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New U.S. bullion coins; who cares?

When next year’s quarter program honoring national parks and other sites in 50 states and six other territorial jurisdictions of the United States begins, a parallel issue will also kick in. It is a series of coins you won’t be able to acquire at the local bank.

As each new quarter is released, the program also authorizes the striking of another version of the design on .999 fine silver blanks with diameters double the size of the old Morgan silver dollar.

The even troy weight of the new issue will be five ounces. At the present $16.28 price, the bullion value alone will be $81.40.

When issued by the U.S. Mint, even as a bullion coin there will be a mark-up. That will bring the cost up, but to what? $90, $100, $110?

I think the whole thing makes a joke of American coinage, but then the solons in Congress thought otherwise and tucked the provision into the quarter bill.

Will bullion investors flock to it?

Why would they do so? The American Eagle is so much more widely traded and recognizable.

There is a value to being familiar. Five new five-ounce coins a year runs roughshod over the concept.

It seems to me that the design changes are intended to try to make collectors think they need to buy them.

How many will be willing to spend $500 a year or more on such an item that can only be described as little better than a novelty?

It also pays to remember that silver could rise in price between now and the conclusion of the program in 2021.

On the other hand, if high cost daunts enough collectors, the next generation of hobbyists might have a very low mintage series to look at when the program concludes more than 11 years from now.

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4 Responses to New U.S. bullion coins; who cares?

  1. Daniel Sheffer says:

    Well the Mint has been making subway tokens (SBA, Sac., and President "dollars") so why not keep the junk coming and make silver rounds too?
    They need to stick with coins that have beautiful designs, and in high enough relief.

  2. Unfortunately, this is what congress wanted. Rep. Mike Castle (R-DE) thought that the government should make the 5 ounce rounds that others were making using the design, so it’s in the bill. Rep. Castle wants a new series, so he pushed it. Castle thinks the Mint will reap the same seignorage as the State Quarters, so he fed the Congressional Budget Office information from the first 5 years of the program so that he could dupe his congressional colleagues to vote for this.

    Remember, the US Mint does not do it unless a law is passed.

  3. Gary Barnitz says:

    I wonder how the Mint will justify the 5 oz. bullion issues when they have not,as yet, been able to issue either the 2009 Proof ASE nor the 2009 Burnished "W" ASE? There does not seem to be a lot of thought put into the decisions being made at the mint under Mr. Moy.

  4. Michael says:

    I for one cant wait for the 5 ounce coins to be released. I will be buying 2-3 of each 5 ounce coin. I am a huge outdoors enthusiast so I absolutely love the idea of National Park coins. Its a shame that each state gets one. I would have rather they pick the 50 best instead of one from each state. States like Utah have literally like 4-5 National Parks that should be in this set (Bryce Canyon, Arches, Canyonlands, Zion, etc.)

    I honestly don’t understand all of the criticism. Its not like these are replacing the Eagles. The Eagles will still be available for all investors and collectors so I just done see what the big deal is about making a 5 ounce coin. Considering the subject matter of the coins and their size, these could be some of the best looking coins to be released in a very long time.

    As for Gary Barnitz’s comment, You just don’t get it. This wasn’t a choice the Mint made. This was a law that was passed by the Congress of the United States so The US Mint is required, by law, to release these coins. Mr. Moy, or anyone else at the US Mint, has absolutely no say in the matter. The US Mint does not make these sorts of decisions, They simply comply with such decisions made by congress.

    As for the Eagle proofs, they make those by choice, not because the law says they have too. They decided to stop producing the proofs for the time being as they need to concentrate on making just the standard Eagles that are required by law. Once they are able to get on top of the whole supply/demand problem with the normal eagles, then they will go back to making proofs. The bottom line is that the US Mint is required by law to make the standard Eagles and the 5 ounce state park coins. That is not the case with the proofs. You need to do a bit of research so you understand this topic a bit better. Again the Mint has absolutely no say in the matter.

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