Sponsored Ads
The Mint Act of April 2, 1792 set the dollar as the base unit of United States coinage. Congress envisioned the new dollar would replace the Spanish Eight Reales (also called Pillar dollars or Pieces of Eight), which for many years circulated readily throughout the New World.
Since the U.S. was a nation unto itself now, lawmakers sought to help shape an American identity through its coinage.
The first U.S. silver dollars were coined on Oct 15,1794. On that day, 1,758 of them were produced, but no more the rest of the year. Of that number, only about 130 are estimated to survive today. The first U.S. dollar is called the Flowing Hair type, for that describes Liberty's portrayal on the obverse.
Henry W. DeSaussure was appointed by President Washington in July 1795 to replace the first Mint Director, David Rittenhouse. DeSaussure remained in this position only four months, but he made a lasting mark by bringing in Gilbert Stuart, the celebrated painter, to redesign Liberty. The result was a new coin called the Draped Bust Dollar, featuring a matronly Liberty of considerable endowment wearing a draped blouse. The reverse displayed a smallish eagle very similar to that of the Flowing Hair design. Over 40,000 Draped Bust dollars were minted in 1795. The following year, all the smaller silver denominations adopted the Draped Bust theme. In 1798, the small eagle was replaced by a larger, "heraldic" eagle and shield, an image more suggestive of national power and strength. Nearly 1.5 million silver dollars were coined from 1794 to 1804. Unfortunately, not many remained in circulation for very long. One scenario leading to the disappearance of the coins is when bullion profiteers discovered that the U.S. dollar could be exchanged one-for-one with the Spanish Pillar dollar in the West Indies. This proved to be a favorable transaction for them, because the U.S. dollar contained less silver compared to the Pillar dollar, when both exhibited minimal wear. The Pillar dollars were deposited at the Philadelphia Mint, where they were re-coined into a larger number of U.S. silver dollars. The new silver dollars were transported back to the West Indies, where the sequence started over again. Acting to abolish this abuse, Mint Director Elias Boudinot discontinued the silver dollar in 1804 (though all dollars coined in 1804 were dated 1803), with the later approval of President Thomas Jefferson. That was the last of the U.S. silver dollars regular production until 1836.
Ann Willing Bingham was the Philadelphia woman after whom Liberty was modeled for Draped Bust coinage. This 1797 painting of Mrs. Willing at age 33 was completed by Gilbert Stuart. She died three years later.
Public Domain image.
The Flowing Hair and Draped Bust types are often lumped into a numismatic category called Early Dollars. All Early Dollars are important historical artifacts dating from the infancy of the United States, but only a tiny percentage, perhaps 3% or so, of the original mintage has survived to this day, so all of them are relatively rare. Collectors especially enjoy studying the many varieties of Early Dollars. Most of the varieties are defined by the number and arrangement of the obverse stars.
The rarest Early Dollar is the 1804. Most people are surprised to learn that these were not minted until 1834. That year, the U.S. Department of State desired to send Proof set gifts to the Sultan of Muscat and the King of Siam. Mint officials hoped to provide examples of all U.S. coin denominations, but they had a problem finding a current dollar specimen, since dollar coinage was officially halted in 1804. Not wanting to give the appearance of violating the suspension, the Mint crafted new 1804-dated dies, and struck a few "1804" dollars. In the late 1850's, several 1804 re-strikes were produced for the benefit of cozy collector friends of the Mint. Today, we know of the existence of only 15 of the 1804 dollars. It is one of the greatest prizes in all of American numismatics, and creates headlines when one changes ownership. In April 2008, a professionally cleaned specimen, graded PF-62 by NGC, was sold for $3.738 million.
Since the 1804 is beyond the reach of most collectors, what are the key date Early Dollars? Next in line is the 1794. As already mentioned, it too, is very rare, and priced accordingly. Should you be in a financial position to afford such a rarity, the 1794 ought to be one of the rare coins at the top of your list, for it has an unrelenting record of value growth. In May 2010, a 1794 dollar set a record price for the sale of a U.S. coin. The dollar is believed to be the very first silver dollar minted by the United States. It was graded at MS-66 by PCGS, and sold for $7.85 million!
Most other Early Dollars resemble one another in terms of value trend histories, having shown steady, but not spectacular increases over a period of many years. Collectors can buy these Early Dollars in confidence, knowing they'll be worth considerably more in the years ahead, while rejoicing in the thought of owning a coin perhaps once gazed upon by a Founding Father.
It is preferable to buy Early Dollars that have been certified by one of the four leading grading service companies: PCGS, NGC, ICG, or ANACS. If not, then make sure the seller is someone of unquestioned reputation.
The links below take you to eBay coin auctions. For the 1794, probably the only thing for sale are replicas, which have no numismatic value. Eventually, the real thing will pop up, so be watchful. The other link brings up other Early Dollars currently available on eBay. Trend data for the 1796 (Small Date, Small Letters variety) is shown to typify Early Dollar price movements.
1794
Flow Hair Dollar
Condition: G-4 Value Trends 1950: $200
1980: $3750
1995: $6500
2003: $25000
2010: $60000
1796 Trends 1950: $17.50
1980: $300
1995: $675
2003: $1000
2010: $1500
% Annual Increase Since 1950 =
9.97%
% Annual Increase Since 1950 =
7.70%
View the original article here
Welcome to Coin Aficionado at Blogspot.com - The Coin Collectors Blog!
Monday, November 1, 2010
Why Trade My Labor For and Invest In Gold Coins
Sponsored Ads
Check it out!
An eBook, explaining exactly what money is & the money cycle that always comes back to gold & silver. Prepare for the greatest wealth transfer in the history of man! Learn how to legally return to being paid in gold and silver coin. 163 pages plus 84 ref.
Check it out!
Retail Price Guide for American Silver Eagle Bullion Coins
Sponsored Ads
American Silver Eagle bullion coins are produced by the United States Mint. Every coin is guaranteed to contain one troy ounce of 99.9% pure silver and has a face value of one dollar, far below the worth of its intrinsic silver content.
Obviously, no one is going to walk into a convenience store and pluck down a Silver American Eagle bullion coin to purchase, say, a candy bar, but theoretically, someone could, since it is legal tender.
Because American silver eagle bullion coins
ARE indeed real silver dollars, they DO enjoy a collectible value above and beyond their precious metal content. Much of the collectible component in an individual coin can be driven by quality (i.e. state of preservation), also called grade or condition, as manifested by a numerical score assigned by a third party grading service. Example scores are MS-69 or MS-70 (see our Grading section to learn more about this terminology).
Therein lays a potential pitfall for collectors: How much extra should one pay to acquire a graded (or ungraded, for that matter) one ounce Silver Eagle? Sadly, there are many sellers who prey upon uninformed buyers. All too often, these buyers end up paying a lot more than true market price.
Over the years, US Coin Values Advisor has received numerous requests for retail value trend data on silver and gold bullion coins issued by the United States Mint. We’re pleased to announce that we’ve added the 2010 American Silver Eagle bullion coin to our list of collectible coins we regularly track. Collectors now have a resource to confirm approximate market values before making a commitment to buy. We chose the 2010 Silver Eagle because there are more of them being sold than any other date, which should surprise no one since it is the most recent release from the Mint.
All data we use to estimate retail prices comes from completed sales on eBay. Shipping costs, if applicable, were included for each transaction recorded. Trends for coins graded very highly by several grading services are reported on, as well as ungraded examples. The 2010 Silver Eagle report is presented in the categories just below. Click any link to get to your area of interest quickly:
We encourage silver bullion coin buyers to regard themselves foremost as Silver American Eagle Dollar collectors. In other words, approach the subject as a hobbyist might. For instance, get acquainted with the history of the Silver Eagle program and learn about coin collecting terms such as Proof and Uncirculated mintage. Do this, and you’ll become a more adept buyer, positioning yourself for greater rewards. What’s more, you may discover the joy (and potential profitability) of traditional US numismatics along the way. We have a section toward the bottom of this page that provides a more in depth view of the American Silver Eagle bullion dollar. Here are the quick links to various chapters.
Professional Coin Grading Service (PCGS) Professional Coin Grading Service (PCGS) started their operation in February 1986 as a pioneer in the coin grading business. Since then, they’ve graded over 18 million coins. PCGS is universally regarded as one of the leaders in providing reputable third party grading services. 2010 American Silver Eagle Bullion Coins PCGS
2010 American Silver Eagle Bullion Coins PCGS
Numismatic Guaranty Corporation (NGC) Numismatic Guaranty Corporation (NGC) was founded in 1987. More than 20 million coins have been graded by NGC. Among the numismatic class, NGC has a trusted, stellar reputation. 2010 American Silver Eagle Bullion Coins NGC
2010 American Silver Eagle Bullion Coins NGC
Other Grading Services There are several other smaller coin grading services around, most of which raise concern because of their lax grading standards. Unfortunately, less experienced buyers frequently pay way too much for Silver Eagles slabbed by the second tier grading services. In our opinion, you should pay no more for these particular Silver Eagles than you would for ungraded, standard bullion issues (see section below), because if someday you choose to sell, no informed buyer will offer you much more than the silver content value. Based on the fact that the average sale price is well above that of the standard bullion issue, many buyers are not heeding this advice.
Here is another point to ponder. Virtually every Silver Eagle slabbed by these outfits are "Perfect" MS-70's. They very rarely list MS-69 or below coins. That right there should tell you something about their operation.
Note: The value trends and commentary in this section DO NOT include coins graded by ICG or ANACS. Both these services have fine reputations, but there were not enough American Silver Eagle bullion coins sold on eBay with their labels to constitute a sufficient sample size.
2010 American Silver Eagle Bullion Coins Other Grading Services
Ungraded American Silver Eagles The vast majority of Silver American Eagle bullion coins sold are not labeled with a grade. Most likely, an individual coin gets to the end buyer from the Mint through middlemen dealers without being labeled and does so because it (1) was looked at by a dealer but deemed not worthy of the grading process, or (2) never was evaluated by a dealer for grade potential to begin with.
Ungraded Silver Eagles are worth only a few dollars above the spot price of silver. For July 2010, the average silver spot price for the month was $17.92, compared to the average sales price of $23.71 for a 2010 American Silver Eagle over the same time period.
The Silver Eagle sales recorded in our sampling process DO NOT include coins packaged in special gift boxes or any type of display cases, nor colorized coins. Some buyers will pay more to acquire a standard Silver Eagle with above average presentation qualities. That's fine, but no one making such a purchase should expect to recover their extra cost if they in turn decide to sell.
2010 American Silver Eagle Bullion Coins UNGRADED
Avg Price Ungraded Silver American Eagle Coin
How the $1 American Silver Eagle Got Started Beginning in the 1970’s, momentum started to build for the federal government to sell off surplus silver from the Defense National Stockpile Center (DNSC). Some legislators viewed the sale of the unneeded silver as a good way to bring in revenue. While this may have seemed like a wise course of action, the mere mention of a government sale caused the silver market to plummet, as traders dumped their futures contracts in anticipation of falling prices.
The Lucky Friday Mine of the Coeur d’Alene district in Idaho has long been one of the top silver mines in the world. In 2009, it produced 3.5 million ounces. Image courtesy of Wikipedia (Plazak).In July 1981, Congress agreed to sell 105.1 million troy ounces of the stockpiled silver over the next three years, leaving only 25% of the original total. The first auction occurred in October 1981, but further sales were blocked due to skilled maneuvering by congressional members of silver producing states.
As further attempts to resume sales were stymied, the silver spot price rose in response to the gridlock, plus increased worldwide demand for the metal.
Still concerned about the possibility of releasing silver from the DNSC and resultant price plunges, Senator James McClure of Idaho – a major silver mining state – proposed legislation several times throughout the early 1980’s to provide for the disposal of silver from government storage through the issuance of silver coins.
McClure reasoned:
“...if we are forced to accept a sale, why use the method guaranteed to depress the price and dispose of the silver with the lowest possible return to the taxpayers? Why not instead, if we must sell, at least get as much for it as we can? Therefore, today, I am introducing legislation which provides that in the event the President proposes and Congress authorizes the sale of silver from the strategic stockpile, this silver would be sold through the minting and distribution of a silver-bearing coin”.On June 21, 1985, McClure proposed a “Liberty Coin Act”, as an amendment to other coinage legislation under consideration at the time. McClure’s proposal was accepted by both houses of Congress and signed into law by President Ronald Reagan on July 9, 1985. Officially known as Title II of Public Law 99-61 (Liberty Coin Act), its key points are:-- Authorizes the Secretary of the Treasury to mint and issue silver bullion coins.
-- Defines coin specifications: diameter, weight, fineness, general design, inscriptions, and edge finish. Regulation of coin sales.
-- Establishes numismatic (i.e. Proof) and legal tender statuses.
-- Silver is to come from the Defense National Stockpile Center.
-- Stipulation that no coins may be issued or sold before September 1, 1986.
The first American Silver Eagle bullion coin was struck at the San Francisco Assay Office on October 29, 1986. [This was the third SF Mint building, opened in 1937. In 1962, it was demoted to an assay office, but was restored to mint status in 1988]. Treasury Secretary James A. Baker III was on hand for the striking ceremony. As Baker activated the coining press with the push of a button, he remarked “I don't need a pick and shovel to start the San Francisco Silver Rush of 1986”. Silver Eagle bullion coins were released by the United States Mint to the eager public on November 24, 1986.
The image on the front side of the American Silver Eagle bullion coin did not originate specifically for this issue. It was first used on the Walking Liberty Half Dollar of 1916 to 1947. The “Walker” design of Adoph A. Weinman was well liked by the public during its heyday, so when the new United States silver bullion coin was authorized, the decision was made to re-introduce Weinman’s concept to a new generation of Americans, in anticipation that it would increase the popularity of the Silver Eagle.
The reverse, on the other hand, was designed especially for the Silver Eagle. John Mercanti, a sculptor/engraver who joined the US Mint in 1974 and went on to produce more coin and medal designs than any employee in Mint history, created the reverse image. The central element of Mercanti’s design is a heraldic eagle with shield above breast grasping an olive branch (peace) in its right talon and arrows (strength) in the left, reminiscent of the Great Seal of the United States. The Great Seal first appeared on US coinage in the 1790’s and very early 1800’s. There are 13 stars above the eagle representing the 13 American colonies. Reverse inscriptions include UNITED STATES OF AMERICA, 1 OZ. FINE SILVER-ONE DOLLAR, and E. PLURIBUS UNUM (Latin for “Out of Many, One”).
The Walking Liberty Half Dollar of 1916-47 was the model for the obverse of the American Silver Eagle bullion coin. Designed by Adolf A. Weinman, the "Walker" was widely acclaimed as one of the most beautiful coins in United States history. Coin Photos courtesy of Heritage Auction Galleries.
The legislation passed in 1985 required that the silver used in the bullion coins be acquired from the DNSC. As the stockpile dwindled over the years, it became obvious that if the American Silver Eagle program was to continue, new legislation would eventually have to be enacted to permit a new source of silver.
In June 2002, Senator Harry Reid of Nevada introduced a bill called the “Support of American Eagle Silver Bullion Program Act”. The bill was passed by both houses of Congress and signed into law by President George W. Bush on July 23, 2002. The new law ensured the extension of the Silver Eagle coin by authorizing the Secretary of the Treasury to purchase silver on the open market when the DNSC silver stash was depleted.
Public Law 107-201 authorized the acquisition of silver from sources other than the Defense National Stockpile Center, as required in the 1985 law that established the American Silver Eagle program. This was necessary if the Silver Eagle was to continue, since by 2002 it was clear the stockpile would soon be depleted.
From the inception of the Silver American Eagle program in 1986 until 1992, Proofs were minted at San Francisco and carry the “S” mintmark. From 1993 to 2000, Proof Silver Eagles were produced at the Philadelphia Mint and accordingly bear the “P” mintmark. In 2001, the proof operation was transferred to the West Point Mint, where it remained until production ceased in 2008. Naturally, West Point Silver Eagle Proofs display the “W” mintmark.
Proof Silver Eagles were ordered directly from the Mint, delivered in upscale packaging. Image courtesy of Coin Page.All throughout this time, individuals could order Proof specimens for the current year directly from the Mint, packaged in a plastic capsule shield, displayed in an upscale presentation case, along with a certificate of authenticity.
Proof production was halted in June 2008 when the Mint announced all Silver Eagle planchets were going toward the making of the bullion version of the coin, due to very heavy demand from precious metals buyers seeking a hedge against inflation in the face of a global economic downturn. No Proofs were issued in 2009. Proofs were not issued in 2010 through October. However, beginning on Nov 19, 2010, the Mint will offer American Eagle Proof coins for sale.
It is easy to distinguish a "W" Silver Eagle Uncirculated (top photo) from the "W" Proof version (bottom). The Proof has mirrorlike reflective fields. Images courtesy of United States Mint.The term “Uncirculated” is a bit tricky when discussing Silver American Eagles. From 1986 through 2005, “Uncirculated” really meant any Silver Eagle that was not a Proof, and were struck by the millions and marketed simply as silver bullion coins. These bullion coins, or if you will, “Uncirculated”, were distributed to retail buyers through a network of authorized purchaser wholesalers (see section below to learn how this network functions).
A small percentage of the bullion coin population that by luck escaped the rigors of mass production (i.e. suffered very minimal scratches, abrasions, or other imperfections), were pulled aside, graded, and encapsulated (aka “slabbed”) in private enterprise holders (e.g. PCGS). These high grade Uncirculated Silver Eagles were sold to collectors at a premium above (sometimes far above) their bullion coin value. None of the Uncirculated Silver Eagles dated 2005 and earlier have a mintmark.
Things changed in 2006. In celebration of the 20th anniversary of the Silver Eagle program, the Mint began offering directly to the public a collectible Uncirculated version of the coin.
These special Uncirculated Silver Eagles are individually hand-loaded in the coining press and struck on a burnished (i.e. polished) blanks and housed in glitzy packaging, similar to Proofs.
Burnished Uncirculated Silver Eagles were coined at West Point from 2006-08 and bear the “W” mintmark. None were produced in 2009 or 2010. Of course, during the years of the Burnished Uncirculated product, standard bullion coins worthy of the grading process continued to be slabbed by grading services and marketed as Uncirculated Silver Eagles.
Thus, collectors have two types of Uncirculated Silver Eagles to consider: one specifically manufactured, packaged, and marketed directly by the Mint with a “W” mintmark, and the other arising from the ranks of the standard bullion population with no mintmark, distributed by a network of authorized wholesalers.
Since 2009, the only Silver Eagles produced have been the standard bullion version. No Proofs or Burnished Uncirculated were issued. As usual, choice high quality bullion Silver Eagles continue to be slabbed by grading services and sold to collectors.
Bullion Coin Distribution Network
Just as with the gold and platinum line of bullion coins, the Mint does not sell American Silver Eagle bullion coins directly to the public. Their distribution method employs a network of “authorized purchasers”, consisting of banks, brokerage companies, coin dealers, and precious metals firms. To become an authorized purchaser, a company must meet numerous stringent requirements.
The Mint distributes Silver American Eagle bullion coins to authorized purchasers through shipments of green "Monster Boxes" Each box containes 500 coins. Image courtesy of Wikipedia (Diiscool).Bullion coins are shipped in green "monster boxes." The boxes are made of plastic and each box holds 500 coins. The 500 coins are packaged in 25 tubes with a capacity of 20 coins per tube. The wording “United States Mint” is written a couple of times in elevated lettering across the lid of the Monster box, complemented by two Treasury Department seals.
Every box is specially strap sealed and assigned a serial number before shipping to an authorized purchaser.
The Silver Eagles are sold to authorized purchasers in quantities of at least 25,000 coins per order. The authorized purchasers pay $2.00 per coin above the silver spot price. Once in the hands of an authorized purchaser, Silver Eagles are retailed to the general public.
* = through Sep 30, 2010
View the original article here
American Silver Eagle bullion coins are produced by the United States Mint. Every coin is guaranteed to contain one troy ounce of 99.9% pure silver and has a face value of one dollar, far below the worth of its intrinsic silver content.
Obviously, no one is going to walk into a convenience store and pluck down a Silver American Eagle bullion coin to purchase, say, a candy bar, but theoretically, someone could, since it is legal tender.
Because American silver eagle bullion coins
Therein lays a potential pitfall for collectors: How much extra should one pay to acquire a graded (or ungraded, for that matter) one ounce Silver Eagle? Sadly, there are many sellers who prey upon uninformed buyers. All too often, these buyers end up paying a lot more than true market price.
Over the years, US Coin Values Advisor has received numerous requests for retail value trend data on silver and gold bullion coins issued by the United States Mint. We’re pleased to announce that we’ve added the 2010 American Silver Eagle bullion coin to our list of collectible coins we regularly track. Collectors now have a resource to confirm approximate market values before making a commitment to buy. We chose the 2010 Silver Eagle because there are more of them being sold than any other date, which should surprise no one since it is the most recent release from the Mint.
All data we use to estimate retail prices comes from completed sales on eBay. Shipping costs, if applicable, were included for each transaction recorded. Trends for coins graded very highly by several grading services are reported on, as well as ungraded examples. The 2010 Silver Eagle report is presented in the categories just below. Click any link to get to your area of interest quickly:
We encourage silver bullion coin buyers to regard themselves foremost as Silver American Eagle Dollar collectors. In other words, approach the subject as a hobbyist might. For instance, get acquainted with the history of the Silver Eagle program and learn about coin collecting terms such as Proof and Uncirculated mintage. Do this, and you’ll become a more adept buyer, positioning yourself for greater rewards. What’s more, you may discover the joy (and potential profitability) of traditional US numismatics along the way. We have a section toward the bottom of this page that provides a more in depth view of the American Silver Eagle bullion dollar. Here are the quick links to various chapters.
Professional Coin Grading Service (PCGS) Professional Coin Grading Service (PCGS) started their operation in February 1986 as a pioneer in the coin grading business. Since then, they’ve graded over 18 million coins. PCGS is universally regarded as one of the leaders in providing reputable third party grading services. 2010 American Silver Eagle Bullion Coins PCGS
2010 American Silver Eagle Bullion Coins PCGS
Numismatic Guaranty Corporation (NGC) Numismatic Guaranty Corporation (NGC) was founded in 1987. More than 20 million coins have been graded by NGC. Among the numismatic class, NGC has a trusted, stellar reputation. 2010 American Silver Eagle Bullion Coins NGC
2010 American Silver Eagle Bullion Coins NGC
Other Grading Services There are several other smaller coin grading services around, most of which raise concern because of their lax grading standards. Unfortunately, less experienced buyers frequently pay way too much for Silver Eagles slabbed by the second tier grading services. In our opinion, you should pay no more for these particular Silver Eagles than you would for ungraded, standard bullion issues (see section below), because if someday you choose to sell, no informed buyer will offer you much more than the silver content value. Based on the fact that the average sale price is well above that of the standard bullion issue, many buyers are not heeding this advice.
Here is another point to ponder. Virtually every Silver Eagle slabbed by these outfits are "Perfect" MS-70's. They very rarely list MS-69 or below coins. That right there should tell you something about their operation.
Note: The value trends and commentary in this section DO NOT include coins graded by ICG or ANACS. Both these services have fine reputations, but there were not enough American Silver Eagle bullion coins sold on eBay with their labels to constitute a sufficient sample size.
2010 American Silver Eagle Bullion Coins Other Grading Services
Ungraded American Silver Eagles The vast majority of Silver American Eagle bullion coins sold are not labeled with a grade. Most likely, an individual coin gets to the end buyer from the Mint through middlemen dealers without being labeled and does so because it (1) was looked at by a dealer but deemed not worthy of the grading process, or (2) never was evaluated by a dealer for grade potential to begin with.
Ungraded Silver Eagles are worth only a few dollars above the spot price of silver. For July 2010, the average silver spot price for the month was $17.92, compared to the average sales price of $23.71 for a 2010 American Silver Eagle over the same time period.
The Silver Eagle sales recorded in our sampling process DO NOT include coins packaged in special gift boxes or any type of display cases, nor colorized coins. Some buyers will pay more to acquire a standard Silver Eagle with above average presentation qualities. That's fine, but no one making such a purchase should expect to recover their extra cost if they in turn decide to sell.
2010 American Silver Eagle Bullion Coins UNGRADED
Avg Price Ungraded Silver American Eagle Coin
How the $1 American Silver Eagle Got Started Beginning in the 1970’s, momentum started to build for the federal government to sell off surplus silver from the Defense National Stockpile Center (DNSC). Some legislators viewed the sale of the unneeded silver as a good way to bring in revenue. While this may have seemed like a wise course of action, the mere mention of a government sale caused the silver market to plummet, as traders dumped their futures contracts in anticipation of falling prices.
The Lucky Friday Mine of the Coeur d’Alene district in Idaho has long been one of the top silver mines in the world. In 2009, it produced 3.5 million ounces. Image courtesy of Wikipedia (Plazak).In July 1981, Congress agreed to sell 105.1 million troy ounces of the stockpiled silver over the next three years, leaving only 25% of the original total. The first auction occurred in October 1981, but further sales were blocked due to skilled maneuvering by congressional members of silver producing states.
As further attempts to resume sales were stymied, the silver spot price rose in response to the gridlock, plus increased worldwide demand for the metal.
Still concerned about the possibility of releasing silver from the DNSC and resultant price plunges, Senator James McClure of Idaho – a major silver mining state – proposed legislation several times throughout the early 1980’s to provide for the disposal of silver from government storage through the issuance of silver coins.
McClure reasoned:
“...if we are forced to accept a sale, why use the method guaranteed to depress the price and dispose of the silver with the lowest possible return to the taxpayers? Why not instead, if we must sell, at least get as much for it as we can? Therefore, today, I am introducing legislation which provides that in the event the President proposes and Congress authorizes the sale of silver from the strategic stockpile, this silver would be sold through the minting and distribution of a silver-bearing coin”.On June 21, 1985, McClure proposed a “Liberty Coin Act”, as an amendment to other coinage legislation under consideration at the time. McClure’s proposal was accepted by both houses of Congress and signed into law by President Ronald Reagan on July 9, 1985. Officially known as Title II of Public Law 99-61 (Liberty Coin Act), its key points are:-- Authorizes the Secretary of the Treasury to mint and issue silver bullion coins.
-- Defines coin specifications: diameter, weight, fineness, general design, inscriptions, and edge finish. Regulation of coin sales.
-- Establishes numismatic (i.e. Proof) and legal tender statuses.
-- Silver is to come from the Defense National Stockpile Center.
-- Stipulation that no coins may be issued or sold before September 1, 1986.
The first American Silver Eagle bullion coin was struck at the San Francisco Assay Office on October 29, 1986. [This was the third SF Mint building, opened in 1937. In 1962, it was demoted to an assay office, but was restored to mint status in 1988]. Treasury Secretary James A. Baker III was on hand for the striking ceremony. As Baker activated the coining press with the push of a button, he remarked “I don't need a pick and shovel to start the San Francisco Silver Rush of 1986”. Silver Eagle bullion coins were released by the United States Mint to the eager public on November 24, 1986.
The image on the front side of the American Silver Eagle bullion coin did not originate specifically for this issue. It was first used on the Walking Liberty Half Dollar of 1916 to 1947. The “Walker” design of Adoph A. Weinman was well liked by the public during its heyday, so when the new United States silver bullion coin was authorized, the decision was made to re-introduce Weinman’s concept to a new generation of Americans, in anticipation that it would increase the popularity of the Silver Eagle.
The reverse, on the other hand, was designed especially for the Silver Eagle. John Mercanti, a sculptor/engraver who joined the US Mint in 1974 and went on to produce more coin and medal designs than any employee in Mint history, created the reverse image. The central element of Mercanti’s design is a heraldic eagle with shield above breast grasping an olive branch (peace) in its right talon and arrows (strength) in the left, reminiscent of the Great Seal of the United States. The Great Seal first appeared on US coinage in the 1790’s and very early 1800’s. There are 13 stars above the eagle representing the 13 American colonies. Reverse inscriptions include UNITED STATES OF AMERICA, 1 OZ. FINE SILVER-ONE DOLLAR, and E. PLURIBUS UNUM (Latin for “Out of Many, One”).
The Walking Liberty Half Dollar of 1916-47 was the model for the obverse of the American Silver Eagle bullion coin. Designed by Adolf A. Weinman, the "Walker" was widely acclaimed as one of the most beautiful coins in United States history. Coin Photos courtesy of Heritage Auction Galleries.
The legislation passed in 1985 required that the silver used in the bullion coins be acquired from the DNSC. As the stockpile dwindled over the years, it became obvious that if the American Silver Eagle program was to continue, new legislation would eventually have to be enacted to permit a new source of silver.
In June 2002, Senator Harry Reid of Nevada introduced a bill called the “Support of American Eagle Silver Bullion Program Act”. The bill was passed by both houses of Congress and signed into law by President George W. Bush on July 23, 2002. The new law ensured the extension of the Silver Eagle coin by authorizing the Secretary of the Treasury to purchase silver on the open market when the DNSC silver stash was depleted.
Public Law 107-201 authorized the acquisition of silver from sources other than the Defense National Stockpile Center, as required in the 1985 law that established the American Silver Eagle program. This was necessary if the Silver Eagle was to continue, since by 2002 it was clear the stockpile would soon be depleted.
From the inception of the Silver American Eagle program in 1986 until 1992, Proofs were minted at San Francisco and carry the “S” mintmark. From 1993 to 2000, Proof Silver Eagles were produced at the Philadelphia Mint and accordingly bear the “P” mintmark. In 2001, the proof operation was transferred to the West Point Mint, where it remained until production ceased in 2008. Naturally, West Point Silver Eagle Proofs display the “W” mintmark.
Proof Silver Eagles were ordered directly from the Mint, delivered in upscale packaging. Image courtesy of Coin Page.All throughout this time, individuals could order Proof specimens for the current year directly from the Mint, packaged in a plastic capsule shield, displayed in an upscale presentation case, along with a certificate of authenticity.
Proof production was halted in June 2008 when the Mint announced all Silver Eagle planchets were going toward the making of the bullion version of the coin, due to very heavy demand from precious metals buyers seeking a hedge against inflation in the face of a global economic downturn. No Proofs were issued in 2009. Proofs were not issued in 2010 through October. However, beginning on Nov 19, 2010, the Mint will offer American Eagle Proof coins for sale.
It is easy to distinguish a "W" Silver Eagle Uncirculated (top photo) from the "W" Proof version (bottom). The Proof has mirrorlike reflective fields. Images courtesy of United States Mint.The term “Uncirculated” is a bit tricky when discussing Silver American Eagles. From 1986 through 2005, “Uncirculated” really meant any Silver Eagle that was not a Proof, and were struck by the millions and marketed simply as silver bullion coins. These bullion coins, or if you will, “Uncirculated”, were distributed to retail buyers through a network of authorized purchaser wholesalers (see section below to learn how this network functions).
A small percentage of the bullion coin population that by luck escaped the rigors of mass production (i.e. suffered very minimal scratches, abrasions, or other imperfections), were pulled aside, graded, and encapsulated (aka “slabbed”) in private enterprise holders (e.g. PCGS). These high grade Uncirculated Silver Eagles were sold to collectors at a premium above (sometimes far above) their bullion coin value. None of the Uncirculated Silver Eagles dated 2005 and earlier have a mintmark.
Things changed in 2006. In celebration of the 20th anniversary of the Silver Eagle program, the Mint began offering directly to the public a collectible Uncirculated version of the coin.
These special Uncirculated Silver Eagles are individually hand-loaded in the coining press and struck on a burnished (i.e. polished) blanks and housed in glitzy packaging, similar to Proofs.
Burnished Uncirculated Silver Eagles were coined at West Point from 2006-08 and bear the “W” mintmark. None were produced in 2009 or 2010. Of course, during the years of the Burnished Uncirculated product, standard bullion coins worthy of the grading process continued to be slabbed by grading services and marketed as Uncirculated Silver Eagles.
Thus, collectors have two types of Uncirculated Silver Eagles to consider: one specifically manufactured, packaged, and marketed directly by the Mint with a “W” mintmark, and the other arising from the ranks of the standard bullion population with no mintmark, distributed by a network of authorized wholesalers.
Since 2009, the only Silver Eagles produced have been the standard bullion version. No Proofs or Burnished Uncirculated were issued. As usual, choice high quality bullion Silver Eagles continue to be slabbed by grading services and sold to collectors.
Bullion Coin Distribution Network
Just as with the gold and platinum line of bullion coins, the Mint does not sell American Silver Eagle bullion coins directly to the public. Their distribution method employs a network of “authorized purchasers”, consisting of banks, brokerage companies, coin dealers, and precious metals firms. To become an authorized purchaser, a company must meet numerous stringent requirements.
The Mint distributes Silver American Eagle bullion coins to authorized purchasers through shipments of green "Monster Boxes" Each box containes 500 coins. Image courtesy of Wikipedia (Diiscool).Bullion coins are shipped in green "monster boxes." The boxes are made of plastic and each box holds 500 coins. The 500 coins are packaged in 25 tubes with a capacity of 20 coins per tube. The wording “United States Mint” is written a couple of times in elevated lettering across the lid of the Monster box, complemented by two Treasury Department seals.
Every box is specially strap sealed and assigned a serial number before shipping to an authorized purchaser.
The Silver Eagles are sold to authorized purchasers in quantities of at least 25,000 coins per order. The authorized purchasers pay $2.00 per coin above the silver spot price. Once in the hands of an authorized purchaser, Silver Eagles are retailed to the general public.
* = through Sep 30, 2010
View the original article here
Subscribe to:
Posts (Atom)