Behind the 2009 UHR Double Eagle Sales Surge

The most recent sales numbers for the 2009 Ultra High Relief Double Eagle Gold Coin shows a total of 80,700 coins sold. This marks an increase of nearly ten thousand coins over the course of the past three weeks.

The frenzied pace of sales began after the US Mint raised the ordering limit from one coin per household to ten coins per household. I previously examined some other contributing factors to the increase in sales, but missed one of the big ones. Ever since the limit was raised, many coin dealers have been using this as an opportunity to build significant inventories of the 2009 UHR Double Eagle.

This morning on Coin Update News, I posted an article and brief interview with Bob Lecce, the biggest on buyer of 2009 Ultra High Relief Double Eagles. The full article is republished here for Mint News Blog readers.

Dealer Interview: Robert B. Lecce on 2009 Ultra High Relief Double Eagles

With the order limit for the US Mint’s 2009 Ultra High Relief Double Eagle recently increased from one coin per household to ten, many dealers have taken the opportunity to build a significant inventory of the coins. This was very apparent at the ANA World’s Fair of Money when the US Mint’s booth was swamped with customers buying the coins ten at a time.

Supporting the steady stream of buyers were a number of dealers willing to pay instant premiums on coins purchased from the Mint and immediately resold. The coins were available at the US Mint’s booth for $1,289 and dealers were repurchasing the coins for $1,310 to $1,350 each. Assuming the maximum premium, an attendee could have earned a $610 bounty for purchasing and immediately reselling ten coins.

There were at least two dealers who purchased about 200 coins each, but the largest buyer was Bob Lecce of Robert B. Lecce Numismatist Inc. (http://rareusgold.com) who purchased more than 500 coins. Bob was willing to answer a few questions about his purchase.

Since the US Mint raised the order limit, total sales of the UHR Double Eagle have risen from about 71,000 to more than 80,000 in the past three weeks. The more coins the US Mint sells, the higher the final mintage of the coin will be. How do you think a higher mintage will impact the long term potential of the coins?

Bob: I believe the final mintage will not exceed 120,000 coins. This is still a relatively low mintage for what I believe is the most popular and beautiful Modern coin the US Mint has produced to date. The mintage could be much lower if the Mint begins to produce Bullion Gold and Proof Gold Eagles for 2009. Time is running out for the production of 2009 coins. Any time now the Mint could increase the price to $1339 if the average price of Gold remains above $950 for a week based on their newly adopted pricing schedule. I strongly believe the price of Gold will be much higher through 2009 and continue into 2010 and insure a higher base value for these little gems.

I feel an additional 20,000 or 30,000 coins will not impact the long term potential of the UHR’s. These coins are popular world wide. We are exporting many of the to Germany, China, and Japan.

What are your immediate and long term plans for the 2009 Ultra High Relief Double Eagles that you purchased at the World’s Fair of Money?

Bob: I plan to continue creating a two way market in these for the near and long term. These coins are an excellent value now with MS69’s trading at $1375-$1400 and MS70’s at $1700-$1750.

Do you plan to continue acquiring more UHR Double Eagles before the end of the year?

Bob: I have continued to restock and be the strongest buyer in this market. I plan to increase my position to over 2,000 coins for a major marketing plan that I am developing.

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Comments

  1. Anonymous says

    WOW. That guy is taking speculation to the extreme…

    I doubt these coins will be anywhere near as rare/profitable as this guy thinks…

    The mintage number will continue to explode, allowing there to be more supply than demand for these coins. He will probably be stuck holding dozens, if not hundreds of the UHR's and unable to make hardly any money when he does sell them.

  2. Anonymous says

    He does seem to have a good point that as a unique gem, in the long term, there will be appreciation in value both in terms of higher PM prices and collector interest. I have a feeling that 10 years from now these coins will be considered highly collectible.

  3. John says

    A friend of mine has sold dozens of these coins on ebay and many he sells to Germany. This coin is a world wide demand type coin. I could not agree with this guy anymore and that is why I purchased another nine of these coins. Frankly almost any investment is a gamble, a casino has 60/40 odds at best and look at them. I would put this investment at 70/30. Sure I could stand to loose some money but I see a better chance at making some money. You won't get rich trying to make some money on these coins but it is a nice coin to own while you are selling them.

  4. Anonymous says

    I think anyone who has the PCGS FS 70's are the lucky ones or ones with an early date unopened boxes.

  5. Anonymous says

    How do you buy 500 gold coins when there is a "Mint limit" of ten coins per family?

    Goldilocks

  6. Michael says

    He has been repurchasing coins from individuals who buy the ten coin max from the Mint.

    He pays a small bounty above the US Mint price.

  7. Anonymous says

    I called Bob's office to see what he was paying for UHR's. $1275 each and you pay ship/insurance.

  8. Anonymous says

    Does anyone have the population report for pcgs & ngc. I wonder how mande 69's to 70's have been graded. For this guy to get 100 makes you wonder

  9. John says

    here is some UHR data

    PCGS ms69 ms70 total graded %ms70

    1428 1979 3424 57%

    NGC 1548 2021 3580 56%

    NGC ms69pl ms70pl

    139 184 323 57%
    Interesting to note that NGC grades a tad tougher.

  10. Michael says

    "So Michael actually means that YOU pay the small bounty."

    Not sure. Maybe he reduced what he pays, or pays less for opened packages.

  11. John says

    For some reason PCGS has not listed the first strike data in the population reports for the UHR'S. NGC listed there early release data and it is as follows

    ms68 ms 69 ms70 %ms70

    5 400 593 59%

  12. Jesse says

    FYI:

    Effective August 31, 2009 at 12:00 noon (ET): The United States Mint will adjust the household order limit on the 2009 Ultra High Relief Double Eagle Gold Coin from a limit of ten (10) coins per household to twenty-five (25) coins per household. The household order limit will be re-evaluated on a regular basis and the United States Mint will either extend, adjust or

  13. Nathan says

    I think that limit may hurt long-term profitability a little more. Where are the 2009 buffalos? It is ridiculous that none have been produced. I also see no reason why the platinum eagles have not been produced. The mint really needs to release some more information on this matter.

  14. Anonymous says

    Instead of continually raising the limit for UHR's, the Mint should use that gold to finally start producing some Proof Eagles and Buffaloes. As long as we've waited for them, they would FLY off the shelves!

    The Mint probably has plans to cut-off the UHR at 100,000 units. By raising the limit again, they might think that the speculators will buy up the rest of them quickly, thus freeing up their resources to finally get to work on the Eagles and Buffaloes. I hope so, anyway!

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