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 Friday, January 30, 2009
What can the Mint do?
Posted by Dave
The Mint will raise the price of its silver American Eagle bullion coins on Feb. 9. Authorized purchasers are able to acquire the coins for the cost of an ounce of silver plus $1.40 per coin presently. The premium will rise to $1.50. I imagine the Mint will be criticized, but it shouldn’t be. Any other business that had a hot product that trades for a price so much higher on the secondary market than on the primary market would be aggressively raising prices. The $1.50 would be more like $2 or $2.25. That would not be popular among the online pundit class, but it is how business works. Instead, we continue to see shortages of these coins on the market and a rationing system in place to apportion coins to the current buyers. Bullion investment advisors point to this shortage of American Eagles and other bullion coins worldwide as a indicator that the price of the underlying ounce of silver itself should be far higher. This has a ring of plausibility to it, and sounds better than the reality of a production bottleneck at blank producers. (The Mint does not produce its own blanks.) When demand for physical coins rises so far beyond ordinary demand from prior years, it is not surprising that the physical plant and equipment necessary to fabricate blanks can’t meet demand. Businesses don’t spend large sums of money to keep large amounts of idle plants and equipment online just in case there is an unexpected surge in demand. That’s a quick way to bankruptcy. An even quicker way to bankruptcy is to read the present unusual demand for blanks as a sign that huge new investments need to be made in production facilities to meet it. Once that is done and demand is satisfied and then falls, the owners of the new equipment would be stuck. This unfortunate cycle has always been a problem in things like the aluminum industry, the steel industry and iron ore mining. In good times, demand and prices soar. In bad times they both fall off a cliff. The spectacular run up and then fall in oil prices from $147 a barrel last July is another example of demand rising and falling faster than the underlying infrastructure can adjust. What’s the Mint to do? Since it can’t take the money and run like a private business, it is pretty much stuck with what it is currently doing.
Friday, January 30, 2009 2:05:00 PM (GMT Standard Time, UTC+00:00)
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 Thursday, January 29, 2009
The doctor is in
Posted by Dave
I can tell that we are in an economic downturn simply by the tone of e-mail communications to me. It gets harsher. One person wrote me two e-mails in the span of two days. The first was to complain about the winner of the Coin of the Year Contest announced last week. She wanted to buy the 2007 Mongolian 500 tugrik but didn’t know where to buy it. The second e-mail arrived when the Mint announced online its weekly repricing of the Ultra High Relief Saint-Gaudens $20. She jumped to the conclusion that the order that she had already placed would be repriced higher, costing her more. I assured her that that would not be the case, but she replied in a third e-mail that she didn’t really trust the Mint to do the right thing. Another writer complained to me that he somehow didn’t see news in Numismatic News of the availability of the Ultra High Relief when it went on sale Jan. 22, but had nevertheless bought one in the first days of availability, so even though he was able to buy one, he wrote he felt that I had let him down. I can understand the stresses collectors face. To the extent that I save the family dog from being kicked, feel free to vent in e-mails to me.
Thursday, January 29, 2009 1:53:23 PM (GMT Standard Time, UTC+00:00)
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 Wednesday, January 28, 2009
Two kinds of waiting
Posted by Dave
I am a few minutes late this morning in posting my blog because when I signed onto my computer, the usual fonts that I use had gone missing. After opening three documents just in case one or two had been corrupted, I decided to reboot. Fortunately, this got me going again. My wait to get up and functioning was brief. Computer problems are a fact of life. This one I am happy to say was easily remedied. I have started receiving e-mails from readers who ordered the Ultra High Relief Saint-Gaudens gold $20. When we reported last week that there could be delays of up to nine months for delivery, I had been contacted by those who had placed orders and had gotten e-mail confirmation of a Feb. 6 delivery. Naturally, they asked what was all this about delay. Well, now I am getting another batch of e-mails from these same collectors who have told me that they have seen the delivery date pushed back to Feb. 20 and wanted me to be aware of this. I appreciate this reader input. We will all see how the deliveries go. Bob Van Ryzin, my Coins Magazine editor colleague, says he has been confirmed, pushed back and then confirmed again at an earlier date. I hope he gets his coin quickly because I am as anxious to see it as I know other readers are. I have an idea of what it will be like, because I saw the display of the coins at the Mint booth last year at the American Numismatic Association convention. However, there is nothing like being able to hold something at my own desk so I can look at it in my own way. That waiting and the joy of eventually acquiring a coin is a happy part of collecting. Waiting for a computer is an entirely different sort of experience.
Wednesday, January 28, 2009 1:58:26 PM (GMT Standard Time, UTC+00:00)
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 Tuesday, January 27, 2009
What's with the sales surges?
Posted by Dave
With gold skittering along the $900-a-troy-ounce mark, the Mint has announced that the 2008 American Eagle tenth-ounce gold proof coins sold out yesterday. Collectors are by now getting used to a new pattern as sales for collector versions of the Eagles close. As they watch which mintages look low as the year closes, what they see are very large sales surges in percentage terms at the end of their availability. The one-ounce proof was at 11,722 in the Nov. 9 report. It jumped to 16,327 by the Dec. 14 report. The half ounce was 3,169 Dec. 14. It leaped to 14,792 by Jan. 11. The quarter ounce was 4,639 Dec. 14. The total in the Jan. 11 was 15,229. The surge for the tenth has been smaller. It was sitting at 10,335 Dec. 14 and was 13,580 last week. Even the four-coin set had a merry run. It went from 9,569 Dec. 14 to 13,072 Jan. 11. Are all these being purchased by individual collector buyers, or are there large purchases being made by a very few buyers? If the latter is true, these large supplies (in percentage terms) will overhang the market for quite some time unless some sort of promotion can convince individual buyers to take a chance on them. These relatively small sales numbers that then large leaps should be a caution flag for anyone looking to do anything other than buy them for the long term. Can you imagine the buzz in the hobby if this kind of sales leap occurred with proof sets or uncirculated coin sets? By the way, also announced yesterday, the American Buffalo 2008 Celebration Coins sold out.
Tuesday, January 27, 2009 2:08:11 PM (GMT Standard Time, UTC+00:00)
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 Monday, January 26, 2009
Turn out the lights on National Coin Week?
Posted by Dave
Is it time to abolish National Coin Week? You might think so if answers to a recent poll question are any guide. The event that inspires national and local proclamations in support of organized numismatics has been a hobby staple for about twice as many years as I have been an active collector. But does it do any good? The weekly poll question that appears in Numismatic News and its companion e-mailed newsletter teaches me a lot. It helps to show what’s on the minds of readers and how strongly they feel about things. It is not a scientific poll, but I think it is useful nevertheless. With some polls I receive a lot of yes or no responses. Those topics readers have an opinion on, but they are not passionate about them one way or the other. The more written responses that I get that include lengthy explanations, the more I know that readers are passionate about a topic. For the poll where I asked, “Will you be involved in any activities to observe National Coin Week?” I received precisely one written response. My congratulations go to Robert R. Maisch of the Bridge City Coin and Stamp Club in Mobridge, S.D. There is no prize, but to Mr. Maisch might go the responsibility of turning out the lights on a long-standing hobby tradition that might have outlived its usefulness.
Monday, January 26, 2009 1:53:48 PM (GMT Standard Time, UTC+00:00)
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 Friday, January 23, 2009
Race on for Ultra High Relief
Posted by Dave
The Mint’s Web site slowed down and its 800 number backed up yesterday when sales of the Ultra High Relief Saint-Gaudens began at noon. Fellow staff member Bob Van Ryzin, editor of Coins Magazine and our resident expert on the work of Augustus Saint-Gaudens, was one of those caught up in his effort to buy his one-per-household limit. That order limitation had a least one dealer offering to pay people to buy coins. The price, I believe was $110 per order. Grading services have issued their submission rules for the new coins. The race to be the first on the block to own an MS-70 version is on, or will they call it Proof-70?. Obviously some people think it is a race worth running. I have already had an e-mail from a successful buyer who complained about the elaborate packaging. He figured the coin could have been sold for $50 less if it were simply put in a plastic capsule. Whether his box costs $50 or not, it sounds like the opinion of someone who is going to submit the coin to a grading service. Possible delays in delivery of up to nine months can give the coin an aura of scarcity. However, the Mint could strike up to 300,000 of the coins when all is said and done and that would make it quite common. Will the beauty factor overrule the high possible mintage factor in collector decisions? The 27mm coin, which is $10 size is more than 50 percent thicker than the pre-1934 $10s because it contains one troy ounce of .9999 fine gold. Perhaps it is just the “how quick can I get it slabbed" factor.
Friday, January 23, 2009 2:06:07 PM (GMT Standard Time, UTC+00:00)
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 Thursday, January 22, 2009
Saint-Gaudens on your purchase list?
Posted by Dave
Today the U.S. Mint will begin selling the 2009 Ultra-High-Relief gold $20 to collectors at a price of $1,189. As Coins Magazine editor Bob Van Ryzin remarked in a meeting this week, he is surprised it is so low. With gold at roughly $850 a troy ounce, collectors are paying an additional $339 for the incredible Saint-Gaudens artwork. That’s less than a 50 percent markup, roughly 40 percent, to be more precise. In the world coin market, the rule of thumb is any gold collector coin is at least double the value of the gold in it. Of course, collectors are not in the habit of thanking the Mint for its prices. For collectors, we have a habit that if something isn’t free, we want a discount of at least 10 percent, more if we can negotiate it. Some early buyers will get the coins rapidly, but because of the ongoing shortage of gold coin blanks, the Mint warns that some buyers might wait as long as nine months for delivery. There is a limit of one coin per household to spread the supply around. Potential delivery delays are unfortunate, but they are a by-products of the incredible worldwide demand for gold bullion coins. This has put pressure on the world’s blank producers that the U.S. Mint and other mints depend on. The Ultra-High-Relief will demonstrate the commitment that Augustus Saint-Gaudens and his patron, President Theodore Roosevelt, had to improve the look of U.S. coinage and bring it more in line with the standards of the ancient Greeks. Unfortunately, that plan was spoiled by the needs of bankers and commerce generally to have coins that are stackable. So, the coin that wasn’t produced in 1907 will be available later today at the Mint's Web site, www.usmint.gov. Will you be a buyer?
Thursday, January 22, 2009 2:00:05 PM (GMT Standard Time, UTC+00:00)
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 Wednesday, January 21, 2009
New ICTA committee a loser
Posted by Dave
The Industry Council for Tangible Assets has formed a committee to recommend candidates for U.S. Mint director to the Obama administration. My first reaction was huh? ICTA is a numismatic lobbying organization formed to defend collectors and businessmen from unfair taxes such as state sales taxes on coin and bullion transactions and to win collectors who own coins tax treatment that is identical to the long-term capital gains tax treatment that they get on other investments when the time comes to sell. ICTA educates dealers about how to comply with all cash transaction reporting requirements to prevent them being entrapped in money laundering. These are good and necessary undertakings. ICTA has existed on a shoestring budget since its founding in the early 1980s. Nevertheless, it has won some notable victories in state capitals. There have been some defeats as well, but it is all part of the job. I believe the organization generally serves a useful purpose in areas most hobbyists view as necessary. Formation of this committee crosses the line. Now ICTA is engaging in politics. The Mint director’s job goes to a supporter of the President. When a new President arrives, so does a new Mint director. The Mint has nothing to do with state sales taxes. It has nothing to do with federal tax policy. It has nothing to do with cash reporting enforcement. In short, it has nothing to do with ICTA’s historic purpose. This committee is a loser. It will irritate potential donors who might not agree with its recommendations. ICTA needs all the donors it can get. With such limited means, ICTA needs to stick to its mission. Picking a Mint director is not part of it.
Wednesday, January 21, 2009 2:01:56 PM (GMT Standard Time, UTC+00:00)
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 Tuesday, January 20, 2009
Where do we go next?
Posted by Dave
Today is inauguration day for President Barack Obama. This event and its predecessors always remind me of the 1961 inauguration of President John F. Kennedy. This isn’t due to any similarity or or any parallel. It is simply because the 1961 event is the first one of which I have any memory at all. I don’t remember watching the event, but even at my advanced age of five and a half, I could not help but hear the “Ask not what your country can do for you. Ask what you can do for your country” line that Kennedy spoke. I suppose I heard this on the radio or saw this on an evening news show when watched by my parents. I don’t really remember that part of it. But the famous line reverberates in my mind. It probably helps that the clip was repeated many times through the years. Will there be an equally famous line today that we will all remember? We will see. Numismatically, the Kennedy administration was full of change. It became legal to own Gold Certificates again. We lost Silver Certificates to Federal Reserve Notes. The handwriting was on the wall for silver in coinage as the Treasury directed price of the metal crept ever closer to the point at which it would exceed face value. It hit $1.2929 in September of 1963, which is the point where the silver in the silver dollar is worth $1. This development set off the great adventure and chain of events we are still on today. Collectors lament the loss of silver in coins, which occurred under the terms of the Coinage Act of 1965. The rosey glow of memory makes for silly claims. I have even gotten a letter saying that silver wore better than the clad coinage. That isn’t true, but in the misty idealized past, it should have been. Where will this attachment to precious metals take us next?
Tuesday, January 20, 2009 1:57:25 PM (GMT Standard Time, UTC+00:00)
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 Monday, January 19, 2009
Who will find 2009 cent first?
Posted by Dave
Where are the new Lincoln cents collectors are beginning to ask. It is a natural question. It will be a big year for the denomination. There will be four designs. The 200th anniversary of Lincoln’s birth arrives on Feb. 12. Also, collectors are used to finding new cents in their pocket change rather rapidly as a new year begins. Numismatic News readers usually begin reporting receipt of new cents right about this time. It all depends on the economy. The slower the times, the slower the release of the new dates. In some years the economy was growing so rapidly and the banking system demand for cents was so high that they were even available at the Florida United Numismatists convention when it was held on the first weekend of January. This year the FUN convention was held the second weekend of the year and we have just passed the third weekend on the calendar yet I have heard nothing from either readers or the Mint. So keep your eyes pealed and post a message here, or send me an e-mail at david.harper@fwmedia.com when you find your first 2009-dated coin, cent or otherwise.
Monday, January 19, 2009 1:55:33 PM (GMT Standard Time, UTC+00:00)
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 Friday, January 16, 2009
Will public save 2009 cents?
Posted by Dave
Final mintage figures for 2008 show that the U.S. Mint struck 5,419,200,000 cents. That is down from 7,401,200,000 in 2007 and 8,234,000,000 in 2006. The two-year decline in percentage terms is around 34 percent. Interestingly, the two-year decline for overall coin production is almost the same, at 35 percent, and much of this seeming difference is simply due to rounding conventions for expressing those figures. Cents make up over half of U.S. Mint production at 53 percent. Total coin production in 2008 was 10,141,580,000 coins. Economic conditions play the single largest role in the demand for the one-cent coin. Everybody can see that the economy is sinking badly. Cent demand sinks with it. However, the economy is not the only factor. 2009 will prove or disprove this assertion. Will the four new designs honoring the 200th anniversary of Lincoln’s birth spur production to the point that it will be a larger overall share of annual production? In other words, will the share of 53 percent in 2008 rise to some higher figure? That is something we will just have to wait and see. Collectors can be counted on to save cents in large numbers, but for collectors, large numbers are millions rather than billions. It will take a huge public engagement with the new cent designs to push demand up high enough to register on overall 2009 Mint production figures when they are compiled. Let’s watch and see what happens.
Friday, January 16, 2009 2:01:42 PM (GMT Standard Time, UTC+00:00)
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 Thursday, January 15, 2009
Proof gold Eagle numbers too high?
Posted by Dave
Proof 2008 gold American Eagle numbers took additional large jumps in this week’s Mint Statistics that I assemble for Numismatic News from data supplied by the U.S. Mint. Particularly noteworthy was the increase in the half-ounce coin. It advanced by 3,905 pieces to 14,792. That is a 36 percent increase in supply available to collectors and the secondary market. I mention the secondary market because so many coins these days are bought less by collectors and more by individuals who are trying to profit on perceived low mintages. Another large increase was recorded by the four-coin set, which includes one of each size. It went from 9,569 sets to 13,072, an increase of 3,503, or almost 37 percent. Other numbers changed less. The ounce sale total stands at 16,327. The quarter ounce is 15,229 and the tenth ounce is 11,669. Are these totals low? If we are talking about Lincoln cents or Kennedy half dollars, yes. But these are expensive gold coins. Remember, too, that you must add the four-coin set number to the individual number to get the total of each size, so for the ounce, the total stands at 29,399. All of the combined numbers are well over 20,000. I pick that threshold because the First Spouse half ounce gold coins could not sustain premium prices on the secondary market with these numbers. Can the proof gold American Eagles do so? That is the key market question. I would not be willing to bet on it. Would you?
Thursday, January 15, 2009 1:59:53 PM (GMT Standard Time, UTC+00:00)
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 Wednesday, January 14, 2009
Use cycle to your advantage
Posted by Dave
It is frigid in Iola, Wis. The temperature is below zero and the next couple of mornings will be worse. We have no control over the weather. We who live in Wisconsin just have long experience of getting through it. We look forward to our beautiful spring and summer seasons and grit our teeth, shiver a bit and just get through it. Reports coming out of the Florida United Numismatists Convention held this past weekend in Orlando, while not frigid, have a cold edge to them. The hot market we have been used to in the last few years has cooled. Numismatics has a cyclicality to it. The cycles are not as regular as the seasons in Wisconsin, but they are distinct. I began collecting just before the roll and bag boom crashed in early 1965 and began reading Coins Magazine and Numismatic News in 1967 and 1969, respectively. The aftermath of the roll and bag boom was not pretty for those who got carried away in the wild speculations of the first half of the 1960s. However, for collectors who were focused on educating themselves and building their collections methodically, little changed. In fact, there were many opportunities that presented themselves to collect sets in areas that were out of the spotlight. The lesson? Don’t get caught up in what is being mentioned online. Find a quiet area, learn about it, collect it and when the cycle turns, you will not only have gotten through the present period, but you will probably be surprised at how well you do on the set’s value.
Wednesday, January 14, 2009 1:59:52 PM (GMT Standard Time, UTC+00:00)
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 Tuesday, January 13, 2009
Make sure e-mail complete
Posted by Dave
I was joking with another staff member yesterday as I forwarded her a third e-mail relating to a possible story in the paper. Because the topic could have been handled with one e-mail, I commented that this one might be a record for the number of e-mails it takes to get all the information. This morning e-mail number four was in my inbox. Should I give up counting yet? When I was learning how to write many years ago, the mantra was always, “Who, what, when, where, why and sometimes how.” Make sure you cover all the facts. Learn how to write a lead sentence as a journalist and write in inverted pyramid style and you are set. With e-mail it is sometimes too easy to hit the send key before you have really made sure you have covered all your bases. I get e-mails saying, “I am a subscriber.” OK,. To what? There are five numismatic titles here and my e-mail is not exclusively Numismatic News. “Please send me a free copy.” Never mind that I am not the circulation department, but often no addresses are included. “I have a question.” Well, that isn’t helpful when the question isn’t included in the e-mail. Please state it even if you have sent the same inquiry to three or four other people in this building and you don’t know who should get it. There are other things, but this is enough to give you an idea of my e-mail. E-mail is a wonderful thing, but it has not endowed me or any other recipients with the gift of mind reading. Make sure the ones you send are complete.
Tuesday, January 13, 2009 1:52:58 PM (GMT Standard Time, UTC+00:00)
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 Monday, January 12, 2009
Sets are worth more
Posted by Dave
I see an earlier blog has prompted a request to explore in a little more depth my contention that collectors who assemble sets over time do better financially than collectors who do not. This doesn’t apply just to collectors who can afford 1804 dollars and 1913 Liberty Head nickels. It applies to all collectors. Most collectors are probably familiar with the halo effect at name auctions. Otherwise common coins go for more money than they are worth just because the coins have a famous collection on their pedigree. At the other end of the spectrum, dealers will look at Lincoln sets or other more commonly collected coins to see if the keys are present. If they aren’t, the set is basically evaluated at face value. This doesn’t mean that some of the other coins might not have a little bit more value, it simply means that the would-be buyer doesn’t have the time or inclination to wade through a set of common coins to wring out the last few dollars. The most important reason that complete sets do better is that to assemble them, a collector has to be focused and consistent. Sets need to be complete and they need to be comprised of a group of coins that are matched by grade. To do this, a collector needs to shut out the distractions and focus on his task. Collectors who don’t have the discipline imposed by a set, might make a killing buying the first 2007 First Spouse coins from the Mint, but then they might guess wrong and buy some other item that they thought should have been hot. They waste a great deal of time and money chasing fads. Think of the fad items you might have in your collection. I have some extra Statue of Liberty uncirculated half dollars. The mintage seemed low at the time. Nobody else in my lifetime will make that assessment. While I have several extra Buffalo commemorative silver dollars, I also have some extra West Points to offset them. If I were building a complete set of modern commemoratives, there would be a reason to own these. Because I am not, they are simply unfocused, undisciplined purchases that distract me from more constructive buys. Can I prove any of this with statistics? No. Collectors love their privacy too much to leave statistical evidence for me to look at. I look forward to comments from others on this topic.
Monday, January 12, 2009 1:54:56 PM (GMT Standard Time, UTC+00:00)
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 Friday, January 09, 2009
Take up your pen
Posted by Dave
I’ve made my living by writing. Writing is fairly easy. Making what I write of a quality and topic that will allow me to get paid to do it is the hard part. That’s why I am glad to see the Pennsylvania Association of Numismatists issue a call to writers to make submissions to the Clarion, the organization’s official publication, which is published three times each year. They don’t pay writers, but they do offer something that could put money in the pockets of writers. PAN gives three prizes each year and they aren’t a bad inducement to sit down at the keyboard and get going. An article judged as the first place winner for the year will be awarded a half-ounce American Eagle gold coin. Second place is a quarter-ounce Eagle and third place is a tenth-ounce Eagle. Winners might consider themselves being paid in gold. Obviously, everybody who sends in an article won’t win. However, the odds of winning are far higher than just about any contest I can think of. Articles should be submitted to Dick Duncan, 611 Fairway Drive, Lancaster, PA 17603. There is a catch. You have to be a member of PAN to get a prize. Check out the Web site at www.pancoins.org for additional details about membership.
Friday, January 09, 2009 2:02:41 PM (GMT Standard Time, UTC+00:00)
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 Thursday, January 08, 2009
Mint changes pricing mechanism
Posted by Dave
Collectors who have complained about how the Mint prices its precious metal collector products have been heard by Mint leadership and changes are being made for the gold and platinum products. I had a phone conversation with Deputy Mint Director Andrew D. Brunhart yesterday about it. Prices will now be reviewed on a weekly basis and any changes will be posted by 10 a.m. Eastern Standard Time each Thursday. The new prices will be based on an average of the a.m. and p.m. fixes in London for the prior Thursday to Wednesday period. In addition, if the average stays within a $50 range for gold and a $100 range for platinum, the product prices would not be changed. For example, if prices were based on gold being in the $850 to $899.99 range, an average price anywhere in that range would result in no weekly price changes. However, if the average price falls even a penny below the bottom end of the range, it would trigger new prices based on the next lower price range. The full pricing grid will be posted on the Mint’s Web site within 30 days so collectors can see where the break points are. Though this more active review will probably prevent sales suspensions of a kind that was frequently experienced last year, it does not mean that pricing is based solely on metallic content. These are still collectibles rather than investment products. Brunhart said that in addition to factoring in metal prices and a 15 percent margin, prices also reflect manufacturing costs. This is a step forward. Now let’s see how it works Thursday, Jan. 15, the first day any new pricing would take effect.
Thursday, January 08, 2009 1:51:26 PM (GMT Standard Time, UTC+00:00)
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 Wednesday, January 07, 2009
No hot tips here
Posted by Dave
With my return to work and a full five days to do it in this week, my telephone has been ringing quite a bit. One person wanted to know if the sales figures on the "Mint Statistics" page of Numismatic News were accurate because some of the collector versions of the American Eagle coinage seemed kind of low to him. They are as of the week they were printed. The ultimate question from the caller, of course, was should the caller invest in some of them? That’s not a question I can answer. I am not an investment advisor. I am a newspaper editor. Taking a flier in this or that issue is part and parcel of being a coin collector, but it is not the fundamental aspect of coin collecting. If I say, sure, go ahead and buy it, or don’t buy it, I give the caller grounds to come back at me if the price goes in the opposite direction. And even if I am right every time someone asks me that question, I am denying that person the opportunity to develop as a collector. At its root, coin collecting is about making your own decisions. It is my job to put before collectors the many possibilities that exist in this hobby. It is the essential characteristic of being a coin collector to make one’s own decisions after reviewing those possibilities and matching them to personal taste, budget and time. Chasing possible speculations might be fun and interesting, but it is overlooking the surest investment of all: collectors who assemble sets over time have the highest chance of gaining financially from their efforts and they have the satisfaction of knowing that they met the challenge on their own.
Wednesday, January 07, 2009 2:01:30 PM (GMT Standard Time, UTC+00:00)
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 Tuesday, January 06, 2009
If only
Posted by Dave
Collecting coins by the roll is something that was very common when I got my start in the hobby in 1963. We were nearing the high point of the roll and bag boom, though I didn’t know it. I was simply 8 years old. I certainly didn’t have the money when I started to collect by the roll. I didn’t have roll quantities of much of anything. However, when I got my paper route, my income went up and I had the money to pursue a number of things. One of the odd occurrences was I got excited about BU rolls of 1969-S cents. I was able to get a bunch of them for face value in the year of issue. As I recall, I had 20 rolls. This was the second year of the return of the magic “S” mintmark. The prior year had seen the first “S” cents since 1955. The 1955 had been a hard coin fo me to find in circulation. Among the hundreds of millions of circulating cents from 1968, the 1968-S was not so much hard to find as I was impatient to find one. I guess I figured that when 1969-S cents came my way I should grab them. Then I started learning about the logistical problems of storage. Twenty rolls of Lincolns are pretty bulky. They were in paper bank wrappers. I mulled the idea of putting them in plastic tubes, but I figured why spend the money. The tubes cost a dime apiece then, which was 20 percent of the value of the coins themselves. I left them in paper. A decade passed. I still had them, but they hadn’t done much in terms of value. The action was in precious metals and silver dollars. I opened one of the rolls and they were beginning to tone. The end coins were spotted. Other coins did not look particularly appealing. It seemed like I had wasted my time. I didn’t store them properly. They had deteriorated. Even if I had cared for them, there really wouldn’t have been much profit in them, so I simply took them to a bank for folding money. Yesterday I talked to John Wells, a Milford, Pa., dealer in rolls of Lincoln cents. Those BU 1969-S cents have come alive because of the 200th anniversary of Lincoln’s birth this year and the 100th anniversary of the Lincoln cent itself. So, if anybody has managed to preserve roll quantities of cents from the period, 1968-S-1974-S, or even dates like 1971 from Philadelphia, check on their values. The numbers John was quoting made me wish I had put the 1969-S cents in plastic tubes and then stowed them away for 40 years. Live and learn.
Tuesday, January 06, 2009 2:08:46 PM (GMT Standard Time, UTC+00:00)
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 Monday, January 05, 2009
Short set a welcome break
Posted by Dave
When the six-coin District of Columbia and Territories proof quarter set goes on sale, which according to the Mint schedule, is later today, collectors should celebrate. Why? It is a one-year set. Anybody buying it knows that he has the entire proof output for the six designs. Yes, of course, there will be silver versions, but you get the idea. Collectors of my generation put great stock in the idea of completeness. This set is the pause between two lengthy programs. The 10-year 50-states quarter program ended last year. Next year begins a quarter program that will stretch out 11 years and possibly 22 years to mark American National Parks. A one-year program seems a lucky break for us. It is a numismatic equivalent of instant gratification. Resuming another very long program in 2010 probably seemed like a no-brainer to the members of Congress. The states program worked. It ran for 10 years. It generated a lot of collector interest and revenue for the Treasury. Why not keep the good times rolling? But will it be received in the same way by collectors as the state quarter program was? I don’t think so. The newness of it, the freshness of the state quarter program made it work. Honoring the 50 states is a concept everybody could understand and even agree with. Most collectors agreed it was time for some design changes to our national coinage and this was the best way to do it. National Parks are less important. The program doesn’t have the novelty of the state quarter program. And even the state quarter program experienced a falling off of interest as the years went on. The idea that we need design changes to circulating coins does not seem to be as compelling as it was in 1999. Then there is that completeness question. There is the possibility that the set could become a 22-year set. Who will start collecting a set that can double in size, cost and duration? Some collectors, perhaps many collectors, will not. The secretary of the Treasury could give the program a lift even before it starts by finding that an extension of the program that hasn’t even been begun yet would not be in the public interest. Will the secretary do this? Probably not until near the expiration of the first 11-years of the program. But it is in the first year of the program where collectors will make their critical decision to participate or not participate at the same level they did the state quarter program. It is that very long, possibly 22-year time line that will be the most daunting factor in their thoughts.
Monday, January 05, 2009 2:07:51 PM (GMT Standard Time, UTC+00:00)
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 Friday, January 02, 2009
Hooray for piggy banks
Posted by Dave
Coin collecting was a very popular pastime during the Great Depression and it could become so again as the nation wades through the current recessionary swamp. But is there evidence? Very little so far, but I saw a story online about an increase in demand for piggy banks. Yes, that’s right, piggy banks. If that is indeed the case, noncollectors are beginning to focus on coins in a positive way. That is an achievement. Coins to noncollectors are often treated as pejoratives. I have written for at least 20 years that when a movie wants to indicate a cheapskate, it shows a character tipping a hotel bellman or grocery bagboy with a coin or two. This is no way to increase the prestige of coinage. Even the way we in the hobby promoted the 50 states quarter program could uncharitably be interpreted as denigrating the importance of coins. Collectors often found themselves extolling the virtue of looking for state quarters in change – not by us – but by kids. That’s not a bad thing, but on the prestige scale something for cheapskate adults and kids does not exactly communicate something of lasting value. But the basic piggy bank can help change that. If adults are actually counting their pennies to help pay the bills, it will restore a sense of dignity to the process. A few of them will actually look at them and notice the varying designs. All it takes is a few seconds and a question to form in the mind of a person and he or she might turn into a collector as a result. I have always saved my change, but my coins end up in an old yogurt container after I take a look at them. If buying piggy banks helps others to look at their coins, that will be of great long-term benefit for the hobby.
Friday, January 02, 2009 2:04:59 PM (GMT Standard Time, UTC+00:00)
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