J&T Coins LLC Blog » Gold http://blog.jtcoins.com Providing information on precious metals and coins from the USA and the rest of the world. Wed, 28 Jul 2010 20:09:36 +0000 en hourly 1 http://wordpress.org/?v=3.0 Coin dealers feel stung by tax reporting rule http://blog.jtcoins.com/coin-dealers-feel-stung-by-tax-reporting-rule.html http://blog.jtcoins.com/coin-dealers-feel-stung-by-tax-reporting-rule.html#comments Tue, 27 Jul 2010 16:39:05 +0000 Jim http://blog.jtcoins.com/?p=1825

Coin dealers feel stung by tax reporting rule

July 26, 2010 12:00 AM

People who deal in precious metals could find themselves under tighter government scrutiny because of an obscure provision tucked inside national health care reform – and they are not pleased.

Signed into law March 23, the Patient Protection and Affordable Care Act has a revenue-generating component intended to collect as much as $17 billion in uncollected taxes over the next 10 years. Those who buy and sell gold and silver coins are just learning about new rules requiring them to use IRS Form 1099 to report transactions exceeding $600 during a calendar year.

“I am sort of reeling from that sort of a revelation. It would ruin my business,” said Stockton’s Bob Hallam, owner of Avenue Coins and Currency on the Miracle Mile.

How it works

The legislation: Section 9006 of the Patient Protection and Affordable Care Act will amend the Internal Revenue Code to expand the scope of IRS Form 1099.

The impact: Starting Jan. 1, 2012, this form will be used to report to the IRS the purchases of all goods and services by small businesses that exceed $600 during a calendar year. Precious metals such as coins and bullion fall into this category.

The end result: Every time a citizen sells more than $600 worth of gold to a dealer, the transaction will have to be reported to the government by the buyer.

And the value is …

2007: Gold’s low point before the recession was $607.40 per ounce.

2009: Gold’s highest point came in December; it was $1,215.02 per ounce.

He learned this week about the strange provision in the health care bill in an e-mail from a friend.

Although all small businesses are potentially affected by the law, the loudest outcry has come from coin dealers. An ABC News story has prompted many to call for the rule’s repeal.

Some members of Congress have responded and are trying to get the provision – set to go into effect in 2012 – removed.

“I signed up 10 new co-sponsors just today because of the article,” said Rep. Dan Lungren, R-Gold River, who introduced legislation to repeal the rule in April.

Lungren’s bill, HR5141, has been languishing in the House Ways and Means Committee since then, even though it has more than 100 co-sponsors.

“We’ve got people calling us now. We are getting calls from all over the country from folks that deal in gold coins.”

Lungren said the rule is offensive, because it assumes that many people who sell goods to businesses are cheating on their taxes.

“I call this the universal snitch act,” Lungren said.

Form 1099 is used to track and report miscellaneous income associated with independent contractors or self-employed individuals.

This tax code change, according to some experts, would help pay for national health care reform.

Expanding the form to cover all goods purchased by businesses goes far beyond the original purpose of the IRS form, Lungren said.

“Everybody you buy a single thing from, you are supposed to report on them,” Lungren said.

Even though the reporting rule is not a new tax, the increased paperwork burden and the prospect that some customers may be unwilling to provide a Social Security number and birth date to sell gold are problems enough, coin dealers say.

Some sellers also worry that the legislation gives the government the capacity to track the buying and selling of precious metals.

Historically, gold has been seized by certain governments during severe economic downturns.

In April 1933, Executive Order 6102 was signed by President Franklin D. Roosevelt, requiring U.S. citizens to deliver all but small amounts of gold to the Federal Reserve.

Berlene Horne, office manager for Calaveras Coin and Collectibles in Angels Camp, said the new law has the potential to shut down her business. She said the shop would have to add an employee to its five-person staff just to keep up with the paperwork.

Horne said employees at Calaveras Coin and Collectibles are telling customers about the reporting rule.

“I would guess they are calling their senators and stuff,” she said.

In Stockton, Hallam said he’s also hoping the reporting rule will be repealed.

Otherwise, he predicted, it will drive gold and coin transactions underground.

“It will immediately establish a black market,” Hallam said.

Contact reporter Dana M. Nichols at (209) 607-1361 or dnichols@recordnet.com. Visit his blog at recordnet.com/calaverasblog.

]]> http://blog.jtcoins.com/coin-dealers-feel-stung-by-tax-reporting-rule.html/feed 0 UPWARD TREND IN GOLD PRICE DURING SECOND QUARTER 2010 BACKED BY STRONG FUNDAMENTALS, SAYS THE WORLD GOLD COUNCIL http://blog.jtcoins.com/upward-trend-in-gold-price-during-second-quarter-2010-backed-by-strong-fundamentals-says-the-world-gold-council.html http://blog.jtcoins.com/upward-trend-in-gold-price-during-second-quarter-2010-backed-by-strong-fundamentals-says-the-world-gold-council.html#comments Tue, 27 Jul 2010 16:23:11 +0000 Jim http://blog.jtcoins.com/?p=1819

UPWARD TREND IN GOLD PRICE DURING SECOND QUARTER 2010 BACKED BY STRONG FUNDAMENTALS, SAYS THE WORLD GOLD COUNCIL

Mixed economic news around the world, concerns over a double dip recession and significant fiat currency weakness meant gold retained its lustre as a protector of wealth during the second quarter 2010, according to the World Gold Council’s (WGC) latest Gold Investment Digest (GID).  The quarter recorded significant net inflows into various gold-backed investment vehicles, as investors sought to harness gold’s investment benefits at a time of weakness and pronounced volatility in other asset classes.

While China has remained resilient, GID also suggests that jewellery demand in other key markets has continued to recover from a weaker 2009.

The report, which was published today, showed:

  • Heightened investor activity supported an upward trend in the gold price throughout the quarter; on several occasions breaking record highs and reaching US$1,261.00/oz on the London PM fix on 28 June, as investors sought out assets offering protection, diversification and liquidity.
  • Investors bought 273.8 net tonnes of gold via exchange traded funds (ETFs) in Q2 2010.  This represents the second largest quarterly inflow on record and brought the total amount of gold held in the ETFs that the WGC monitors to over 2,000 tonnes (worth US$81.6 billion). In particular, SPDR Gold Shares (GLD) surpassed the US$50 billion milestone.
  • In the early part of the second quarter, many currencies around the globe not only fell against the US dollar but also experienced higher levels of volatility as credit woes in Europe had a negative impact on the outlook for the euro and the British pound. While the dollar appeared to fare better, investors sought out gold as a currency alternative as evidenced by large purchases of coins and small bars around the globe.
  • Many assets, including global equities and commodities, experienced a period of pronounced volatility, in some instances surpassing levels seen during the first quarter of 2009.  Gold price volatility, however, remained much lower than many of these assets during the period, meaning gold outperformed versus S&P 500 Total Return Index, the MSCI World ex US Index and S&P Goldman Sachs Commodities Index (S&P GSCI) on a risk-adjusted basis.
  • In Q2 2010, the diversity of gold’s demand base, less driven by industrial uses as many other commodities, meant that gold was one of the best performing commodities.  Oil fell by 9.1% and, similarly, metals with a greater degree of exposure to industrial cycles fell substantially: zinc, nickel and lead dropping by more than 20.0% quarter-on-quarter. Even platinum and palladium posted quarterly losses on the order of 6.7% and 7.9%, respectively.

Juan Carlos Artigas, Investment Research Manager, World Gold Council commented:

“During the second quarter, many financial assets, especially in Europe, suffered losses as risk aversion, credit concerns, and disappointing economic news around the world prompted investors to seek assets with little or no default risk, greater liquidity and lower volatility.  As a result, gold was, once again, one of very few assets that exhibited a positive price performance during the period.  However, it is important to note that while gold continued its upward trend during Q2 2010, its price, relative to the price of various assets is not overvalued by historical standards1 .

“As a result of such wider macro and financial market turbulence, investment demand for gold has unsurprisingly continued to build.  However, what cannot be overlooked during periods of heightened investment activity is that jewellery consumption over the last five years, on average, has accounted for 61% of global gold demand.  Economic development in many emerging markets, and especially China, remains a positive force for the gold market. Moreover, an appreciation of the yuan in a more flexible exchange regime will likely be beneficial to Chinese gold consumers in the long-run. Furthermore, anecdotal evidence suggests that, while jewellery consumption in India and the Middle East has not been immune to higher gold prices and an increase in volatility, these markets are advancing relative to the lower consumption levels experienced in 2009.

“The second quarter marked a negative and highly volatile period for many fiat currencies, not least the euro and the British pound where austerity measures to resolve unhealthy public finances created a gloomy economic outlook.  The dollar seemed to fare better, regaining some ground against emerging market currencies. Given the proven role gold plays as a hedge against weakness in the dollar, it is often assumed that when the US dollar strengthens, the gold price suffers.  This quarter’s data again underlines that a stronger dollar does not automatically translate into weakness in gold’s price trend.”

The full report can be downloaded from: http://www.gold.org/rs_archive/GID_July_2010.pdf

World Gold Council
World Gold Council’s mission is to stimulate and sustain the demand for gold and to create enduring value for its stakeholders. It is funded by the world’s leading gold mining companies.  For further information visit www.gold.org

]]> http://blog.jtcoins.com/upward-trend-in-gold-price-during-second-quarter-2010-backed-by-strong-fundamentals-says-the-world-gold-council.html/feed 0 Are investors losing interest in gold? http://blog.jtcoins.com/1809.html http://blog.jtcoins.com/1809.html#comments Mon, 26 Jul 2010 15:19:52 +0000 Jim http://blog.jtcoins.com/?p=1809

By Debbie Carlson of Kitco News
Chicago — (Kitco News) –The dog days of summer have the gold market in its teeth, keeping prices in a stubborn range and not shaking loose of its prey.

Without a catalyst gold prices could very well hold in its roughly $100 range between $1,170 and $1,270 area. The first catalyst, however, could come in the form of selling, rather than notching a new high.

The events that have drawn investors to gold have lost their urgency: concerns about sovereign debt are beginning to subside; currencies like the euro are stabilizing; inflation is less of a worry. So far, nothing shocking has leaked so far from the stress tests the European Central Bank are conducting on banks there. Without fundamental news to entice buying, gold prices are drifting.

Gold’s meandering has caused the investment crowd to start to lose interest in owning the yellow metal at these levels. Without buying by investors, gold’s price could start to creep lower by default. And that seems to be what is happening right now.

“We’re starting to see some liquidation in the ETFs, pruning back some of their longs,” said Frank Lesh, futures analyst at FuturePath Trading.

In the futures market at the Comex division of the New York Mercantile Exchange, he said some traders are starting to sell rallies and are trying to play the market from the short side. He stressed the positions were “nothing definitive” but that some traders were putting on shorts simply because the market is drifting lower.

Sterling Smith, commodity trading adviser and market analyst at Country Hedging, said there’s been some selling of gold call options in the futures market above the market.

How the market acts in the coming days could signal whether the current floor can hold. The $1,170 area for the August futures is a big trendline, Lesh said. If that trendline is seriously broken, prices could crumble to $1,100. He said there are a lot of sell stops under the market that would be tripped if prices spiked down.

That could be a significant win for the bears, if it happened. He noted $1,100 is an important level because that’s where prices ended 2009. That means anyone who bought this year would be left with a losing position. Conceivably a break of $1,100 could bring gold to the $1,000 area.

Smith said he doubted the small speculators who have bought gold on this year’s rally would look to exit positions. “They’re a very stubborn lot; they like to hold gold through thick and thin,” he said.

He also added if prices sunk to the $1,120-30 area, it might entice some jewelry fabricators back into the market to get some coverage. Jewelry demand has been a casuality of this year’s investment-driven price rise.

In addition to possible technical pressure, Smith said if the stock markets were to fall sharply, that could pull gold with it. On heavy down days, gold has fallen in sympathy with equities. Poor economic news could also trigger a break, he said.

On the upside, strong economic data or something that might signal inflation could push prices back to their highs, he said. Otherwise, renewed problems in Europe, such as a flare up for Hungary as it tries to deal with its debt situation might eventually cause the euro to buckle. Hungary still uses its own currency, the forint, but problems there could spill over to the euro. He also said the rally in the euro might have run its course. There is some sense the gains in the euro came from ideas the common currency was oversold after its recent losses versus the dollar and due for a rebound. Short covering was likely a factor in its upswing.

Commerzbank sees the third quarter average price for gold at $1,150 and back to $1,250 by the end of 2010 and into the first quarter of 2011 and at $1,350 by end of 2011. The bank, in a Wednesday research noted, agreed the doldrums have struck gold now and expects this consolidative trend to last.

In the short-term prices could decay, but longer-term they remain bullish on gold. They said selling of gold scrap fell 43% in the first quarter of 2010. “As incomes rise, households are obviously less obliged or willing to sell gold in order to obtain liquidity,” the bank said.

Mining is likely to increase, but the activity will likely come from China and Russia, which probably will put that in storage in its own central banks. India could purchase its gold from the International Monetary Fund as it has done before.

“As is evident from India’s central bank’s gold purchases in the autumn of last year at record prices of $1,045 on average at that time, India will not be put off either by a high price level,” the bank said.

By Debbie Carlson, contributing to Kitco News;dcarlson@kitco.com

]]> http://blog.jtcoins.com/1809.html/feed 0 2010 American Silver Proof Eagle Update http://blog.jtcoins.com/2010-american-silver-proof-eagle-update.html http://blog.jtcoins.com/2010-american-silver-proof-eagle-update.html#comments Thu, 22 Jul 2010 21:54:59 +0000 Jim http://blog.jtcoins.com/?p=1778

Wednesday, July 21, 2010

2010 Proof Silver Eagle Update

Posted by: Michael | Posted in:


Testimony recently delivered by US Mint Director Edmund Moy to a Senate Subcommittee on Domestic Monetary Policy and Technology includes new developments for the 2010 Proof Silver Eagle. The fate of this coin has remained unknown due to the continued high demand for the bullion version of the coin.

Under current law, the United States Mint is legally obligated to produce American Gold Eagle and American Silver Eagle bullion coins in quantities sufficient to meet the public demand. The recent heightened demand for physical bullion coins has left the US Mint unable to keep up. For nearly two years, the US Mint has been sourcing all precious metals blanks to the production of bullion coins, resulting rather than collector coins. This led to the premature end of production for the 2008 Proof Silver Eagle and the cancellation of the 2009 Proof Silver Eagle.

Director Moy provided testimony on July 20, 2010 during a hearing of the House of Representatives Subcommittee on Domestic Monetary Policy and Technology on “The State of U.S. Coins and Currency.” In his statement he acknowledged the disappointment of collectors and expressed his encouragement that the Subcommittee was considering an amendment to the law that would allow issuance of collectible versions of the American Silver Eagle even if the full public demand for bullion coins is not met. The US Mint has already provided technical drafting assistance for the change in law. Until this hearing, the possible amendment to the law had been unrevealed.

If such a change is enacted, the Director explained that the US Mint could produce 200,000 coins per month. If production began in September, total production of about 830,000 coins could be accomplished by the end of 2010.

Planned collectible versions of the coin would include the 2010-W Uncirculated Silver Eagle and 2010-W Proof Silver Eagle.

Moy’s statement did not include any mention of collectible versions of the 2010 Gold Eagle, but this might suggest that the prospects for these coins is more likely. This year, the US Mint has managed to catch up with gold bullion offerings faster, and even quietly ended their allocation program for the one ounce coins. With the gold bullion coins apparently being minted in quantities sufficient to meet public demand, this should clear the way for production of uncirculated and proof 2010-W Gold Eagles, even without amendment to the law.

]]> http://blog.jtcoins.com/2010-american-silver-proof-eagle-update.html/feed 0 J&T Coins, LLC now selling 2008-W Burnished Gold American Buffalo’s http://blog.jtcoins.com/jt-coins-llc-now-selling-2008-w-burnished-gold-american-buffalos.html http://blog.jtcoins.com/jt-coins-llc-now-selling-2008-w-burnished-gold-american-buffalos.html#comments Thu, 22 Jul 2010 21:46:27 +0000 Jim http://blog.jtcoins.com/?p=1769

J&T Coins, LLC is now selling 2008-W Burnished Gold American Buffalo’s. 

4 piece sets and individual pieces are now available for sale.

Click here to view our inventory and order.

For an excellent article on the 2008 American Buffalo Gold Coins please click here.

Friday, March 12, 2010

Deconstructing 2008-W Gold Buffalo Coins

Posted by: Michael | Posted in:

The 2008-W Proof and Uncircualted Gold Buffalo Coins have been one of the most successful US Mint products in years, when considering the secondary market price appreciation. The coins have been a frequent topic of comments and I have been meaning to write about them for some time. I decided that I would come up with a deconstruction of some of the factors leading to the phenomenal success of the coins.

Before examining these factors, I wanted to start with a review of some of the sales prices for 2008-W Gold Buffalo coins from recently completed eBay auctions. A 4 coin proof set graded PR70DCAM First Strike recently sold for an incredible $16,999.00. Some 4 coin proof sets graded NGC PF 70 Ultra Cameo have sold for around $8,000 – $9,000, and some of the 4 coin uncirculated sets grading NGC MS 70 have sold for $6,000 – $7,000 per set. These sales prices compare to original US Mint prices of $1,959.95 for the uncirculated set and $2,219.95 for the proof set.

Individual coins and raw coins have also sold for dizzying amounts. A 2008-W $5 Gold Buffalo graded PCGS MS70 just closed at $875.00 and a raw 2008-W Proof $10 Gold Buffalo sold for $1,500. Here are all of the current eBay auctions for 2008-W Gold Buffalo Coins.

Personally, I have been somewhat in awe of the prices for these coins and have no idea whether prices have peaked or whether they have more room to grow. As mentioned, what I wanted to do with this post is examine some of the factors which contributed to the enormous success of the coins.

First, the design for the American Gold Buffalo is based on James Earle Fraser’s extremely popular Buffalo Nickel design. Coins which feature classic designs tend to create higher demand, as it expands the number of collectors interested in the coins. When the US Mint first introduced the Gold Buffalo in 2006, the one ounce proof version sold 246,267 coins, demonstrating the potentially large collector base.

Second, seven out of the eight 2008-W Gold Buffalo coins currently represent one-time only issues. In January 2008, the US Mint announced that they would offer collectible proof and uncirculated Gold Buffalo coins in one ounce, one-half ounce, one-quarter ounce, and one-tenth ounce sizes. For the prior two years, the US Mint had offered only the one ounce version for collectors. In November 2008, the US Mint abruptly announced the discontinuation of all of the newly introduced Gold Buffalo options. This made all four of the 2008-W Uncirculated Gold Buffalo Coins and the 2008-W Proof Gold Buffalo one-half ounce, one-quarter ounce, and one-tenth ounce coins one year only issues.

Third, the pricing and economic conditions surrounding the US Mint’s offering period for the coins resulted in extremely low sales, which translated to unusually low mintages. The US Mint released the 2008-W Proof and Uncirculated Gold Buffalo Coins on July 22, 2008. This was the exact day when gold reached a temporary peak of $961.50 per ounce. Gold subsequently entered a period of extended decline that would bring the price as low as $712 per ounce. The US Mint did not adjust coin prices until November, resulting in high premiums above gold value for nearly the entire offering period. These high premiums likely turned off some potential buyers. The state of the economy may have also held some potential buyers at bay, as the second half of 2008 was a period of extreme economic and financial uncertainty.

Fourth, the coins sold out before the close of the year. In rapid succession, the US Mint announced the discontinuation of most of the collectible Gold Buffalo products and then adjusted prices based on the lower value of gold. At that point, sales assumed a rapid pace which did not diminish until all options were sold out in early December 2008. In general, products which are deemed to sell out early, tend command instant premiums which sometimes expand over time. By contrast, products which linger in the US Mint’s product catalog or go off sale at a pre-announced cut off date, tend to appreciate slower or not at all. (There are some exceptions to this, but it has seemed to play out this way in recent years.)

Fifth and final, collector money has to go somewhere. The United States Mint canceled many of their most popular collectible precious metals products last year and offered relatively little to fill the void. I think that at least a portion of the money that would have been spent on 2009 Proof and Uncirculated Gold and Silver Eagles is chasing prior year precious metals products, such as the 2008-W Gold Buffalo coins.

I think that the incredible price appreciation of these coins is the result of perfect storm of circumstances that likely will not be repeated for some time. We can certainly watch for some of these factors in future offerings and try to catch the next blockbuster early.

]]> http://blog.jtcoins.com/jt-coins-llc-now-selling-2008-w-burnished-gold-american-buffalos.html/feed 0 Top 5 Worst Coin Investments http://blog.jtcoins.com/top-5-worst-coin-investments.html http://blog.jtcoins.com/top-5-worst-coin-investments.html#comments Thu, 22 Jul 2010 17:28:16 +0000 Jim http://blog.jtcoins.com/?p=1763

Top 5 Worst Coin Investments

Bad Coin Investments and Why You Shouldn’t Collect Them

By , About.com Guide

Here’s my disclaimer, to keep all the lawyers happy: “Past performance is not an indication of future potential values. Any opinions expressed here are just that, an opinion and they reflect my personal buying preferences for investing in coins. These opinions are not meant to denigrate or devalue any company’s fine offerings, which may or may not increase in value over time.”

Whew! Now that we got that out of the way, I’ll tell you who I never buy coins from, and why.

My #1 Worst Coin Investment – TV Shopping Show Dealers and “Mints”

Number One on my list is the TV shopping show dealers and premium “Mints” out there that sell nice looking commemorative coins for premium prices, but that have no value beyond their bullion (if they have any) when you must eventually sell them. Some of these “Mints” sell on the TV and cable-based shopping channels, and the prices they charge when they do sell genuine U.S. Mint coins are nearly always several times higher than the price the coins would cost from a normal coin dealer!

These shows rarely sell anything that can’t be acquired elsewhere more cheaply, so don’t impulse buy from these shows! Do a little research and you’ll see the same Silver Eagles at $2 to $4 over spot price from major traditional coin dealers.

Most of the Uncirculated Morgan Dollars I’ve seen TV shopping show dealers sell for $300 each can be purchased from a normal coin dealer for $40. Never buy coins from TV shopping shows!

Tip: Don’t miss my special warning about Obama coins!

My #2 Worst Coin Investment – National Collector’s Mint

Number Two on my personal “do not buy” list are coins issued by the National Collector’s Mint. The U.S. Mint has issued warnings about this company’s misleading advertisements in the past, particularly its “Freedom Tower” coins. National Collector’s Mint ads imply that Freedom Tower and other coins have meaningful amounts of precious metal in them when they do not.

In addition, despite the perception they often give to the contrary, nothing this “mint” makes has any association whatsoever with the genuine U.S. Mint, and it is my opinion that the coins they sell are, and will remain, virtually worthless as an investment collectible.

My #3 Worst Coin Investment – Franklin Mint & Kin

Number Three on my list of “do not buy” coins is those from the Franklin Mint and other premium collectibles mints (such as the Bradford Exchange, etc.) They are aggressive marketers who do sell genuine bullion coins (sometimes) but their coins usually do not have any after-market value among coin collectors and investors.

You’ll typically pay $45 plus for a one ounce silver coin that is only worth the value of its silver bullion when you go to sell it. (Silver bullion is at about $11 an ounce as I write this.) Beware of crap like the Franklin Mint’s colorized Obama coins!

My #4 Worst Coin Investment – Spurious Sets

Another bad investment type are “spurious set” coins. This is another popular TV shopping show product, plus they’re found in magazines and swap meets quite often. “Spurious sets,” by my definition, are sets that are put together out of lower grade and/or common coins according to some kind of theme.

The coins are usually placed in fancy plastic holders, with nice quality packaging, and then you pay $38.99 for a set of five coins that are worth $2.99 just because they were all minted during World War II, or the Vietnam War, or because they’re from around the world and commemorate Marilyn Monroe or some sort of cartoon character.

Such coins are usually genuine, and will probably appreciate in value, but they probably won’t be worth what you paid for them anytime during the next five generations! These are a favorite of dealers like Littleton.

My #5 Worst Coin Investment – Coins With Crap on Them

The final type of coin among my top five worst coin investments are modified coins, such as genuine U.S. Mint products that have been altered by adding holographic stickers or coloring. These coins are generally considered “damaged” by serious coin collectors, and you will only get the bullion value when you go to sell them, if that. I have heard of dealers discounting them because of the added impurities that the paint and other crap applied to the coins adds to the metal.

The Best Types of Investment Coins

According to many experts, the best type of investment coins are rarer, key date coins issued by the United States, in the best grade you can afford to buy them in. If you can’t afford to shell out $2,000 a coin to buy key dates in high grades, then buy common coins in the finest grades you can.

Lower grade, common coins have historically not appreciated as much in value as key date coins do, so they are probably not a good investment choice (although they’re great for filling up the holes in albums, especially with kids helping out!)

In general, I collect pre-1965 90% silver U.S. coinage, and silver world coins in high grades, and I think they are excellent choices for the average person on a tight budget. I also believe that most types of U.S. Nickels are very undervalued right now, as well as later date (2006 through 2008) U.S. Mint Uncirculated sets. The mintages for these recent sets are extremely low! The 2008 Proof set is also a big winner. For obsolete coins, most Walking Liberty, Franklin, and silver Kennedy Half Dollars are undervalued according to many experts, but only buy high grades.

A final area of coin investing to consider are the bullion coins, especially coins that are traded at close to spot price (as opposed to Proof Silver Eagles and other premium U.S. Mint offerings.) With the growth of China and India and the likelihood that they will become “superpowers” within the next generation, all precious metals are expected to rise over the long term. Copper, in particular, is expected to boom compared to current prices.

Disclaimer – The advice given in this article is advice that I personally follow in collecting coins for investment purposes. It is not meant to be a guarantee that any of my advice, should you follow it, will earn you any money in coins in the short or long term. Nobody can predict the future, not even me. ;)

]]> http://blog.jtcoins.com/top-5-worst-coin-investments.html/feed 0 US Mint Numismatic Gold Coin Prices Should Decline http://blog.jtcoins.com/us-mint-numismatic-gold-coin-prices-should-decline.html http://blog.jtcoins.com/us-mint-numismatic-gold-coin-prices-should-decline.html#comments Wed, 21 Jul 2010 16:37:25 +0000 Jim http://blog.jtcoins.com/?p=1761 Wednesday, July 21, 2010

US Mint Numismatic Gold Coin Prices Should Decline

Posted by: Michael | Posted in:


After spending more than two months at the highest levels on record, the prices for US Mint numismatic gold coins should be reduced this week.

The gold numismatic products currently available include the 2010 Proof Gold Buffalo and the First Spouse Gold Coins featuring Sarah Polk, Margaret Taylor, Abigail Fillmore, and Jane Pierce.

Under the US Mint’s pricing policy for numismatic gold and platinum coins, the prices of products may be adjusted as frequently as weekly in response to changes in the average price of the metals. Each week, the average of the London Fix prices from the prior Thursday AM to the current Wednesday AM is calculated. If the calculated average falls into a different range compared to the prior week, prices are subject to adjustment–as long as the Wednesday PM Fix price agrees with the current weekly average. The latter criteria was only recently brought to light by this Coin Update News article.

For the latest weekly period, the average London Fix price of gold from Thursday AM, July 15 to Wednesday AM, July 21 is $1,193.42. The Wednesday PM Fix price for July 21 is $1,191.25. Since prices are currently set for the $1,200 to $1,249.99 range, prices should be reduced proportionally by $50 for each ounce of gold content.

The price of the 2010 Proof Gold Buffalo should be reduced from $1,510 to $1,460. These coins originally went on sale June 3, 2010 and have been priced at $1,510 for the entire availability period so far. The most recent sales figures show 22,844 coins sold through July 18, 2010.

The price of the First Spouse Gold Coins should be reduced from $779 to $754 for proof coins and from $766 to $741 for uncirculated coins. The most recently released Jane Pierce First Spouse Gold Coins went on sale June 3, 2010 priced at $779 and $766. This was the highest starting price for any release of the series to date.

Price adjustments have usually taken place by mid-day Wednesday, although the policy states that adjustments should be made on Thursday mornings.

]]> http://blog.jtcoins.com/us-mint-numismatic-gold-coin-prices-should-decline.html/feed 0 2010 Proof Silver Eagles at Risk of Cancellation http://blog.jtcoins.com/2010-proof-silver-eagles-at-risk-of-cancellation.html http://blog.jtcoins.com/2010-proof-silver-eagles-at-risk-of-cancellation.html#comments Mon, 19 Jul 2010 18:55:16 +0000 Jim http://blog.jtcoins.com/?p=1747

2010 Proof Silver Eagles at Risk of Cancellation

July 16, 2010 | Filed Under Silver, US Mint

One of the consequences of the record pace of United States Mint silver bullion coins might be the cancellation of the popular Proof American Silver Eagle for the second year running.

The Proof Silver Eagle had been issued each year from 1986 to 2008. During this period, it has sold between 372,168 and 1,092,477 coins per year and had firmly established itself as one of the United States Mint’s most popular products.

2009 Proof Silver Eagle (not issued) 

 

The offering was abruptly canceled for 2009 to the dismay of many collectors. The US Mint explained that it was legally required to produce the bullion version of the American Silver Eagle in quantities sufficient to meet public demand. They were not under any legal requirement to produce the collectible proof or uncirculated versions of the coins. Because demand for silver bullion coins apparently outweighed production, the US Mint sourced all incoming blank supplies towards the production of bullion coins.

The announcement of last year’s cancellation came by way of a press release issued October 6, 2009, which highlighted the two collectible precious metals offerings that would be available in 2009, before enumerating the long list of products which were canceled. As if in validation of the high demand for US Mint bullion Silver Eagles, in late November the US Mint was forced to temporarily suspended sales of bullion coins after inventories were depleted.

During 2010 to date, Silver Eagle bullion coin sales are running at a higher pace than the prior year. An average of 3,028,083 ounces have been sold per month this year, compared to an average of 2,397,208 ounces per month last year. Demand shows no signs of abating, as investors continue to buy every silver bullion coin the US Mint can produce.

The US Mint recently unveiled a numismatic product release schedule for the remainder of 2010. The 2010 Proof Silver Eagle and most other precious metal products were conspicuously listed as “TBD.” The Mint is still preserving some hope that these coins may be issued, but the situation looks rather bleak.

Why can’t the United States Mint produce bullion coins in sufficient numbers along with the traditionally issued collectible precious metals products? Is it the result of the onerous requirement that precious metals must be sourced from newly mined domestic sources? Is there a lack of manufacturing capacity? Or is it a case of managerial incompetence?

The same excuse of blaming “unprecedented demand from investors” is getting a bit old after two years

]]> http://blog.jtcoins.com/2010-proof-silver-eagles-at-risk-of-cancellation.html/feed 0 What are the Differences between Investing Silver and Gold? http://blog.jtcoins.com/what-are-the-differences-between-investing-silver-and-gold.html http://blog.jtcoins.com/what-are-the-differences-between-investing-silver-and-gold.html#comments Fri, 16 Jul 2010 16:48:32 +0000 Jim http://blog.jtcoins.com/?p=1737

 

What are the Differences between Investing Silver and Gold?   By: Dr. Jeffrey Lewis
 
– Posted 14 July, 2010 | Share this article| Discuss This Article – Comments: 1 Source: SilverSeek.comThe traditional rule that gold always trades within a range of 20 to 70 times the value of silver may quickly be tested as the financial markets lose their fear and again start investing in stocks, bonds and other investments. Silver and Gold Comparison

When it comes to protecting your wealth against financial turbulence and inflation, both metals are strong.  However, when we look at underlying fundamentals that drive consumption for both metals, we find they are very different. 

Silver and gold both have uses in manufacturing and electronics, where they are often used to coat cables and make better connections on circuit boards, electrical wiring, or virtually any product where a quality connection is important.  Both perform well, but silver performs best and is more widely used than gold.  Silver is the best conductor of electricity known to mankind, and at the current price of just $18 per ounce, the beauty of silver’s uses have yet to shine.

 

Why Buy Silver?

 

The amount of silver is slowly dropping each year, as supply from mining and scrap has not kept up with consumption for years.  From electronic watches and calculators to full-scale laptops, silver is used as the best way to transfer energy from one part to the next. 

Since it is so relatively inexpensive when compared to gold, nearly all of the silver used in manufacturing will not be recovered before the device makes it to the graveyard.  Thus, in knowing this fact, we can infer that all of the silver used in manufacturing businesses is then later discarded by the consumer in such a fashion that it is too expensive to extract to be profitable.  Subsequently, the supply shrinks as it is used, and investors who own silver as an investment slowly own more and more of the silver pool by percentage with each passing year. 

 

Jewelry Consumption

The undisputed king of the jewelry business is gold, which makes up the overwhelming majority of all jewelry made around the world.  It is important to note that gold or silver used in jewelry rarely gets thrown in the trash like it does in electronics, even if the amount of silver in a ring is the same as in a laptop!  Why is this? 

Jewelry by nature sells for a premium to the spot price, and almost always retails for far more than its metal content.  However, as metals prices have increased, melting jewelry has become far more popular, and hundreds of tons of gold were purchased by melting companies to extract the intrinsic worth from jewelry.  The good news is that jewelry is not and probably won’t ever be silver’s main use, and more of it is likely to escape into manufacturing than in the small jewelry market.  Even here, silver reigns supreme over gold.

 

Don’t Get Confused

Metals have tended to be excellent investments as hedges against inflation, but some have better credentials than others.  With its vast uses, limited supply, and relatively low price, silver is an excellent investment that will continue to not only outperform the stock markets, but also other precious metals. 

Dr. Jeffrey Lewis

www.silver-coin-investor.com
]]> http://blog.jtcoins.com/what-are-the-differences-between-investing-silver-and-gold.html/feed 0 Fractional gold has purpose, or does it? http://blog.jtcoins.com/fractional-gold-has-purpose-or-does-it.html http://blog.jtcoins.com/fractional-gold-has-purpose-or-does-it.html#comments Fri, 16 Jul 2010 16:45:27 +0000 Jim http://blog.jtcoins.com/?p=1732 Fractional gold has purpose, or does it?                                      
Posted by Dave

Since sales of fractional gold American Eagle bullion coins began in June, the tenth-ounce coins have moved out the door at a reasonable pace.

As of July 13, buyers had taken 300,000 of the small coins. They are popular as jewelry and they also are popularly used by promoters to entice novice gold buyer’s to get genuine U.S. Mint gold at a price that doesn’t choke a horse.

One-tenth of the present $1,200 price of an ounce of gold is much easier for novice buyers to part with than the cost of the one-ounce coin.

Obviously, though ,with sales approaching 700,000 pieces, demand for the one-ounce coin is not hurting. Savvy investors need no introduction to it.

Sales of the half-ounce coin at 31,000 pieces and the quarter ounce at 44,000 coins are betwixt and between. They aren’t the standard investment coin and they are not nearly as popular as jewelry. So what exactly are they?

In days when $2.50, $5 and $10 coins were needed to make change for gold $20s, the smaller sizes had a purpose.

With investment coins, you don’t need to make change, though I have seen the concept bruited about online as the fractional gold coins are tipped as needed when the currency system breaks down and change in gold will again be required.

Judging from current fractional gold American Eagle sales, perhaps that point is a rather hard one to make.

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