Very cool article on the Associated Press wire tonight:

AP :$100 bill to get high-tech face lift

I was just expecting the new $5 bill news.  As you know, the US started re-designing all of the major bills a few years ago.  We’ve seen the new $100, new $50, new $20, and in 2006, the new $10.  The new $5 bill is due in early 2008, and the US Bureau of Engraving has scheduled a media event on September 20th to reveal the new $5.

Well, listen to the technology planned for the next version of the $100 bill:

A new security thread has been approved for the $100 bill, The Associated Press has learned, and the change will cause double-takes…

The operation of the new security thread looks like something straight out of the Hogwarts School of Witchcraft and Wizardry. This magic, however, relies on innovations produced from decades of development.

It combines micro-printing with tiny lenses — 650,000 for a single $100 bill. The lenses magnify the micro-printing in a truly remarkable way.

Move the bill side to side and the image appears to move up and down. Move the bill up and down and the image appears to move from side to side.

“It is a really complex optical structure on a microscopic scale. It makes for a very compelling high security device,” said Douglas Crane, a vice president at Crane & Co. The Dalton, Mass-based company has a $46 million contract to produce the new security threads.

Let’s review some of the cool points in those short paragraphs:

1. 650,000 micro-lenses per bill.  My guess is they are using some inkjet-adapted technology to deposit these lenses on each bill.  Technology for paper-thin displays has been in development for almost a decade.  Still, the volume for currency production here, however, is amazing.
2. Hogwarts?  For me, any article with a Harry Potter reference is the better for it.  Then again, I am a big geek that way.
3. Next year.  The new bill will be available by the end of 2008?  Very cool.

Maybe we’ll learn more about this with the debut of the new $5 on September 20th.

The US Mint issued a press release today, announcing that the third First Spouse gold coin in the series, Thomas Jefferson’s Liberty, will be available at 12:00pm EST on August 30th.  This is two weeks later than expected, since August 16th is the official launch of the third Presidential dollar coin.

Also interesting in this release is the limit of one coin per household for the first week.  Clearly, they are trying to avoid a run on the market on the launch date similar to what happened with the first two gold first spouse coins.

Here is some detail from the press release:

The United States Mint announced today the opening of sales for Thomas Jefferson’s Liberty First Spouse Gold Coin on August 30 at 12:00 noon (ET).  Orders for both the ½-ounce proof and uncirculated versions of the 24-karat gold coin will be limited to one per option, per household for the first week of sales.  The United States Mint will reevaluate this limit after the first week, and either extend, adjust, or remove it.  Mintage of Thomas Jefferson’s Liberty First Spouse Gold Coins is limited to 20,000 for each product option.

The image selected for the coin’s obverse appeared on the Draped Bust Half-Cent coin from 1800 to 1808.  The design was originally executed by United States Mint Chief Engraver Robert Scot and re-sculpted by United States Mint Medallic Sculptor Phebe Hemphill.  Inscriptions on the obverse include Jefferson’s years of service, the year “2007,” “In God We Trust” and “Liberty.”

Thomas Jefferson’s Liberty First Spouse Gold Coin is the third coin released in the multi-year program.  Designed by United States Mint Sculptor-Engraver Charles Vickers, the coin’s reverse (tails side) depicts Thomas Jefferson’s monument, located on the grounds of his Monticello estate.  Inscribed on the coin is Jefferson’s epitaph, which he wrote near the end of his life:  “Here was buried Thomas Jefferson, author of the declaration of American independence, of the statute of Virginia for religious freedom and father of the University of Virginia.  Born April 2, 1743, O.S. Died July 4, 1826.”  Additional inscriptions on the reverse include “United States of America,” “E Pluribus Unum,” “$10,” “1/2 oz.” and “.9999 Fine Gold.”

There has yet to be any announced figures on the proportion of proof to uncirculated coins with the first two First Spouse coins.  It’s interesting to me that this press release specifies exactly 20,000 of each type of coin.  My guess is still that the “uncirculated” version will be the lower mintage and more valuable of the first two gold coins.

Don’t say they didn’t warn you!

2007 American Eagle Platinum Proof and Uncirculated Coins Available July 17

From the press release:

Pricing and mintages of the 2007 American Eagle Platinum Proof and Platinum Coins are listed below:

Coin	Price	Maximum Mintage	Product Limit
Proof one ounce	$1,599.95	16,000	6,000
Proof Half-Ounce	$809.95	15,000	5,000
Proof Quarter-Ounce	$439.95	15,000	5,000
Proof Tenth-Ounce	$229.95	20,000	10,000
Proof Four-Coin Set	$2,949.95	N/A	10,000
Uncirculated One Ounce	$1,489.95	N/A	N/A
Uncirculated Half-Ounce	$759.95	N/A	N/A
Uncirculated Quarter-Ounce	$399.95	N/A	N/A
Uncirculated Tenth-Ounce	$189.95	N/A	N/A
Uncirculated Four-Coin Set	2,769.95	N/A	N/A

Note: Maximum mintages reflect the total number of individual product options and the coins included in the four-coin sets.

Orders for the platinum proof coins should be submitted early, as mintages are limited. There is no mintage limit for the platinum uncirculated coins. Household limits have not been set for these options. Additionally, the United States Mint reserves the right to limit quantities and may discontinue accepting orders at any time.

Wow. And you thought the First Spouse gold coins were expensive. $3000 for the proof set, and now there is an uncirculated version for collectors as well.

I don’t know what to make of the very low mintage. On the one hand, a low mintage usually means a good solid path to appreciation and rarity. On the other hand, how many people are really collecting the Platinum eagles? There has to be a diminishing return on pricing of coins. It’s the same issue I have with the First Spouse coins… how many people are really going to shell out $16,000 to own the whole set? And how much can it appreciate from there, since that’s just the up front cost?

In any case, don’t whine if you want these coins and you’re not there at 12pm to place your order. It’s as easy as going to:

http://www.usmint.gov

Happy hunting.

P.S. If you happen to pick up an extra 4-coin proof set, feel free to send it my way.

Well, as you now know, the first two First Spouse coins for Martha Washington and Abigail Adams sold out in about 2 hours on the US Mint website.  The coins are now trading for between a 50-150% premium on eBay, and they haven’t even shipped yet.

So, the question you might be asking is:

What date is the US Mint releasing the next First Spouse coins?

I found the answers here, in this US Mint press release.   The dates are:

• August 16th, Jefferson’s Liberty (he had no first spouse)
• November 15th, Dolley Madison (not the baked goods)

Block off the dates.  I’m not sure at this point if the site will carry the coins at 9am EST or 12pm EST.  Hopefully, that will get announced ahead of time.

Who would have thought?  Gold coins with Martha Washington & Abigail Adams that cost $400+ each sell out within 2 hours at the US Mint.  40,000 coins per first lady, and apparently that wasn’t enough.

Unbelievable!

Here is a search for individual first spouse gold coins on eBay. It filters out the people who are selling all four coins at once (or tries to). Some of those sets have been selling for $4000! Right now the price seems to be climbing, but is between $650 – $800 per coin. Amazing.

I have to remind myself that the coins don’t ship for another two weeks (July 5th according to the US Mint).

I caught this article from Dave Harper today on Numesmatic News. While I think it is interesting that it has become well known that eBay is influencing the popularity and monetization of coins in the US, I disagree with his conclusion completely.

Dave argues basically the following:

• The US Mint is producing “instantly popular” coins by limiting mintage.
• The fact that households can buy 5 coins each means that a relatively small number of buyers can “clean out” the inventory of the mint, creating the illusion of popularity.
• These buyers are really just waiting to flip the coins on eBay for a profit.

So far, so good. In fact, this is one of the things I have noticed as well. More issues from the US Mint are selling out quickly, and that’s because I believe that people have discovered the online site and they are able to often sell the coins on eBay for a profit to people who either don’t know about the site, or who miss the launch window for the coin.

But then Dave kind of goes off the deep end a bit with the conclusion:

Now I know sellouts are in the financial interests of the U.S. Mint. The possibility of profit is the only reason the Mint sells coins to collectors at all. However because this sales approach is so exclusionary, perhaps the Mint should sell all of the coins itself in online auctions. The windfall profits would then belong entirely to the government, and theoretically at least, a piece of the profit would accrue to all Americans as a few dollars less in taxes that would have to be paid.

Sporting events don’t sell all of the tickets directly to scalpers. They at least try to achieve some semblance of fairness. The Mint should reflect on what it is doing in this light.

Huh? What?

I had to read it again to make sure I understood what he was saying. The analogy with tickets made no sense to me juxtaposed with the idea for the US Mint to auction off coins.

Most concerts and sporting event venues try to ensure that “true fans” will have access to tickets. While I find that argument fairly specious, their solution to the problem is to sell the tickets at a fixed price, and start the sale at a public time, limiting the number of tickets any individual can buy.

That is exactly what the US Mint is doing!

They have a fixed price ($429.95) and they publicly announced the fixed time (June 19, 2007) when the coins would go on sale. They then limited each buyer to 5 coins each.

How is that not fair compared to ticket sales?

I myself posted the date and time on this blog weeks in advance – the US Mint has been advertising it for quite a while. The people who cared went to the site and bought the coins. I didn’t exactly camp out either – I flipped to the site when I had a spare moment, 52 minutes after the coins went on sale, and I bought a couple myself.

Now, don’t get me wrong. I love auctions. I think that they are a great way to ensure that the people willing to pay the most get the goods, and that sellers get the most for their goods. It is literally supply meeting demand.

But it’s hard to argue that if the US Mint auctioned these coins off that it would be better for the individual investor.

It was not a given that the First Spouse coins would sell out. Believe me, I’ve purchased supposedly hot coins at the US Mint, only to see their value drop over time due to lack of interest and demand years later. The supposedly collectible nickels from 2004-2006, for example, aren’t exactly trading for a premium.

In fact, I believe I argued on this blog that the First Spouse coins would not be popular – who is going to pay over $400 a coin for a series of over 40 first spouses ($16,000 total), when most of the women featured are literally unknown to 99.9% of Americans?

Now what Dave should have argued for is a lottery. The US Mint could have reserved some coins to be distributed, not based on first-come, first-serve, but based on a lottery across interested parties. You’d put a small deposit down, to ensure only real buyers, and a valid form of a payment. Then the US Mint could collect names for weeks, and pick winners who would then get the coins.

Oh well. Count this buyer happy.

June 2007 is a busy month for the US Mint.

Two days ago, they released the first two 2007 First Spouse 24K Gold coins in proof & uncirculated versions.  To my suprise, they sold out in just 1.5 hours, and the waiting list is apparently over 35,000 coins.  Thank goodness I got my order in early.

Today, the US Mint has release the proof set for the 2007 Presidential $1 Dollar Coin Program.  4 Coins total.

Now, I personally collect the US Silver Proof sets every year, which will also include the new dollar coins.  But for people who just want the Presidential dollars, this is a beautiful set.  Because the coins are not made of gold or silver, they are reasonably priced – only $14.95 a set.

Get yours here.

By the way, if you want to stay up to date on US Mint releases, it’s very easy now.  They have enabled the US Mint website with RSS Feeds.  Here is the feed to get their product introduction announcements.

Break out the plastic, coin collectors. The new 2007 24K Gold First Spouse coins just went on sale at the US Mint today at 12pm EST.

Right now, there are four available:

• Martha Washington, Proof
• Martha Washington, Uncirculated
• Abigail Adams, Proof
• Abigail Adams, Uncirculated

Here are the proof & uncirculated versions, for comparison:

From the US Mint website:

This year marks the inaugural year of the First Spouse Gold Coin Series, the United States Mint’s first coin series to feature our Nation’s First Spouses.

Four, one-half ounce, $10 24-karat Gold First Spouse Coins will be minted and released annually in the order the spouses served in the White House. The coins will be minted in proof and uncirculated condition and are available individually. Each First Spouse Gold Coin will coincide with the release of the four circulating Presidential $1 Coins annually. In 2007, the United States Mint will release the first four coins in the series which include: Martha Washington, Abigail Adams, Thomas Jefferson’s Liberty and Dolley Madison.

Martha Washington: The obverse designed and sculpted by United States Mint Sculptor-Engraver Joseph Menna, is inspired by Martha Washington’s portrait by Charles Wilson Peale. The reverse, designed by Susan Gamble, United States Mint Artistic Infusion Program Master Designer, and sculpted by Don Everhart, United States Mint Sculptor-Engraver features Martha Washington sewing a button on her husband’s uniform jacket.

First Spouse Gold Proof Coins are available in limited mintages. Each 2007 First Spouse One-Half Ounce Gold Proof Coin is packaged in a custom-designed domed-chest, highly polished lacquered hardwood presentation case and accompanied by a Certificate of Authenticity signed by the Director of the United States Mint.

Martha Washington Coin Maximum Mintage: 40,000 across all product options

Each is one-half ounce of 24K gold, with a face value of $10. The proof coins sell for $429.95, the uncirculated coins for $410.95. You can buy them at the US Mint here, shipping date is current July 4th, 2007, although that will push out as they sell.

They are limiting mintage of each first spouse to 40,000 coins – interestingly, that is across both proof and uncirculated versions, so the ratio could be heavily skewed.

Assuming that you wanted to collect all of these coins, you’d be on the hook for nearly $32,000 over the next 10 years at these prices. I’m guessing that most people won’t go for that.

The hardest choice here might be whether to buy the proof or uncirculated versions. Given the low differential in price, it might seem like the proof coin is the most obvious choice. Aha, but that’s the problem! If everyone buys the proof, and no one buys the uncirculated, guess which one will end up the winner in collectible value?

Comment here if you collect coins… are you going to buy this set? Proof or uncirculated?

Update (6/21/2007): Wow. The coins sold out in approximately 2 hours on the US Mint website. Crazy. I’ve written a post about it, the current prices on eBay, and some of the commentary about it.

Update (6/26/2007):  I’ve posted the planned launch dates for the next two First Spouse coins at the US Mint.  Mark your calendars!

This is hot of the newswire from the US Mint:

WASHINGTON— The United States Mint announced today that the 2007 one-ounce American Eagle Silver Uncirculated Coin will be available beginning at noon on Wednesday, June 13, 2007. Struck on specially burnished blanks, the American Eagle Silver Uncirculated Coins feature a finish similar to their bullion counterparts, but carry the “W” mint mark, reflecting their striking at the United States Mint at West Point.

The American Eagle Silver Uncirculated Coin bears the same designs as the bullion and proof versions. The obverse design features Adolph A. Weinman’s full-length figure of Liberty in full stride, enveloped in folds of the American flag, with her right hand extended and branches of laurel and oak in her left. The reverse design depicts a Heraldic eagle with shield, an olive branch in the right talon and arrows in the left.

Each coin is encapsulated in protective plastic and placed in a blue presentation case accompanied by a Certificate of Authenticity signed by the Director of the United States Mint, Edmund C. Moy.

Containing one troy ounce of .999 silver, the 2007 American Eagle Silver Uncirculated Coin will be available for $21.95.

Last year was the first year that this coin was minted. At first, most people ignored it, largely because uncirculated silver eagles are available from any bullion dealer, and the US Mint markup was substantial. Ironically, this led to extremely low sales volume for the 2006 coin.

Of course, it turns out that this is the only uncirculated silver eagle with the “W” mint mark, and as a result to complete a set every collector has to have one. The price went from $15.95 to $60 almost overnight on eBay when they were discontinued. I’ve seen them selling now for almost $100.

This is common knowledge now, so my guess is that the 2007 will sell briskly, ironically making it less valuable. I’ll still buy a couple, though. Just a sucker, I guess.

Well, I guess it was inevitable.

With all the press coverage and excitement around the George Washington Presidential Dollar Coin errors, you just knew that people would be all over the next dollar coin looking for problems. However, even I am a little shocked at exactly how voracious the coin collecting community has been tearing apart this new issue looking for problems.

The Coin Collecting News has some great information on what looks like the most significant error to be found on the John Adams dollar coins to date: a coin with double edge lettering.

As a reference, this article on About.com has over a dozen possible errors documented already! I’m going to reproduce the list here, just to give you an idea of the incredible detail available already:

Adams Dollar Errors Listing (Obverse):

• Die clash – Traces of reverse show on obverse
• Over-abraded die – lost detail (probably to repair die clashes)
• Over-abraded die – “Severed Head,” right side of Adams’ neck
• Struck through grease filled die – lost numbers & words in lower legend
• Struck through grease filled die – random spots & smears
• Small die chips – “Warts” and “Infected President” types

Adams Dollar Errors Listing (Reverse)

• Die clash – Traces of obverse show on reverse
• Over-abraded die – “Severed Head,” left side of Liberty’s neck
• Over-abraded die (New Type!) – “Blinded Liberty” shows Liberty’s right eye polished flat
• Struck through grease filled die – random spots & smears
• Die crack in torch (New Type!) – “Broken Torch” type has moderate die crack
• Minor die break – “Filled S” type (One or the other S in STATES, both reported)
• Minor die break – “Extra Curl” has small die break in Liberty’s hair between curls

Adams Dollar Edge Errors & Whole Coin Errors

• Unburnished planchet – Planchet missed polishing & brightening step
• Double edge lettering – Coin went through edge lettering machine twice
• Shifted edge lettering – Edge lettering doesn’t line up properly with other coins
• Embossed letters – Improperly called “dropped letters” – appearing on edge and surfaces

An unbelievable list for a coin that is four days old!

Hopefully I’ll be getting my first mint boxes of coin rolls soon. I’ll be selling them again on eBay, along with some unopened rolls of George Washington dollar coins.

Update (5/24/2007): For a limited time only, I am now carrying unopened, original John Adams Presidential Dollar coin rolls in my eBay Store. Click here to buy them on eBay Express. I also have a few more original bank rolls of the George Washington dollar coins.  Click here to buy them on eBay Express.

If you are interested in the other rolls I am carrying, click here for all the coins I am currently selling on eBay Express.

Big news today in the coin world… today, the Presidential $1 Dollar Coin series became, well, a series.

The US Mint is now selling rolls and bags of the new John Adams dollar coins.  I wrote a piece on the new coin a few weeks ago, if you’re interested in more detail.

There are already rolls of the new dollars available on eBay.  I personally am working to get a few boxes of the new coins, and will likely be selling them as well next week.  The US Mint is selling the rolls for $35.95 (25 coins), and the bags for $319.95 (100 coins). I’ll likely sell them for a few dollars less on eBay.  I’ve also come across some more George Washington dollar rolls – I’ll be selling those too.  Probably to people who didn’t realize that they’d only be available for a short time.

So far, there has been no report of any errors or issues with the John Adams dollar coins, but it’s still very early.  If there are legitimate errors, I’ll report them here on the blog.

The next big date in the Presidential Dollar Coin Program looks like June 19… that’s the date that the US Mint has given for announcing the different options for the 24K $5 gold pieces based on the “First Spouse” coins.

Update (5/24/2007): For a limited time only, I am now carrying unopened, original John Adams Presidential Dollar coin rolls in my eBay Store. Click here to buy them on eBay Express. If you are interested in the other rolls I am carrying, click here for all the coins I am currently selling.

How could I possibly resist a post about this one?

The Royal Canadian Mint has issued the first coin with a $1 Million Dollar face value.

This coin is 100 KG of pure, 0.99999 Fine Gold. That’s 3,215 troy ounces of gold in a single coin. As reported on the Coin Collector’s Blog and goldeneaglecoin.com:

At 100 kilograms (3215 troy ounces) and 53 centimeters (21 inches) it is the largest legal tender coin in existence. It will be made of .99999 pure gold making this coin the purest gold coin on the market. The obverse of the coin will feature Queen Elizabeth II with the reverse will feature a “new, elegant maple leaf design.”

This looks like an incredible showpiece for a new process that allows the Canadian mint to issue gold coins at a whole new level of purity that should be appreciated by operations manager: five 9s worth, or 99.999% pure. Right now, the purest coins on the market are 0.9999 fine, including the previous Canadian Maple Leaf and US Gold Buffalo coins.

From the press release:

The Gold Maple Leaf bullion coin was first launched in September 1979, as a one ounce investment coin, the first coin to be struck of pure gold. The Gold Maple Leaf coin was 999 pure until 1982, when its purity was raised to 9999, setting a new benchmark for gold bullion coins. The RCM has maintained its tradition of leadership in the gold bullion industry by raising the bar once more, to 99999.

This is quite a coin. The gold value alone is worth over $2.25 Million US dollars, based on a gold price of $700 per ounce. It sells for approximately $2.7 Million dollars.

According to this MSNBC article, three of the coins have already been sold. The article also states that the coin is 20 inches in diameter and 1 inch thick, weighing over 220 pounds. Apparently, it takes 6 weeks to manufacture a single coin of this size and purity.

“They’re not doing this because there is huge demand for 100-kilo gold coins,” Bret Evans, editor of Canadian Coin News said Saturday. “They’re doing it because it gives them some bragging rights in having the largest purest gold coin in the world.”

If you are looking for gift ideas for me, look no further. 🙂

In a previous post, I highlighted the schedule for new US Mint products through May. The US Mint has updated their site with a slew of new dates, so I’m posting them here quickly.

May 1 Washington Official First Day Coin Cover
May 15 Little Rock Central High School Desegregation Commemorative Coin
May 17 John Adams $1 Coin Bags and Rolls
May/June American Eagle Platinum Proof Coins
May/June American Eagle Platinum Uncirculated Coins
May/June Presidential Spouse Gold Proof Coin
May/June Presidential Spouse Bronze Medal 1 5/16″
May/June American Buffalo 24-karat Gold Proof One Ounce Coin
Late May/June American Eagle Silver Uncirculated Coins
Late May/June United States Mint Presidential $1 Coin Proof Set®
Late May/June United States Mint Proof Set®
Late May/June United States Mint Silver Proof Set™
Late July/August United States Mint Uncirculated Coin Set®

Looks like we’ll see the first Presidential Spouse gold coins soon, as well as the new American Buffalo Proof Coin. The US Mint has decided to price that coin at $850, a $50 increase over the 2006.

The price increase isn’t surprising to me – last year I bought two coins at $800 and sold one almost immediately on eBay for over $900.

John Adams will get his dollar coin on May 17th. Something to look for given the excitement over the George Washington dollar coin errors.

I’m curious to see if the US Mint Uncirculated Eagles will be a big draw this year. Last year, no one paid much attention to these, and they had some of the lowest mintages ever of a US Eagle. As a result, the prices for these immediately skyrocketed. Of course, that will likely lead to overproduction in 2007, and lower prices. We’ll see. I bought my uncirculated silver eagle on eBay in December for about $50. I’ve seen prices as high as $80 on eBay recently. Not bad for something that sold for under $20 six months ago.

Quick nod to the Coin Collecting News blog for this find. The design of the last of the 50 State Quarters has been revealed.  Hawaii, the 50th state to enter the United States, will get its quarter introduced toward the end of 2008.

From the Honolulu Advertiser:

A 25-cent piece featuring the mighty profile of King Kamehameha, the eight main islands, our state motto (Ua mau ke ea o ka ‘aina e ka pono), admission year and — in case anyone doesn’t get it — the word “Hawaii” will be jingling in pockets and purses across the U.S.

Gov. Linda Lingle yesterday announced formal approval of the Hawai’i commemorative quarter, the last of 50 such quarters to be authorized and issued by the U.S. Mint. . . .

Personally, I like seeing the runner-up coin designs. It would have been cool to have a surfing quarter in production…

The Coin Collector’s Blog reports today the US Mint has finalized the melting ban on US coins, particularly pennies and nickels where the copper and zinc content now exceeds the value of the coins.  They clearly want to avoid entrepreneurs buying pennies by the ton, shipping them offshore, and melting them down.

I posted about this phenomenon last yet… the value of Zinc and Copper have skyrocketed.  The penny, despite its color, is mostly Zinc these days.  Nickels, despite the name, are mostly Copper.  Who knew?

The press release from the US Mint is here.

Here is some detail you may not have caught.  Besides melting, it is now illegal to take a large amount of coins out of the country.  What is a large amount?  Try $5 worth.

That’s right.  Check your suitcase.  If you have more than $5 in small coins, you might be set up for a $10,000 fine per violation, or up to five years in federal prison, or both.  Ouch.

Fortunately, you are only liable if you knowingly violate the regulation.