Price Increases for 2010 US Mint Annual Sets
The US Mint recently revealed the pricing for the 2010 annual coin sets, to be released throughout the rest of the year. This includes the two separate America the Beautiful Quarter Proof Sets, the 2010 Mint Set, 2010 Proof Set, and 2010 Silver Proof Set. Price increases will take place nearly across the board.
The prices for each product are shown below, followed by last year's price for comparison.
|2010 Price||Last Year Price|
|2010 Quarter Proof Set||$ 14.95||$ 14.95|
|2010 Quarter Silver Proof Set||$ 32.95||$ 29.95|
|2010 Uncirculated Mint Set||$ 31.95||$ 27.95|
|2010 Proof Set||$ 31.95||$ 29.95|
|2010 Silver Proof Set||$ 56.95||$ 52.95|
The US Mint has already released the 2010 Presidential Dollar Proof Set, which was priced at $15.95. This was a $1 increase from the prior year price of $14.95.
Most times when a price increase takes place for the US Mint's annual sets, there is usually some contributing factor that could be used to justify the increases. In recent years, price increases have occurred in years when the number of coins contained in the set has increased or to account for higher precious metals prices.
In this case, the number of coins contained in each of the sets mentioned above is decreasing from the prior year. The quarters proof sets will contain 5 coins, instead of 6. The full proof sets will contain 14 coins, instead of 18. The mint sets will contain 28 coins, instead of 36.
The price of silver is higher now than last year, but this would only impact the two sets containing 90% silver coins. The 2010 Proof Set and 2010 Mint Set, which will have price increases of $4 and $2, do not contain silver coins.
After learning about the price increases planned for 2010, I remembered a passage regarding numismatic pricing from the US Mint's Annual Report. This passage appears below. (Read my full summary of 2009 US Mint Numismatic Results.)
Gross cost made up a greater portion of numismatic sales revenue, reducing the net margin to 9.3% in FY 209 from 14.8% in FY 2008... The reduced margin means that the United States Mint offered numismatic products to customers at lower sales prices than sufficient to achieve the standard 15% margin. Prices were set for products assuming a sales revenue distribution comparable to prior fiscal years. However, product unavailability and weakened demand challenged pricing assumptions. Sales volumes shifted in favor of lower margin recurring products and against higher margin precious metals products. Also, fewer products available for sale requires the products that did contribute to the FY 2009 numismatic results to bear more allocated costs and assume more numismatic administrative expenses.In line with the comments above, I believe that the price increases for the coming 2010 Annual Sets are an attempt to bring margins back into line with the targeted 15%.
Despite the fact that materials cost may be going down and collectors will receive less product, prices will be going up due to the implications of the US Mint's reduced product line and lack of precious metals numismatic products.
Labels: US Mint