Welcome to Coin Update!
We’re back to bring you another round up of coin collecting news and articles from around the internet! In a significant development, the United States Mint will suspend production of Presidential Dollars for circulation. There are several articles on the announcement as well as some articles with reactions and implications. Also, designs for the 2012 Star Spangled Banner coins, other commemorative coin legislation, America the Beautiful Quarters, NGC services and fees, the Holey Dollar, collecting early gold coins, Steven Duckor, numismatic sales report, and notable auctions. On to the links…
Under the authority of the Treasury Secretary, the production of Presidential Dollar coins for circulation has been suspended. Only the limited number of coins needed to fulfill demand from collectors will continue to be produced. The reason cited for the suspension was cost savings.
Mint News Blog provides some preliminary thoughts on the implications for collectors and the United States Mint.
The mainstream media took notice of the $1 coin suspension. Here is coverage from the Wall Street Journal, Bloomberg, and USA Today.
There are those opposed to the suspension. Here are statements from the Dollar Coin Alliance and Citizens Against Government Waste. The $1 coin program actually generates a profit through seigniorage. Alternately, the elimination of the $1 bill would be projected to save billions in the long run.
Finally, here is a post from NPR whose coverage of the 1.4 billion $1 coins in storage brought national attention to the issue.
Moving on… the designs for the 2012 Star Spangled Banner Commemorative Coins have been announced. The program includes a $5 gold coin and silver dollar.
A bill for a potential future commemorative program honoring the US Marshals Service is expected to be approved by the House of Representatives on Thursday.
The US Mint has written off $82,215 that was either lost or stolen through coin exchange programs at their headquarters in Washington DC.
Has the huge supply overhang of State Quarters finally been drawn down? If future production levels for the quarter will increase, it might make sense to put away some of the lowest mintage America the Beautiful Quarters.
Coin grading firm NGC has announced their services and fees for 2012. There are price increases and refinements for some submission tiers.
Here’s the story of the first currency minted in Australia, the “Holey Dollar”.
Doug Winter provides some suggestions on how to get started collecting early gold coins.
Coin Rarities & Related Topics recounts the collecting journey of Dr. Steven Duckor.
The latest US Mint numismatic sales report includes the figures for the 2011 commemorative coins just ahead of the planned conclusion of sales at the end of the week. Some additional thoughts on the future potential for the 2011 commemoratives given the probable low mintages.
And now for some notable auctions. To start, an example of the 1900 Lafayette Silver Dollar graded ANACS MS62. The coin features George Washington and General Lafayette and was the first commemorative silver dollar issued by the United States.
Next, the key date 1877 Indian Head Cent graded PCGS XF40.
Last, representing one of the most popular modern commemoratives the 2001 American Buffalo Silver Dollar two coin set. The coins features the classic design from James Earle Fraser’s Buffalo Nickel.
That’s it for the update. See you next time!
Can someone please explain to me how/why the US Mint is always so quick to halt gold/silver coin sales when the prices go up drastically in any given day (as they were doing when the prices were rising several months ago) but now, when the prices are falling drastically, they only drop the price down ONE notch? If all goes as I predict, gold prices will slide further but the US Mint will NOT drop prices again until next Wednesday (if the prices at that time are lower than the price today).
Seems quite Unfair. I have been wanting to buy more gold but only at my price – which it would have hit today if they adjusted accordingly. If prices continue to drop tomorrow (as I expect they will), they should halt sales and lower their prices accordingly just as they do when prices go up.
They are following the criteria specified in the document published in the Federal Register. This specifically allows sales to be halted in the event of rapidly rising precious metals prices. It makes no allowance for the halt or immediate adjustment of pricing in the event of rapidly falling precious metals prices.
http://www.federalregister.gov/articles/2011/11/02/2011-28354/notification-of-expanded-pricing-grid-for-precious-metals-products-containing-platinum-and
It’s not fair from a customer standpoint. From the Mint’s standpoint, they have written the rules to allow weekly price adjustments and protect themselves from being forced to sell at low premiums. They make no protections to prevent customers from buying at high premiums.