be produced by the Royal Canadian Mint for circulation.
Suggesting that if the United States follows Canada’s lead in the elimination of the cent, should the United States follow Canada’s lead and eliminate the one- and two-dollar Federal Reserve Notes in favor of one- and two-dollar coins?
This debate will continue until someone decides to act like an adult and make a definitive policy decision—especially when the Fed publishes a “working paper” that cherry picks facts to support a specific viewpoint.
Image of the Susan B. Anthony dollar and Lincoln cent courtesy of the U.S. Mint.
Image of the Canadian Loonie and Toonie courtesy of Noticias Montreal.
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