December 2009
Cointown “News You Can Use” vol. 4
By: Chip Cutcliff

What’s hot and what’s not in the coin world this December, as well as suggestions and helpful hints to improve your collection and collecting enjoyment.

Welcome to Cointown’s fourth edition of “News You Can Use”. Our goal is to provide some real-time insight into the world of coin collecting and hopefully provide some information that can be used to benefit both the novice and experienced coin collector. If you’re reading this you’ve already found our web site. Please feel free to visit our store in Marietta, Georgia to see our full line of supplies, as well as our large selection of coins and currency offerings. Make sure to ask for our current Internet special when placing your order on line.

The Mint giveth and the Mint taketh away…After announcing that there would be coins available from the Mint, the window of opportunity opened and closed in a blink – we wish the government got our tax returns back to us just as fast! Fractional American Gold Eagles were offered and sold out in under two days. 2009 dated AGE’s and Buffalo ounces went on sale in October and sold out by November. With soaring gold prices ($1214.80 close early in December) gold is again a smokin’ hot commodity. The world is looking at it again. The Mint has reconfirmed that it is planning to produce proof American Silver Eagles for 2010, so we all have something to look forward to. However, they also announced that they were not striking any 2010 products in 2009, so those American Silver Eagles that we usually see at the FUN show in January will be absent this year. Also, the Mint has announced that it will continue to offer all coin sets that contain the copper 4-design commemorative Lincoln Cents until June 30, 2010, a major deviation from usual Mint and Proof set sales, which have always ended at the end of a calendar year. BU and Proof fractional gold Buffalo coins continue to remain hot with “buy” offers many multiples of the actual gold content value. The Mint announced a 2009 Legacy set with the last 50,000 Lincoln proof dollars that were set aside for the set, which also includes the 4 types of proof Lincoln cent, a picture of Lincoln, and a copy of the original Gettysburg Address written by Lincoln’s . Sales started October 15. Fifty thousand sets sold out on October 16. Initial Mint pricing was $80 a set, but I’ve seen them as high as $400 on e-Bay. We have two sets left at $295 each. .

All 2009 Mint products are now available. This includes 4 Presidential Dollars, 6 DC and Territorial Quarters, 4 commemorative Lincoln Cents, Lincoln and Braille Commemorative coins, Mint Sets, Proof Sets, Silver Proof Sets, Quarter Sets, Silver Proof Quarter Sets, and all the other coins, EXCEPT 2009 dated Nickels and Cents. We’re looking to buy boxes/BU rolls of Nickels and Dimes is you have any that you want to sell us. You can find all of our available Mint products often at in-store delivered prices that are less than the cost of ordering directly from the Mint. We also have one Ultra High Relief $20 Double Eagle left in stock. Modeled off dies created in 1907, the UHR is everything that it was billed to be. The Mint has now dropped all order restrictions, but their prices have increased by $400 since the initial release date back in January. Just over 100,000 coins have been sold so far, and the sales numbers are now increasing very slowly. Early strikes off new dies exhibit proof-like surfaces, while later strikes are the expected BU. About 70% of the coins submitted to PCGS/NGC have been graded Mint State (MS) or Proof (PRF) 70, making “high grade” common in these coins.

We now have a working “HOT List”, a group of one-of-a-kind coins, currency and related items that will be listed for sale on our web site. If you find something you like on the list, call to reserve as most are truly just one-of—a-kind items. They are priced to sell. When shopping with us in the store, remember that all of our coin and currency items are tax exempt here in Georgia. Although we have a local 6% sales tax on supplies, the Georgia legislature made all con/currency sales in the state tax free from the first penny purchased. We’re one of only 8 states that are totally exempt. Please remember that for bullion items and US gold coins, our advertised prices are for cash purchases. Unfortunately, we do have to charge tax for on-line orders, but we ship very quickly and have the most reasonable shipping charges.

Answers to the questions in the last issue:
Q: What are a “troy” ounce and a “troy” pound?
A: Precious metals (silver, gold, platinum, and palladium) black powder, and gemstones are weighed differently than every other mass. One ounce of body weight = 28.349 grams. One troy ounce of precious metal = 31.103 grams. Also, one pound of body weight is 16 ounces, where one troy pound of precious metal is 12 troy ounces. As example, a pound of copper is 16 ounces X 28.349 grams = 453.58 grams. A pound of silver (troy) is 12 ounces troy X 31.103 grams = 373.24 grams. An eighteen percent (18%) difference in measurement. Confused yet?
Many advertisers will take advantage of this confusion. Beware of adds that say “ …a half pound of pure .999 silver for just $160!”. Assuming the spot silver price is $20 an ounce (a round number used for convenience), many if not most people do the math: “$160 divided by 8 ounces = $20 an ounce - wow, they are selling at MELT prices! Actually, the ad usually means 6 ounces (half a troy pound) rather than 8 ounces, so you’re per ounce cost is actually $160/6 = $26.66 an ounce, which amounts to a 33% markup OVER the melt or spot price of silver. A few advertisers make this mistake honestly. Many do it on purpose. So remember, precious metals are always measured in “TROY” ounces. When buying precious metals, especially silver, be sure that you get the troy ounces you think you’re paying for, especially when the word “pound” is incorporated into the ad.

Question for the next issue of “News You Can Use”:
From 1968 - 1974, we saw the addition of the San Francisco “S” to our circulating cent coinage again, for the first time since 1955. We also saw the “S” on Nickels from 1968-1970. What is the proper or formal name for this “S”? An easy question compared to the last 3, right?

Have fun collecting, come visit our shop if you get a chance, and remember to never clean, wash, wipe, or try to improve the appearance of a coin or piece of currency in your collection. There’s a 99% chance that you will damage any collectible value by doing so.
 

-- Chip Cutcliff