The two programs for this year feature the U.S. Army Infantry Solider and the Bicentennial of the writing of the Star Spangled Banner. The first program includes a silver dollar in proof or uncirculated versions, and the second program includes a $5 gold coin and silver dollar in proof or uncircualted versions.

As with previous commemorative coin programs, coins are available for introductory prices during a certain period before regular pricing comes into effect.

The proof silver dollars for both programs are priced at $54.95 introductory and $59.95 regular. The uncirculated silver dollars are priced at $49.95 introductory and $54.95 regular. Each silver dollar contains 0.7736 troy ounces of silver.

The $5 gold coins are priced according to a grid (see the grid here) and will be adjusted weekly based on the average weekly market price of gold. Based on the current price of gold within the $1,700 to $1,749.99 range, the proof $5 gold coins would be priced at $517.15 introductory and $522.15 regular. The uncirculated $5 gold coins would be priced at $507.15 introductory and $512.15 regular.

The publication reveals additional products for each program. The US Mint has not offered different presentation options or multi-coin sets for commemorative coins since 2009. In 2010 and 2011, commemorative coins were only offered individually in standard packaging.

A 2012 Infantry Solider Silver Dollar Defenders of Freedom Set is listed priced at $61.95. This set would likely contain one version of the silver dollar, along with historical or other information on the U.S. Army Infantry.

A 2012 Star Spangled Banner 2 Coin Set is listed with an introductory price of $567.15 and regular price of $572.15 (based on gold within the $1,700 to $1749.99 range). This set would contain the proof versions of the $5 gold coin and silver dollar. The multi-coin set price reflects reflects a discount compared to individual prices.

Numismatic Gold Coin Price Increase

Last week, a pricing increase for the United States Mint’s numismatic gold products was only narrowly avoided. This week it is much more likely that a price increase will take place.

For the current weekly period, the average market price of gold is solidly within the $1,650 to $1,699.99 range. In the most likely scenario, as long as the Wednesday PM Fix price is $1,650 or greater, then numismatic gold coin prices will be increased by one increment, or $50 per ounce of gold content. The impacted products would be the remaining 2011 Proof Gold Eagles, 2011 Proof Gold Buffalo, and First Spouse Gold Coins.

Pricing changes have generally been made effective some time between mid-morning and noon on Wednesdays.

America the Beautiful Quarters Products

The United States Mint has published pricing for America the Beautiful Quarters Two Roll Sets. The two rolls containing $20 face value in quarters will be $32.95. This is a decrease from the price of $39.95 effective for last year’s releases.

For the 100-coin bags containing $25 face value in quarters, the Mint had previously indicated pricing of $35.95. This is also a decrease from the price of $49.95 charge for last year’s releases.

These pricing adjustments are a welcome change, especially considering the fact that the America the Beautiful Quarters have been difficult to obtain from circulation channels. The bags and rolls for the first release of 2012 featuring El Yunque National Park are scheduled to go on sale February 3, 2012.

Separately, the US Mint has posted an image of the Three Coin Set for the El Yunque Quarters. In my opinion the packaging design is a vast improvement from the previous version, which was simply black and white. The America the Beautiful Quarters Program in particular provides an excellent opportunity for the US Mint to incorporate images and historical information within numismatic products. Hopefully, the new design for this product is a sign of things to come.

Vicksburg Five Ounce Silver Uncirculated Coins

Effective tomorrow, January 25, 2012 at 12:00 Noon ET, the United States Mint will remove the household ordering limit for the Vicksburg National Military Park Five Ounce Silver Uncirculated Coins. Since the start of sales on January 12, the product has been subject to a five per household ordering limit.

According to the most recent sales data (through January 17), the US Mint has received orders for 7,861 coins out of the 35,000 maximum limit.

Pricing for the America the Beautiful Five Ounce Silver Uncirculated Coins is currently $204.95 per coin. This pricing was established though publication in the Federal Register dated December 30, 2011, although the price was made effective for available designs on December 27. The market price of silver on these dates was $28.65 and $28.18. From the lower number, the market price of silver has now increased by nearly $4.00 per ounce. Any further increase in the market price of silver makes a pricing adjustment for the product a distinct possibility.

Unlike with numismatic gold products, the US Mint does not have their pricing criteria for silver coins explicitly stated. Product sales have been suspended without warning and reinstated with new prices. These pricing adjustments have caught some collectors by surprise.

The coins have generated interest from collectors due to their mintage of 39,461, which represents the lowest mintage for a modern commemorative half dollar. Previously, the lowest mintage was held by the uncirculated version of the 1996 Olympic Swimming Half Dollar at 49,533.

Prices realized on eBay auctions over the past week for the uncirculated 2011 Army Half Dollars have covered a range from approximately $50 to $70 each. Some auctions have seen higher prices, particularly for coins graded PCGS MS69 First Strike. There have also been auctions in recent days with final prices just under $50, and even a coin listed with a Buy It Now price of $36.99, which was quickly purchased less than ten minutes after listing.

These prices compare to the last available US Mint price of $19.95 per coin. From the date of the initial release on January 31, 2011 until March 2, 2011, the coins were available at an introductory price of $15.95 per coin.

The high secondary market prices seem to have compelled more people to offer their coins for sale on eBay. In the first week of January, I remember seeing just a handful of the uncirculated Army Half Dollars listed, compared to about 80 listings right now. The higher supply of coins offered for sale may serve to dampen prices.

Besides the low mintage, another interesting aspect to the Army Half Dollar is the grading. Previously issued commemorative half dollars were produced with more of a satin or matte finish, and the special striking and handling allowed for a good number of coins to receive the highest grade of MS70 from PCGS or NGC. Using the 2008-S Bald Eagle Half Dollar as an example, the NGC population census shows 1,190 graded NGC MS 69 and 5,475 graded NGC MS 70.

The 2011 Army Half Dollars seem to have been produced with a finish resembling the brilliant finish found on the 2011 Uncirculated Set coins, which makes obtaining the highest certified grade much more unlikely. The NGC population census shows 2,008 coins graded MS 69 and just 16 graded MS70. The PCGS Population Report shows zero coins graded MS70.

From 2006 to 2008, the United States Mint offered collectible uncirculated versions of the American Gold Eagle, individually in four denominations or as a complete four coin set. These coins were struck on specially burnished blanks and carried the “W” mint mark. Near the end of 2008, the US Mint announced the cancellation of the fractional versions of the coins, with plans to offer only the one ounce size in the following year. This never came to pass, as high demand for bullion coins resulted in the cancellation of numismatic offerings. The one ounce collectible uncirculated Gold Eagle was similarly cancelled in 2010.

After the two year hiatus, the US Mint once again offered 2011-W Uncirculated Gold Eagle on May 5, 2011. From the outset, I had mentioned the possibility for a low mintage to occur. The collectible uncirculated coins never managed to generate the same interest level as the proof versions of the coins, and even after a two year absence, there did not seem to be a great deal of pent up demand.

The initial sales for the product came in rather low at 1,098 and proceeded at a relatively subdued level. There were some spikes in sales during the course of the offering, particularly during the unusual period when some of the US Mint’s numismatic gold coins were selling near bullion prices.

The most recent sales report, just published today shows sales for the 2011-W Uncirculated Gold Eagle at 8,810. The sales reporting date is the same day that the coins sold out, so it is possible that an updated figure may be provided next week. Also bear in mind that these are sales figures, not final audited mintage figures, which the US Mint can sometimes take years to release. However, as it currently stands, this would represent a new mintage low across all denominations and versions of the American Gold Eagle.

The three next lowest mintage Gold Eagles are shown below.

Low Mintage American Gold Eagles

The current mintage low 2008-W Uncirculated $10 Gold Eagle has sold for prices of more than $1,000 on the secondary market, which represents a significant increase in value for quarter ounce gold coin. If memory serves, prices didn’t reach this level until about a year after the initial sell out.

How will the 2011-W Uncirculated $50 Gold Eagle fare? There might be an immediate price bump, but in the longer term I think it will depend in great part on whether the US Mint continues to offer collectible uncirculated Gold Eagles in the coming years. If the coins continue to be offered, mintages may creep even lower for future years, particularly if gold prices continue higher. This would make the 2011-W less exceptional. However, if the US Mint discontinues the offering, this would solidify the status of the 2011-W Uncirculated Gold Eagle as the mintage low for the series, making the coin much more significant.

During the month of December 2011, production was 431.78 million coins, down from the previous month’s production of 715.96 million. However, the final month of the year has typically seen minimal circulating coin production activity. In December 2010, the Mint struck only 80.2 million coins, while in December 2009, the US Mint did not report any circulating coins produced.

For the full year of 2011, circulating coin production reached just over 8.2 billion. This is an increase of 28.67% compared to production for the 2010 calendar year. The gains were primarily attributable to higher production of cents, nickels, and dimes.

Comparing 2011 coin production to the previous year, the number of cents produced across the Philadelphia and Denver Mint facilities rose by 23.13% to 4.94 billion. The number of nickels produced increased by 101.86% to 990.24 million. Both the cent and nickel cost more to produced than their respective face values, and the US Mint has indicated that demand for these two denominations is expected to increase.

Production of dimes for the full year reached 1.5 billion, representing an increase of 34.23% compared to the prior year. The number of quarters increased by 12.73%, but still remains at a historically low annual total of 391.2 million. Half Dollar production was essentially flat at 3.45 million.

Dollar coin production for the 2011 calendar year reached 374.92 million, down 6.79% from the previous year. Production levels will almost certainly experience a sharp decline in the coming year, following the announcement of the suspension of production of Presidential Dollars for circulation.

No changes occurred to the figures breaking down production by individual design for the 2011 Presidential Dollars and 2011 America the Beautiful Quarters. The final figures are provided below.

Gold and Platinum Numismatic Product Prices

Based on the available data, it seems likely that the price for the 2011 Proof Platinum Eagle will be increased tomorrow. Depending on tomorrow’s London Fix prices, a price increase may also be possible for gold numismatic products.

The average price of platinum for the weekly period is in the middle of the US Mint’s $1450 to $1549.99 pricing tier, which is one level higher than the tier currently in effect. Since December 21, the 2011 Proof Platinum Eagle has been priced at $1,692, representing the lowest price during the course of the offering. The likely increase would bring the price to $1,792.

For the available data, the average gold price for the weekly period is just below $1,650. If tomorrow’s London AM Fix price comes in at $1,656.50 or higher and the PM Fix price is above $1,650, then the criteria would be met for a price increase. Prices for the 2011-W Uncirculated Gold Eagle, 2011 Proof Gold Eagle, 2011 Proof Gold Buffalo, and First Spouse Gold Coins would be increased proportionally by $50 for each ounce of gold content.

The 2011-W Uncirculated Gold Eagle has sold out at the US Mint. More on this tomorrow…

Each set includes the following five coins:

• 2012-S El Yunque National Forest Quarter
• 2012-S Chaco Culture National Historical Park Quarter
• 2012-S Acadia National Park Quarter
• 2012-S Hawai’i Volcanoes National Park Quarter
• 2012-S Denali National Park and Preserve Quarter

Each coin is struck in the standard copper-nickel clad composition also used for circulating coinage. The US Mint previously released a separate set containing 90% proof versions of the coins on January 10.

The 2012 America the Beautiful Quarters Proof Set is priced at $14.95, unchanged from the prior year. There is no stated maximum mintage or ordering limit imposed.

This product will represent the first opportunity for collectors to acquire the clad proof versions of this year’s quarters. They will later be available within the full annual set, which does not yet have a release date announced. Last year, the order of release was the opposite, which likely had a negative impact on sales of the five quarter set.

The 2011 ATB Quarters Proof Set, which still remains available for sale at the Mint, has sold 139,672 units as of the most recent sales report. This is a little bit more than half the level of the 2010-dated set.

For Mint News Blog, I wanted to provide a brief overview of the results and some important revelations that were made within the report. All figures and results are for the US Mint’s fiscal year ending September 30, 2011.

On an overall basis, the US Mint’s revenue increased by 27.87% to $4.97 billion. Seigniorage and net income increased by 30.06% to $527.8 million.

Looking at the results by segment, circulating coin shipments experienced a unit volume increase of 37% to 7.40 billion coins. The peak annual shipment of circulating coins was 27 billion coins in FY 2000. The recent low was 5.2 billion in FY 2009.

Bullion coin sales achieved record highs for unit volume, revenue, and net income. The US Mint sold 45.2 million ounces of gold and silver bullion coins, up 26.2% from the prior year. Revenue was $3.47 billion, an increase of 21.6% from the prior year. Net income was 65.8 million, up 19.2% from the prior year.

Numismatic program increased by 74.7% to reach record $721.7 million. Net income and seigniorage increased by 127.3% to reach $113.2 million. The increase in revenue was driven by the sale of both 2010 and 2011-dated numismatic Gold and Silver Eagles during the fiscal year. Net income benefited from a shift in sales towards higher margin precious metals products.

The unit cost to produce and manufacture the cent reached a new high of 2.41 cents, and the cost of the nickel rose to 11.18 cents. Meanwhile, the unit cost of the $1 coin dropped to 18.03 cents. During the previous fiscal year the costs were 1.79 cents for the cent, 9.22 cents for the nickel, and 31.57 cents for the $1 coin. The changes were the result of differences in metal costs as well as a change in the method of allocation for sales, general & administrative expenses.

The US Mint is evaluating the optimum way to bring back American Platinum Eagle bullion coins in 2012. The bullion versions of the coin have not been minted or issued since 2008.

The required study to determine the financial viability of palladium bullion coins “will soon begin”. The bullion and possible numismatic American Palladium Eagles will only be issued if the study determines that there is adequate demand to ensure that the  coins can be minted and issued at no net cost to taxpayers.

The US Mint plans to offer a 2012-S Uncirculated Silver Eagle. This will be in addition to the collectible uncirculated version with the “W” mint mark.

Although seigniorage and net income were $527.8 million, the US Mint transferred only $51 million to the Treasury General Fund citing uncertainties in future cash flow from circulating coin operations.

Customer satisfaction improved for the numismatic business. 91.7% of customers rated the Mint favorably, compared to 86.1% in the previous year. The US Mint attributed the better performance to the return of the numismatic versions of the Gold and Silver Eagles.

The US Mint did not fully comply with the requirements of the Native American $1 Coin Act, which requires at least 20% of all $1 coins minted and issued in any year to be Native American Dollars. During the 2010 calendar year, Native American Dollars accounted for 20.1% of all $1 coins produced, but only 12.5% of all $1 coins issued.

Deputy Director Richard A. Peterson had some interesting comments with regards to circulating coinage:

“…we also need to understand the broader trends, dynamics, and realities of today’s economic environment–more so now than at any other time in recent Mint history. Specifically, we need to focus on the metals composition and purchasing power of our circulating coins. Every few generations the nation adjusts the metals content (and occasionally the actual denominations, physical size, and weight) of its circulating coins.”

He goes on to discuss the Coin Modernization, Oversight, and Continuity Act of 2010 which authorized research and development of new metals formulations for circulating coins and requires the submission of a report to Congress by December 2012. Peterson said, “We are clearly focused on delivering to Congress a thorough, well-researched report that provides a prudent framework for future legislation to modernize our nation’s circulating coins.”

Although the ultimate authority to make any changes will rest with Congress, the US Mint seems to be looking for a major overhaul.

The US Mint’s 2011 Annual Report is not yet posted on their website, however, a copy accessed on the Treasury site here.

The reverse design of the coin features the U.S.S. Cairo on the Yazoo River as it would have appeared while serving the Union Navy during the Civil War. This image is intended to be representative of Vicksburg national Military Park in Mississippi. The reverse was designed by Thomas Cleveland and sculpted by Joseph Menna. The obverse features the 1932 portrait of George Washington designed by John Flanagan.

Each coin is struck in five troy ounces of .999 fine silver and has a diameter of three inches. The coins carry an uncirculated finish created through a vapor blasting technique and contain the “P” mint mark. Both of these characteristics differentiate the coins from the bullion version of the coin released during 2011.

The Vicksburg Five Ounce Silver Uncirculated Coins are limited to a total mintage of 35,000 coins. For the start of sales the US Mint is imposing an ordering limit of five per household.

The coins will be priced at $204.95 each, which will be the lowest starting price so far for the numismatic series. The first release of the series were priced at $279.95 each. The price level was lowered to $229.95, and later $204.95.

The most recent price was established by publication in the Federal Register dated December 30, 2011, although the price change was made effective for available designs on December 27. On these two dates, the price of silver was $28.65 and $28.18. Since the start of the new year, silver has moved higher with the current price at $30.60.

If the upswing in silver continues a suspension and repricing for the ATB Five Ounce Silver Coins becomes a possibility. The US Mint has not publicly stated their criteria for pricing changes to these products, rather they keep catching many collectors by surprise.

The other numismatic five ounce silver coins still available for sale at the Mint include the designs for Gettysburg National Military Park, Glacier National Park, and Olympic National Park. Each is priced at $204.95.

The coins originally went on sale July 28, 2011, priced at $279.95 with an ordering limit of one per household. The household ordering limit was removed on September 6, 2011. The price was reduced to $229.95 per coin on October 7, and reduced again to $204.95 on December 27.

As of the latest available US Mint sales report, the Mount Hood Five Ounce Uncirculated Coins had reached sales of 26,831. The maximum authorized mintage for the issue was 27,000.

Currently, the first three 2011-dated designs for the series are available for sale a the US Mint. These coins feature Gettysburg National Military Park, Glacier National Park, and Olympic National Park. Each carries a maximum mintage of 35,000 and is priced at $204.95. Tomorrow, the next design featuring Vicksburg National Military Park will be released.

More 2012 Numismatic Product Prices

Today, the US Mint announced in this press release that they were reducing or maintaining prices for some 2012 numismatic products.

According to the Mint, the prices were lowered by “refining the product costing process, taking advantage of current lower prices for precious metals and negotiating better pricing from its suppliers.”

I previously shared pricing data for some America the Beautiful Quarters products and $1 coin products in this post.

Prices for products indicated in the press release and not included in my previous post are shown below:

The US Mint uses a flexible pricing policy for numismatic gold and platinum products, which allows for adjustments to be made as often as weekly based on the average weekly market prices of the metals. The last pricing adjustment for gold coins was made on December 22, 2010, when prices were decreased by two $50 pricing intervals. This time, prices are likely to be increased by one $50 pricing interval.

Under the Mint’s policy, the average weekly gold price is calculated based on the London Fix prices from the prior Thursday AM to the current Wednesday AM. As an additional criteria, the Wednesday PM fix price must agree directionally with any change. Excluding the tomorrow’s pricing data, the average gold price is currently well within the $1,600 to $1,649.99 range. In the most likely scenario, as long as the Wednesday PM fix price is above $1,600, then prices for gold numismatic products will be increased by the equivalent of $50 per ounce of gold content.

The impacted products will be the remaining 2011 Proof Gold Eagles, 2011-W Uncirculated Gold Eagle, and the 2011 First Spouse Gold Coins.

In the past, the US Mint has made weekly pricing adjustments effective around late morning on Wednesday.

2012 America the Beautiful Quarters

The United States Mint has recently provided coin images of the 2012 America the Beautiful Quarters. Previously, only the line art images had been available.

As always, there are some noticeable difference between the line art images and coin images. For comparison purposes, I have created the animated image files shown below, which should rotate between the line art images and the newly available coin images.

[Email subscribers will probably need to visit the site to see the images rotate.]

El Yunque National Forest Quarter
Release Date: January 23, 2012
Designer: Gary Whitley
Sculptor: Michael Gaudioso

Chaco Culture National Historical Park Quarter
Release Date: April 2, 2012
Designer: Donna Weaver
Sculptor: Phebe Hemphill

Acadia National Park Quarter
Release Date: June 11, 2012
Designer: Barbara Fox
Sculptor: Joseph Menna

Hawai’i Volcanoes National Park Quarter
Release Date: August 27, 2012
Designer and Sculptor: Charles L. Vickers

Denali National Park Quarter
Release Date: November 5, 2012
Designer: Susan Gamble
Sculptor: Jim Licaretz