Remember the Chrysler commercials from years ago with Ricardo Montalban saying, “Co-rin-thi-an leather?” Come to find out, Corinthian leather was nothing more than a marketing ploy that sounded rich when said with Mr. Montalban’s accent.
This story is reminiscent of Corinthian leather if you think about it.
So, you’re thinking, “What does leather have to do with coins?”
In a recent press release (May 26, 2011), the US Mint announced they would augment their production of the American Eagle Silver Bullion coins by utilizing the San Francisco mint facilities. With so much demand for the silver bullion eagles, the West Point mint needed help addressing the market’s requirement.
Historically, people desired coins with the San Francisco mint mark more, sometimes much more, than the same coin produced at the other mint locations.
But, in this case, the 2011 American Eagle Silver Bullion coins will not have a mint mark whether they are produced in San Francisco or in their normal mint facility, West Point.
“So, where does the Corinthian leather come into this story?”
Well, the leather doesn’t, but the possibility of a somewhat similar marketing ploy is being introduced.
One of the coin grading services offers to certify the San Francisco produced silver eagles and place them in special holders that signify the coins were minted in San Francisco. To do this, they require the silver bullion coins to be in their original sealed box from the San Francisco mint. Since silver bullion coins are sold to dealers in bulk quantities, the dealers can ship the San Francisco boxes directly to the coin grading service for this special certification.
The labels on the coin holders for these certified American Eagle silver bullion coins will state, “Struck at the San Francisco Mint” and will include an “S” in parentheses after the year [2011(S)]. But remember, no “S” mint mark exists on the coin.
Other than as a marketing gambit, is the San Francisco minted American Eagle silver bullion coin worth any more than the West Point minted coin?
To some, maybe…
But, here’s a problem. Each year, many American Eagle silver bullion coins are purchased as investment coins, for example, for IRAs. Certain investment vehicles require the coins to be in their original mint packaging including the capsule, the clam shell, the outer box and the certificate of authenticity. In fact, these programs will not accept the investment bullion coins in a “certified” form.
Now, of course, if a collector wants a certified American Eagle silver bullion coin with a particular grade and with the San Francisco mint designation on the label, that’s certainly their prerogative.
But, if a purchaser is looking at investment value and the sale of the bullion coins at some future date, purchasing the bullion coins in US Mint original packaging can save money – no need to pay extra for certification. When ready to sell, some people will pay more for certified eagles, but the broader market exists for uncertified American Eagle coins in their original mint packaging.