Numismatic Gold Coin Price Increase Likely

As precious metals continue to rise, another price increase for the US Mint's numismatic gold products seems likely for this week.

Under the US Mint's flexible pricing policy covering certain gold and platinum numismatic products, price changes can occur as often as weekly based primarily on the average weekly price of the metals. The average is measured based on the London Fix price from the prior Thursday AM to the current Wednesday AM. As a further confirmation, the Wednesday PM price must agree directionally.

Currently, gold numismatic coins are priced based on an average between $1,550 to $1,599.99. The average for the current weekly period is likely to fall within the next higher range from $1,600 to $1,649.99, which would prompt a price increase. A price increase would be avoided is the Wednesday AM London Fix price is below $1,553.75, or the Wednesday PM price is below $1,600.

Otherwise, price increase would take effect as follows:

	Old Price	New Price
2011 1 oz Proof Gold Eagle	$1,835.00	$ 1,885.00
2011 1/2 oz Proof Gold Eagle	$931.00	$ 956.00
2011 1/4 oz Proof Gold Eagle	$478.00	$ 490.50
2011 1/10 oz Proof Gold Eagle	$205.50	$ 210.50
2011 Proof Gold Eagle 4 Coin Set	$3,400.50	$ 3,493.00
2011-W Unc Gold Eagle	$1,828.00	$ 1,878.00
2010 Proof Gold Buffalo	$1,860.00	$ 1,910.00
Proof First Sposue Gold Coins	$954.00	$ 979.00
Unc First Spouse Gold Coins	$941.00	$ 966.00

As I mentioned last week, as the price of silver also rises, the chance of sales suspensions becomes increasingly likely. Silver numismatic products are not covered by the flexible pricing policy, instead sales must be suspended until new prices can be established through publication in the Federal Register.

The last time silver broke above the $40 per ounce level, the US Mint suspended two of the lower priced products. Silver is currently trading close to $41 per ounce.

Coin Update News: US Mint Sales Report

US Mint Changes Direct Ship Program

Effective July 22, 2011, the United States Mint made a major change to the Circulating $1 Coin Direct Ship Program. The coins may no longer be ordered with a credit card, but instead must be paid for by check, money order, or bank wire.

The Direct Ship Program allows individuals and small businesses to order quantities of $1 coins directly from the United States Mint at face value with no charge for delivery. The program was created in order to make the coins more readily available to the public for the purpose of introducing them into circulation.

Some individuals abused the program by ordering massive quantities of the coins with their credit card and then immediately depositing the coins ordered at their bank. This allowed credit card miles, cash back, or other rewards to be accrued at zero actual cost.

The abuses were first widely reported in late 2009. At that point, the US Mint tried to deal with the issue by indicating that rewards could not be earned through such a purchase. One article even included a quote from a Mint representative, stating that the purchases would be charged as a cash advance. Apparently, the US Mint was unable to do this, and the purchases continued to be charged as normal purchases which accrued rewards.

Other steps taken by the US Mint were to disallow purchases from some of the biggest abusers of the program and call individuals who placed large orders. Eventually, the Mint introduced ordering limits and included statements on the relevant product pages indicating that by placing an order, the customer would agree to adhere to the intention of the program. Although these steps likely cut down on some abuses, they could not prevent it completely.

Earlier this month, an article from NPR told about individuals who continued to abuse the program. This was followed by other similar articles in other mainstream publications. To make matters worse, a report was recently issued by the Federal Reserve Board of Governors, estimating that 60% of the coins ordered through Direct Ship were eventually sent back to the Federal Reserve Banks.

The US Mint's statement explaining the reason for the change to Direct Ship seems to acknowledge the recent articles and the report.

The Mint has determined that this policy change is prudent due to ongoing activity by individuals purchasing $1 coins with credit cards, accumulating frequent flyer miles, and then returning coins to local banks. Local banks, in turn, returned coins to the Federal Reserve. While not illegal, this activity was a clear abuse and misuse of the program.

During the 2009 fiscal year, the US Mint reported distributing 85.2 million coins through the Direct Ship Program. The total number distributed for the 2010 fiscal year was 90.7 million. Figures are not known for the 2011 fiscal year, which will end September 30, 2011.

Quick US Mint News Updates

Update on $1 Coin Situation

As reported on Coin Update News, two bills have been introduced which seek to terminate the Presidential Dollar Coin Program. Basically, each of the bills would eliminate the section of the United States Code that provides for the design and issuance of the series.

It seems that the First Spouse Gold Coins Program would also be forced to conclude, by extension. The section of the code authorizing the 24 karat gold coin series states that the coins will be issued on the same schedule as the Presidential Dollars. Although it is not completely clear, it seems that without the issuance of further Presidential Dollars, no further First Spouse coins could be issued either,

The Native American Dollars series would be allowed to continue, although most likely in limited fashion. One of the bills provides specific restrictions on the production of $1 coins.

Each of the bills H.R. 2593 and S. 1385 have one cosponsor and have been referred to committee. In order to become law, one of the bills must be passed in the House of Representatives and Senate, and then signed by the President.

Yosemite National Park Quarter Bags and Rolls

Sales of the Yosemite Quarter numismatic bags and rolls should conclude at the US Mint next week. The products originally went on sale July 27, 2010. According to the product page, the bags and rolls are intended to remain available for one year from the initial release date.

The last reported sales figures are 7,171 of the 100-coin bags from Philadelphia, 7,219 of the 100-coin bags from Denver, and 37,174 of the two roll sets.

Final mintages for the Yosemite National Park Quarters are 34,800,000 (D) and 35,200,000 (P).

Sales of the bags and rolls for the previous Hot Springs and Yellowstone Quarters ended roughly when expected, one year after the respective release date for each product.

Disappearing America the Beautiful Quarters Album

About a week ago, the US Mint added a listing to its upcoming products section for the America the Beautiful Quarters Coin Album. It was to be released on July 20, 2011.
The product was a US Mint branded album for the new quarter series that included facts and information about each site. The price was $9.95.

At some point, the product page was deleted. (It used to be here.) Will this album be released at another later date, or has the product been abandoned?

The US Mint currently offers albums for the Presidential Dollars. The album which hold 2007-2008 coins sold 28,637 units. The album for 2009-2010 coins fared much worse, selling 7,087 units to date. I believe the album product has been discontinued for subsequent years, although the initial two remain available for sale.

A Word on Comments

Mint News Blog was launched on October 15, 2007 to provide coverage of the United States Mint, their numismatic products, circulating coins, and bullion coins. I have written more than 800 articles, trying to provide the most accurate and timely information possible, along with relevant commentary. Readers have contributed an astounding 21,000 comments, which have greatly enriched the site and the experience for all visitors.

The site is hosted on the Blogger platform, a free publishing service from Google. Although it makes starting and writing a blog simple, it lacks the robust features offered by other platforms such as Wordpress. In particular, the features for comment moderation are sorely lacking.

Recently one or more individuals started posting a high volume of vulgar and obscene comments. To make it clear, these were not dissenting numismatic opinions, but the deranged ramblings of a highly disturbed individual. Blogger lacks the capabilities to block or disallow specific individuals from posting comments, so I was forced to turn off all comments.

My plan is to convert the blog to wordpress, where I will have the necessary tools to deal with such situations. Since I don't want to lose any of the existing content or comments, this will be a slow process. Please bear with me while I work on making the switch. New articles will continue to be posted, comments will be reinstated as soon as possible.

Gold and Platinum Product Price Increase Likely, Other Suspensions Loom

Despite the decline in precious metals prices late in the day, price increases still seem likely to occur tomorrow for the gold and platinum numismatic products covered under the US Mint's flexible pricing policy. Other products not covered by the policy face the increasing prospect of a sales suspension and eventual price increase.

In January 2009, the US Mint adopted a pricing policy for numismatic gold and platinum product which would allow changes to be implemented as frequently as weekly based on changes in the prices of the underlying precious metals. The policy specifically covered the American Gold Eagle, American Gold Buffalo, First Spouse Gold Coin, and American Platinum Eagle numismatic products.

Under the policy, the average price of gold and platinum is calculated each week based on the London Fix prices from the prior Thursday AM to the present Wednesday AM. If the price falls into a higher or lower tier (established at $50 increments for gold and $100 increments for platinum), then a pricing change would generally take place. The final requirement is for the Wednesday PM Fix price to fall within the same range directionally as the potential change.

Gold products are currently priced for within the $1,500 to $1,549.99 tier and the single platinum product is priced within the $1,650 to $1,749.99 tier. The average prices for each metal fall well within the next higher tier. The only thing that could prevent a price increase would be if the Wednesday PM gold price is below $1,550 or the the Wednesday PM platinum price is below $1,750.

Otherwise the prices would be increased as follows:

	Old Price	New Price
2011 1 oz Proof Gold Eagle	$ 1,785.00	$ 1,835.00
2011 1/2 oz Proof Gold Eagle	$ 906.00	$ 931.00
2011 1/4 oz Proof Gold Eagle	$ 465.50	$ 478.00
2011 1/10 oz Proof Gold Eagle	$ 200.50	$ 205.50
2011 Proof Gold Eagle 4 Coin Set	$ 3,308.00	$ 3,400.50
2011-W Unc Gold Eagle	$ 1,778.00	$ 1,828.00
2010 Proof Gold Buffalo	$ 1,810.00	$ 1,860.00
Proof First Sposue Gold Coins	$ 929.00	$ 954.00
Unc First Spouse Gold Coins	$ 916.00	$ 941.00
2011 Proof Platinum Eagle	$ 1,992.00	$ 2,092.00

Pricing changes under the policy are typically implemented around mid-morning on Wednesday. If the increases take place, the prices for the gold products would represent new highs. The price of the 2011 Proof Platinum Eagle would return to its initial price in effect when the coins went on sale in late May 2011.

Products which are not covered by the US Mint's flexible pricing policy must be adjusted through a more lengthy process of publication within the Federal Register. This generally involves suspending product sales for several weeks until the new prices can be published.

With the recent rise in precious metals prices, the $5 gold commemorative coins and many products with silver content face the increasing prospect of a sales suspension and repricing.

Both the Army and Medal of Honor Commemorative Coin Programs include $5 gold coins priced at $454.95 for the proof and $444.95 for the uncirculated version. These prices reflect a surcharge of $35 per coin, payable to the beneficiary organization, reducing the net proceeds for the Mint. Each coin contains roughly 0.242 troy ounces of gold, with a value of $384.30 based on the current price of gold. If the price of gold were to approach $1,700 per ounce, then the net proceeds to the mint would be less than the melt value of the gold content.

Numismatic products available from the US Mint which include silver content include the America the Beautiful Quarter Silver Proof Sets, annual Silver Proof Sets, commemorative silver dollars, September 11 silver medals, and the 2011 Proof Silver Eagle.

The silver content of each product in troy ounces is shown below.

	Silver Content
ATB Quarter Silver Proof Set	0.9042
Annual Silver Proof Set	1.33823
Commem Silver Dollar	0.77344
Proof Silver Eagle	1
September 11 Silver Medal	1

The following table shows the silver value for each product, the face value of any non-silver coins included, the total of the silver and other fave value, and the US Mint's current price. Also bear in mind that the commemorative silver dollars and September 11 silver medal prices each include a $10 surcharge payable to the beneficiary organization.

	Silver	other FV	Total	Price
2010 ATBQ Silver Proof Set	35.26	0	35.26	39.95
2011 ATBQ Silver Proof Set	35.26	0	35.26	41.95
2010 Silver Proof Set	52.19	5.06	57.25	64.95
2011 Silver Proof Set	52.19	5.06	57.25	67.95
Proof Commem Silver Dollar	30.16	0	30.16	59.95
Unc Commem Silver Dollar	30.16	0	30.16	54.95
Proof Silver Eagle	39.00	0	39.00	59.95
September 11 Silver Medal	39.00	0	39.00	56.95

During silver's last run, the US Mint had halted sales of the 2010 Silver Proof Set and 2010 America the Beautiful Silver Quarters Proof Set when the price of silver had broken above the $40 per ounce level. Sales of the 2011 versions of the sets were suspended less than two weeks later as silver rose above $43 per ounce. Ultimately sales for the products resumed without any price change, after silver fell back to $35 per ounce.

Coin Update News: US Mint Sales: Numismatic Gold Coin Sales Surge

US Mint Direct Ship $1 Coin Roll Selection

In recent months, the selection of dollar coins available through the United States Mint's Direct Ship Program had been dwindling. As recently as this morning, there had only been two options available for ordering. Just now, the US Mint has resumed offering four designs that had been previously available.

The Circulating $1 Coin Direct Ship Program was created by the US Mint as a means to comply with the legislative requirement to remove barriers and improve circulation of the $1 coin. Under the program, individuals and small businesses could order $250 quantities of dollar coins directly from the US Mint at face value with no charge for shipping. Typically, the dollar coins are distributed to banks and financial institutions through the Federal Reserve Banks in $1,000 quantities.

The program has been a substantial distribution outlet for dollar coins. In the last fiscal year, the US Mint distributed $90.7 million worth of coins, accounting for 21.9% of all $1 coin shipments.

The program also seems to be the primary distribution method for the Native American Dollars. By law, the number of Native American Dollars produced each year must account for at least 20% of all dollar coin production. However, unlike with Presidential Dollars, the Federal Reserve Banks are not required to order the coins.

This morning the two designs that had been available were 2007 James Madison Presidential Dollars and 2011 Native American Dollars.

The designs added to the Direct Ship Product Page this afternoon are the 2001 Sacagawea Dollars, 2007 George Washington Presidential Dollars, 2007 John Adams Presidential Dollars, and 2010 Franklin Pierce Presidential Dollars.

The Flood of US Mint Silver Numismatic Products

The pendulum of US Mint product offerings always seems to swing from way too little, to way too much. This year collectors seem to be facing "way too much," particularly for silver numismatic products.

For many years, there had typically been two to four different silver numismatic products offered by the US Mint. These have included one or two different commemorative silver dollars and the annual Proof Silver Eagle. Starting in 2006, an uncirculated version of the Silver Eagle was added to the mix.

Most recently, for 2009, both of the collectible Silver Eagles were canceled, resulting in just two silver products. For 2010, the proof Silver Eagle returned, making for three silver products. This year, due to some unusual circumstances, there are fifteen different silver numismatic products that have been released or are expected to be released.

To make matters worse, the flood of silver products occurs during a year when the market price of silver has reached 30 year high. So not only are their more products for collectors to buy, the price levels are significantly higher.

For each of these product counts, I am not including annual sets struck in silver or various packaging types or versions of the same coin. The specific silver products for each year are listed below.

2009 Silver Products

Abraham Lincoln Commemorative Silver Dollars
Louis Braille Commemorative Silver Dollars

2010 Silver Products

2010 Boy Scouts Commemorative Silver Dollars
2010 American Veterans Disabled for Life Silver Dollars
2010 Proof Silver Eagle

2011 Silver Products

2011 Army Commemorative Silver Dollars
2011 Medal of Honor Commemorative Silver Dollars
2011 September 11 National Medals
2011 Proof Silver Eagle
2011-W Unc Silver Eagle
2010 Hot Springs 5 oz Unc Silver
2010 Yellowstone 5 oz Unc Silver
2010 Yosemite 5 oz Unc Silver
2010 Grand Canyon 5 oz Unc Silver
2010 Mount Hood 5 oz Unc Silver
2011 Gettysburg 5 oz Unc Silver
2011 Glacier 5 oz Unc Silver
2011 Olympic 5 oz Unc Silver
2011 Vicksburg 5 oz Unc Silver
2011 Chickasaw 5 oz Unc Silver

Any way you look at it, this year will represent a historic high in terms of the number of silver numismatic products released, going back many years. In 1995 and 1996, there had been seven silver products released per year, due to an outpouring of commemorative issues. This situation actually led to legislation which limited the number of commemorative programs that could be approved for each year.

To find a higher number of silver numismatic products than 2011, I believe you have to go all the way back to 1936, when early commemorative coin issuance had gotten out of control.

There is a potential "silver lining" in the current situation. In the past, at the end of a cycle there have typically been several products that remain overlooked, under ordered, or otherwise low in mintage. The circumstances and specifics are always different, but these types of products have gone on to relatively swift and enduring high price levels on the secondary market.

In 2008, the US Mint reached the peak of an aggressive expansion in the number of numismatic gold and platinum products. For that year, they had offered proof and uncirculated versions, fractional weight coins, and four coin sets across three different programs. Near the end of the year, the US Mint announced the cancellation of the vast majority of the products types, setting off a rapid sell out of remaining inventories. When the dust settled, there were significant winners in the 2008-W Proof and Uncirculated Gold Buffalo coins, 2008-W Uncirculated $10 Gold Eagle, and to a lesser extent some of the low mintage platinum coins.

I see the potential for another batch of winners occurring at the end of the current cycle.

Stay tuned. It's going to be an interesting year.

Coin Update News: US Mint Sales Report

Favorite Coins from World Mints: Part Two

As a break from the regular coverage of US Mint products and coins, I wanted to devote a post to showcasing some of my personal favorite coins from other world mints. I wrote a similar post about a year ago, that can be found here.

While the majority of my collection consists of US coins, I have occasionally acquired certain world coins that I have particularly liked. All of the coins included here were purchased within the past year or so.

In putting together this post, I realized that many of the coins were delivering something that was lacking in current US coin designs and offerings. So the resulting post became not only a showcase of excellent world mint coins, but also a commentary on what can be improved on US coins.


2011 Britannia Silver Bullion Coins

The Royal British Mint has issued one ounce Silver Britannia coins from 1997 to present. Mintages are limited, even for the bullion version, and each year features a new depiction of Britannia. On the 2011 issue, she is seated with a trident and shield, with the image of a billowing union flag overlaid. The use of the two elements results in a modern impression of the classic arrangement.

I would like to see some new interpretations of Liberty on US coins. In recent years, coin designs have used the Statue of Liberty to represent Liberty (Platinum Eagle obverse, Presidential Dollar reverse), which is sort of like turning an allegorical concept into a literal one. Other recent appearances of Liberty have been copies of old designs (First Spouse Gold Liberty Subset, American Gold Eagle, American Silver Eagle, the upcoming American Palladium Eagle). Finally, some recent designs have featured female figures that some collectors mistake for Liberty, but these are not Liberty (Medal of Honor Gold Coin reverse is Minerva, 2011 Proof Platinum Eagle reverse is a harvest goddess).

I cannot even recall the last time a genuinely new rendition of Liberty has appeared on a US coin.


2010 Kangaroo at Sunset Silver Coin

This one ounce silver proof coin is struck by the Royal Australian Mint with a mintage of 5,000 pieces. The design is simple and dominated by empty space, but it makes a great impression on the viewer. Every time I have shown this coin to a non collector, there has been a pause of a second or two to interpret the design, followed by a "wow" expression.

Too many recent US coins have taken a literal approach to design and have not taken any risks or explored innovative compositions. As a result, not too many recent US Mint releases will elicit a "wow" response. One might be the 2009 Ultra High Relief Double Eagle, which of course was a reproduction of a design from 100 years ago.

When I have showed some people the America the Beautiful Silver Bullion Coins, their response has been, "Is this a real coin?"


2010 Konsta Jylha and Folk Music Silver Coin

This €10 silver coin was produced by the Mint of Finland for the 100th anniversary of a famous Finnish folk musician and composer. The style of the coin and particularly the obverse portrait were chosen to convey an impression of the historical figure. The designer stated, "Konsta Jylhä was a rather modest person. For this reason I wanted my work to breathe a certain kind of simple modesty, I didn’t want the coin to have too many details." The reverse of the coin shows the openings at the top of a violin.

Too many portraits appearing on US coins are very close reproductions of period portraits or photographs. The CCAC has referred to this as a "trace and bake" approach. To some extent, it should be expected that a likeness on a coin would closely resemble a photographic representation, but an expression as art should convey or allude to something deeper.


Do the images above look familiar? With very little variation, these portraits were used for recent First Spouse Gold Coins.


One-Tenth Ounce Silver Koala and One Half Gram Gold Kangaroo

As the price of gold and silver has risen, some world mints have responded by making smaller sized coins. Above are the 1/10 oz 2011 Silver Koala and 1/2 gram (0.016 troy ounce) 2010 Mini Roo, both from the Perth Mint in Australia. Obviously the premiums are much higher than if purchasing higher weight coins, but that is a recognized and expected factor. The motivations of someone purchasing a one half gram coin as opposed to a one ounce coin are clearly different anyway. These tiny offerings serve to preserve a low pricing point, despite rising precious metals prices.

The US Mint has taken the opposite approach and eliminated smaller weight offerings as precious metals prices have risen. At the end of 2008, the US Mint discontinued fractional weight numismatic products for the Gold Buffalo, Platinum Eagle, and Gold Eagle.

Perpetuating this opposite approach, the US Mint has actually released higher weight coins with the America the Beautiful Silver Bullion Coins, containing 5 troy ounces of silver each.


2010 125 Years of Bulgarian Unification

When writing about world coins, I always like to include a Bulgarian coin, since my wife is Bulgarian and my children are half Bulgarian. This 10 leva coin was issued to commemorate 125 years of unification. The 92.5% silver coin includes a selective gold plating over the stamp of the Bulgarian Secret Central Revolutionary Committee pictured on the reverse. While some colorized or enhanced world coins look garish, this selective gold plating appropriately highlights a portion of the design in an effective manner.

The US Mint has never produced coins with colorization or selective gold plating, and has only produced a single bimetallic coin (2000-W Library of Congress $10 Commemorative). While it would not be appropriate or necessary for every coin, it would be nice to see something different once in a while.


Paul Revere ANA Convention Bronze and Silver Medals

Not a coin and not from a world mint, but something I wanted to include in the post. This is the official medal issued for the ANA 119th Anniversary Convention in Boston designed by Jamie Franki (designer of the new Jefferson Nickel obverse). The obverse of the medal depicts Paul Revere on his midnight ride. The reverse of the coin with a rising sun and pine tree was based on a 2-shilling note that had been engraved by Paul Revere. As part of the design process, Franki dressed in period authentic clothing and spent an afternoon riding a horse. Only 150 two-medal sets were produced.

As soon as I saw the design for this coin, I immediately tried to order one. A week later, the ANA returned my check with a notice that the medals had already sold out. This, of course, made me want the medal more. I started running weekly searches on eBay, waiting for a set to show up at auction. If this didn't work, I planned to run some classified ads within hobby periodicals. After nearly a year, the two medal set finally showed up at auction and I was able to buy it for exactly the original issue price, even though I would have paid more.

Besides having an excellent design, these medals were intentionally limited to a very low number and proved difficult to acquire.

Every once in a while, the US Mint should create extremely limited product offerings. In recent years, the US Mint seems to have gone to lengths to avoid this situation. When the 2009 Proof Gold and Silver Eagles were canceled, the Mint Director had stated that they could have produced a limited number of coins, but it wouldn't be enough for every collector who wanted one. So instead of allowing some collectors to get the coins, the offering was canceled so everyone would get nothing.

More recently, there have been some limited products through the 2010 America the Beautiful Five Ounce Silver Coins, but these seem to have been created unintentionally, due to circumstances of production.

It hasn't always been this way. Back in 1997, the US Mint offered the Botanic Gardens Coinage and Currency Set with a limited production of 25,000 units. The set included the 1997-P matte proof Jefferson Nickel, only available within the set. Around the same time, the US Mint reduced the mintages of Proof Gold Eagles, specifically to help preserve secondary market values.

The Mint Director was quoted in a press release, "We're lowering the Proof Eagle mintages in response to our customers' interest in secondary market prices of our products. We recognize that our customers expect that our products retain a significant portion of their purchase price in the after-market. We believe lowering mintages will help us achieve that goal. This is part of a new philosophy we're pursuing in 1997 as an extension of our tradition of offering limited edition products -- such as the recent Botanic Garden Coinage & Currency Set. We believe that these lower mintage limits will make our products consistently more appealing to the collector. You can expect to see future issues structured in a similar way -- to raise the value of all our products, for all collectors."

In contrast, this year the US Mint raised the mintages of the 2011 Proof Platinum Eagle and 2011 Proof Gold Eagles.

Granted, the creation of intentionally limited products is something that can get out of hand. However, occasionally creating something special and making it available in a fair manner could be a welcome development. It would reward faithful US Mint customers and create some excitement, which would carry over to other offerings.

Numismatic Gold Coin Price Decrease Possible

Amidst the recent decline in precious metals, the prices of US Mint numismatic gold coins have stubbornly remained at the same levels. This may finally change tomorrow, provided that London Fix prices remain under $1,500.

Since April 28, gold coins covered under the pricing policy have been priced based on the $1,500 to $1,549.99 tier. The US Mint calculates the weekly average gold price based on the London Fix prices from the prior Thursday AM to the current Wednesday AM. If the price falls into a different tier and the Wednesday PM price agrees directionally, then a pricing change will take place.

Prices for the current period are as follows:

May 12 AM	1488.25
May 12 PM	1489.5
May 13 AM	1511
May 13 PM	1505.75
May 16 AM	1495
May 16 PM	1500.75
May 17 AM	1495.5
May 17 PM	1478.5
May 18 AM	?

By my calculations, a price decrease would take place provided that the May 18 London AM fix price is less than $1,535.75 and the London PM fix price is less than $1,500.00. The price of gold is currently around $1,487.00 per ounce, but prices have been volatile recently.

If a pricing adjustment takes place, it would impact the available First Spouse Gold Coins, 2011 Proof Gold Eagles, and 2011-W Uncirculated Gold Eagle. Price changes have generally been made effective around late morning or mid-day on Wednesday.

In addition to reducing the prices for existing products, this week's average will also serve to establish the price for the upcoming 2011 Proof Gold Buffalo, to be released on Thursday.

For the past two weeks, there has been a noticeable slow down in the pace of US Mint numismatic gold coin sales. It's possible that some collectors have been delaying purchases in hopes of a pricing decrease.

As of May 15, the recently released Eliza Johnson First Spouse Gold Coin has sold 2,689 coins across proof and uncirculated options, while the 2011-W Uncirculated Gold Eagle has sold a mere 1,335. Proof Gold Eagle sales have also dropped to very low levels.

Coin Update: Full Weekly US Mint Sales Report

Quick US Mint Product Updates

Before the weekend, I wanted to provide some new information on various US Mint products. This includes sales figures for the 2010-P Hot Springs Silver Coins, and release information for the Eliza Johnson First Spouse Gold Coin and 2011-W Uncirculated Gold Eagle.

2010-P Hot Springs 5 Ounce Uncirculated Coins

Sales of this highly anticipated product began at the United States Mint yesterday at 12:00 Noon ET. After taking more than 6,000 orders in the first hour, the US Mint's website went down and stayed down for about 45 minutes.

Prior to the start of sales, website problems were expected and the US Mint warned customers that they may encounter delays. By the Mint's own admission, they have "an antiquated order management system". While replacing the system is a priority, it won't happen until mid-2012.

Sales continued throughout the day at a rapid pace, but it was not fast enough to result in a one day sell out. As reported on Coin Update News, through April 28, 2011 at 9:00 PM ET, the US Mint had accepted more than 19,000 orders in total. This accounts for more than 70% of the total mintage of 27,000 coins.

At the time of this post, the coins still remain available for sale on the US Mint's website.

Eliza Johnson First Spouse Gold Coins

The US Mint will begin sales of the Eliza Johnson First Spouse Gold Coins next week on May 5, 2011. This issue was originally scheduled to be released on March 3, but the release was delayed without any official explanation.

A maximum mintage of 15,000 coins across proof and uncirculated versions has been announced. This is the same mintage level that was in place for the 2010 releases, except for the Mary Todd Lincoln Coin, which was set at 20,000.

If the US Mint follows prior procedures sales of the Abigail Fillmore coins will end to coincide with the start of sales for the Eliza Johnson coins. Currently, only the proof version of the Abigail Fillmore coin remains available. The last reported sales were 6,093.

2011-W Uncirculated Gold Eagle

Also on May 5, 2011, the US Mint will begin sales of the 2011-W Uncirculated Gold Eagle. This will be the first collectible uncirculated Gold Eagle issued by the US Mint since 2008. These coins are struck on specially burnished blanks and carry the "W" mint mark.

Only a one ounce coin will be available. The fractional weight versions were previously announced as discontinued.

There will be no ordering limits and no stated maximum mintage levels. Pricing will be based on the average price of gold leading up to the release. If gold remains within the $1,500 to $1,549.99 range, then the coins would be $1,778 each.

Additional coverage of these two upcoming releases will be provided next week.

Quick US Mint News Updates

There are a number of items related to US Mint product offerings that I wanted to cover before the weekend. As in the past, I will provide quick coverage of separate topics within the same post.

2011 Proof Gold Eagles

The US Mint has provided information on the upcoming release of the 2011 American Gold Eagle Proof coins. As in prior years, the coins will be available in individual one ounce, one-half ounce, one-quarter ounce, and one-tenth ounce sizes, as well as a four coin set.

The stated product limit for each option is shown below. The mintage limit, which is composed of the product limit from individual sales plus multi-coin sets, is also shown.

	Product Limit	Mintage Limit
1 oz.	30,000	70,000
1/2 oz.	15,000	55,000
1/4 oz.	16,000	56,000
1/10 oz.	30,000	70,000
4 Coin Set	40,000

The product limits for some options have been increased from the levels of the prior year. The individual one ounce has been increased by 5,000 units, the individual one-tenth ounce by 3,000 units, and the 4 coin set by 1,000. When the coins were available last year, the US Mint did not produce the coins to the full extent of the product limits. See the final 2010 Proof Gold Eagle sales in this post.

Pricing for the 2011 Proof Gold Eagles will depend on the average London Fix price of gold from yesterday's Thursday AM to next week's Wednesday AM price. If the average price stays within the $1,450 to $1,499.99 range, then the prices for each option would be as shown below.

	Price
1 oz.	$ 1,735.00
1/2 oz.	$ 881.00
1/4 oz.	$ 453.00
1/10 oz.	$ 195.50
4 Coin Set	$ 3,215.50

These prices are proportionally $150 higher for each ounce of gold content when compared to the initial pricing for the prior year release. This follows the increase in the market price of gold.

I will have a full post on this important product offering closer to the release date.

Suspension coming for 2011 Silver Proof Sets?

Late last week, the US Mint suspended sales of the 2010 Silver Proof Set and 2010 ATB Quarters Silver Proof Set. At the time, the price of silver had just broken above the $40 per ounce level. Sales of the 2011-dated sets were allowed to continue, presumably because these were already priced a few dollars higher.

At the time of writing this post, the price of silver has now risen to $42.59 per ounce, which may put the 2011 Silver Proof Sets at risk of suspension and eventual repricing.

The 2011 Silver Proof Set contains 1.33823 troy ounces of silver, now worth $57.00. With the additional face value for the base metal coins included in the set, the value of the set is $62.06, compared to the current US Mint price of $67.95.

The 2011 ATB Quarters Silver proof Set contains 0.90420 troy ounces of silver, worth $38.51, compared to the current US Mint price of $41.95.

2010 Grand Canyon Quarter Three Coin Set on Sale

On April 13, 2011, the US Mint began sales of the America the Beautiful Quarters Three Coin Set for the Grand Canyon design.

Each set includes uncirculated versions of the quarter from the Philadelphia and Denver Mints and a proof version of the quarter from the San Francisco Mint. The three coins are mounted on a plastic card, which contains a description of the site and coin design, as well as a certificate of authenticity.

The sets are priced at $14.95 each. As mentioned in previous posts about this product type, this is an incredible mark up above the cost of the coins if acquired through the annual sets.

Nonetheless, the US Mint does manage to sell a relatively large number of the sets, with sales of 17,233, 17,022, and 14,451 for the previously released Hot Springs, Yellowstone, and Yosemite three coin sets.

House Subcommittee Hearing on US Mint Bullion Coin Programs

Today the House Financial Services Subcommittee on Domestic Monetary Policy and Technology held a hearing entitled, "Bullion Coin Programs of the United States Mint: Can They Be Improved?"

The Chairman was Rep. Ron Paul and witnesses included Beth Deisher, Editor of CoinWorld; Terence Hanlon, President of Dillon Gage Metals Division; Ross Hansen, Founder of Northwest Territorial Mint; and Raymond Nessim, CEO of Manfra, Tordella & Brookes, Inc.

The submitted written testimony of each of the witnesses can be found here. I believe an archived version of the webcast will be available on the same page at a later time.

In this post, I will list some interesting or relevant statements or points from the testimony and the question and answers portion. Some of this is done from memory, so these aren't exact quotes.

- Rep. Paul began the hearing by stating that the shortage of bullion coins is a reflection of what we're doing to our currency. He mentioned that the value of the dollar has fallen from the original 1/20 ounce of gold to 1/1,450 ounce of gold. More people are growing concerned and turning to bullion.

- Rep. Paul asked the witnesses to explain how the US Mint's distribution network for bullion coins works. He specifically asked why he can't go to the US Mint and buy bullion directly. Terence Hanlon responded and explained the distribution network and how the AP's also create a liquid two way market for the program. He discussed the challenges the US Mint would face if they wanted to sell directly to the public. Rep. Paul then asked, doesn't the US Mint sell proof sets directly?

- Beth Deisher discussed the "contrived rarities" created by the United States Mint either through the original distribution, ordering limits, or production limits. Examples cited included the 1995-W Proof Silver Eagle, 2007 First Spouse Gold Coins, and America the Beautiful Silver Bullion Coins. She recommended that the US Mint avoid purposely creating rarities, mint collector versions of bullion coins to demand for a certain number of days, and increase bandwidth for their website. During questioning she also stated that the artificial "one per household" ordering limits imposed by the US Mint don't work since people buy coins in the names of their dogs, cats, and cousins.

-Beth Deisher also discusssed questionable marketing practices in the secondary market for certain US Mint products. Without mentining any grading company by name, she cited the "First Strike" designation. She also mentioned that marketers may seek to identify Silver Eagles struck at the San Francisco Mint (production is expected to begin there in May) and claim that they are different or special. She recommended that the US Mint be more proactive and make consumers more aware of questionable marketing practices. She also recommended including the mint mark on bullion coins.

- Terence Hanlon mentioned that this year is the 25th anniversary of the American Eagle Bullion Coins. At one point, he recommended the creation of a special set including the Gold Eagle, Silver Eagle, Platinum Eagle, and Palladium Eagle. The latter coin he referred to as being introduced this year. (Statements previously provided by the Mint indicated that the Palladium Eagle would be released in 2012 after the completion of the required marketing study.)

- Terence Hanlon also took the opportunity to to recommend that Congress lower the tax rate on precious metals from the current maximum rate of 28% to 15%, to match the taxation of securities and mutual funds. Within the questioning session, he estimated that a more preferential tax treatment could increase bullion sales by 30 to 50%, and increase interest in the precious metals ETFs. The questioner then referred back to the bullion shortage and asked why would we want to make it worse?

- At one point, Terence Hanlon estimated that the US Mint loses about a third of potential bullion sales because they can't meet demand.

- Ross Hansen mentioned that he has offered to supply the US Mint with as many silver blanks as they want, but the former Director (Edmund Moy) declined his offer without explanation. He suggested that the US Mint work to develop a domestic pool of vendors for their raw materials and create an industry advisory group to help with coin production issues.

- Raymond Nessim discussed the distribution requirements imposed by the US Mint for the 2010 America the Beautiful Silver Bullion Coins. He expressed his opinion that the US Mint made the right decision and their terms and conditions were effective in counteracting the delayed production and limited mintage.

- No representatives of the United States Mint were present at the hearing.

Quick US Mint News Updates

2011 America the Beautiful Silver Bullion Coins

Within communications to their authorized purchasers, the United States Mint previously indicated that production levels for the 2011 America the Beautiful Silver Bullion Coins would be "substantially higher" than for the previous year.

A recent article in Numismatic News put the total production for the first 2011 release featuring Gettysburg National Military Park at 125,000 units. This compares to production of 33,000 units for each of the 2010 designs.

By nearly quadrupling the number of coins available, the nature of the offering will certainly be very different this year. The coins are more likely to be priced and purchased as bullion, although there will of course be collectors who continue to pursue the series. The low mintage status of the 2010 issues will also be solidified.

James Buchanan's Liberty Gold Coins

The uncirculated version of the James Buchanan's Liberty Gold Coin seems to be approaching a sell out.

Following the unexpected sell out of the proof version of the coin, the US Mint indicated that a total of 13,000 coins had been produced across both versions. This level, which is below the maximum stated mintage, had been established based on demand forecasts.

The last reported sales for the proof version of the coins was 7,304. For the uncirculated version, the US Mint just reported weekly sales of 493 coins, bringing the total to 5,579. Together, this comes to 12,883.

View the full US Mint sales report.

Andrew Johnson $1 Coin Cover

Full images of the first of the Presidential $1 Coin Covers with the US Mint's new branding were recently posted on the website. Whereas other products have been switched from the previous colorful packaging to the new black and/or white color scheme, the new packaging for this product is a mix of the old and new.

The top two thirds of the cover retain the American flag background, while the bottom one third is a black bar with the Treasury Department Seal and the US Mint logo. The portrait of the President has been reduced in size and floats disembodied next to the coins. While arguments can be made for or against the new branding as applied to other product types, this one just doesn't look right.

Prices Raised for Some US Mint Silver Products

The US Mint has just made effective pricing changes for certain products with silver coins. This includes the 2010 Silver Proof Set, 2010 America the Beautiful Quarters Silver Proof Set, and the upcoming 2011 Quarters Silver Proof Set.

The change comes in response to the rising market price of silver. During 2010, the price of silver gained more than 80%. For the year to date, silver is up about 14.5%.

In a recent post, I made mention of the fact that with higher silver prices, some currently available US Mint products had melt values approaching their product prices. The opportunity proved brief, as one of the products was suspended about a week later, and the other product closest to melt had its price adjusted today.

The pricing adjustments are as follows:

	Previous	New	Change
2010 Silver Proof Set	56.95	64.95	+8.00
2010 Quarters Silver Proof Set	32.95	39.95	+7.00
2011 Quarters Silver Proof Set	39.95	41.95	+2.00

The 2011 America the Beautiful Quarters Silver Proof Set is not yet available at the US Mint. Sales are scheduled to begin on March 29, 2011. The previous price was published in the Federal Register in January when the US Mint published prices for this year's products.

The price for the 2011 Silver Proof Set remains unchanged at $67.95.

Quick US Mint News Updates

There are a number of recent developments related to US Mint numismatic products that I wanted to cover. As in the past, I will provide a quick update of various items within a single post.

Numismatic Gold Product Price Increase

Based on the average London Fix prices since last Thursday, it is likely that the prices for US Mint numismatic gold products will be increased on tomorrow. This excludes the commemorative gold coins, which are not subject to the pricing policy that allows weekly adjustments.

The price of the 2010 Proof Gold Buffalo would be increased from $1,660 to $1,710 per coin. The prices for available First Spouse Gold Coins would be increased from $854 to $879 for proof coins and from $841 to $866 for uncirculated coins. These will represent the highest prices on record for each of the offerings.

A price increase would be avoided if the Wednesday PM London Fix price of gold is below $1,400 per ounce.

2010 America the Beautiful Quarters Silver Proof Set

In a recent post, I provided figures on the silver content and values of US Mint products, highlighting the fact that for certain products the melt value was approaching the issue price.

Based on the current market price of silver, the silver value of the five 90% silver quarters included in the 2010 ATB Quarters Silver Proof Set is now $31.37. This compares to the last available product price of $32.95.

A reader reported on Sunday evening that the US Mint had changed the status of the 2010 America the Beautiful Quarters Silver Proof Set to "This product is temporarily unavailable."

In all likelihood, the US Mint has suspended sales in order to adjust the product price. Annual sets and commemorative coins are not covered by the US Mint's pricing policy, which allows weekly adjustments to be made. Rather new prices are established through publication within the Federal Register, which can take several weeks to occur.

Eliza Johnson First Spouse Gold Coin

Before the end of the last year, the US Mint provided release dates for nearly all 2011 numismatic products. The Eliza Johnson First Spouse Gold Coin was listed with a release date of March 3, 2011. The product schedule currently on the US Mint's website shows the coins listed as "TBD".

Release dates provided on the US Mint's scheduled product listing are always subject to change. In several prior instances the release dates for First Spouse Gold Coins have been delayed with no explanation provided.

For this situation, the delay might be due to the fact that the US Mint provided a second set of design candidates to the CFA and CCAC, following criticism of the initial candidates. This extended period of time needed for the design selection stage may have delayed subsequent steps.

It is very disheartening for collectors of the series to endure the delay, while prices move upwards.

Medal of Honor Commemorative Coin Sales

The new weekly US Mint numismatic sales report contains the debut figures for the 2011 Medal of Honor Commemorative coins, as well as several other newly released products.

From February 25 to February 27, 2011, the US Mint sold 4,699 proof $5 gold coins and 1,890 uncirculated gold coins, for a total of 6,589. Sales of the silver dollars were 25,156 proof coins and 10,346 uncirculated coins for a total of 35,502.

These numbers are below the initial sales levels of the 2011 U.S. Army Commemorative Coins. This may be due to the fact that the initial sales period for the Army coin program covered nearly a full week, while the Medal of Honor coin sales cover just two days.

Sales figures for both of these program will bear watching throughout the rest of the year. The authorizing legislation for each program allows the coins to be issued only during the 1-year period beginning January 1, 2011 (or until the maximum authorized mintage has been sold). The US Mint typically pre-announces a sales ending date in mid-December to allow time for order processing and delivery before year-end.

View the numismatic product sales report on Coin Update News.

Silver Content and Values of US Mint Products

After silver traded below $27 per ounce in late January, prices have come back in dramatic fashion. Today, the price of silver reached a 31 year high at nearly $34 per ounce. This has the consequence of making certain United States Mint products relatively better bargains based on the rising metal value of the coins.

At this time, the US Mint has only five different products which contain silver: the 2010 Silver Proof Set, 2011 Silver Proof Set, 2010 America the Beautiful Silver Proof Set, and the proof and uncirculated 2011 Army Commemorative Silver Dollars.

The silver content of each of these products in troy ounces is shown below.

	Silver Content
2010 ATB Quarter Silver Proof Set	0.90420
2010 Silver Proof Set	1.33823
2011 Silver Proof Set	1.33823
Proof Army Silver Dollar	0.77344
Unc Army Silver Dollar	0.77344

Based on a silver price of $34 per ounce, the metal value of a few products is now approaching the US Mint's issue price. The table below shows the silver value for each product, the face value of any non-silver coins included, total of the silver and other face value, and the US Mint's current price.

	Silver	other FV	Total	Price
2010 ATBQ Silver Proof Set	30.74	0	30.74	32.95
2010 Silver Proof Set	45.50	5.06	50.56	56.95
2011 Silver Proof Set	45.50	5.06	50.56	67.95
Proof Commem Silver Dollar	26.30	0	26.30	54.95
Unc Commem Silver Dollar	26.30	0	26.30	49.95

While the US Mint adopted a pricing strategy to allow them to frequently adjust the prices of products containing gold or platinum, the products containing silver are subject to their old procedure which requires publication in the Federal Register. In the recent past, the issue prices for silver products have been established prior to the start of sales and not adjusted subsequently. In extreme circumstances, the US Mint would have the ability to suspend sales until new prices could be published and made effective.

Besides current US Mint products, there are a number of past products that often trade on the secondary market for below the silver value. Within comments, some readers have mentioned the 2000 Silver Proof Set or the 1971-1974 "Blue Ikes". These are uncirculated Eisenhower Dollars that the US Mint struck in 40% silver for collectors.

An excellent resource for checking the metal value of U.S. coins is Coinflation.com, which I used to help in the calculations above.