US Mint’s Monthly Message
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Did you know? The US Mint provides an email alert each month called Coins Online to let people know of recent coin releases or other important US Mint news.
You can easily view the messages online here, and if you want to receive your own copy each month, just click on their subscribe feature. Or, if you don’t want the email, click on their RSS feed button to be alerted when a change is made to the web site.
The March highlights include the US Mint products: Abigail Fillmore First Spouse Gold Coin, the Boy Scouts of America Centennial Silver Dollar, and the first five quarters honoring America’s National Parks. Plus, the message provides a glimpse into April’s product releases and gives the month’s highlight in the H.I.P. Pocket Change Coin of the Month program.
The presidential coin for Millard Fillmore as our thirteenth president was released in February. The first spouse coin for Abigail Fillmore followed in March. The first spouse coin is one-half ounce of 24 karat gold, however the US Mint also offers as a set the dollar coin and a companion first spouse medal. The set contains an uncirculated version of the Millard Fillmore presidential dollar and a first spouse bronze medal with the same obverse and reverse as the first spouse gold coin.
Perhaps the presidential dollars and the first spouse coins are more historical, but the National Parks coins are more beautiful!
The first set of five National Parks quarters include Hots Springs in Arkansas, Yellowstone in Wyoming, Yosemite in California, Grand Canyon in Arizona and Mount Hood in Oregon.
There will be 56 National Park quarters released starting this year, 2010, through 2021. The 56 sites have been chosen from each of the 50 states and the six territories represented in the 50 State Quarters and the District of Columbia and U.S. Territories programs.
The sites were ordered by when they were recognized as a national site. The quarters will be released at a rate of five per year in that order.
Hot Springs National Park became recognized as a national site in April 1832. [Yellowstone - March 1872, Yosemite - October 1890, Grand Canyon - February 1893, Mount Hood - September 1893]
In the US Mint’s fact sheet for the America the Beautiful Quarters Program, the release dates for the 2010 quarters are:
Hot Springs National Park, Arkansas – April 19, 2010
Yellowstone National Park, Wyoming – June 2010
Yosemite National Park, California – July 2010
Grand Canyon National Park, Arizona – September 2010�
Mount Hood National Forest, Oregon – November 2010
Won’t it be fun to collect these quarters?
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Pocket Change
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Did you know that you can have $1.19 in pocket change and not be able to provide $1.00 in change?
How can you have more than $1.00 but not be able to produce a dollar’s worth in change?
Very simple – no nickels!
Three quarters, four dimes and four pennies equals $1.19. This combination of change also equals the largest set of coins that won’t make a $1.00 in change. The closest you can get with this combination is $.99 on the low side or $1.05 on the high side of $1.00.
Let’s see: three quarters, two dimes and four pennies equal the $.99 with two dimes left over. Or, three quarters and three dimes equal the $1.05 with a dime and four pennies remaining.
Or, taking the half dollar as part of the coinage, one half dollar, one quarter, four dimes and four pennies would yield similar results.
But, what happens when you introduce a nickel to the mix? What is the largest combination that won’t provide change for a $1.00?
How about four pennies, two nickels, one dime and three quarters for $.99. If you add any one of the coins, you will be able to make $1.00 in change.
Now, let’s add the half dollar. With four pennies, two nickels, one dime, one quarter and one half dollar, you will have $.99. Again, adding any one coin yields the ability to make $1.00 in change.
So, quiz your friends. Ask them to give you the largest total money and a corresponding combination of coins that won’t yield change for a $1.00.
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Ben Franklin Half Dollar – Did You Know?
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On January 7, 1948, the US Mint announced plans for the new half dollar with the icons of Benjamin Franklin’s portrait on the obverse and the Liberty Bell on the reverse.
In their 1948 press release, the US Mint officials commented, “Ben Franklin was many things to many men, but he never lost an opportunity to preach the virtues of thrift. His face on the new half dollar will serve as a potent reminder, so the Secretary hopes, that thrifty financial management is as important to individuals and to society today as it was in Franklin’s time. Specifically, the Secretary thinks it will remind everyone that an excellent thing to do with spare half dollars and other spare coins these days is to buy savings bonds and stamps.”
Did you know that the Franklin Half Dollar was supposed to be a reminder for saving money and for helping the government with savings bonds? Don’t you find that interesting especially when so many people today, who are used to spending more than they make, find it challenging to pay their bills with less or no pay each month.
Though the Second World War had ended, the 1948 American populace struggled with changing from a war-based economy back to a domestic focused economy. Plus, the workforce changed. As men returned from their military service, many women who worked during the war were forced to quit their jobs though some chose to quit as well. 1948 also began a recessionary period in our economic history.
In July 2009, an article in the Wall Street Journal claimed, “The average length of official unemployment increased to 24.5 weeks, the longest since government began tracking this data in 1948. The number of long-term unemployed (i.e., for 27 weeks or more) has now jumped to 4.4 million, an all-time high.”
Hmmm….wonder what other parallels could be made between now and when the Ben Franklin half dollar was introduced?
Should we bring back good ol’ Ben on a coin to help remind people that thrift and saving can be virtuous? Oh, but wait, we already have Ben Franklin on the $100 bill. With the current cost of goods and with people not circulating the large (half dollar and dollar) coins, perhaps using coinage as the reminder won’t work today.
But, we can use the elements of this story to help teach young people the fundamentals of saving.
A survey of high school students from 1999 determined, ” Although two out of three students say they should know more about money management, only one out of five have taken a personal finance course in school.”
Yes, the survey is more than 10 years old, but with all of the difficulty people have paying their bills today, has the financial education of children, young adults and people in the workforce really improved?
Do people save? Or do they, as Zig Ziglar suggested in his book Over the Top, “trade what they want most for what they want today?”
Ben Franklin on the half dollar and on the $100 bill should be a reminder of thrifty and saving ways.
And just think, those Benjamin Franklin half dollars contain 90% silver. The Franklin half dollars in the higher grades have numismatic value, but even the lower grades retain, at a minimum, their silver commodity value.
In recent years, many people spent beyond their means. With the current economy, both lack of saving and the accumulated debts burden our society.
Perhaps a nice Benjamin Franklin half dollar could begin a wonderful financial education for someone you know – maybe even yourself!
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2009 Dimes
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Have you seen the 2009 minted dimes?
Recently, a dealer in Florida went to his friendly neighborhood bank and found nine rolls of 2009 dimes. Now, a roll contains 50 dimes for $5.00 face value.
Knowing the scarcity of 2009 dimes, this gentleman purchased all nine rolls at the bank for $45. Immediately, he sold each roll for $50 – ten times what he paid per roll.
Wow…900% profit!
Some dealers sell individual 2009 dimes for $1.75 each – all because of their scarcity.
Why are they scarce?
Per the US Mint’s 2009 Annual Report, “Our circulating coin production was at a 45-year low with fewer cash transactions because of the slow economy and Americans cashing in coins they’d been saving.”
They go on to show that fiscal year 2009 delivered 358 million dimes to the Federal Reserve for circulation. That’s roughly 33% of their 2008 fiscal year delivery of 1,070 million. But, their FY 2007 delivery included 2,247 million dimes making FY 2009’s production roughly 16%.
But, this is not calendar production as their their fiscal year ends on September 30.
What if we look at calendar year production numbers – 2009 versus 2008.
| Dime Production | 2009 | 2008 | Percent |
| Denver | 49.50 | 637.50 | 7.8% |
| Philadelphia | 96.50 | 413.00 | 23.4% |
| Total: | 146.00 | 1050.50 | 13.9% |
From a numismatic perspective, that’s very interesting.
The total circulating dime production in 2009 was less than 14% of 2008. In addition, it appears the Denver minted coins will be more difficult to find as they minted roughly one third of the 2009 circulating dimes.
Remember, not always, but generally, the law of supply and demand rules. Smaller supply and bigger demand equals higher prices. (Hint: look for 2009 dimes with a “D” mint mark.)
In addition, take a look at another comment by US Mint Director Moy in the annual report, “The Federal Reserve Bank and the United States Mint forecast continued low circulating coin demand for FY 2010.”
Not only will the circulating coins of 2009 be valuable from a collector’s viewpoint, so will the 2010 minted coins.
What fun!
This would be a great time to generate treasure hunting interest in pocket change again. Some people don’t have a strong collector gene, but most folks become easily intrigued by treasure hunting.
Remember, if you find coin treasures in pocket change, make sure you protect the coins from any further wear. Wrap them in protective surfaces (e.g., handkerchief, tissue, note paper) until you can protect the coins properly.
And, throwing them in your coin jar when you get home is not “protecting them properly.” If you don’t have numismatically approved containers, keep them wrapped in chemical-free cotton or paper.
Enjoy the treasure hunt!
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How to sell gold
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Billboards, TV ads and signs pop-up everywhere saying, “We buy gold!”
Now, even Dave Ramsey – that bastion of financial peace – has added his voice and support in an advertisement touting one of the gold buyers.
Stop and think. People frequently look for the easy and fast way to make the biggest profit. If there are that many people “buying gold,” there must be some large profit margins in their business plans.
Roughly a year ago, Good Morning America performed a simple test to show viewers what a handful of gold buyers would pay.
Let’s look at the details.
Using expert resources and 14 karat gold, they built bags of jewelry worth $410 in gold for that time period. Their expert advised them an offer of $350 or roughly 85% of the gold value would be a good offer.
Remember, the gold buyer considers cost of doing business and profit to determine their offer for your gold, so expecting 100% of gold value is unrealistic.
They visited a local jeweler in addition to obtaining three mail in companies’ bids.
| Actual Offer | Percent of Good Offer | Percent of Gold Value |
|
| Jeweler | $ 345.00 | 98.6% | 84.1% |
| 1 Mail In – 1st Offer | $ 206.00 | 58.9% | 50.2% |
| 1 Mail In – 2nd Offer | $ 275.00 | 78.6% | 67.1% |
| 2 Mail In | $ 89.71 | 25.6% | 21.9% |
| 3 Mail In – 1st Offer | $ 66.05 | 18.9% | 16.1% |
| 3 Mail In – 2nd Offer | $ 137.00 | 39.1% | 33.4% |
Interestingly, they did not ask a coin and bullion dealer what they would offer for the same amount of jewelry.
But, look at the results. The local jeweler was close to the initial projected “good offer.” However, the three mail in companies were not close. The first company’s offer was dramatically different than the other two, but it still was much less than the projected offer.
You’ll note in the study, Good Morning America asked Jeff Aronson, the CEO of Cash4Gold, to comment on the low offers. He replied, “”That’s what that material was worth to me at that time. That’s what it was worth to me to process. I make no apologies for pricing, whatsoever. I’m a service business.”
That’s an interesting point. He’s a “service business” with a high profit margin. If you don’t like the deal, they return your gold.
As one commenter mentioned, the issue is not so much what these gold buyers pay. Instead, the problem is they portray themselves, if not directly, then indirectly, as paying top prices for gold.
They don’t.
As an excellent alternative, many coin and bullion dealers buy gold jewelry at up to 90% of gold’s current market value. (Take a look at this earlier post describing how jewelry’s gold value is determined.)
Mr. Aronson made another comment designed to scare people, “If all you care about is the net dollar, and you’re willing to go to the seedy part of town, and you’re willing to travel around … I want you to go there. I don’t want you to come to me. I want you to come to me for convenience and ease. That’s what I want you to come to me for. If not, I’m happy for you to go someplace else.”
Coin and bullion dealers have shops in well respected parts of town. Do you think it’s a smart business decision to have a coin and bullion shop in a seedy part of town? Security is always a concern for precious metals. Dealers are not going to compound that problem by setting up in a shady area.
Furthermore, you can find coin and bullion dealers at coin shows as well.
Perhaps your time is worth more and you want the convenience of mailing your gold. But, if you want the better prices, look to a coin and bullion dealer.
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Gold Supply and Demand
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People talk about supply and demand driving prices – low supply and high demand should equal high prices. Even though gold has increased in price in the last year, many people claim the price per ounce should be even higher than it is.
This week, gold dropped back under $1100 per troy ounce. Many of the main stream media claim this is due to the dollar, the euro and the trials and tribulations of the European Union along with our economy.
But, people much less frequently heard claim the volatility is due to the central banks attempting to control the gold market prices.
Though long, an article – actually a speech – by Chris Powell, the Secretary/Treasurer of the Gold Anti-Trust Action Committee, provides insights into the gold market: Gold suppression is public policy and public record, not ‘conspiracy theory’
Early in his speech, Mr. Powell quotes Jim Rickards, Director of Market Intelligence at Omnis, “When you own gold you’re fighting every central bank in the world.”
That comment was made at the end of an interesting 6+ minutes on CNBC in September 2009:
Not to be so Negative Nellie, but those comments are scary, especially when Washington continues to add to the deficit.
But back to the earlier point of central banks controlling the prices, Mr. Powell stated,
“The problem with central banking has been mainly the old problem of power — it corrupts.
“Central bankers are supposed to be more capable of restraint than ordinary politicians, and maybe some are, but they are not always or even often capable of the necessary restraint. One market intervention encourages another and another and increases the political pressure to keep intervening to benefit special interests rather than the general interest — to benefit especially the financial interests, the banking and investment banking industries. These interventions, subsidies to special interests, increasingly are needed to prevent the previous imbalances from imploding.
“And so we have come to an era of daily market interventions by central banks — so much so that the main purpose of central banking now is to prevent ordinary markets from happening at all.
“By manipulating the value of money, central banking controls the value of all labor, services, and real goods, and yet it is conducted almost entirely in secret — because, in choosing winners and losers in the economy, advancing infinite amounts of money to some participants in the markets but not to others, administering the ultimate patronage, central banking cannot survive scrutiny.
“Yet the secrecy of central banking now is taken for granted even in nominally democratic countries.”
Furthermore, he provides comments from various authorities and the reference documentation to show the Federal Reserve, the IMF and central banks are in collusion controlling gold prices.
In his speech in November 2009, Mr. Powell continues, “The gold price suppression story is important despite this week’s dramatic rise in the gold price. For even as the price of gold has been rising, we really don’t yet know what a fair price, a free-market price, for gold is, since gold has not traded in a free market for many years and is not trading in a free market now.”
He concludes his speech with comments that gold and silver continue to be great investments, but they require significantly more time to gain the appropriate knowledge.
“And you have to remember the remarkable properties of gold and silver. It’s not just that gold is the most malleable and lustrous of metals, or that silver is the most conductive and reflective, but also that, once they get into the hands of central banks, bullion banks, and exchange-traded funds, gold and silver can become invisible.”
This article was highly informative with his many points even more valid four months later.
But, as with any information, you need to investigate and read more details to draw your own conclusions. Everyone has a frame of reference in developing their point of view, and to a certain extent, an ulterior motive can hide behind people’s viewpoints.
Take a moment to read and develop your own.
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RECALL: Lewis and Clark 2004 Coin and Pouch Set
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On their Consumer Awareness Hot Items page, the US Mint currently has an article about the 2004 United States Mint Lewis and Clark Coin and Pouch Sets Containing Pouches From the Shawnee Nation United Remnant Band of Ohio.
The Shawnee Nation United Remnant Band of Ohio made some of the Handcrafted American Indian pouches included with the 2004 Lewis and Clark Coin and Pouch Sets. Though they were a member of COTA (Circle of Tribal Advisors) when selected to make the pouches, they were not officially recognized by federal and state authorities as an official Indian tribe. Furthermore, their artists were not recognized as official Indian artisans. As such, their artistry cannot be marketed as handcrafted by an American Indian under the Indian Arts and Crafts Act.
A limited number of the 2004 Lewis and Clark Coin and Pouch sets were sold from September through December 2004. The pouches were made by a number of different Indian artisans, and their names are included in the set. The tribe of the artisan can be found on the included Certificate of Authenticity.
Only those 2004 Lewis and Clark Pouch Sets with pouches made by Shawnee Nation United Remnant Band of Ohio artists are being recalled. On their web site, the US Mint offers two different types of returns for the pouches not officially American Indian handcrafted.
You can return the whole set – coin, pouch and packaging showing the Shawnee Nation United Remnant Band of Ohio made the pouch via the following US Mint instructions (COA = “Certificate of Authenticity”):
“Members of the public who own a 2004 United States Mint Lewis and Clark Coin and Pouch Set containing a pouch produced by the Shawnee Nation United Remnant Band of Ohio may return the set, along with the COA, to the United States Mint. Those who return such sets to the United States Mint will receive a payment of $130.00 for each set, representing the original sales price of the product ($120.00), plus $10.00 for each set to defray shipping, handling, and insurance charges.”
If you want to keep the coin, but want to be re-imbursed for the pouch, you must include the pouch and certifying paperwork:
“The Owners of a 2004 United States Mint Lewis and Clark Coin and Pouch Set who desire to keep the Lewis and Clark Expedition Bicentennial Silver Dollar may return the pouch, along with the COA from the Shawnee Nation United Remnant Band of Ohio, for a prorated refund of $90.00, representing the prorated sales price of the pouch ($80.00), plus $10.00 for each pouch to defray shipping, handling, and insurance charges.”
They also add pertinent shipping instructions and remind you to include your own information in the package:
“To receive a refund, send the 2004 United States Mint Lewis and Clark Coin and Pouch Sets, or pouches, along with the COAs indicating that the pouches were made by a member of the Shawnee Nation United Remnant Band of Ohio, by insured mail or overnight delivery to United States Mint, ATTN: Indian Arts & Crafts Return, 801 9th Street, N.W., Washington, DC 20001. Inside of the shipping package be sure to include return address mailing information for the refund, along with a note indicating that the item is to be directed to the Indian Arts & Crafts Return.”
This detail and more can be found on the US Mint’s web site: 2004 United States Mint Lewis and Clark Coin and Pouch Sets Containing Pouches From the Shawnee Nation United Remnant Band of Ohio.
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Bucket vs. Thimble
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A recent Forbes article chronicled the world’s richest people. Though not the first in the list, Warren Buffet remains in the top five, actually number three in the list, at $47B in net worth.
Interestingly, the article quotes from Buffet’s recent annual shareholder letter, “We’ve put a lot of money to work during the chaos of the last two years. When it’s raining gold, reach for a bucket, not a thimble.”
Without the context of the whole letter but interpreting what is said, one perceives his mention of “gold” to mean “opportunity.” As the one of the driving forces behind the highly profitable Berkshire Hathaway, Mr. Buffet certainly knows how to leverage opportunity. For example, research in wikipedia says, “Berkshire Hathaway stock produced a total return of 76% from 2000-2010 versus a negative 11.3% return for the S&P 500.”
But, think about his comment from a numismatist’s perspective. Gold, that yellow, shiny metal, also offers opportunity, especially in today’s economic environment. It’s not just the US economy that drives gold today. The world’s economy and global interests in gold help drive the value too.
Thinking literally for a moment, using a bucket for gold presents a problem. The metal is just too heavy for a good sized bucket!
Pulling tongue back out of cheek, Mr. Buffet’s advice could easily be applied to gold investments.
One should do their homework and be wise in their investments, yet they shouldn’t be overly cautious (using a thimble) when faced with the gold opportunities.
Of course, most people do not have the financial resources (buckets) available to them that a Berkshire Hathaway or Warren Buffet does.
To be a successful gold investor, you don’t need huge resources to start. Many gold vehicles exist for investment depending on your interests and your wallet.
You can invest in physical gold. Coins start at 1/10 ounce, or bullion bars up to 400 ounces. The large bars generally go to central banks or to ETFs. ETFs (Exchange Traded Funds) for gold are backed by physical metal. Then, you can also invest in the variety of gold mining companies as well.
The point here is don’t wait to do your homework and to begin investing. The ultimate rule is “buy low, sell high.” Many metal market analysts predict the metal will soon break through the current ceiling and began climbing in value.
Are they right? Perform your own research – not only on gold – but on the economy and on your assets. Do you want to be without gold in your portfolio?
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Gold Continues to be Interesting…
Take a look at a few of the investment media and a few gold commentaries:
Bloomberg article, Gold Rises on Haven Demand Before Fed Meeting, Aid for Greece, says, “March 16 (Bloomberg) — Gold rose for a second day in New York as investors sought a haven before the U.S. Federal Reserve’s interest rate decision and amid speculation about financial aid to Greece.”
Interestingly, this gentleman, Sol Palha, in his commentary, Is Gold Starting to Trade Like a Currency?, disagrees with a similar Bloomberg article on March 8. He claims, “One almost wants to laugh at the reasoning behind this story. In the past, the main reason for Gold’s upward or downward move was always related to the dollar, but not because a small country like Greece was in trouble. We propose an alternative theory. The fact that the Euro and the dollar were at one point trading higher in tandem suggests that Gold is now being treated as a currency. Traders normally jump from one currency to another as they try to determine which ones are overvalued and which ones are undervalued. This is normal in currencies; we see this almost on a daily basis in the Yen, US dollar, Australian dollar, etc.”
Though they don’t make the quite same claim as Mr. Palha, TheStreet.com article, Gold Prices Lift on Dollar Drop, states, “Investors were buying gold as an alternative investment as they sought the safety of a hard asset over struggling currencies.” In addition, they quote James Moore of thebulliondesk.com as saying, “Given the scale of background concerns, including EU debt, fiscal deficits, U.S. credit ratings and inflation sentiment … the precious metals complex seems set to remain volatile.”
In his article, Is a Major Correction to the Gold Price Coming?, Julian D.W. Phillips concludes, “In such an environment of uncertainty and doubts about the future, it is unlikely that there will be a great exit from gold. It is far more likely that gold will remain attractive as long as the world is in the present state.” He drew that conclusion in part from the following:
>>Investment demand increases from both past investors in gold and investors new to the yellow metal
>>The euro problems continue along with decreased confidence in the European Union’s ability to correct itself
>> Ditto on the dollar problems and our politicians’ lack of interest, attention and ability to fix them
>>Interestingly, there will be short term stability between the euro and dollar as they slide together on the lack of confidence slope
>>China experienced tremendous growth and internal strength, yet they have significant dependence on their exports which stresses their currency issues
>>Plus, India, who sat out the volatility of the last few months, has begun buying gold again.
Mr. Phillips goes on to say, “So the conditions which would support a major correction in the gold price are not present. Should a correction from a failed attack on recent highs occur in such an environment it is likely to be a short one.”
Of course, you need to draw your own conclusions, but gold continues to be an interesting focus.
CANCELLED – 3/14/2010 Coin Show
Yes, that’s true.
Construction delays mean the ballroom will not be available.
The hotel began renovations of their lobby areas to include the ballrooms earlier this year. They scheduled us in the ballroom on the 14th, however unexpected construction delays have made the space unworkable for a coin show.
For the most part, the carpet and wallpaper do not matter to coin dealers or to the guests frequenting the coin show. But, lighting and the ability to set up the tables with sufficient aisleways are important.
Unfortunately, per the hotel’s space management, the ballroom cannot be made even partially ready for a Sunday show. In addition, they do not have other available space for the show with an acceptable size or level of security.
We apologize for the cancellation and the late notice. We, too, look forward to the coin show each month and are disappointed the show had to be cancelled.
But, in a few short weeks, our April show occurs. Mark your calendars for April 11 and plan to visit your favorite dealers.
