Ron Paul Gains Clout Over Mint

By David L. Ganz, Numismatic News November 04, 2010

This article was originally printed in Numismatic News.
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Congressional Demo-crats had the stuffings kicked out of them Nov. 2 suffering many more than the 39 needed to turn over control of the House of Representatives to the GOP and making John Boehner of Ohio the new Speaker of the House and giving Rep. Ron Paul a subcommittee chairmanship from which to wield an increased influence.

Republicans needed a gain of 39 seats to obtain control in the House, but picked up more than 60 seats. There are 435 members in the House, with 218 seats needed for operational control.

The GOP came up short in the U.S. Senate. The party gained at least six seats but needed 10. Some races were still too close to call at press time. Battles will be decided within the next week or so.

With the election losses, a number of changes are anticipated that will affect coin and currency matters. The House Financial Services Committee, once known as the Banking & Currency Committee, which has been chaired by Rep. Barney Frank of Massachussetts will now see Rep. Spencer Bachus of Alabama take over. The subcommittees will also change as well as seniority rankings.

Gone from the House GOP list will be Rep. Mike Castle of Delaware, who lost a Senate primary. He was second ranking on the committee. The Subcommittee on Financial Institutions and Consumer Credit goes from Rep. Luis Gutierrez of Illinois to Rep Jeb Hensarling of Texas, now the Ranking GOP Member.

Subcommittee on Domestic Monetary Policy and Technology will see its chair go from Rep Melvin Watt of North Carolina to Rep Ron Paul of Texas. This subcommittee was in the spotlight recently as the place where Mint Director Ed Moy said in July that it might be possible to strike proof silver American Eagles this year as well as its Goldline hearing in September. Paul’s son Rand is a new senator from Kentucky.

Subcommittee on International Monetary Policy and Trade sees Rep. Gregory Meeks of New York leave as chair to be succeeded by today’s ranking minority member, Rep. Gary G Miller of California. Subcommittee on Oversight and Investigations will go from Rep. Dennis Moore of Kansas to Rep. Judy Biggert of Illinois.

All of these changes might impact coinage if the jurisdictions of the subcommittees are altered, as some believe they will be. The issue will be to divide this responsibility: “oversight hearings about the state of U.S. coins and currency” and examining “the roles the Bureau of Engraving and Printing, U.S. Mint, Federal Reserve and United States Secret Service play in managing the circulation of all U.S. coins and currency and in implementing anti-counterfeiting measures to safeguard the U.S. money supply.” Also at issue: the federal government’s response to the rising costs of copper and nickel and metals used to manufacture coins.

House Appropriations Committee Chairman David Obey of Wisconsin, who retired, will be succeeded by Rep. Jerry Lewis of California. Lewis chaired the committee from 2005-2007. Mint and BEP matters are headed up by Rep. José E. Serrano of New York, but now likely go to Rep. Jo Ann Emerson of Missouri.

Ways & Means, which raises money (including surcharges on commemorative coins) will likely see Rep. Dave Camp of Michigan as the new chair.

In the Senate, which the Democrats held, the Banking Committee Chair, Sen. Chris Dodd of Connecticut retired after 30 years. Tim Johnson of South Dakota currently is the ranking Democrat.

There will be more changes as the parties caucus in the next several weeks, choosing their committee chairs as well as membership and working out agendas.

US Mint Sales: 2010 Proof Gold Buffalo Reaches 24,891

By Michael Zielinski on August 10th, 2010

Tuesday, August 3, 2010

US Mint Coin Production July 2010

Wednesday, July 21, 2010

US Mint Numismatic Gold Coin Prices Should Decline

Collecting American Eagle Bullion Coins

By Arlyn G. Sieber May 26, 2010

This article was originally printed in the book The Instant Coin Collector, by Arlyn G. Sieber.
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 Silver American Eagle bullion coins, and their gold counterparts, were historic firsts for the U.S. Mint when they made their debut in 1986. They were the first official U.S. coins struck primarily to be bought and sold for their bullion value.
American Eagle bullion coins can be held in individual retirement accounts. Some individual date and mintmark combinations, however, also have collectible numismatic value, including proof versions. The story behind the coin Gold and silver bullion coins, produced by various countries, are official government issues. They are legal tender, and usually have a nominal face value, but they are produced and sold as a convenient way for private citizens to invest in precious metals and are not intended to circulate. To facilitate their trade, the coins are sized based on their precious-metal content. Gold bullion coins, for example, usually contain either a tenth-ounce, quarter-ounce, half-ounce, or full troy ounce of gold. Silver bullion coins usually contain one troy ounce of precious metal.

The standard sizes and credibility of the issuing authority give investors and collectors confi dence that when they buy one of the coins they are getting the stated amount of precious metal in the stated purity. South Africa was the sole player in the bullion-coin market for a number of years. It introduced the Krugerrand, which contains one ounce of 0.917-fi ne gold, in 1967. Fractional versions of the Krugerrand(tenth-ounce through half-ounce) were introduced in 1980.

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Other countries followed with their own versions of bullion coins. Among the most popular are Canada’s Maple Leaf, China’s Panda, Great Britain’s Britannia, and the Isle of Man’s Angel. In 1986, the United States introduced its American Eagle series of gold and silver bullion coins, and they have also gained popularity in the market. A platinum Eagle was introduced in 1997. The gold and platinum Eagles are offered in tenth-ounce, quarter-ounce, half-ounce, and one-troy-ounce versions. Silver Eagles are offered in just one size, which contains one troy ounce of 0.999-fi ne precious metal.

The U.S. Mint adapted two classic coinage designs for the gold and silver Eagles. Obverse of the gold coins is Augustus Saint-Gaudens’ design used on the gold $20 coin of 1907-1933. Many consider it the most beautiful coin design in U.S. history. The gold coins’ reverse, designed by Miley Busiek, shows a family of eagles with the adult returning to her young in a nest. Obverse of the silver Eagles was adapted from Adolph Weinman’s Walking Liberty design used on the half dollar of 1916-1947. It, too, is a favorite design of longtime collectors. The silver reverse features a modern but classically styled heraldic-eagle design by John Mercanti.

Where To Get Them

Regular strikes of silver American Eagle bullion coins can be purchased from coin and bullion dealers. The U.S. Mint does not sell them directly to the public. Instead, the Mint sells bulk quantities to distributors, who in turn wholesale the coins to retailers. Proof versions have been produced since the coin’s inception in 1986, and the current-year issue can be purchased directly from the Mint (www.usmint.gov). In 2006, the Mint began selling current-year uncirculated versions of the silver and other Eagles directly to the public.

How Much?

The retail price of regular strikes of the silver American Eagle is based on the current price of silver bullion plus a small premium. Collectible uncirculated versions generally sell for $15 to $20, but prices are again subject to change depending on the current trading price for silver. Proof silver American Eagles generally sell for $30 to $60, but some issues with lower mintages bring more. The scarcest is the 1995 proof silver Eagle with a “W” mintmark, which was included only in Eagle proof sets celebrating the series’ 10th anniversary. It sells for more than $5,000, according to Coin Prices magazine.

Mintmarks

Regular strikes of silver American Eagle bullion coins are produced at Philadelphia and do not have a mintmark. From 1986 through 1992, proof versions were struck at San Francisco and have an “S” mintmark. From 1993 through 2000, proof versions were struck at Philadelphia and have a “P” mintmark. In 1995, as noted, proof silver Eagles were also produced at West Point, N.Y.

These scarce coins have a “W” mintmark and were struck for inclusion in a special Eagle bullion coin proof set celebrating the program’s 10th anniversary. Since 2001, proof silver Eagles have been struck at West Point and have a “W” mintmark. In 2006, to celebrate the silver Eagle series’ 20th anniversary, the Philadelphia Mint produced a special “reverse proof” in addition to the regular West Point proof version for that year. The “reverse proof” features a frosted finish in the field and a mirror-like finish on the raised design surfaces, just the opposite (or reverse) of a traditional proof. The 2006 reverse proofs have a “P” mintmark and were available only in a three-coin silver Eagle set (proof, uncirculated, and reverse-proof versions). Since 2006, as noted, the Mint has sold uncirculated versions of current-year silver Eagles directly to the public. These special collector versions are struck at West Point and have a “W” mintmark. The mintmark on silver Eagles appears on the reverse below the eagle’s right claw.

Condition

Condition is not a factor for silver Eagles bought and sold solely for their bullion content. On collectible coins, traditional high points for wear on the Walking Liberty design are the hair on Liberty’s left temple and the upper part of her left leg. Uncirculated and proof versions of the silver Eagle should be free of major scratches and other blemishes. How to store them Security is more of a concern than preservation for silver Eagles bought and sold solely for their bullion content. A bank safety-deposit box or other secure, fi reproof system is recommended for bulk quantities of silver or other Eagle bullion coins. For collectible versions, an inert holder in which both sides of the coin are protected is recommended. Uncirculated and proof versions should be kept in their original Mint packaging, if available.

Silver American Eagle Bullion Coin Specs

Obverse designer: Adolph A. Weinman.
Reverse designer: John Mercanti.
Diameter: 40.6 millimeters.
Weight: 31.1010 grams.
Composition: 99.93-percent silver, 0.07-percent copper.
Actual silver weight: 0.999 troy ounces.

The Fine Art of Fineness

Precious metal — be it gold or silver — must be alloyed with a small amount of base metal, such as copper, to make it suitable for coin production. The purity of precious metal in a coin is called “fi neness,” which is expressed in parts per thousand. For example, the silver American Eagle bullion coin is 0.9993 fi ne, which means it has 999.3 parts of pure silver for every 1,000 parts of total metal in the coin. Thus, the coin is said to contain one troy ounce of 0.9993-fine silver.

Posted By CoinLink On May 24, 2010 @ 12:03 pm In Gold & Silver Bullion, Press Releases, US Coins, US Mint | No Comments

The U.S. Mint has confirmed that it plans to release five-ounce .999 fine silver bullion coins later this year in accordance with the AMERICA’S BEAUTIFUL NATIONAL PARKS QUARTER DOLLAR COIN ACT OF 2008 . The coins will be the first five-ounce coins ever produced by the Mint.

            The coins will bear the same designs as the new legal-tender quarters of the America the Beautiful Quarters Program. The first quarter in the program, honoring Hot Springs National Park in Arkansas, was released into the banking system April 19, 2010. Four more quarters will be released this year, with five quarters being released annually through 2021, concluding with the final quarter in 2022. The new quarters will commemorate 56 national parks and sites.

The Mint’s America the Beautiful Program will be well received as will be the companion five-ounce silver bullion coins. The America the Beautiful Quarters Program follows on the heels the U.S. Mint’s hugely successful State Quarters Program, which only recently concluded. The five-ounce coins will be sold via the U.S. Mint’s distribution system that has made American Eagle gold bullion coins and American Eagle silver bullion coins the best-selling gold and silver bullion coins in the world.

The five-ounce silver bullion coins will be near exact replicas of the legal-tender quarter dollars, with the inscriptions on the silver bullion coins identical to those on the quarters, including the denomination “quarter dollar.” However, legal-tender quarters will have milled edges (Also called reeded edges in the coin industry.) The five-ounce coins will not have milled edges but will have their fineness (.999) and their weighs (five troy ounces) incused as edge lettering. The individual coins will be three inches in diameter.

The Mint has not given a release date for the five-ounce coins beyond “mid-year.” Nor has the Mint disclosed how the coins will be packaged. The Mint ships its one-ounce Gold Eagle coins and one-ounce Silver Eagle coins five hundred to a box, twenty-five tubes, twenty coins to a tube. This packaging method has worked extremely well, both for shipping and for protecting the coins against damage during shipment and while stored by investors. It is likely that the Mint will package the coins five or ten to a tube, five hundred ounces (100 coins) to a box, which would weigh right at forty-two pounds.

Finally, the Mint has given no hint as to the premium at which it will sell the new five-ounces silver coins. It is likely that the America the Beautiful silver bullion coins will carry smaller premiums than the premiums on 1-oz Silver.

By David L. Ganz, Numismatic News
April 29, 2010

Clock Ticking on In God We Trust’

The national motto “In God We Trust,” a fixture on American coinage since the Civil War, and mandated on all coinage and currency since 1955, may remain. A lawsuit by Michael Newdow seeking to remove the motto from U.S. coinage and paper money was rejected by the 9th Circuit Court of Appeals by unanimous decision on March 11, 2010.

Newdow has a limited amount of time to decide if he wishes to appeal. Rule 13 of the Supreme Court’s Rules allow 90 days to file for a writ of certiorari to consider it. Otherwise, the motto stays safe – till the next challenge.

Will he undertake the appeal? Whether he does or does not, it will not be the end of a battle that actually goes back to 1908 and involves, among others, President Theodore Roosevelt on the side of opponents of the use of the motto on U.S. coins.

Let’s look at the particulars of the current decision and the history of the motto itself. That will prepare all collectors for whatever comes next.

Holding 3-0 for result (but with a concurring opinion in which one justice told the other two that they had no understanding of First Amendment issues – but that he felt compelled to follow circuit precedent), the decision affirms a district court holding in California several years ago that dismissed Newdow’s case.

Next step if Newdow wishes to go further is to file a writ of certiorari with the U.S. Supreme Court, but it is unlikely that the high court will revisit an issue on which there appears to be widespread agreement, even if all of the courts that opine on the issue claim that the motto is non-religious in origin and are totally ignorant of the facts revolving around how God became wrapped up in American money.

Since 1955, the motto has been a requisite part of all coins and currency. The law was passed then because of court challenges to use of the word “God” in the first place not only on coinage, but in something as simple as the “Pledge of Allegiance.”

No one is actually required to take or to say the Pledge; that was decided some 65 years ago when the U.S. Supreme Court case of West Virginia v. Barnette, 319 U.S. 624 (1943), which barred compulsory flag salutes. One recent case alleged a youth was intimidated by being required to listen to the Pledge. In a post “9/11” world, that has gone nowhere.

On June 22, 1942, Congress first codified the Pledge in Public Law 642 as “I pledge allegiance to the flag of the United States of America and to the Republic for which it stands, one Nation indivisible, with liberty and justice for all.” This was codified in title 36 of the U.S. Code.

A dozen years later, on June 14, 1954, Congress amended Section 1972 to add the words “under God” after the word “Nation.” (This is found in Pub. Law No. 396, Ch.297, 68 Stat. 249 (1954). The Pledge is currently codified as “I pledge allegiance to the Flag of the United States of America, and to the Republic for which it stands, one nation under God, indivisible, with liberty and justice for all,” found in title 4 of the U.S. Code, § 4 (1998).

The following year, largely at the instigation of Matt Rothert, later president of the American Numismatic Association, Congress amended the United States Code to require the national motto to be placed on all coins and currency. (Earlier, Congress took action to place the motto on the two-cent piece (Act of April 22, 1864, ch. 64, 13 Stat. 54), and on some gold coins (Act of May 18, 1908, ch. 173, §1, 35 Stat. 164 ).

Paper money was the target of the 1955 law because the motto was already in use on the current coins of the period.

There is some utility in reviewing what the Pledge of Allegiance is, and for that matter, the history of the national motto, “In God we Trust”, where the “we” is not capitalized and all other letters are. (The Newdow court, in its March decision, notes this, too).

Francis Bellamy, a Baptist minister with socialist leanings, wrote the original version of the Pledge of Allegiance Sept. 8, 1892 for a popular family magazine, The Youth’s Companion, a Reader’s Digest-like periodical of the era. The original pledge language was “I pledge allegiance to my Flag and to the Republic for which it stands, one nation, indivisible, with liberty and justice for all.”

A generation later, in 1923 the Pledge was adopted by the first National Flag Conference in Washington, where some participants expressed concerns that use of the words “my flag” might create confusion for immigrants, still thinking of their home countries. So the wording was changed to “the Flag of the United States of America.”

In 1954, Congress after a campaign by the Knights of Columbus, added the words, ‘under God,’ to the Pledge. The Pledge was now both a patriotic oath and a public prayer.

Legislation approved July 11, 1955, made the appearance of “In God We Trust” mandatory on all coins and paper currency of the United States. By Act of July 30, 1956, “In God we trust” became the national motto of the United States.

Several courts have been asked to construe whether or not the motto was unconstitutional and a violation of the First Amendment to the Federal Constitution freedom of religion arguments being raised.

In a 10th Circuit Court of Appeals case arising in Colorado, Gaylor v. US, 74 F.3d 214 (10th Cir. 1996), the Court quoted a number of Supreme Court precedents and concluded that, “The motto’s primary effect is not to advance religion; instead, it is a form of “ceremonial deism” which through historical usage and ubiquity cannot be reasonably understood to convey government approval of religious belief.”

As neat a package as that creates for concluding the controversy, that is simply not the history of the motto “In God we trust.” It also isn’t how it found its way onto American coinage. That story goes back to the bleak days of the Civil War, when the nation’s constitutional mettle was being tested on the battlefields that left hundreds of thousands of Americans dead.

From the records of the Treasury Department, it appears that the first suggestion of the recognition of the Deity on the coins of the United States was contained in a letter addressed to the Secretary of the Treasury, Hon. S.P. Chase, by the Rev. M.R. Watkinson, Minister of the Gospel, Ridleyville, Pa., under date of Nov. 13, 1861.

“One fact touching our currency has hitherto been seriously overlooked, I mean the recognition of the Almighty God in some form in our coins,” Rev. Watkinson wrote to Secretary Salmon P. Chase. “You are probably a Christian. What if our Republic were now shattered beyond reconstruction? Would not the antiquaries of succeeding centuries rightly reason from our past that we were a heathen nation?

“What I propose is that instead of the goddess of liberty we shall have next inside the 13 stars a ring inscribed with the words “perpetual union”; within this ring the allseeing eye, crowned with a halo; beneath this eye the American flag, bearing in its field stars equal to the number of the States united; in the folds of the bars the words ‘God, liberty, law.’

“This would make a beautiful coin, to which no possible citizen could object,” Watkinson wrote. “This would relieve us from the ignominy of heathenism. This would place us openly under the Divine protection we have personally claimed.”

“From my heart I have felt our national shame in disowning God as not the least of our present national disasters. To you first I address a subject that must be agitated,” he concluded.

A week later, on Nov. 20, 1861, Secretary Chase wrote to James Pollock, the Director of the Mint, “No nation can be strong except in the strength of God, or safe except in His defense. The trust of our people in God should be declared on our national coins.”

He concluded with a mandate: “You will cause a device to be prepared without unnecessary delay with a motto expressing in the fewest and tersest words possible this national recognition.”

In December 1863, the director of the Mint submitted to the secretary of the Treasury for approval designs for new 1-, 2-, and 3-cent pieces, on which it was proposed that one of the following mottoes should appear: “Our country; our God;” “God, our Trust.”

Dec. 9, 1863, saw this reply came from Secretary Chase: “I approve your mottoes, only suggesting that on that with the Washington obverse the motto should begin with the word ‘Our’ so as to read: ‘Our God and our country.’ And on that with the shield, it should be changed so as to read: “In God we trust.”

The Act of April 22, 1864, created the two-cent piece and Secretary Chase exercised his rights to make sure the motto was in the design. By 1866 it had been added to the gold $5, $10 and $20 and the silver dollar, half dollar, quarter and nickel.

As Saint-Gaudens designed the new gold coinage of 1907, at the instigation of his friend President Theodore Roosevelt, the motto was removed for the reason that “Teddy” thought it blasphemous. Congress responded in 1908 by legislatively directing its continuation.

Where all this leads in the 21st century remains an unknown, but an interesting hypothesis can be derived. As Justice William O. Douglas noted in a concurring opinion in the 1962 Supreme Court case Engel v. Vitale, 370 U.S. 421 (1962), “Our Crier has from the beginning announced the convening of the Court and then added “God save the United States and this Honorable Court.” That utterance is a supplication, a prayer in which we, the judges, are free to join …”

Justice Douglas saw little the matter with it. Indeed, he said, “What New York does on the opening of its public schools is what each House of Congress does at the opening of each day’s business.”

The 9th Circuit, in California, by contrast, says “The Pledge, as currently codified, is an impermissible government endorsement of religion because it sends a message to unbelievers “that they are outsiders, not full members of the political community, and an accompanying message to adherents that they are insiders, favored members of the political community.”

An earlier 9th circuit case in 1970 which dealt with a direct attack on the motto on the coinage was briefly discussed in a footnote of the lengthy opinion.

In Aronow v. United States, 432 F.2d 242 (9th Cir. 1970), the 9th Circuit, without reaching the question of standing, upheld the inscription of the phrase “In God We Trust” on our coins and currency. They cited this case in 2010 as the reason why Newdow had to fail – the precedent that the earlier case created.

But in another case, Wooley v. Maynard, 430 U.S. 705, 722 (1977) then-Associate Supreme Court Justice William Rehnquist dissented, stating that the majority’s holding leads logically to the conclusion that “In God We Trust” is an unconstitutional affirmation of belief.”

Notwithstanding Justice Rehnquist’s dissent, a more contemporary analysis of his views are more apparent in later cases after he became Chief Justice and they suggest strongly that he had no issue with the pledge or the national motto on coinage.

While the Supreme Court ducked a 2005 opportunity to clarify its own views, it will no doubt conclude that the use of the Lord’s name in the Pledge of Allegiance “as on our coinage in a motto” is just and proper. Indeed, the whole of our nation’s history is filled with examples of exhortations for His approval.

In the Journals of the Continental Congress, Nov. 1, 1777, quotes a committee report recommending to the states a national day of thanksgiving in which further spoke of “the indispensable duty of all men to adore the superintending providence of Almighty God; to acknowledge with gratitude their obligation to him for benefits received … but also to smile upon us in the prosecution of a just and necessary war, for the defence and establishment of our unalienable rights and liberties.”

There previously was a contretemps over the motto “In God we trust” not appearing on coinage. “Godless coins” is the cry today, just as a century ago when President Theodore Roosevelt ordered the motto removed from the $10 and $20 gold pieces designed by Augustus Saint-Gaudens.

The New York Times headline in late 1907 read: “He trusts Congress will not direct him to replace the exalted phrase that invited constant levity.” Almost a century later, reflecting on it, historian Arthur Schlesinger Jr., in a Times Op-ed piece, noted that T.R. said that, “In all my life, I have never heard any human being speak reverently of this motto on the coins or show any sign of its having appealed to any high emotion in him.”

Indeed, Teddy added “the existence of this motto on the coins was a constant source of jest and ridicule.” Congress disagreed and passed the Act of May 18, 1908, ch. 173, §1, 35 Stat. 164, which restored the motto to all coins on which it had previously been utilized. (This did not encompass all coinage at the time).

The motto was restored on the Saint-Gaudens $10s and $20s later in the year.

However controversial the motto was, is or will be, it always has been first and foremost a numismatic issue.

2009 Gold Buffalo Coins Sell Out

By Numismatic News April 06, 2010

Sellout of the 2009 one-ounce proof gold American Buffalo coin was announced by the U.S. Mint March 29.

Sales stopped when they reached approximately 50,000, though an updated figure was not provided from the prior week’s 49,388 reported in Mint Statistics on Page 50.

The proof Buffalo was the only taste of proof gold that collectors had in 2009 as a shortage of planchets kept the popular gold American Eagles out of production.

Sales of the proof 2009 one-ounce Buffalo began Oct. 29.

If the Mint can continue to satisfy the ongoing demand for bullion gold American Eagles, then the proofs and the “W” uncirculated coins will likely be struck and sold directly to collectors some time in 2010.

Scout Dollar Supply Low

By Numismatic News April 08, 2010

Just 83,483 Boy Scout commemorative silver dollars remained in Mint hands as of April 4 and a sellout looked increasingly likely.

Even so, the pace of orders slackened after the first hectic days saw sales surpass the 200,000 mark in less than a week following the March 23 program opening.

In the seven days to April 4, the Mint sold 51,844 coins. Of these, 35,244 were proofs and 16,600 were uncirculated.

So far collectors have purchased 179,976 proofs and 86,541 uncirculateds.

Maximum mintage of the two categories combined is 350,000, according to the program’s authorizing legislation.

In contrast, sales of the American Veterans Disabled for Life silver dollars stand at 130,996 proofs and 57,066 uncirculateds even though the coins have been on sale one month longer.

The mintage ceiling for the Vets dollar is identical to that of the Boy Scouts at 350,000.

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