An American Rare Coin professional numismatist will be a guest speaker at the upcoming Northwest Coin Club December 12, 2013 meeting. The subject will be “Counterfeit Detection and Authentication.” Attendees will learn the techniques necessary to guard against fakes and forgeries and through the use of interactive hands-on examples understand how to spot a counterfeit coin and what to look for in a “suspect” coin. American Rare Coin is and has been an enthusiastic supporter of the Northwest Coin Club of greater Minneapolis and Saint Paul, MN.
US Mint’s 2013 silver yearly coin sales rise to record high
Courtesy of our friends at Thomson Reuters
12-Nov-2013 16:52
- American Eagle silver coins at over 40 mln oz year to date
- Investors buying more 500-oz monster boxes -wholesaler
- US Mint has been rationing silver coins since January
By Frank Tang
NEW YORK, Nov 12 (Reuters) – The U.S. Mint’s American Eagle silver coin sales rose on Tuesday, bringing this year’s total to the program’s record high, highlighting retail investors’ strong appetite for silver physical products.
Sales of the 2013 American Eagle silver bullion coins made for investors rose by 500,000 ounces on Tuesday, said U.S. Mint spokesman Michael White. That lifted the tally so far in 2013 to 40.175 million ounces, higher than 2011’s total of 39.869 million ounces.
The U.S. Mint launched the precious metals bullion coin program for investors in 1986. Bullion coins are less polished but also cheaper compared to higher-quality proof or uncirculated coins targeting collectors.
Year to date, silver prices are down 32 percent, their largest decline in 29 years. That exceeded bullion’s 24 percent drop which might lead to gold’s first annual loss after a 12-year winning streak.
“As the price has gone down, people find silver a very attractive investment because they can participate in precious metals without having to spend a significant amount of money,” said Roy Friedman, executive vice president at Dillon Gage, a major U.S. coin wholesaler in Dallas which distributes to dealers and institutional investors.
Friedman said customers are buying more of the 500-ounce silver “monster boxes,” the standard unit which U.S. Mint delivers to its authorized dealers. At current prices, each monster box is valued at over $10,000.
Consistently strong physical demand is one of the few bright spots in the precious metals sector.
On Nov. 1, the Mint’s American Eagle gold coin sales vaulted to a two-year high, lifting this year’s sales above the total tally for all of 2012.
The U.S. Mint has been selling its silver coins at a steady pace throughout the year, after January’s all-time monthly high of 7.5 million ounces set the tone for the year.
Since late January, the U.S. Mint has limited its silver Eagle coin sales to its dealers through an allocation process, essentially rationing silver coins as unprecedented demand depleted coin blanks.
Between April 12 and 15, silver plummeted $5 an ounce while gold posted a record $225 an ounce drop in two days to unleash pent-up demand from retail investors who scrambled to buy everything from coins to jewelry at bargain prices.
Analysts said better industrial demand should underpin the price of silver, but the market will likely tumble on gold’s coattails if the Federal Reserve decides to cut its massive bond-buying stimulus.
(Reporting by Frank Tang; Editing by Gary Hill and Jim Marshall)
“US Circulated Gold Coins May Provide Future Profits”
Many US circulated gold coins like the $5 Indian, $10 Indian, $10 Liberty, $20 Liberty and the St. Gaudens Double Eagle gold coins are all coins who’s numismatic value has traditionally out paced their gold value. The value beyond the coin’s intrinsic “gold value” is what we refer to as a premium and these coins have in years past sold at premiums well beyond their gold content. Currently, with the rapid rise in gold prices, these gold coins are selling at or near their 10 year premium low relative to their gold value. Below is a ten year chart illustrating the premiums these US gold coins have traditionally maintained and roughly where they are currently.
There are some experts who believe these early American gold coins “may very well be the new low hanging fruit”. If history repeats itself, market conditions may reflect past premiums making these US gold circulated coins worth far more than at current levels.
If you are looking for a speculative position with potential for positive returns, buying US gold coins, just may provide future profits worth the risks.
Sales Tax Exemption Sought
A grass root effort is underway to exempt purchases of coins and precious metals from Minnesota sales tax. This effort has been undertaken to safeguard consumers; prevent large amounts of revenue from leaving Minnesota; and to create more jobs for Minnesotans.
Minnesota law maker Mary Kiffmeyer has provided support for HF-1107 and SF-1944 – the bills in front of the legislature for consideration.
There are currently 30 other states that have exemptions for investors looking to purchase coins, currencies and precious metals. One of these states, Michigan, has had a sales tax exemption in place for the past 10 years. In that ten year period the coin and precious metals industry in Michigan has experienced dramatic business growth resulting in more jobs and more revenue for the state.
A great number of people believe Minnesota can benefit with these exemptions like so many other states are doing, but they need your help. Please call or email your legislator and tell them you are in favor of HF-1107 and SF-1944 to exempt sales tax on your purchases of coins, currencies and precious metals.
Security Tips sited by the Federal Trade Commission
When you’re buying from an online retailer or an auction website, the Federal Trade Commission (FTC)—the nation’s consumer protection agency—wants you to keep these shopping tips in mind:
- Know who you’re dealing with. Confirm the online seller’s physical address and phone number so you can contact them if you have questions or problems.
- Know exactly what you’re buying. Read the seller’s description of the product closely, especially the fine print. Some name-brand items with “too good to be true” prices may even be counterfeits.
- Comparison-shop. Check out Web sites that offer price comparisons on similar items from different manufacturers or different Web sites.
- Check the privacy policy. The company’s privacy policy should let you know what personal information they are collecting, why, and how it’s going to be used.
- Pay with a credit card. It offers you the most protection as a consumer.
- Use a secure browser. Look for an unbroken key or padlock at the bottom of your Web browser window to ensure that your transmission is protected.
- Consider shipping and handling costs. Factor these into the cost of the order, and choose the delivery option that best meets your needs and budget.
- Print records of your online transactions. Save the product description and price, the online receipt and copies of every e-mail you send or receive from the seller.
- Understand the return policy before you buy. Can you return the item for a full refund if you’re not satisfied with it? If you return it, are you required to pay shipping costs or a restocking fee?
- Check delivery dates. An FTC rule requires sellers to ship items when they say they will or within 30 days after the order date when no specific date is promised.
- If you feel you’ve been misled or deceived, file a complaint online at www.ftc.gov.
American Rare Coin Wins Pumpkin Carving Prize!
Whenever you walk into American Rare Coin to make a purchase or make a sale, you are met by professionals intent on doing a thorough job. In other words their professionalism stands out. But, one thing is certain, they like to have fun too. On Thursday ARCC participated in a building wide Pumpkin Carving Contest. Lead by American Rare Coin’s creative genius and sculptor, Kathryn, American Rare Coin was awarded the top prize in the funniest pumpkin category. This makes two of the last three years American Rare Coin has received honors. For their victory, Zeller Office Management awarded a large basket full of goodies modeled by Kathryn.
Kathryn was quick to thank Mark for the use of his pumpkin carving tools, Mike for scooping, Jim for white-out, Cathy for the bottle opener, and John for the soda. We are very excited! You will have to come in soon to see this award winning pumpkin!
