Wednesday, July 20, 2011

Yosemite Five Ounce Silver Coins on Waiting List (Again)

Posted by Mint News Blog | Filed Under: America the Beautiful Quarters


A waiting list notice has once again been posted on the US Mint’s online product page for the 2010-P Yosemite National Park Five Ounce Silver Uncirculated Coins. The notice had been posted nearly one month earlier, but it turned out to have been posted in error.

This coin represents the third numismatic release for the America the Beautiful Five Ounce silver Uncirculated Coins. Sales began at the US Mint on June 9, 2011. By June 12, sales had reached 20,511 units, followed by a report of total sales of 23,104 by June 19.

On June 23, 2011, a waiting list notice was posted, indicating that orders had been received to meet the entire 27,000 mintage. The notice remained in place for nearly two weeks, likely deterring some collectors from placing additional orders.

On July 8, the US Mint removed the one per household ordering limit that had previously been in place. A few days later on July 11, the Mint removed the waiting list notice. An inquiry to the Mint revealed that the waiting list notice had been posted in error and removed as soon as the issue was discovered.

Without the notice or the household ordering limits, the remaining quantity of coins was ordered by collectors in a little over a week.

At this time, the fourth release featuring Grand Canyon remains available for sale, although it is still subject to the one per household ordering limit. Sales have reached 22,026 units as of the most recent sales report.

The fifth release featuring Mount Hood is scheduled to go on sale next week July 28 at 12:00 Noon ET. The price will be the same as previous releases at $279.95 and the one per household ordering limit will be in place for the start of sales.

In related news, a new variety has been identified for the Grand Canyon Five Ounce Uncirculated Coins. Louis Golino has a discussion of the news and other series developments at Coin Update News.

Leave a Comment
Tuesday, July 19, 2011

Gold and Platinum Product Price Increase Likely, Other Suspensions Loom

Posted by Mint News Blog | Filed Under: US Mint


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

Leave a Comment
Monday, July 18, 2011

Ordering Limit Removed for 2011 Proof Silver Eagles

Posted by Mint News Blog | Filed Under: Silver Eagles


Effective Friday, July 15, 2011, the United States Mint removed the ordering limits for the 2011 Proof American Silver Eagle.

When the product first went on sale June 30, 2011, an ordering limit of 100 coins per household was in place. The Mint indicated that after the first week of sales, the limit would be re-evaluated and either extended, adjusted, or removed. The removal of the limit comes after the second week.

Through July 3, the US Mint had reported sales of 367,623 of the 2011 Proof Silver Eagles. In the next full week of availability, the pace of sales had declined. Another 40,368 coins were sold to bring total sales to 407,991. The next report of sales should be available tomorrow.

Last year, the ordering limit for the 2010 Proof Silver Eagle had also been removed after two weeks. Initial sales figures came in at a suspiciously low 273,212. No sales report was issued the following week. For the third week, total sales of 707,704 were reported.

Barring any unforeseen developments, the 2011 Proof Silver Eagles should remain available until very late in the current year, if not into the following year. The coins are priced at $59.95 based on a market silver price of $37.50 per ounce.

Leave a Comment
Friday, July 15, 2011

Changes Ahead for Presidential and Native American Dollars?

Posted by Mint News Blog | Filed Under: Presidential Dollars


A report recently issued by the Board of Governors of the Federal Reserve System suggests that changes might be ahead for Presidential Dollars and Native American Dollars. If suggested legislative actions are taken, the production levels for each of the series would likely be drastically reduced.

The report (summarized on Coin Update or available here in pdf) describes the growing stockpile of $1 coins held by Federal Reserve Banks, which has now reached more than 1.25 billion and will require the construction of a new storage facility.

The coin hoard continues to grow due to specific requirements of the authorizing legislation for each series.

Federal Reserve Banks are required to make each design of the Presidential Dollar series available to financial institutions in unmixed quantities during an introductory period. At the end of each ordering period, a residual amount of coins remains, adding to the hoard. Financial institutions who actually ordered the coins end up redepositing roughly 40% of them, again adding to the hoard.

The separate Native American Dollar series carries a legislative requirement that the coins represent at least 20% of dollar coin production for each year. Since Federal Reserve Banks are not required to order this series, the coins have been primarily distributed through the US Mint’s Direct Ship Program. Unfortunately, an estimated 60% of these coins are eventually redeposited at Reserve Banks, once again adding to the hoard.

According to the report, the United States Mint has suggested legislative action to remove the 20% requirement from the Native American Dollars series. In the recent past, we have seen that when the US Mint suggests legislative action related to coins, it has taken place. Last year, the Mint requested a change to the law related to Silver Eagle production to allow collector versions to be struck even if full demand for bullion coins was not being met. They also requested changes to the specifications for the America the Beautiful Silver Bullion Coins. Both of these changes were provided under the Coin Modernization, Oversight, and Continuity Act of 2010.

The US Mint has not struck any 2011 Native American Dollars in several months, perhaps in anticipation of legislative action to remove the 20% requirement. According to the most recent production figures, for the year to date Native American Dollars account for about 12% of total dollar coin production.

With regards to Presidential Dollars, the Board of Governors of the Federal Reserve System has suggested removal of the requirement for a mandatory introductory period for each design. Rather than being forced to order each new design, the Reserve Banks could instead use existing inventories of dollar coins to fulfill demand from financial institutions.

If both of these legislative changes are made, it would likely have a dramatic impact on the number of Presidential and Native American Dollars produced each year. With so many coins already stockpiled, production might fall to the minimal levels needed to fulfill demand from coin collectors. This may become similar to the 2002-2008 Sacagawea Dollars, which had mintages of just a few million per year. The coins were not issued to the channels of circulation at all, but rather sold at a premium in US Mint numismatic bags and rolls.

The line up of circulating coinage denominations in the United States would grow even stranger. Of the six denominations, two would cost more than their face value to produce (cent and nickel) and two would only be produced in minimal quantities for collectors (half dollars and dollars).

Update: According to NPR, a California Congresswoman is planning to introduce a bill to immediately halt production of dollar coins. I have not seen the exact language of the bill, but this would seem to immediately end the Presidential and Native American Dollars series, and by extension the First Spouse Gold Coin series.

I am not sure how much support the bill would get. The complete elimination of the programs seems to go too far, especially when only small adjustments would solve the main issue of the growing $1 coin hoard.

84 Comments
Thursday, July 14, 2011

US Mint Circulating Coin Production June 2011

Posted by Mint News Blog | Filed Under: Coin Mintages


For the month of June 2011, the United States Mint’s circulating coin production reached 903.06 million. This is the highest monthly level since one year ago in June 2010.

Cents, nickels, and dimes accounted for the majority of production for the prior month, at 94.5% of the total. The balance of production consisted entirely of Presidential Dollars, with quarters and half dollars not struck during the month.

The table below displays the breakdown of production by denomination and mint facility. The first number column represents the production for June 2011, while the second column represents the latest year to date production figures.

2011 US Mint Coin Production Figures
June 2011 YTD 2011
Lincoln Cent – Denver 269.20 M 1,252.94 M
Lincoln Cent – Phil. 240.00 M 1,151.20 M
Jefferson Nickel – Denver 78.48 M 276.96 M
Jefferson Nickel – Phil. 52.32 211.20 M
Roosevelt Dime – Denver 103.50 M 393.00 M
Roosevelt Dime – Phil. 110.00 M 425.50 M
Quarters – Denver 0 92.20 M
Quarters – Phil. 0 91.60 M
Kennedy Half – Denver 0 1.70 M
Kennedy Half – Phil. 0 1.75 M
Native Am Dollar – Denver 0 18.06 M
Native Am Dollar – Phil. 0 9.66 M
Pres Dollar – Denver 22.54 M 97.58 M
Pres Dollar – Phil. 27.02 M 100.66 M
Total 903.06 M 4,124.01 M

At the mid-year mark, circulating coin production is ahead of the levels of last year by about 15%. From January through June 2010, production had reached 3,597.43 million. For all of 2010, circulating coin production had reached 6,373.11 million.

For 2011, the mid year figures show that cents accounted for more than 58% of production. This was followed by dimes, which accounted for nearly 20% of production. From a personal perspective, cents and dimes have been the only 2011-dated coins that I have encountered in circulation.

The United States Mint has provided the preliminary production figures for the Olympic National Park Quarter. With 61 million produced across both facilities, the total is almost exactly in line with the previous two designs for the year. The US Mint does reserve the right to restart production of any design for the America the Beautiful Quarters Program within the year of release, so these numbers should not be considered final.

Shown below are all of the production levels by design that have been released by the US Mint so far. The figures for the listed Presidential Dollars can be considered final.

2011 US Mint Coin Production by Design
Denver Phil. Total
Gettysburg Quarter 30.80 M 30.40 M 61.20 M
Glacier Quarter 31.20 M 30.40 M 61.60 M
Olympic Quarter 30.60 M 30.40 M 61.00 M
Andrew Johnson Dollar 37.10 M 35.56 M 72.66 M
Ulysses S. Grant Dollar 37.94 M 38.08 M 76.02 M
24 Comments
« Older Posts
Newer Posts »