Wednesday, August 31, 2011

Lucy Hayes First Spouse Gold Coins

Tomorrow, September 1, 2011 at 12:00 Noon ET, the United States Mint will begin sales of the 2011 Lucy Hayes First Spouse Gold Coins. These one half ounce 24 karat gold coins feature the spouse of the 19th President.

The obverse of the coin features a portrait designed by Susan Gamble and sculpted by Don Everhart. The required inscriptions “Lucy Hayes”, “In God We Trust”, “Liberty”, the order of the presidency, years of the term, date and mint mark surround. On the reverse is a scene of the First Lady cheering on two children participating in the first Easter Egg Roll held at the White House. This was designed by Barbara Fox and sculpted by Joseph Menna. The inscriptions include “United States of America”, “E Pluribus Unum”, the legal tender value, weight, and purity of the gold content.

Both proof and uncirculated versions of the coin will be available. The maximum mintage has been set at 15,000, across both options. Pricing will be $1,041 for the uncirculated coins and $1,054 for the proof coins. Under the US Mint’s numismatic gold coin pricing policy, this will be subject to potential weekly change based on the average market price of gold. There are no household ordering limits imposed.

This will be the twentieth release for the First Spouse Gold Coin Program. Provided the series is allowed to continue until the conclusion envisioned under the original legislation, we are now around the half way point.

Much has changed since the first two coins were released in June 2007. Back then, the maximum mintage was set at 40,000 and a rapid sell out was achieved. The prices for the coins were $410.95 for the uncirculated version and $429.95 for the proof.

Now, the mintage level is cut to a little more than a third, and no recent issues have sold the maximum. Early enthusiasm has given way to a seemingly dedicated following, supporting a low but steady level of sales. Issue prices are more than two and a half times the original level, following the continuing rise in the market price of gold.

Other News

The US Mint has now listed a release date of September 22, 2011 for the Gettysburg National Military Park Five Ounce Silver Uncirculated Coin. The previous release featuring Mount Hood went on sale July 28, and has been experiencing slower sales than the first four issues. Further details of the Gettysburg coin will be posted as they become available.

The price of the 2011 Proof Platinum Eagle was adjusted lower today. Based on an average market price of platinum in the $1,750 to $1,849.99 range, the coins are now listed at $2,092. This is a reduction of $100 from the price previously in place. The US Mint has now sold 9,395 out of the 15,000 maximum mintage.

Monday, August 29, 2011

Vicksburg National Military Park Quarter Bags and Rolls

Earlier today, the United States Mint began sales of the Vicksburg National Military Park Quarter numismatic bags and rolls. This coin represents the ninth release for the America the Beautiful Quarters series.

The reverse design by Thomas Cleveland features an image of the U.S.S. Cairo on the Yazoo River as it would have appeared while serving in the U.S. Navy during the Civil War. The obverse features the John Flanagan portrait of George Washington that has been used for all issues of the series.

The US Mint is offering two roll sets, which include one 40-coin roll from the Philadelphia Mint and one 40-coin roll from the Denver Mint. The custom designed wrappers indicate the design, state abbreviation, mint mark, and face value of the contents. Each two roll set containing $20 face value in quarters is priced at $39.95.

Separately, the US Mint offers 100-coin bags from either the Philadelphia or Denver Mint. The canvas bags are sewn closed with a tag indicating the date, design, state abbreviation, and mint mark. Each bag containing $25 face value in quarters is priced at $49.95.

The Vicksburg Quarter bags and rolls will be available from the US Mint for one year after the official release date.

An official launch ceremony will be held tomorrow August 30, 9:30 AM CT, at the USS Cairo Museum located on the grounds of the park. After the ceremony, a roll exchange will be available where attendees can exchange currency for rolls of the new quarters at face value.

2011 Proof Silver Eagle Re-Pricing

The US Mint has re-priced the 2011 Proof American Silver Eagle and resumed sales today. The one ounce silver coins are now priced at $68.45 each, representing an increase of $8.50 from the original price of $59.95.

Publication of the re-pricing in the Federal Register came on the same day that the price for the upcoming 2011-W Uncirculated Silver Eagle was published. These collectible uncirculated coins are priced at $60.45 each and will go on sale September 15, 2011.

Back when the 2011 Proof Silver Eagles first went on sale, this CoinWorld article indicated that the US Mint’s pricing was established based on a silver market price of $37.50 per ounce.

The market price of silver is now $40.70 per ounce, which is $3.20 higher than the value used to establish the original price of the 2011 Proof Silver Eagle. The highest London Fix price for silver within the past month was $43.49, which is $5.99 higher than the value used to establish the original price.

Thus, it seems that higher silver prices cannot be blamed for the full extent of the $8.50 increase.

Friday, August 26, 2011

More US Mint Numismatic Pricing Updates

Commemorative Gold Coins Repriced

Late yesterday, the United States Mint resumed sales of the two commemorative gold coins honoring the Medal of Honor and its recipients and the U.S. Army. The $5 gold coins with gold content of 0.24187 troy ounces had been suspended on August 12, 2011 as the price of gold moved towards $1,800 per ounce.

The offering prices are now $79.35 higher than the prices in place before the suspension. The uncirculated versions of each coin are $524.30, while the proof versions are $534.40. The original prices for these products were established through publication in the Federal Register on January 4, 2011 when the market price of gold was around $1,388 per ounce.

Contrary to earlier statements from the Mint, the new prices seem to be fixed and will not fluctuate weekly as with other numismatic gold products. In the event that gold rises to a level which brings the price close to melt value, the coins would likely be suspended for at least a few weeks and repriced again.

Update: The pricing for the commemorative gold coins will be based on a grid, published by the United States Mint today. As with other numismatic gold products, weekly pricing adjustments are allowed based on the average market price of gold. The prices currently in effect reflect the $1,750 to $1,799.99 pricing tier.

Orders for the commmorative gold coins were extremely heavy leading up to the suspension. With the higher prices, the pace of sales will certainly decline from these levels.

If past practice is followed, sales of the commemorative coins should continue until a pre-announced date in mid-December 2011. The authorizing legislation for each program only allows for sales to take place within the current calendar year.

Silver Product Prices in Disarray

Also yesterday, there were developments for some of the US Mint’s silver numismatic products.

Sales of the 2010 Silver Proof Set and 2010 ATB Quarters Silver Proof Set were resumed at the original prices. The products had been suspended on August 19 when the market price of silver was around $42 per ounce. Silver recently dropped to around $39 before rebounding sharply back to $41. Any further rise in silver might cause the re suspension of the 2010 silver annual sets for a fourth time.

The US Mint has suspended sales of the one ounce 2011 Proof Silver Eagle. The message on the product page indicates that this will be a product repricing. When last available, the coins were priced at $59.95 each. This price was established based on a market silver price of $37.50.

The resumption of sales for the 2010 silver annual sets and suspension of the 2011 Proof Silver Eagle seem to be at odds with one another. At times when the market price of silver was higher, sales of the proof Silver Eagles were allowed to continue uninterrupted.

I think it may be the case that the US Mint is establishing the price for the 2011-W Uncirculated Silver Eagle (expected to go on sale September 29) and is using this as an opportunity to bump up the price of the proof version of the coin.

Update 2: The price of the 2011-W Uncirculated Silver Eagle will be $60.45 and the release date is now listed as September 20. This supports my earlier supposition (here and in comments) that the proof coins were being repriced to align the pricing levels relative to the uncirculated coins.

Update 3: The release date has been changed again to September 15, 2011.

The US Mint’s pricing mechanisms are clearly having trouble coping with the recent volatility in precious metals prices. Even the more flexible pricing policy which allows for weekly adjustments can’t keep up with price swings that cover multiple hundreds of dollars in short time periods. It’s also impacting sales patterns, as collectors rush to take advantage of relative bargains and then back off when premiums return to their intended levels.

The last time the US Mint faced a pricing crisis in late 2008, they implemented the grid system for weekly price changes. They might have to take this one step further and implemented daily price changes or even prices that float with the market prices of the underlying metals.

Wednesday, August 24, 2011

US Mint Resumes Numismatic Gold Coin Sales, Prices Unchanged

Earlier this week, the US Mint had suspended all numismatic gold coin offerings as the market price of gold rose towards $1,900 per ounce. This action was taken because products were priced based on a market gold price in the $1,750 to $1,799.99 range and under policy a pricing adjustment could not be implemented until Wednesday. The policy does provide that sales may be suspended at times when the selling price of numismatic products approaches the selling price of bullion products.

After a sharp decline in the price of gold over the past two days, the US Mint has resumed numismatic gold coin sales at the same prices which were in effect when the products were suspended. Although the average price of gold based on the London Fix prices from the prior Thursday AM to the current Wednesday AM was $1,855, the Wednesday PM fix price was $1,770. The Mint’s policy provides no pricing change will take place if the Wednesday PM fix price is in the same range as the current price bracket.

The suspension of 2011 commemorative gold coins has continued. The Medal of Honor and Army $5 gold coins have been suspended since August 12. The US Mint is developing a pricing grid for these products to allow weekly adjustment to be made.

The suspension of the 2010 Silver Proof Set and 2010 ATB Quarters Silver Proof Set also continues. These products were suspended on August 19, when the market price of silver was $42 per ounce.

Tuesday, August 23, 2011

Glacier Quarter Three Coin Set

Today, the United States Mint began sales of the Glacier National Park Quarter Three Coin Set. This is the seventh release for the product type.

Each set includes one uncirculated quarter from the Philadelphia Mint, one uncirculated quarter from the Denver Mint, and one proof quarter from the San Francisco Mint. The three coins are mounted on a plastic card with a description of the coin and park as well as a certificate of authenticity on the back.

All coins in the set have been released within other annual sets earlier in the year. The uncirculated coins are included in the 2011 Uncirculated Mint Set and the 2011 America the Beautiful Quarters Uncirculated Set. The proof coin is included in the 2011 Proof Set and the 2011 America the Beautiful Quarters Proof Set. As such, the product only represents a different arrangement and packaging option.

Each Glacier Quarter Three Coin Set is priced at $14.95. Previously released sets have had sales ranging from a high of 19,200 for Yellowstone and a low of 13,768 for the most recently released set featuring Gettysburg.

Coin Update News: US Mint Numismatic Product Sales Report

America the Beautiful Quarters Album

On July 26, 2011, the US Mint released an album to hold a collection of America the Beautiful Quarters. Based on descriptions, the album holds one example of each of the 56 anticipated designs for the series and provides facts and information about each site.

As of August 22, 2011, total sales for the album have reached 3,004 units. In the past week about 200 albums have been sold. This seems like a very low rate of sales for such a product.

Albums have been released to house the Presidential $1 Coins. The first edition, which holds 2007 to 2008 dated issues, sold 28,667 units. The second edition, for 2009 to 2010 coins, sold 7,139. After that, I believe the product was discontinued.