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 Wednesday, November 21, 2007
Not yet gone to grandma's?
Posted by Dave
If you are reading this on the day it was written, you haven’t gone over the river and through the woods to grandmother’s house yet for a nice juicy turkey dinner. It is hard sometimes to keep focused on the coin hobby when family obligations beckon, but let’s try. First up, I need to point out a math error in my Monday blog. I slapped my forehead yesterday when I noticed it. It involved the prices of the Dolley Madison First Spouse gold coins. Everybody now knows they went up in price and many consider the increase a substantial one. I wrote that the increase was 19.14 percent on average. I should have written 23.67 percent. For some reason, I divided the difference between the higher and lower prices by the new higher number rather than the lower figure from which the comparison was being made. The outcome does not alter any of the points I was trying to make, but it is an indication that I was sloppy Monday morning. Second up, I see that the “W” uncirculated silver American Eagle coin has gone off sale from the Mint Web site. That is likely due to a depletion in the supply rather than the cost of silver bullion. As of this week’s Mint Statistics, the Mint had sold 558,810 of the coins. That figure is not as high as the 746,421 proofs sold so far, but it is a substantial number and few can complain that they didn’t have adequate chance to buy one. Other items will be going off sale in the coming weeks as supplies run out. These are primarily bullion-related coins. The Mint’s bullion distributors are usually given the chance to take a last crack at inventory before the year closes. The weekly increase in gold and silver American Eagles and Buffalo gold totals seems to indicate that the pipeline is being filled. The holidays are a popular time for bullion coins given as gifts. We will see if the higher prices lessen the demand this year or increase it. I might have messed up the math Monday morning, but there is one figure that I know is correct. I already know how many pieces of pumpkin pie I want to eat tomorrow. Have a happy and safe Thanksgiving. The next post will be on Monday morning.
11/21/2007 9:01:12 AM (Eastern Standard Time, UTC-05:00)
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 Tuesday, November 20, 2007
White House event honors Dolley Madison
Posted by Dave
The first thing I did after I signed in on my computer was go to the U.S. Mint Web site to see if the First Spouse gold coins for Dolley Madison were still being offered for sale. I had my answer as soon as the Mint’s home page came into view. There was no immediate sellout as was the case for the first three First Spouse coins. The Mint was actually advertising the Dolley Madison offering with images and a news crawl moving underneath to call attention to yesterday’s ceremony at the White House with First Lady Laura Bush. Mint Director Ed Moy was present as was a Dolley Madison re-enactor, who was also involved in a ceremony last year. She must be good at portraying Dolley Madison. The fourth First Lady of the United States saved the Gilbert Stuart portrait of George Washington from destruction when she took it just ahead of the advancing British army that burned the White House, the Capitol and other buildings in the city in 1814. The burning of the White House was a low point for the American republic, but Dolley’s reputation was made by her plucky behavior. It did not hurt that the nation’s honor and situtation were retrieved by a peace treaty signed just a few months later that basically said, “Never mind.” The country did not have to pay the price of the significant defeat that led to the loss of the capital city and Andrew Jackson’s victory in the Battle of New Orleans after the treaty was signed made it seem like the United States had won the war. How plucky will collectors be with Dolley Madison’s coins? As I wrote yesterday, prices are up. If historical reputation means anything, Dolley Madison’s coins deserve a sellout, but I know it doesn’t work that way.
11/20/2007 8:59:09 AM (Eastern Standard Time, UTC-05:00)
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 Monday, November 19, 2007
Check those checkbooks
Posted by Dave
Brother, can you spare $20,798,000? That’s what the Mint hopes to get from coin collectors when the Dolley Madison First Spouse gold coins go on sale at noon Eastern time today. This is more than the Mint asked for the Martha Washington and Abigail Adams and Jefferson Liberty coins that went on sale in June and August, respectively. Rapidly rising gold prices have forced the Mint to increase the average sales price by 19.14 percent. I write average because that compares the sales dollar totals from prior offerings and assumes the current offering will sell out in the same even 20,000-coin increments. It may not work out this way. It is possible that the Madison First Spouse coins will not sell out as the others did. The price hike might stop would-be buyers. The less active secondary market for First Spouse coins might also slow down buyers who plan simply to acquire the coins from the Mint for the sole purpose of immdiately selling them online. Perhaps more proofs will sell this time than uncirculated coins. It has been a bit unusual for three offerings in a row to go exactly 50-50 when other programs see proof coins preferred by roughly 3-1. The figure $20,798,000 may not sound like a lot in an age of government budgets in trillions of dollars, but the figure is real money to real collector budgets. Collectors have already ponied up $50,454,000. If the Madison coins sell out, that totals $71,252,000. With a minimum run of 10 years, collectors collectively will be asked for $712,520,000 for First Spouse coins. That number is almost three-quarters of a billion dollars and it presumes no further rises in issue prices. This is a large number to ask of collectors. Can they spare it? We’ll see.
11/19/2007 9:02:18 AM (Eastern Standard Time, UTC-05:00)
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 Friday, November 16, 2007
Got a good home for a 1958-D?
Posted by Dave
The parking lot was particularly empty-looking as I came to work this morning. As the year comes to a close, employees are trying to use up their remaining vacation time before losing it and also hunting season begins tomorrow and a number of the staff who work on our outdoor titles are avid hunters. Coin collectors are hunters of a different sort, but in Iola they can benefit from, or at least be interested in, the new change that comes our way from hunters passing through town for the deer season. I received a 1958-D nickel in change Wednesday. I don’t usually get nickels that old. I also tend to treat Jefferson nickels as I did in 1968. If the coins aren’t silver war nickels, mintmarked from the 1930s, or a 1950-D, I just pass them along. The full-step trend passed me by on a personal level. The new designs since 2004 I look at and appreciate as I spend them, but I still spend them. What was particularly startling about the 1958-D nickel and the reason I looked at it first among the coins in my day’s pocket change was it looked like it had only been in circulation briefly. The Mint luster was vibrant, and the much higher relief of the older coin stood out. I examined it. As my trifocaled eyes were in that split second moment of focusing, I saw the “8” first and then tried to make out what was the “5.” I would grade the coin AU-55. Unfortunately, that is still a big “so what?” What can I do with an AU 1958-D nickel? Well, I showed it to fellow staff member Tom Michael after work. He agreed that you don’t see these kinds of coins in change anymore. He wondered what Whitman album had been raided or cashed in at a bank because the heirs of whoever saved it didn’t know what else to do with it. It is a story about the coin neither of us will ever know. I will spend it. Perhaps someone who is trying to collect Jefferson nickels from change will get it, appreciate it and give it a good home in their own Whitman album.
11/16/2007 9:03:08 AM (Eastern Standard Time, UTC-05:00)
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 Thursday, November 15, 2007
Ends approaches for Mint products
Posted by dave
This time of year it is important for every would-be buyer of Mint products to keep an eye on the calendar. Bullion-related sales suspensions aside, the routine of the Mint is for certain dated products to reach a sales end point as inventories are run down. The first overt indication that this is happening occurred for me yesterday. I have been asking the Mint about when the American Eagle supply for its bullion network will likely run out. The Mint issues a bulletin and gives the distributors a final chance to acquire additional supply. Some years when demand is low, supplies last right through to the close of the calendar year and even are still available early in the new year. That is what happened at the beginning of 2007. Well, while my attention was fixed on the American Eagles, the first Mint indication of a routine conclusion to some programs arrived yesterday with an e-mail saying that it would be the two current commemorative coin programs that would come to an orderly end Dec. 14. Buyers who want the Jamestown 400th anniversary $1 and $5 coins and the silver dollar for the Little Rock 50th anniversary of desegregation of public schools have been warned. We are in the final month of sales. This termination of sales is not because demand has pushed mintages up against the legal ceiling. Hardly more than half of the $5 gold pieces have been purchased in the Jamestown program and the silver dollar sales numbers add up to a bit more than two-thirds of the maximum possible. There is even more room in the Little Rock numbers. The roughly 178,000 that have been sold in all the various options are little more than one-third of the possible 500,000. Interestingly also are the possibilities raised when the sales are terminated. The Little Rock Coin and Medal set is close to reaching its 25,000 sellout number, but it has been on sale for many months. The American Legacy set, which includes a silver dollar from each commemorative program, currently has seen 18,689 sets sold out of a possible 50,000. Will the 50,000-mark magic that has spurred buyers to purchase many other special Mint packaging options cease to work? Let's watch over the next four weeks and find out. However, while you are watching the commemoratives, don't forget to keep an eye on the American Eagles. Annual sets that aren't specifically legislated by Congress will be offered either until supplies run out or the 2008 sets are available. If you are a potential buyer of the offerings that will conclude, don't wait until the last minute and happy hunting.
11/15/2007 8:59:44 AM (Eastern Standard Time, UTC-05:00)
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 Wednesday, November 14, 2007
Proof set and lunch neck and neck
Posted by Dave
I was sitting all alone in the Crystal Cafe for lunch yesterday. It was a slow day. There were just a few other people there eating. No one to really talk to but the waitress. As I munched away, my mind wandered back to the more than 25 years’ worth of business day lunches that I have consumed on the premises. Naturally, my thinking has its own peculiar brand of numismatics and economics thrown in. A quarter century ago, the full lunch, including coffee and sales tax was $3.15 plus tip. Now, the full lunch is $8.60 plus tip. I don’t have coffee with lunch any more. It is charged separately and adds $1.27 to the bill. I usually walk away for $7.33 plus tip. The current full lunch cost is 2.73 times the former cost. That is quite a steep jump. Had I been a new retiree 25 years ago, I would need almost three times the income now for lunch purposes. As a coin collector, I face similar increases, though probably for different reasons. Back in 1982, the standard proof set was $11. Now it is $26.95. That is 2.45 times the price of 25 years ago. These are remarkably similar rises. It can be argued that the proof set is an even better deal than the price indicates. That is because this year’s set features five $1 coins and five state quarters. The 1982 set by contrast was a pretty small set, with just a cent, nickel, dime, quarter and half dollar in it. That’s five coins then versus 14 now. Today’s proof set is a little like buying a piece of pie and getting the ice cream and coffee thrown in for free. It is a good thing I am working to take these price increases in stride. I am sure the Mint does not price its coin offerings on the basis of the cost of a meal at the Crystal Cafe, but these numbers do seem to indicate that we are all in the same boat floating along on the same inflationary ocean. One thing I must remember is I could eat more pie back in 1982. Ah, those were the days. That’s a whole other set of numbers.
11/14/2007 8:59:48 AM (Eastern Standard Time, UTC-05:00)
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 Tuesday, November 13, 2007
Almost time to say 'Hello, Dolley'
Posted by Dave
The fourth and final Presidential dollar coin of 2007 will be officially released to circulation in two days on Nov. 15. While I suppose I should be reflecting on James Madison as the Father of the Constitution, I find my mind wandering to his wife Dolley and the question of whether her First Spouse gold coins will sell out. The market has a way of overcoming sensible historical reflection with the question, “Can I make money on that?” This question isn’t asked by just the eBay posse, but they certainly are the leading proponents of buying Mint products, charging them on credit cards and dumping the purchase on eBay before either the bill has arrived or delivery has taken place. My intentions were certainly good. I even bought another book about the Founding Fathers to learn a little more about them. That has been a standard approach to my reading this year. I haven’t limited myself to it, but I keep coming back to the topic of America’s early years. Dolley Madison is worthy of more thought than the First Spouse buyers might give her. She not only saved Washington’s portrait ahead of the British burning the White House in 1814, she was a wonderful and complementary personality to her husband, who was painfully shy. Imagine that. A successful politician who was shy. We can thank his wife for some of that. Will the gold First Spouse coins sell out? I don’t know. But they do honor someone worthy of the attention.
11/13/2007 8:54:37 AM (Eastern Standard Time, UTC-05:00)
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 Monday, November 12, 2007
Computer starts week with problem
Posted by Dave
I arrived at the office at the usual time this morning to start another week. My computer was not similarly ready. It may seem odd, but I can access my blog and the Internet, but I cannot open the many files I usually work with to put out Numismatic News, World Coin News, Bank Note Reporter and supplements. It is going to be a particularly busy week. World Coin News goes to press Wednesday, the same day Bank Note Reporter has its ad deadline. Tomorrow the Paper Money Market price guide section of Bank Note Reporter goes to press. It's proposed cover was sitting on my chair when I came in. I did not work all day Friday. I headed off to Appleton on errands around 9 o'clock in the morning, but before I left I had gotten the raw material for the cover to the art department. The cover looks good. Today is the ad deadline for the semi-annual show and auction guide that is bound into the three papers in December and again in June. It goes to press Nov. 19. Look at all those deadlines. I haven't even mentioned the standard weekly Numismatic News deadline yet. Thanksgiving will shorten next week's production period, so some of my time this week will also be spent on getting things ready early. As you might guess, I don't have the problem of feeling unneeded. I suppose I could write the same thing about my IT department. The next thing I have to do is alert them to my current problem. They will ask me if I have rebooted recently. I will do so. Then we will see what happens. Before I rebooted, though, I wanted to get this posted. Mondays are always interesting. I am off and running on another one. Wish me luck.
11/12/2007 8:54:16 AM (Eastern Standard Time, UTC-05:00)
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 Friday, November 09, 2007
Future still dark for cent, nickel
Posted by dave
I was all fired up yesterday for a scheduled hearing before the House Financial Services Committee at which Mint Director Ed Moy presumably was going to reveal Mint thinking on the future of the cent and the nickel. It was canceled. Virtually every collector knows that it costs more to strike a cent and a nickel than face value. For the nickel, the metallic value is greater than face value, though for the copper-coated zinc cent the metallic value is still less than face value. Sooner or later, the alloy needs to change if the Mint hopes to stanch the losses on each coin struck. What the alloy will change to is the question. Canada has a wonderful process to coat steel that could keep the cent looking like the cent and still cost much less to produce. The nickel could simply switch to stainless steel. It will feel lighter and cheesier than the current nickel, whose alloy is the same as it was when it was introduced in 1866. However, the cost of production will be less than face value. I know there will be pushback on an alloy change. If the Mint is accused of using lighter and cheesier alloys it can merely point out the obvious that when compared to the euro and other major world currencies, the dollar is 35 percent lighter in value than six years ago and at the rate it is presently falling the world’s savers and investors think it is looking pretty cheesy. This cost problem has been staring the Mint in the face for several years now, but apparently it takes a special favor by a member of Congress to a small firm in his Ohio home district to get officials to talk about it in public. Or maybe not. The hearing, after all, was canceled. The congressman, Rep. Zack Space, wants to exempt a firm in his district from a ban on melting U.S. cents and nickels, though this exemption would apply only to pre-1982 copper cents. His proposed bill to do this is suddenly the center of much wrangling. As special favors go, this doesn’t rank up there with Alaska’s bridge to nowhere, but it is indicative that rules are made to be broken by those with friends in high places.
11/9/2007 9:21:55 AM (Eastern Standard Time, UTC-05:00)
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 Thursday, November 08, 2007
Do we really want them?
Posted by Dave
I was looking at Mint production figures for the Presidential dollar coin program. There have been only three designs so far. A fourth, the Madison, is due out this month. The program will stretch out over 10 years or so in a manner similar to the state quarter program. Unfortunately, unlike the state quarter program, the Presidential set is of a denominiation that is not used everyday by everyday people. You can be accused of passing counterfeits in small Illinois towns if you use them. What happens to mintages in an environment like this? Already, from the Washington coin to the Jefferson dollar, the mintage total has dropped 40 percent, from about 340 million to about 204 million. The Madison will probably fall further as dollar supplies back up. The Mint has used an artful evasion to not produce Sacagawea dollar coins for circulation this year despite explicit law commanding it to do so. This was done for the good reason that supplies were backing up to unreasonably high levels. The added coins are not needed. Presidential dollars are going to follow the same path. The only question in my mind is how quickly the mintages plunge. At some time in the next two years, we will reach a point where the only Presidential dollars struck will be a few million for collectors who want them and no more. This reduces the program essentially to a vanity issue. Collectors get something year by year that nobody else wants just because we are collectors. How long will collectors want something that nobody else cares about? When do we start feeling like chumps? In other words: who will be saving them when the Gerald Ford issue arrives in 2016?
11/8/2007 8:55:09 AM (Eastern Standard Time, UTC-05:00)
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 Wednesday, November 07, 2007
Platinum's back
Posted by Dave
What’s the Mint selling today? That question goes through my mind most days, especially when precious metals hit new highs. Word came yesterday that proof and uncirculated platinum American Eagles were back on sale. The “W” uncirculated pieces had been off sale for about a month. The proofs were off sale for a much shorter period of time, though I did not keep track of the duration. Naturally, prices were raised. The price for the one-ounce platinum proof American Eagle went from $1,599.95 to $1,740.95. That is up 8.8 percent, which doesn’t strike me as a very large number considering the headlines we have been seeing in recent weeks about new record highs. I know those headlines are primarily focused on gold, but people generally lump the metals together. If one is doing well, it is assumed the others are also. The uncirculated “W” platinum American Eagle ounce went from a $1,489.95 price to $1,630.95, which works out to an increase of 9.5 percent. The fractional sizes had price increases of similar magnitude. At this point in time, the uncirculated “W” gold American Eagle coins remain off sale. The proofs are on sale. Only silver has sailed serenely on. Mark-ups for silver coins are much higher, so the Mint has a wider price cushion for fluctuations. Also, it wasn’t until yesterday that silver recaptured the high ground it had first reached in May 2006. Silver bullion went through the $15 barrier to close at $15.327 a troy ounce. It is silver’s price that has the greatest impact on the greatest number of collectors. The proof silver American Eagle is priced at $29.95, which is almost double bullion value and the “W” uncirculated is $21.95, leaving a pricing cushion of more than $6. That should carry the coins at least to the end of the year. What coins will the Mint be selling tomorrow? We’ll have to wait to find out, but holiday gift givers might want to act now and avoid the potential frustration of not being able to buy something at a future date.
11/7/2007 9:06:12 AM (Eastern Standard Time, UTC-05:00)
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 Tuesday, November 06, 2007
Award cycle about to begin
Posted by Dave
It is time for me to start thinking about next year’s Numismatic Ambassador Awards. These are given to individuals who are the selfless volunteers who make the organized hobby function, from setting up bourse tables at a local VFW Hall show to overseeing regional and national hobby functions like club National Coin Week activities. There is no set of strict criteria. Numismatic News founded the award in 1974 on the principle that it takes one to know one. We take nominations from anybody. We create hobby biographies from these nominations. We prepare a ballot that is then sent out to current holders of Ambassador Awards for them to vote on the next annual class of winners. The top vote getters are the winners. This process works wonderfully well, because it is both self generating and self policing by the grass roots of the hobby. It has been my privilege to give Ambassador Awards to hobbyists of widely varying backgrounds. I look forward to giving many more. So start thinking of who you want to nominate for an award. The formal call in the print edition of Numismatic News will be in the Nov. 20 issue. There is a nominating form that will help you along in your thought process. I will have the form posted on www.numismaticnews.net when the formal call for nominations is ready in a few days. Put your thinking caps on and get a name or two in mind. Without grass-roots input there would be no award winners and, even if there were, the awards so given would have much less meaning.
11/6/2007 8:54:45 AM (Eastern Standard Time, UTC-05:00)
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