As the British are winding down the use of the Round Pound, stories are once again popping up about errors of the new 12-sided pound coin being sold for high prices on eBay.
Although the Royal Mint has admitted to manufacturing issues in trying to produce enough new pound coins to satisfy circulation requirements, their claim that the number of errors where the center are missing of the bi-metallic coins is likely post-minting errors.In other words, they are suggesting that people are removing the centers of the coin to claim they are errors.
To better understand why it is being claimed these are post-mint errors, I contacted a European-based dealer who has relationships with many of the continent’s mints. What follows is a summary of his explanation.
The Royal Mint coins money in a process similar to any other mint. Planchets are prepared, sent the coining press, stamped, dumped into a hopper, and sent down a conveyor where they are bagged. The bags are weight to a precise weight before the bags are accepted. Along the way, there are cameras and other sensors to detect errors.
All of the checks and sensors, including the weight of the coin, would be caught long before reaching the bagging section. Aside from the dimensions not being correct, the weight of the ring or center by themselves would not be up to the standard.
It is possible that the coins could separate in the bags during transport. However, these coins are transported to government authorized handlers. Some of them are similar to the companies that drive armored trucks here in the United States. They take the coins and prepare them for delivery to the banks.
The preparation process requires coins to be counted, rolled, and bagged. As part of the process, the coins are loaded into a system that transfers them to an automated line that brings the coins by conveyor to a machine that will either roll them or dump them in a bag. In both cases, the contents are limited by the amount they hold.
As part of the automated system, the coins are counted and check for size and weight so that if there are any coins that do not meet the Royal Mint’s standards are removed. The automated system would catch the ring and the center if they separated before the process.
Coins that are to be rolled are sent to a machine to roll them where they are counted and placed in rolls of £25 each. Those rolls are for bank and retail use and handled accordingly.
Bagged coins are used by bulk handlers such as the coin-op industry. Bags with £100 of coins are counted before being placed in the bag. If the coin cannot be verified before it is placed in the bag then the coin is rejected.
Is it possible for the coin to separate in the £100 pound bag prior to circulation? Of course, it is. However, there is one more check before the coins reach the consumer, and that is the coin-op machine itself.
Coin-op machines have mechanisms to try to prevent accepting counterfeit money and to ensure it is giving the proper change. Machines just do not eject any coin in its hopper. These checks include the weight, dimensions, and magnetic signature. The magnetic signature measures what happens after magnetic energy is flashed on the coin. Think about it as measuring how the coin would reflect light but use magnetism instead.
A pound coin that had separated would not pass the magnetic signature test and be rejected.
Although there are a number of points along the process that could fail, the number of checks between the Royal Mint and the consumer, it is highly unlikely that all of these separated pound coins exist.
It is possible that the coins being sold are from the reject bins of coin-op machines. However, the dealer I spoke with is suspicious of the number of coins being sold.This dealer told me that he will not buy 12-sided pound coins dated 2016 without their centers. Technically, they are not coins because they originally did not have the portrait of Queen Elizabeth on the front. Under British law, all legal tender coins must have the image of the monarch on the front. In 2016, the Royal Mint created about 2000 of these 12-sided test slugs for businesses to test coin-op systems ahead of the conversion. The dealer community has serious doubts that the test slugs had these errors and believes that people separated the centers from the rings.
My dealer contact said that nobody should pay more than “three-and-a-half quid” (£3.50 or $4.64 at the current exchange rate) for just a 12-sided pound outer ring. Even if it is not a legitimate Royal Mint error it is a nice conversation piece.
Examples of legitimate 12-sided £1 coin errors
Trying to follow the inner workings of politics is more frustrating than what you see on television news. Part of following the inner workings of Congress is to try to figure out what Congress will do next is not only understanding where legislation is in the process, what Congress calls “regular order,” but it also requires understanding who is asking for what favors in order to get pet projects passed.
As part of the House of Representatives’s regular order, they created a rule that two-thirds of the members must support a commemorative coin bill by being a co-sponsor before it will be considered in committee. This means that 287 members must sign-on as co-sponsors. Once the bill meets the threshold, the bill goes through the committee process.
Although both the Naismith Memorial Basketball Hall of Fame Commemorative Coin Act and The American Legion 100th Anniversary Commemorative Coin Act met that threshold, the threshold was met a while ago. This means the bills were supposed to go through the committee process except neither did. Both bills were introduced on the floor under a process called “suspension of the rules.” Under suspension of the rules, a bill may be brought to the floor for debate and vote without having to go through regular order.
When a bill is brought to the floor, there is a debate period determined by whoever is acting as the presiding officer. Both sides get to have their say, however, in these cases, the member who introduced the bill will stand up and provide a justification for the record as the only speaker. Once the debate period ends, the House votes on the bill.
Both bills were passed on a voice vote.
What can make following legislation frustrating is that there was no indication that these bills were going to be brought to the floor under suspension of the rules. I had asked a source whether this was done in order to curry favor with the sponsors. My source was uncertain as to why these bills were rushed to the floor.
Now it is on to the Senate. Let’s see how quickly they get to this legislation or whether it will be burried in committee.
H.R. 1235: Naismith Memorial Basketball Hall of Fame Commemorative Coin Act
H.R. 2519: The American Legion 100th Anniversary Commemorative Coin Act
Quick update for those interested in the new Palladium Bullion Coin that was sold to authorized purchasers on Monday.
If you want to find an authorized seller, the U.S. Mint has a web page to let you find one based on your location.
Rather than using the images that were reviewed by the Citizens Coinage Advisory Committee, the U.S. Mint also posted full-sized color pictures of the coins.
A quick check of online auctions shows that the American Palladium Eagle coin is averaging $1,100 per coin when buying one graded and encapsulated coin or $1,080 when buying an ungraded coin. Multiple coin lots are averaging between $1,070 and $1,080 each.
As I type this, the current price of palladium is $928.73. Dealers are paying 6.25 percent over the spot price (approximately $986.79) plus shipping costs. Graded coins also incur fees paid to the third-party grading service.
On Monday, the U.S. Mint will begin selling palladium bullion coins to authorized purchasers. The opening price will probably be $976.44 per coin, which is 6.25-percent over the spot price of $919 per troy ounce.
Metal prices have not followed a path that market watchers are familiar with. Platinum is usually more expensive per troy ounce than gold but has been less while palladium usually tracks at half of the price of gold.
With all of the turmoil in the world, the price of gold is relatively flat with spikes for various activities in the news. But an investor who bought at the beginning of the year “complains” that the price is up only 12-percent for the year despite fundamentals that suggest a larger gain. Recent events have caused the price to jump, but one investor told me that gold is a safe bet but it is not a good bet if you are looking to make money.
A dealer that sells silver has called the market schizophrenic. There are swings in the prices that defy market logic. With stricter regulation, higher demand, and flat production growth, the price of silver should be climbing. But it is relatively flat for the year with a 6.4-percent grown.
Some are even suggesting that the silver market is being manipulated.
I do not know if the market is being manipulated, but the experts are telling me that something is not right.
Even coin production mints make mistakes. If you have a coin that’s a product of one of these mistakes, it’s probably worth way more than face value. → Read more at rd.com
Summary There is considerable evidence that silver is subject to considerable manipulation. Revelations of manipulation from regulatory investigations and lawsuits in recent years have led to the introduction of stricter regulations and oversight. → Read more at seekingalpha.com
The second batch of commemorative coins minted for the funeral of His Majesty the late King Bhumibol Adulyadej have proved very popular after being available for reservations on Monday. Long queues were seen since early in the morning at designated venues nationwide. → Read more at nationmultimedia.com
HYDERABAD: Hyderabad of yore had carved a niche of its own in the spheres of culture, commerce, language and festivals. → Read more at timesofindia.indiatimes.com
According to the PyeonChang Olympic Committee, the design of the metals is inspired by Korean culture and traditions. The texture of the metals are intended to symbolize tree trunks representing the trees symbolizes the work that has gone into developing Korean culture. Edge lettering includes did the games in both English and Korean.
The ribbon that will be used on the medals has been created using Gapsa, a traditional Korean fabric that is used to make Hanbok. Hanbok is a type of traditional Korean dress.
The medals were designed by Lee Suk–woo, serves as a Director of Dongwon Metal Co., Ltd. Lee is the company’s General Manager and creative director. He is a graduate of Eastern Michigan University.
- GOLD: 586 grams made from .999 silver and plated with 6 grams of gold
$566.55 melt value with a silver spot price of $16.87 and gold spot price of $1289.30
- SILVER: 580 grams made from .999 silver
$317.84 melt value with a silver spot price of $16.87
- BRONZE: 493 grams made from .900 copper and .100 zinc
$2.97 melt value with a copper price of $2.8837 per pound and zinc price of $1.3932 per pound
- All medals are 92.5 mm in diameter period
- Medals range in thickness from 4.4 mm at its thinest to 9.42 mm at its thickest
Uses consonants of Hangeul, the Korean alphabet system extended across the face of the medal from its side
- Obverse: Olympic rings
- Reverse: Discipline, event, and PyeongChang 2018 emblem
- Edge: Official title of the PyeongChang 2018 Games in the Korean consonants
- Wooden cased designed with curves witnessed in Korean traditional architecture as the motif translated into a modern concept
- Contains the medal, medal description, the IOC badge, and medallist note
Quantity: total 259 sets
- 222 to be awarded to athletes (102 medal events)
- 5 sets as contingency in case of tie
- 25 sets to be submitted to the IOC
- 7 sets for display in Korea
Produced by the Korea Minting, Security Printing & ID Card Operating Corporation (KOMSCO)
Although the U.S. Mint has started shipping American Palladium Eagles, few have been available on the daily market. Most bullion dealers are offering these coins as a pre-sale with the expectation of receiving their coins on or about October 10 for shipment shortly...read more
Trying to follow the inner workings of politics is more frustrating than what you see on television news. Part of following the inner workings of Congress is to try to figure out what Congress will do next is not only understanding where legislation is in the process,...read more
Quick update for those interested in the new Palladium Bullion Coin that was sold to authorized purchasers on Monday. The U.S. Mint added a link for the Palladium Bullion Coin to the American Eagle Coin Program web page. The web page provides scaled image of the coin...read more
On Monday, the U.S. Mint will begin selling palladium bullion coins to authorized purchasers. The opening price will probably be $976.44 per coin, which is 6.25-percent over the spot price of $919 per troy ounce. Metal prices have not followed a path that market...read more