SILVER 101 – World Mints : Some coins you may not have considered but should.

Silver hasn’t served as a regular medium of exchange in any nation for more than 40 years, which means much of what is currently being struck is focused on rounds and bars for investors in the metal. Here’s the rest of the story.

The person who prefers collectible silver hasn’t been forgotten, as world mints from all over come out with commemorative and other non-circulating coinage on a regular basis. The options includes a large selection of colorized pieces as well as others with small gemstones set in the planchet. If attractive and interesting designs are what you seek, consider these 21st century coins. This list will stick with the classic look of lustrous silver, minus the paint jobs and bling.

 

The French Mint  [Monnaie de Paris] chose an unusual denomination – 1 1/2 euros – for a 2002 - dated commemorative, honoring the 75th anniversary of the first non-stop Transatlantic flight. The Spirit of St. Louis – the plane flown by Charles Lindbergh – is depicted on the reverse.

Several other recent French coins are attention getters. Check out the trio of 2003-dated commems issued in honor of the centennial of the Tour de France bicycle race. Sticking with the 1 1/2 euro, a desert-crossing half-track vehicle carries a 2004 date, while the 2012 10-euro honoring a decade of the transnational euro currency carries the classic Sower theme. Even with its higher face value, the 10 euro contains the same amount of silver (.6423 ounce) as the 1 1/2 euro pieces.

The Royal Canadian Mint cranks out more products for the collector market than any other coin producer, and the lineup mixes novel concepts with some traditional themes. Double down on offbeat with the 2011 Year of the Rabbit $15. In addition to the odd face value, this coin is distinguished by its scallop-shaped planchet. Want to feel like you stepped into the past? The 2008-dated $20 shows a farmer working his field behind a pair of plough horses.

Canada is known for wildlife, and the 2005, $5, displaying a walrus and her calf would be a worthy addition to any collection of modern silver. With a face value of $8, the 2004-dated grizzly bear proof (mintage 12,942) was clearly aimed at the Asian market. Not all recent commems are crown sized. The 2004 $2 grizzly bear proof contains .2617 ounce of silver. St. Louis-based Talisman Coins is a U.S. distributor for French and Canadian coinage.

Somalia is a new and surprising entry in the modern coin market. The African Wildlife series includes silver coinage from 1/2 ounce to one kilo. Somalian silver with a mix of elephant designs are struck by a private German mint. APMEX is one of the U.S. sources for these coins that appeal to both collectors and bullion shoppers.

Austria has a long history of silver commemoratives and skilled engravers at the Vienna-based mint do fine work on smaller surfaces than the usual crown-sized planchets. Nine-sided coins with a face value of 5 euros contain .2572 ounce of silver alloyed with copper. Recent vignettes include a map of Europe, soccer, downhill skiing and Tyrolean resistance fighters. Larger 10 and 20-euro silver commems are also produced for the collector market.

How about something that stands out from the herd? The two-ounce silver Libertad by the Casa de Moneda (Mexico’s national mint) combines a eye-catching design, heft, an unusual size for a bullion-related issue and low annual mintages. Go even bigger with low-mintage Libertads that weigh in at five ounces and a full kilo.

The face value of 50 cents is no indicator of the market value of Australia‘s half-ounce proof silver Kookaburas of 2002 to 2005. These square coins come with reeded edges. Likewise, the 12-sided 2004 50-cent proof is a departure from standard round planchets. Three native Australian species – the koala, wombat and a lorikeet flapping its wings – are on the reverse of this .999 fine coin.

The Mennica Polska (Polish State Mint) ranks among the more creative 21st century mints. It’s not widely known, but Poland has a large and enthusiastic numismatic community that purchases modern silver along with older coins on a regular basis. The Polonia Warszawa soccer team is honored on the 2001 5 zlotych, the only silver coin of that denomination struck in the 21st century.

A pair of intriguing 10-zlotych coins carry a 2004 date. The sterling (.925 fine) coin marking the 60th anniversary of the Warsaw Ghetto uprising was sought beyond Poland, while a Summer Olympics commemorative shows two fencers in action with the Parthenon as a backdrop. The triangular 2005 commem for Japan’s Aichi Coin Expo and a rectangular 2007 10 zlotych featuring a medieval knight are anything but conventional.

Vintage coins have obvious appeal, but some of the new stuff can also scream “Buy me!” to those who appreciate talented artistry. Go ahead and add a few recent products to your holdings.

http://www.coinweek.com/australian-coins/silver-101-world-mints-coins-may-considered/ 

America the Beautiful Silver Coin Series Gathers Steam

A string of recent sell-outs of 2013 five-ounce silver America the Beautiful coins, especially the unexpected end of sales for several of the numismatic versions, is helping to drive increased interest in this series.

All but three coins — two bullion and one numismatic – of this year’s ATB coins have now sold out, which is a major improvement over sales levels from the past couple years, when one year’s coins were typically available into the next year.

The remaining bullion versions are the Perry’s Victory and Great Basin coins, with last reported sales of 27,100 and 28,600 respectively. These two issues seem to have less demand in bullion form than the White Mountain, whose design is widely considered one of the best, and the Mount Rushmore and Fort McHenry bullion coins, which have the benefit of strong designs and higher visibility than coins for less well-known national parks. The numbers for the two bullion coins still on sale have not changed for a couple weeks, so it is possible the Mint’s authorized purchasers are no longer ordering these issues.

The McHenry coins sold 30,000 units, and the Rushmore coins 35,000, which is also the final level for the White Mountain coin. Both of these bullion coins sold out very quickly, faster than any other coins in the series, especially the Rushmore, which sold out in a month.

The Fort McHenry bullion coins may have strong future potential because their mintage is closer to that of the less well known park coins from this year, and the design ties in with widespread interest in the War of 1812 and the Star-Spangled Banner.

In addition, examples of this coin graded MS69 DMPL by PCGS, which are not very plentiful at the moment, have sold on the secondary market for prices as high as $1800. Yet ungraded examples are selling for $130 or less. The reason appears to be the current lack of high-grade DMPL versions of this issue, but I was able to purchase one that looks excellent, and these values may drop as more coins are graded. In general, the bullion coins, which tended to have a lot of contact marks in recent years, are now being made with fewer flaws, which has tended to drive prices for graded examples down. It remains unclear at this point why the McHenry high-grade pieces are viewed as so much more valuable than other high-grade coins in the series apart from the certified population data.

The Rushmore bullion coin may also have a bright future given the fast pace at which it sold all 35,000 units and the popularity of the design and the monument it depicts. I expect both versions of this coin to be stand-outs in the overall series.

In terms of the numismatic versions, which have lower mintages than the bullion coins, the Great Basin and Perry’s Victory coins were both pulled from sale recently well-before reaching their authorized maximum mintage levels. Last reported sales for these two coins are 17,810 and 17,721. The Fort McHenry numismatic coin sold out on December 3 with last reported sales of 19,634.

The final numismatic 2013 coins for Mount Rushmore has now sold 21,135 as of December 1. It is possible they will also be pulled from sale soon, as the Mint gears up for the 2014 coins, rather than selling them to their full 25,000 maximum authorized mintage. Or the Mint may be calculating that it is worth selling the coins for a longer period due to the coin’s design and name recognition.

It is precisely the tension between those two views that is creating a guessing game among buyers, who are debating whether they should grab another coin or more before sales end, especially while prices remain reasonable.

It is also unclear if the Mint underestimated demand for several of this year’s coins, as it seems they would have sold the full authorized mintage of 25,000 coins for an issue like Fort McHenry.

Some buyers have expressed frustration with the early sell-out of these two coins because they had not yet purchased their coins, but they had plenty of time to do so. The more common reaction is much more positive since unexpected sell-outs of modern U.S. Mint coins have a strong driver of secondary market values. Although these coins do not have mintages as low as the 2012 numismatic coins, they are already selling for premiums at coin dealers and on e-Bay, though the market seems to still be establishing their values.

Lower silver prices and unexpected sell-outs as well as designs that most collectors perceive as superior to those of the most of the coins issued in previous years is creating a lot more interest in this series, which bodes well for higher prices and higher demand for past issues. If more and more people collect these coins, as appears to be happening, the series should have a brighter future than appeared to be the case not long ago. This may also start to shift the view many collectors have that modern coin designs are generally inferior to the designs on classic coins.

However, the coins will be issued until 2020, with one final issue in 2021. And silver prices are likely to be much higher in coming years. So it remains to be seen how many people will be able to stick with this series. Rather than trying to complete it, many buyers seem to be purchasing just those issues that have the greatest appeal for them.

No matter what happens we are a long way from the days when these coins were widely derided as hockey pucks with no numismatic value or appeal. Plenty of collectors are paying major premiums especially for last year’s coins, which may remain the series keys for both versions, and that has been the case since the coins sold out about a year ago.

Demand levels for these coins seem to be a function of not just low mintage but also of compelling designs, and collectors seem to largely agree on which coins have the best designs. For example, the 2012 Hawaii Volcanoes and Denali bullion coins are both the lowest mintage of the series at 20,000, but the Volcanoes coin always sells for more in any grade and ungraded, which means the appeal of the design is an important factor.

Finally, the designs of the 2014 ATB issues were recently approved. Initial reactions to these designs are very positive, probably even more so than the early reaction to the 2013 coins, which should mean more collectors of the series next year and perhaps higher sales levels too.

http://www.coinweek.com/modern-coins/coin-analyst-america-beautiful-silver-coin-series-gathers-steam-2/ 

The Coin Analyst: U.S. Modern Coins in 2014

As we approach the end of 2013 and the start of 2014, what changes and developments can collectors of U.S. modern coins look forward to in the coming year?

For starters, the U.S. Mint has provided a preliminary online product schedule that focuses on core products by month and does not include specific issue dates.  It also does not indicate when the five-ounce silver America the Beautiful coins are releasing, but since it lists the ATB quarters that carry the carry the same design, and since in recent years the launch of the quarters has for the most part paralleled the launch of the larger coins, buyers have a rough idea of when to expect them.  For the spouse coins as always there is more mystery, though I do not think they will be released as late in the year as in 2012 and 2013 because the design approval process is further along than it was then.

In addition, the Mint will for the first time offer buyers a 10% discount on many core products, including items like annual sets and most silver issues other than commemoratives, if they sign up for a subscription for the product.  Each subscription comes with a separate shipping fee of $4.95, but in most cases it would be worth getting the subscription, especially for the five-ounce silver coins, and provided silver prices stay about where they are.

A lot of collectors are noting in online forums that they plan to subscribe to the five-ounce coins in particular, and the question on everyone’s mind is whether the Mint will have to increase mintage levels because of the additional demand.   But it remains unclear what kind of numbers we are talking about, and whether it is basically the same collectors buying what they would normally buy just doing it by subscription, or if demand will really rise.  It will also be helpful to have one less thing to remember when one subscribes.

This is new territory for the Mint, which is different from other world mints in the way it prices coins.  It prices most issues more competitively than its foreign competitors do.  While it offers a 5% discount to anyone who spends over $5,000 in an order and has a business tax id, other world mints sell their coins on a wholesale basis to dealers, offering far greater discounts.

In terms of new and special issues, the Mint has not said much yet apart from plans to issue a special set or sets of half dollars to mark the 50^th anniversary of the John F. Kennedy half dollar, which will probably be launched in August at the ANA World’s Fair of Money.  There will be no special American silver eagle set in 2014, as the Mint realizes collectors are at the saturation point for those sets, but whether they issue enhanced uncirculated silver eagles as a single coin series instead is still a possibility.  I am sure there will be some exciting surprises during the year too.

Designs for the ATB issues have been finalized and are receiving positive reactions from many collectors, but designs for the spouse coins and the American platinum eagle coins are still being reviewed.  The Commission on Fine Arts has made a recommendation for the platinum coin, and I personally find it disappointing.  Modern designs have to be compelling and display great artistry, or they simply will not appeal to most buyers and sales will remain sluggish, as they have recently.  I also think the spouse designs are decreasing in artistic quality based on the 2013 spouse medals I received recently.  The earlier coins had good obverses and somewhat weaker reverses, but now the reverses frequently show generic flowers that do not seem to have anything to do with the spouse being honored.  I honestly cannot even imagine any other major world mint issuing such poor designs that have so little detail, such one dimensionality, and such a lack of originality.  It is these very mediocre and uninspired designs that draw collectors away from modern designs and towards classic designs.  Our artists and the committees that make recommendations simply must do better.

The 2014 baseball coins with an obverse shaped like a baseball glove and reverse that looks like a baseball plus a first-ever domed shape should be popular with collectors and baseball fans.  I would not plan on more low mintage commemorative issues in 2014, though I am unsure how well the Civil Rights Act 50^th anniversary coins will do.

Who knows what will happen to metal prices in the coming year, but after the lackluster performance of 2013, I think many coin buyers are going to be cautious in 2014 about adding to their bullion and collectible holdings.  I personally plan to be more selective than ever, and I suspect many other people feel the same way.  But it is also possible that if metals go even lower, that will stimulate greater demand for coins, as buyers pick up what they consider to be bargains.

Finally, I think in 2014 the Mint needs to reexamine its approach to mintages and order fulfillment.  It has gone too far in the direction of producing coins to demand, and after taking orders for coins that are made to demand, it then takes far too long to ship orders.  The mint to demand approach is producing coins that have little aftermarket value, which like poor designs, will drive away buyers, as they have little perceived scarcity.

The Mint seems to still be reacting to the situation in 2011 when many buyers were unable to purchase a 25^th anniversary silver eagle set because of the combination of a 100,000 mintage and no household limit.  The prevalence of coins and sets with no mintage limits is leading to a growing chorus of criticism that too many of the coins the Mint issues will not be widely sought in the future.  There is no reason why mintages cannot be set at realistic levels and combined with some order and household limits, even if they are not full-proof, allowing for a fair distribution plus a coin that is not so common.  The Mint is in danger of losing more sales and customers if it does not start doing this again.   It is true that the Mint, as officials have pointed out, is not in the business of creating modern rarities, but collectible coins should be made in limited quantities.  Otherwise, they are closer to bullion.

http://www.coinweek.com/modern-coins/coin-analyst-u-s-modern-coins-2014/