US Mint Publishes New Pricing Policy for Gold & Platinum Numismatic Products

Today, the US Mint published notification of a new pricing policy for Gold and Platinum Numismatic products. This pricing policy will apply to collectible gold and platinum products that the US Mint sells directly to collectors. The new policy is drastic and much needed change that provides a greater level of predictability and transparency for the US Mint's customers.

The move seems to be in response to the incredibly volatile precious metals prices experienced during 2008. During the course of 2008, platinum was up more than 48% at its peak and down more than 50% at its low. Gold was up over 21% at its peak and down over 14% at its low. Amidst these fluctuations, the US Mint raised prices for platinum products once, suspend sales twice, and lowered prices twice. Gold products were available for sale at very high premiums for most of the year before being briefly suspended and resumed with lowered towards the end of the year.

The US Mint's pricing policy will allow them to adjust the prices of products on a weekly basis, when the average price of gold and platinum cross certain thresholds. The new pricing methodology will become effective January 12, 2009.

The notification also provides collectors with the price for the 2009 Ultra High Relief Gold Double Eagle. Provided the average price of gold remains between $850.00 - $899.99, the price will be $1,239.00.


I will have a follow up post tomorrow with some reactions and thoughts. For now here is the US Mint's notification and charts for pricing of Gold and Platinum coins (click on the charts for large size versions):

[Federal Register: January 6, 2009 (Volume 74, Number 3)]
[Notices]
[Page 493-496]

DEPARTMENT OF THE TREASURY

United States Mint


Notification of New Pricing Methodology for Numismatic Products
Containing Platinum and Gold Coins

SUMMARY: The United States Mint is implementing a new pricing methodology for its numismatic products containing platinum and gold coins to mitigate the effect that fluctuating gold and platinum commodity costs has on the pricing of these products. The new pricing methodology is based primarily on the London Fix weekly average (average of the London Fix prices covering the previous Thursday a.m. Fix through the Wednesday a.m. Fix) platinum and gold prices, which reflect the market value of the platinum and gold bullion that these products contain. As required by law, the prices of these products also must be sufficient to recover all other costs incurred by the United States Mint, such as the cost of minting, marketing, and distributing such products (including labor, materials, dies, use of machinery, and promotional and overhead expenses). This pricing methodology will allow the United States Mint to change the prices of these products as often as weekly so they better reflect the costs of platinum and gold on the open markets.

DATES: The new pricing methodology, as further explained in the SUPPLEMENTARY INFORMATION section, will go into effect on January 12, 2008.

SUPPLEMENTARY INFORMATION: Pursuant to the authority that 31 U.S.C. 5111(a)(3), 5112(i), 5112(k), 5112(o), and 5112(q) grant the Secretary of the Treasury to mint and issue gold and platinum coins and to prepare and distribute numismatic items, the United States Mint sells to the public numismatic products containing American Eagle Gold and Platinum Coins, American Buffalo Gold Coins, First Spouse Gold Coins, and the 2009 United States Mint Ultra High Relief Double Eagle Gold Coin. In accordance with 31 U.S.C. 9701 31 U.S.C. 9701(b)(2)(B), the United States Mint is changing the prices of these coins to reflect a new methodology in pricing.

Effective January 12, 2009, the United States Mint will commence selling numismatic products containing American Eagle Gold and Platinum Coins, American Buffalo Gold Coins, First Spouse Gold Coins, and the 2009 United States Mint Ultra High Relief Double Eagle Gold Coin at prices established by using the new pricing methodology. Specifically, each Wednesday, the United States Mint will apply the average London Fix for platinum and gold (average of the London Fix prices covering the previous Thursday A.M. Fix through the Wednesday A.M. Fix) to the below pricing schedules. Price adjustments as a result of this process, if any, will be effective at 10 a.m. E.S.T. on the immediately following Thursday.

Price Chart for Gold Numismatic Products (click to enlarge)


Price Chart for Platinum Numismatic Products (click to enlarge)

Tour of the Philadelphia Mint

On Monday, I had the opportunity to visit the Philadelphia Mint. It's something that I have wanted to do for some time. Since my wife had to travel to Pennsylvania this week, we decided to make the drive a day early to visit the Mint. We went with her parents and our 9 month old son.

My first impression was the immense size of the facility. The building actually takes up the entire block. It is mostly windowless and looks like a very secure fortress. We circled the building once by car, and then parked at a nearby parking garage. The Philadelphia Mint does not provide parking. The picture below is the front of the building. You can see one of the guards in front of the entrance.



Before we could enter the building, we had to show a government issued picture ID and pass through a metal detector. The guards were strict about not allowing any cameras into the building. Anyone considering a tour, should read this US Mint page beforehand. In addition to cameras, there is a long list of prohibited objects including "pens." These items are not even allowed in the building, so be sure to leave them in your car.

The tour is self guided, with a few televisions placed at various stations to provide video. The tour takes place through several corridors. The main corridor seems run the length of the entire building and overlooks the production floor through plate glass windows.

The production floor below was packed with machinery. Most of the processes seem highly automated. When we took the tour there didn't seem to be much coin producing activity taking place. We may have taken the tour during a slow period. We saw less than ten Mint workers below, which might have been due to the high automation of the process or the lack of coin production.

Before and after the main corridor were various displays, which included medals, commemorative coins, historic US Mint equipment, and copies of some historic documents. The coin displays were put together at least a few years ago (perhaps 2002) and didn't include recent issues. We took the tour at a leisurely pace and it took less than an hour.

After the tour, we visited the Philadelphia Mint Gift Shop. They sold various coin themed or Mint branded items, coin jewelry, and some of the familiar US Mint coin products. This included Mint Sets, Proof Sets, Gold Eagles, Silver Eagles, and the Gold Buffalo Celebration coin. (Unfortunately there were no 2008 Proof Sets on sale!) Most of the products for sale are currently available online, with the exception of the 2007 Annual Uncirculated Dollar Set, the 2007 Commemoratives, and the 2008 Bald Eagle Half Dollar Commemorative.

A machine in the lobby was available to change bills for new quarters or dollar coins. The quarters dispensed were 2008 Hawaii Quarters. The dollar coins dispensed were the new 2009 Native American Dollars. This is the earliest I have ever had a current year dated coin in hand.

First impression of the coin, the obverse and reverse almost seem mismatched. The style of the image and lettering differ on each side, making it seem more like two different coins than two sides of the same. The obverse looks curious and unbalanced without the date on the right side. It's a big blank area where I have become accustomed to seeing the date as part of the Sacagawea Dollar design.

Another observation, the style of the edge lettering looks very different than the edge lettering I have seen on 2007 and 2008 Presidential Dollars. The lettering is thinner, closer together, and incused less deeply. The lettering is impressed so shallow and thin that I am wondering whether coins which experience circulation might quickly become dateless.

Below is a picture of the new 2009 Native American Dollar. Also included are two pictures comparing the edge lettering of the 2009 Native American Dollar (above) to the the edge lettering of a 2008 John Quincy Adams Presidential Dollar (below).

Double Prosperity Set- A Good Buy?

I've only written about the 8-8-08 Double Prosperity Set once, just before it was released. At the time, I highlighted the fact that the two coins in the set could be purchased individually for $193.05 less than the price of the set. So basically, you were paying nearly $200 for a custom wooden box. Since that post, circumstances have changed and the Double Prosperity Set now looks like a good buy.

The Double Prosperity Set contains two coins: the one-half ounce 2008-W American Gold Eagle and the one-half ounce 2008-W American Gold Buffalo.

To highlight a point, the coins do contain the "W" mint marked coins. This is significant because it means that these are the collectible versions of the coins, which are minted in much lower quantities than the bullion versions.


Many readers have sent me questions about this set, since the US Mint's product page makes no mention of the "W" mint mark. Reports from (other) readers, as well as the US Mint's initial press release found here, confirm that the coins do have the "W" mint mark. From the press release:

"Both coins in the 8-8-08 Double Prosperity Set are legal tender with a nominal face value designation of $25. But their gold metal content and artistry make them worth far more. Inscriptions on the coins include the "W" mint mark for the United States Mint at West Point, the date, the fineness and the weight."

Since the coins went on sale, three circumstances have aligned, which make the set now look like a good buy.

First, the premium above the prices of the individual coins has declined. This happened when the US Mint had a massive re-pricing of nearly all of their gold and platinum products in mid-November. The prices for the individual coins were re-priced $15 and $56 lower, while the Double Prosperity Set was re-priced $150 lower. This served to eliminate some of the excessive premium for the set.

Second, the one-half ounce 2008-W Gold Buffalo coin sold out in November and secondary market prices have risen. From the data in my recent post examining prices for sold out US Mint products, this coin has been selling for prices in the $650 to $720 range.

The Double Prosperity Set is currently priced at $1,078.88. If the Gold Buffalo coin is worth $650, then you are getting the Gold Eagle for $428.88. This is nearly $80 less than the US Mint's individual price, and actually less than the value of the gold content of the coin. Additionally, both coins seem to have some potential for further price appreciation down the line.

Third, the most recent Mint Stats published on Numismaster show that only 4,563 sets have been sold. This is the first time the sales figure for the set has been published, and it is much lower than I would have expected.

The number is low enough so that the value of the Gold Buffalo coin should not be diluted, and it may also eventually create a premium for the Double Prosperity Set as packaged. As I have examined previously, sometimes specially packaged sets derive premiums far above the values of the individual coins.

When you put these three factors together, the Double Prosperity Set might actually live up to its name.

2009 DC & US Territories Quarters Proof Set Release

The US Mint will release the 2009 District of Columbia & US Territories Quarters Proof Set on January 5, 2009 at 12:00 Noon ET.

This set will contain clad proof examples of the 2009 Quarters honoring Washington DC, Puerto Rico, Guam, American Samoa, the US Virgin Islands, and the Northern Mariana Islands. This makes a total of six quarters, up from last year's five quarters. The packaging for the set has been updated for the new program, and also to accommodate the additional coin.

The set are priced at $14.95. This represents an increase in price of $1 per set over last year's price, likely due to the additional coin. The US Mint has already posted the product page, although ordering options will not be available until the official start of sales.

This will be the US Mint's second product release of the new year. Today, sales of the 2009 Native American Dollars began via the US Mint's Direct Ship Program. Quantities of 250 or 500 of the new dollar coins can be purchased at face value with no charge for shipping.

US Mint 2009 Product Release Schedule

Archived version of the US Mint's 2009 Product Release Schedule.

Availability Date	Product Description
1/5/2009	United States Mint 2009 District of Columbia & U.S. Territories Quarters Proof Set™
1/15/2009	Native American $1 Coin Rolls
1/22/2009	2009 Ultra High Relief Double Eagle Gold Coin
1/22/2009	Kennedy Half-Dollar Bag and Two-Roll Set
1/26/2009	District of Columbia Bags and Two-Roll Set
2/10/2009	2009 United States Mint Presidential $1 Coin Proof Set™
2/12/2009	Abraham Lincoln Commemorative Silver Dollar
2/19/2009	William Henry Harrison $1 Coin Rolls
3/5/2009	First Spouse Series One-Half Ounce Gold Proof Coin – Anna Harrison
3/5/2009	First Spouse Series One-Half Ounce Gold Uncirculated Coin – Anna Harrison
3/13/2009	2009 Lincoln Cent Two-Roll Set “Birthplace”
3/17/2009	William Henry Harrison $1 Coin Cover
3/19/2009	Anna Harrison Bronze Medal 1 5/16”
3/23/2009	United States Mint 2009 District of Columbia & U.S. Territories Quarters Silver Proof Set™
3/26/2009	Louis Braille Bicentennial Silver Dollar
3/30/2009	Puerto Rico Bags and Two-Roll Set
4/2/2009	2009 Presidential $1 Coin Uncirculated Set (P&D)
4/7/2009	United States Mint Presidential $1 Coin & First Spouse Medal Set™ - William Henry Harrison
4/24/2009	District of Columbia Official First Day Coin Cover
4/30/2009	Multi-Lens Collector’s Box
4/30/2009	5-Pack Dividers for Multi-Lens Collector’s Box
5/14/2009	2009 Lincoln Cent Two-Roll Set “Formative Years”
5/19/2009	United States Mint 2009 District of Columbia and U.S. Territories Quarters Program Map
5/21/2009	John Tyler $1 Coin Rolls
5/26/2009	Puerto Rico Official First Day Coin Cover
5/26/2009	Guam Bags and Two-Roll Sets
6/1/2009	2009 United States Mint Proof Set®
7/2/2009	First Spouse Series One-Half Ounce Gold Proof Coin – Letitia Tyler
7/2/2009	First Spouse Series One-Half Ounce Gold Uncirculated Coin – Letitia Tyler
7/2/2009	Letitia Tyler Bronze Medal 1 5/16”
7/2/2009	John Tyler $1 Coin Cover
7/14/2009	United States Mint Presidential $1 Coin & First Spouse Medal Set™ - John Tyler (Letitia Tyler)
7/17/2009	2009 United States Mint Silver Proof Set™
7/27/2009	American Samoa Bags and Two-Roll Set
7/28/2009	Guam Official First Day Coin Cover
8/6/2009	First Spouse Series One-Half Ounce Gold Proof Coin – Julia Tyler
8/6/2009	First Spouse Series One-Half Ounce Gold Uncirculated Coin – Julia Tyler
8/6/2009	Julia Tyler Bronze Medal 1 5/16”
8/13/2009	2009 Lincoln Cent Two-Roll Set “Professional Life”
8/19/2009	The Official United States Mint Coin Album – Presidential $1 Coins™ (Volume 2)
8/20/2009	James K. Polk $1 Coin Rolls
8/25/2009	United States Mint Presidential $1 Coin & First Spouse Medal Set™ - John Tyler (Julia Tyler)
8/26/2009	2009 Lincoln Bicentennial One Cent Proof Set*
9/3/2009	First Spouse Series One-Half Ounce Gold Proof Coin – Sarah Polk
9/3/2009	First Spouse Series One-Half Ounce Gold Uncirculated Coin – Sarah Polk
9/3/2009	Sarah Polk Bronze Medal 1 5/16”
9/8/2009	American Samoa Official First Day Coin Cover
9/17/2009	United States Mint Presidential $1 Coin & First Spouse Medal Set™ - Sarah Polk
9/28/2009	U.S. Virgin Islands Bags and Two-Roll Set
10/1/2009	2009 United States Mint Uncirculated Coin Set®
10/1/2009	James K. Polk $1 Coin Cover
10/8/2009	United States Mint Braille Education Set
10/15/2009	United States Mint Lincoln Coin and Chronicles Set
10/29/2009	American Buffalo Gold Proof Coin
11/10/2009	U.S. Virgin Islands Official First Day Coin Cover
11/12/2009	2009 Lincoln Cent Two-Roll Set “Presidency”
11/19/2009	Zachary Taylor $1 Coin Rolls
11/30/2009	Northern Marianas Islands Bags and Two-Roll Set
12/3/2009	American Eagle Platinum Proof Coin
12/3/2009	First Spouse Series One-Half Ounce Gold Proof Coin – Margaret Taylor
12/3/2009	First Spouse Series One-Half Ounce Gold Uncirculated Coin – Margaret Taylor
12/3/2009	Margaret Taylor Bronze Medal 1 5/16”
12/3/2009	First Spouse Five-Medal Set
12/17/2009	United States Mint Presidential $1 Coin & First Spouse Medal Set™ - Margaret Taylor
12/30/2009	Zachary Taylor $1 Coin Cover
1/12/2010	Northern Mariana Islands Official First Day Coin Cover

View the US Mint 2008 Product Release Schedule.