Mint News Blog

News, Information, and Commentary on US Mint Products

Wednesday, March 10, 2010

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.

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40 Comments:

At March 10, 2010 at 8:26 AM , Anonymous Anonymous said...

I'd already made up my mind not to buy any of the 2010 set offerings, and this was before I knew about the planned price increases.

I was planning on buying the Coin & Spouse Medal Sets, but hopefully their prices won't be rising again. The price for those already went up $1 last year. As of right now, there still is no set listed on the product schedule for the Pierce or Lincoln releases, but originally there were. I've been wondering if they've been cancelled, but the sets for Fillmore and Buchanan are still on the schedule.

 
At March 10, 2010 at 8:40 AM , Anonymous Anonymous said...

These price increases remind me of gov't planning in New York. Didn't riders on the subway decrease so they raised the fare to make up the difference. And somewhere in Calif. the gov't encouraged water conservation which was successful so revenues decreased and they raised the water rates. Fewer products and less sales means more price increases. Cost cutting to keep prices down is not in the gov't equation. Expect more and larger price increases from the mint as product offerings decrease.

 
At March 10, 2010 at 9:07 AM , Anonymous Anonymous said...

Wait a minute!!! Isn't the Gov. getting my 15% on Apr. 15th????

 
At March 10, 2010 at 9:24 AM , Anonymous Anonymous said...

The US Mint is obsolete. Typical government entity that raise rates on worse products (ala USPS). Now let's all make sure these same inept people manage our healthcare next. What a joke!

 
At March 10, 2010 at 9:57 AM , Anonymous Anonymous said...

The price of the uncirculated mint sets is a big reason why I don't buy it. But the main reason is the satin finish. Personally I'd rather the prez dollars be sold as a separate mint set. Just having those tied in with the regular coins makes the set much more expensive for coins I don't want, like the prez dollars.

 
At March 10, 2010 at 9:58 AM , Anonymous Anonymous said...

Higher prices for fewer products was a consequence I failed to consider. Sigh.

 
At March 10, 2010 at 11:22 AM , Anonymous Anonymous said...

This news sure makes the 2009 uncirculated mint set look even more attractive while its still for sale.

 
At March 10, 2010 at 11:47 AM , Anonymous Anonymous said...

Yeah...it will be for sale for 3 years because nobody wants to pay the outrageous price the Mint is asking.

 
At March 10, 2010 at 11:49 AM , Anonymous Anonymous said...

Dropping the margin below 15% was something the mint said it was going to do in their 2008 annual report.

Numismatic Coins Retail sales of high quality versions
of our circulating coins and commemorative coins
remained strong in spite of the slowing economy. We
came close to matching our FY 2007 record unit sales
with revenue totaling $557 million in FY 2008. Our
mandate for numismatic coin sales is not to maximize
profit but to recover costs and keep prices as low as
practicable so that Americans can afford them. To avoid
having the taxpayers subsidize the cost of numismatic
products, we manage to a 15 percent margin as a hedge
against unforeseen risk. In FY 2008, our numismatic net
income was about $82 million. In the coming year, we
will be exploring ways to keep the price of numismatic
products as close to actual cost as practicable, while
managing to a reduced margin or employing different
means as a hedge against risk.

Numismatic Revenues Will Increase We expect
numismatic revenue to increase and improvements in
planning to result in a margin
lower than 15 percent. We
are counting on two
initiatives to achieve this
result: 1) the one-year
introduction of the 24-karat
2009 Ultra High Relief
Double Eagle Gold Coin, and
2) providing the products our
customers buy year-round
earlier in the year.

So this makes the price increases, which are designed to take the margin back above 15% that much harder to accept. The mint says that its goal is to get as close to zero margin as is possible without ever going negative. The fact that even the worst year ever they still had a net margin of over 9% should have told them that they did not have to increase prices at all, especially when you consider that the cost of most annual sets would be falling due to reduced content.

As my son once said when he was 5 years old, "Hey look! a potato for you!" It did not make any sense, but I looked, and he took off running.

 
At March 10, 2010 at 1:05 PM , Anonymous Anonymous said...

Well hopefully they will release a 2010 American Silver Eagle in proof and uncirculated versions. This would help soften the diappointment many of us are feeling regarding the price increases. Less coins, for more money is always a bummer. I learned a while ago to under promise and over deliver...... If the mint followed this practice I believe they would be more successful than they already are. Releasing a limited number of 2009 American Silver Eagle Proofs at the end of last year would have fit this bill. Besides the die's had been prepared and they had already sold a record number regarding the bullion product... Oh well we'll have to wait and see if they can fulfill the needs of the collectors this year. I feel as though many of us are on the fence regarding future purchases... On another note Canada has been doing a great job, however at times I feel as though they have too much product to chose from. However, a few more US Mint disappointments and I think we will see additional price increases simply due to lack of demand for the Mint's products, creating a lack of revenue which they need to operate..... Hmmmmm..... What will the future hold???

 
At March 10, 2010 at 2:39 PM , Anonymous Anonymous said...

Just wait 'til they introduce that clad plastic proof golden coated zinc penny in a few years. We'll all be yearning for the good old days of the bronze dollar.

 
At March 10, 2010 at 2:42 PM , Anonymous Falcon said...

The US Mint installed a new press in Philly. It is made to stamp out the 5OZ America the Beautiful bullion coin. Who do you think is going to pay for it? Us of course. I wouldn't be surprised if the cost of that bullion coin press isn't being paid for with the increase across the board.
They must be spending alot of manhours trying to press out a 3 inch coin evenly. They also have to set up to stamp on the edge. Those production headaches seam to be taking up everyones time. The information and production of everything for sale this year is far behind the previous years.

 
At March 10, 2010 at 3:18 PM , Anonymous Anonymous said...

These idiots are planning on selling thier product the same way the post office does, fewer letters so the the price for 1st class goes up again and fewer 1st class letters ao the price goes up again.

Write your congressmen/senators get the law changed back where the end of a CY ended production and sales. The silver blanks are saved for selling to dealers for the public, remind them that collectors are part of the public and the mint gets a higher price per all units from collectors.

They started this sell until gone with an exemption for the nickels in 2004 - 2005 to sell the nickel sets that were not want stop the change and go back to one year buy and sell. 2009 is over don't sell any more that will force the mint into a business mode that they claim to be in.

 
At March 10, 2010 at 3:53 PM , Anonymous Anonymous said...

I really like the sacagawea golden dollar design. I wish they proof of these and not in those sets!

 
At March 10, 2010 at 5:05 PM , Anonymous Anonymous said...

I have been collecting for 50 years but this past year's events and now these price increases have finished me. Typical government stupidity. Congress is not all that needs to be replaced in November. I'm sure the mint will not miss my $4k-5K a year.
The Dukester

 
At March 10, 2010 at 5:12 PM , Anonymous Anonymous said...

I do not buy any of the proof sets any more, silver or clad. Those are not collectors items, they stamp hundreds of thousands of them. As the hipe pass they do not bring the price of melt.
I just go for gold when I can that is the sure long term value, because goverment cannot print gold .

 
At March 10, 2010 at 5:16 PM , Anonymous Anonymous said...

Welcome to the total goverment control.
And don't forget to hold on to your wallets.

 
At March 10, 2010 at 5:20 PM , Anonymous Anonymous said...

Just yesterday they were bashing insurance companies for increasing premiums . Or else does not count. What a joke.

 
At March 10, 2010 at 7:21 PM , Anonymous Anonymous said...

The Mint's new moto should be "screwing our collectors is what we do best"

 
At March 10, 2010 at 7:26 PM , Anonymous Anonymous said...

I've been collecting and buying direct from the Mint since 1958, and have hundreds of proof sets, mint sets, commemoratives, special sets, series, bullion, bags, silver, gold, rolls and most everything that was offered for over 50 years. I have posted here on Michaels blog more than once, that my collection is literally housed in original mailing envelopes, bags, and boxes and stacked in a large unused bedroom. I have more items than many "coin shop's and dealers". This has been my life's hobby. I even attached the mailing advertisement cards and flyers to the boxes all these years, what an assortment!.

It's not the extra dollar, two dollars, four dollars, etc. It's finally the breaking point that was inevitable, ludicrous pricing. They have finally broken the camels back. No more. The President, the government and it's agencies are beyond out of control. They talk about inflation and deride businesses and banks about gouging the public.....and turn around and are the main culprits themselves. Hypocrites.

I saw all the failures coming for the last few years, overpricing, poor quality, inept service, no imagination of design, reduced offerings, and more. I have had it. Everything comes to an end sadly, for me, this latest insult is not acceptable. ~Grandpa

 
At March 11, 2010 at 4:41 AM , Anonymous vaughnster said...

I'm totally in agreement with Grandpa. What a shame. If anyone working at the Mint reads his post and isn't angry, embarrassed and moved to try and change their culture, then the heck with them!! It's really sad that looking at this year's product schedule, NOTHING has you circling a release date on a calander in eager anticipation. I set aside a good chunk on money to buy from the Mint but most now has gone to gold and what's left will go toward the Lincoln products at the end of the year. It will be a long wait.....

 
At March 11, 2010 at 7:07 AM , Anonymous Anonymous said...

Everyone is acting out in anger. We all say things we don't mean when we are mad. Everyone will still buy what they always have in the past. When they calm down, and start thinking HMMMM nobody is gonna buy these which will make them worth something down the road because of supply versus deman. I'm not gonna get left out. Then you will buy.

 
At March 11, 2010 at 7:11 AM , Anonymous Anonymous said...

I am very disappointed at the dollar amount of price increases. I think they are shifting the scales of supply and demand with this move. I'm not saying I'm not going to buy from them anymore but my salary hasn't gone up as much as these mint increases so I'll probably be able to buy less and scrutinizing what I buy more than before.

JA

 
At March 11, 2010 at 7:17 AM , Anonymous The Dude said...

Pay more for less... Dude no way!

 
At March 11, 2010 at 7:44 AM , Anonymous Anonymous said...

Anger has nothing to do with it. It is all about principles and common sense. My money in the future will be directed towards completing my older silver sets which are all nicer than anything the mint makes today!! The Dukester

 
At March 11, 2010 at 7:49 AM , Anonymous Anonymous said...

They should have just waited until the Fed starts to raise rates. Then they just use Inflation as an excuse. If you haven't noticed, many food products downsized their packaging and charged more when fuel prices went up. Now that fuel prices are lower, you are still paying more for less. As for the Mint, get use to it....that policy is here to stay.

 
At March 11, 2010 at 8:08 AM , Anonymous Anonymous said...

The 2008 Uncirculated set had a price of $22.95.
The 2009 version had 6 more cents(bronze cents) + 2 more quarters.So,the price increase of $5.00 was justified.
This year's set will have the same amount of coins as 2008's and no bronze sets but will cost $9.00 more.This is simply outrageous and I won't be buying any because of the pricing.Also,the quality is constantly decreasing despite of the fact that the price is increasing.
The silver proof set only has 7 coins made of silver(5 quarters +dime and Kennedy).It's a way overpriced.

 
At March 11, 2010 at 8:21 AM , Anonymous Anonymous said...

I suggest that collectors should open their eyes to other World Mints who offer great quality coins for a reasonable prices.Take a look at Austrian or Australian coins.Those two mints are making some state of the art coins of really high quality and they are reasonably priced with low mintages.

 
At March 11, 2010 at 9:19 AM , Blogger Eric62cw said...

Is the U.S.Mint going make 2010 Gold Buffalo Proof

 
At March 11, 2010 at 11:55 AM , Anonymous Anonymous said...

The untimely price increases for numismatic offereings is woeful in my opinion. Perhaps those young enough who still work, or are retired with various income sources from SS, pensions, 401K distributions, etc. are still OK with absurd increases in a depression climate.

But then there are also those long time who live and exist soley on a small Social Security, with absolutely no other means of income. Everyone is aware that there was a ZERO increase in SS benefits for 2010, while everyday basic living units (light-heat-power-food-ins.-gasoline-oil-and dozens of other common expense INCREASED over the last year). The only things that were reduced were the sizes and contents of food-drink-and like items. Prices remained the same so as to fool those who pay little attention, but in many cases now you need to buy 5 somethings to reach the same same quantity of 3 former units.

These same people - seniors for example - simply can no longer engage in continuing hobbies and non-esentials in lieu of necessities. Everyone is tagging on dollars to everything imaginable, and we just can't pay it. The cost of a can of soda is .23c in small supermarket quantity, now the phoney regulators are looking to "tax" each can .12c (50%) to "protect my health. Laughable. OK, now we can look forward near term to cutting out that beverage......we will resort to household sink tap water with meals. Bottled water is not an option. Increase everything in sight, lower product quantities and choices, the public be damned. Perhaps. We have truly decended to new lows in this country, my fear is that since it is coming from every direction and side, we are in the early stages of crumbling. They broke the camels back, no more straws. ~ Grandpa

 
At March 11, 2010 at 4:39 PM , Anonymous Anonymous said...

I have a question. Does anybody khow much silver (in ounces) there would be in the 2010 silver proof set?

 
At March 12, 2010 at 3:16 AM , Anonymous Anonymous said...

2009 Lincoln Chronicles proof coin set ar still up for auction. I guess all those money grabbers are out of luck trying to cash in on the set.

 
At March 12, 2010 at 5:40 AM , Anonymous Anonymous said...

for people or non collectors. just want to buy a set or two for display. buy the older issues. sometimes only cost you around $2.50 to $3.00 a set.

 
At March 12, 2010 at 5:57 AM , Anonymous Falcon said...

Those "money grabbers" are still making about $125 profit on those Lincoln Chronicle sets. Sometimes higher for unopened boxes. I wouldn't call that out of luck.

 
At March 12, 2010 at 6:22 AM , Blogger Michael said...

"I have a question. Does anybody khow much silver (in ounces) there would be in the 2010 silver proof set?"

The silver coins have the same specifications as pre-1965 circulation issues. You can go to Coinflation.com to find the silver content and current value for each denomination. At a quick calculation, I add up $22.94 in silver value for the 2010 Silver Proof Set.

 
At March 12, 2010 at 8:30 AM , Anonymous Anonymous said...

Thanks for the answer, Sean

 
At March 13, 2010 at 4:21 PM , Anonymous Anonymous said...

The mint has the strangest shipping. They will sit on an order for weeks and then ship it overnight UPS or FedEx. They will also ship items separately because of their timing problems. That has to be costing them over volume.

Now maybe it's because most of what I've bought from the mint recently hasn't been cheap, but it's still a stupid way of doing business that only a government body and monopoly (on US coins) can survive with.

 
At March 13, 2010 at 5:36 PM , Anonymous Anonymous said...

Thats not even the worst of it. I live about 45 minutes from plainfield indiana, which is where the fullfillment center is located. They ship fedex from Indy to some place in missouri, then back to me. talk about a waste

 
At March 14, 2010 at 10:21 AM , Anonymous Anonymous said...

Remember that fulfilment (order taking and shipping) is not handled by the mint or any part of the government. It is operated by PBGS (Pitney Bowes Government Services) a for profit, private business. I actually think this is part of the problem. PBGS is trying to make a huge profit on what should be a very low margin service that profits from volume. It doesn't help that neither the mint nor PBGS has any way set up for customers to easily comment or complain. No email address, no place on line to ask a question, no sign of any concern for their customers at all. I think that PBGS may be part of the reason for the high price increases. They are almost certainly pressuring the mint to send more money their way and the mint seems happy to oblige.

 
At March 16, 2010 at 6:22 PM , Anonymous Anonymous said...

15% markup!!! They sure didn't mind having an 895% markup for two rolls of Lincoln cents. They should hve been charging $1.15 per 2 roll set not $8.95 for the exact same thing they send to the Fed for face value.

 

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