Mint To Start Selling 2011 American Eagle Silver Coins At 75% Premium To Paper, As Senators Propose Eliminating Capital Gains From Precious Metal Transactions

Tyler Durden's picture

All those who have been long awaiting the release of the 2011 American Eagle Silver coins by the US Mint can now relax. America's official source of bullion will release the much anticipated 2011 edition tomorrow at noon, with a strict limit of 100 coins per household at the low, low price of...$59.95! Gotta love that physical-paper spread... It is almost as good as the gold-tungsten compression pair trade.

2011 American Eagle Silver Proof Coins Available June 30

WASHINGTON - The United States Mint will open sales for the 2011 American Eagle Silver Proof Coin at noon Eastern Time (ET) on June 30, 2011.  The coins will be priced at $59.95 each.  Orders will be limited to 100 units per household.

The obverse (heads side) of the coin features a rendition of Adolph A. Weinman's Lady Liberty in full stride, with her right hand extended and branches of laurel and oak in her left.  The reverse (tails side), by former United States Mint Chief Engraver John Mercanti, features a heraldic eagle with shield, an olive branch in the right talon and arrows in the left.

The American Eagle Silver Proof Coin contains .999 silver.  The one-ounce coin is struck on specially burnished blanks and carries the "W" mint mark, indicating its production at the United States Mint at West Point.  Each coin is encapsulated in protective plastic and placed in a blue presentation case with a Certificate of Authenticity.

Orders will be accepted at http://www.usmint.gov/catalog/ or at 1-800-USA-MINT (872-6468).  Hearing- and speech-impaired customers with TTY equipment may order at 1-888-321-MINT.  The American Eagle Silver Proof Coin is also available for purchase through the United States Mint's Online Subscription Program.  Customers who enroll in the program can have the American Eagle Silver Proof Coin and other select products automatically billed and shipped as each product becomes available.  Visit http://www.usmint.gov/catalog/ for more information about this convenient shopping method.

The United States Mint, created by Congress in 1792, is the Nation's sole manufacturer of legal tender coinage and is responsible for producing circulating coinage for the Nation to conduct its trade and commerce.  The United States Mint also produces proof, uncirculated and commemorative coins; Congressional Gold Medals; and silver, gold and platinum bullion coins.

Note:  To ensure that all members of the public have fair and equal access to United States Mint products, orders placed prior to the official on-sale date and time of June 30 2011, at noon ET shall not be deemed accepted by the United States Mint and will not be honored.  For more information, please review the United States Mint's Frequently Asked Questions, Answer ID #175.

And in what is probably far more important news, GATA informs us that Utah Senator Mike Lee, has joined two other senators to introduce legislation that would eliminate capital gains from transactions involving gold and silver, "a change that he hopes will encourage a change in the nation’s monetary system." The reason: "This bill is an important step towards a stable and sound currency whose value is protected from the Fed’s printing press."

Utah Sen. Mike Lee joined with fellow Republicans on Tuesday to introduce legislation that would jettison federal capital gains taxes for gold or silver coins.

Lee’s measure would treat gold or silver coins the same as regular U.S. currency in transactions, a change that he hopes will encourage a change in the nation’s monetary system.

Utah was the first state in the nation to make gold or silver coins legal tender for transactions and removed any state capital gains taxes. Twelve other states have made or are considering such a move.

Lee noted that the U.S. dollar has lost about 98 percent of its value since the Federal Reserve was created in 1913.

"This bill is an important step towards a stable and sound currency whose value is protected from the Fed’s printing press," Lee said.

Lee co-sponsored the legislation with Sens. Jim DeMint of South Carolina and Rand Paul of Kentucky.

Good luck with that. And some words of advice to Senator Lee: stay away from rapidly moving objects and swimming pools.

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dlmaniac's picture

Proof coins are not ordinary ASEs and are always sold at higher prices.

DoChenRollingBearing's picture

That's right, proof coins for the numistatists among ASE buyers always command a premium.

JLee2027's picture

As a coin dealer I can confirm this to be true.  Proof Silver Eagles are always priced higher. They have that special black white cameo look, designed for collectors only and not the General Public, although anyone can buy them.

http://www.coin-collecting-guide-for-beginners.com/image-files/2004_w_american_silver_eagle_proof_sm.jpg

Amish Hacker's picture

How much did the proof Silver Eagles sell for a year ago?

JLee2027's picture

I don't track those kind of prices, sorry.

Dimeboy's picture

The 2010 Proof ASE was $49.95 USD.   I've got one in my hand. Beautiful.

blunderdog's picture

"Black white cameo look"-stuff is word, yo. 

http://www.youtube.com/watch?v=MZjAantupsA

(Maybe a lil gay, but it was the '80s.)

Kobe Beef's picture

ZOMG. I had no idea this video was so gay. I heard the song a million times when I was a kid.

RockyRacoon's picture

Using proof prices to jack up a "spread" for sensationalism is unforgivable.

TD, you oughta be ashamed.

$39.89 for just 1 bullion ASE at APMEX.

What's the spread now?

minted's picture

Silver is going to be the real star really soon. So much more upside potential for commodity investors. Not now, but soon. Time to collect those american silver eagle coins

.

zuuuueri's picture

this is for proofs, in fancy dorky little boxes. 

 

if you want a rather more interesting datapoint than the prices of proof coins, 

note that tulving has been sold out of krugerrands for like 3 days straight, sold out of a few other things in the past few days, and today, sold out of 100oz ag bars. 

remember when you knew something was going on, when nobody could load the kitco page (because everybody was reloading the kitco page)?

 

theres plenty of real signal, but c'mon... prices of proofs in silly little boxes, not the best indicator. such a premium on the bulk ag-eagles in green boxes would be something more interesting.

besodemuerte's picture

Exactly PROOF COINS people.  I must admit I love ZH but my respect just dropped a couple points now that this article is being pushed.  This article needs to be removed asap.

BrianOFlanagan's picture

With this blog, you just have to accept the good with the bad.  Whereas ZH's coverage of Chinese fraudcaps and HFT abuses has been absolutely outstanding, the posts regarding metals have much room for improvement.

 

Bay of Pigs's picture

And thank goodness we have you here to correct any mistakes made by Tyler and ZH.

Get over yourself Flanagan.

 

Bay of Pigs's picture

Bullshit. I've read plenty of your posts on silver. You've been highly critical on those who have been calling this market correctly for many years.

SparkySC's picture

The Flogging of Flanagan. LOL

 

Should be a movie title or at least a Mini-Series.

 

 

JW n FL's picture

we just went commercial!

jus_lite_reading's picture

Mutha FucKerS!!! SO glad I bought mine when I did!!! SILVER GOLD BITCHES!!!

TwoShortPlanks's picture

Well Perth Mint wins this silly little game hands-down...how about AU$299.00 for just 3 x 1oz coins. That's AU$99.67/oz!!!!!!!!

Who needs a poofy looking Silver Eagle when there's Megatron Silver Bitchez!

http://www.perthmint.com.au/catalogue/transformers-silver-proof-trio.aspx

Matt's picture

Looks like the only way to get a Megatron is to buy the three-piece set; it seems Megatrons on their own may be sold out already.

SheepDog-One's picture

So why would you pay a 50% premium for a 'PROOF COIN'....big deal.

Thisson's picture

Because they are very pretty and very shiny, and come in a nice felt-lined box in a little capsule, etc.

 

JLee2027's picture

Today's prices for common stuff made a century or more ago:

1880-1904 Common Morgan dollar, non-Proof - $35.

Proof Morgan dollar - $750 - 1,000 for a dog and up to $30,000 if it's really really nice.

Really depends on how many "proofs" they are making. Tens of thousands would lower the long term price. They made millions of Morgan dollars but only a thousand or less proofs each year.

Here's a bunch of Heritage Coin sales:

http://coins.ha.com/common/search_results.php?ic=homepage_search&Nty=1&Ntk=SI_Titles&Ntt=Proof+&Ne=304&N=51+790+231+382

Use of Weapons's picture

Get yourself an antique piece of hardwood furniture, and you'll find the mark-up significantly larger.

Apply to most items - antique coins really are a niche market, imo.

Thomas's picture

Actually, I would argue with that. An 18th century slant front walnut desk can be had for prices that are below the cost of the walnut and brasses. Antique furniture is often cheaper than the Ethan Allen bullshit. My house is filled with it.

XenoFrog's picture

The downside to collecting modern coins is the same for many of the other traditional collectables. Those really old morgans, and baseball cards for an even better example, are only rare because they weren't considered collectables so people didn't hoard them. They were spent, exchanged, melted down, and thrown away because they weren't seen as valuable.

Thomas's picture

That is absolutely true. A collectable has to go through a period of minimum (if not zero) worth. The sheets of stamps from the 30's on bought by many collectors sell for WAY under face value. They aren't even good for postage because they fill more than the envelopes surface.

RockyRacoon's picture

The 5 oz ATB "quarters" in the original 1st year bullion run will turn out to be the buy of the century, assuming the Mint (in their infinite wisdom) doesn't screw up mintages lower than this on subsequent coinage of the set.  The older platinum issues have been some real screamers due to low mintage.

Jack Napier's picture

I'm not disagreeing with you per se, JLee, as you are correct in historical context, but I want something I can cash in on while I'm still alive. Melt value bullion is the best bet, because there's no premium that you'll hope to get back out of it. If and when SHTF big time nobody is going to give a rip how rare or special or shiny the coin is, and won't be awed into paying more than the intrinsic value when it's a matter of survival. It will be used for currency, and anything collectible will be considered frivolous. If I had any expensive coins I'd be selling them for bullion before the melt value creeps further into the numismatic value. The owner of my local coin shop said he'd be retired already if he'd have steered clear of rare coins and stuck to bullion.

And Tyler, why did you even post this? This was the first time I've seen you uninformed. Nobody's perfect though. Still love the site and everything you guys are doing, and I'll gladly take the good with the bad.

UGrev's picture

Let me know when Silver is no longer Silver just becuase it has cool designs on it and fancy stamps. 

DollarMenu's picture

It happens every time it comes out of the shops of Georg Jensen, Tiffany,

Hermes, or as a proof coin from the US Mint.

UGrev's picture

I dressed up an impacted bowel movement in some G.I. Joe toy clothes.. but it still smelled like shit to me. Kung fu grip was kind of mushy too. So.. by your logic, can I call it an authenitc G.I. Joe with chocolate mousse snack pack? or do you think it's just a turd that's all dressed up with no place to go. :)

UGrev's picture

awww.. I must have pushed a few cognitive dissonance buttons. 

Ben Dover's picture

A thing has value when you find buyers - or morons, take your pick - who will pay for it. 

And I am sure that at some crazy club in, say NYC, the mushy King Fu grip would be seen as a big selling point.

fallout11's picture

Actually, your logic is impeccable and unassailable (not to mention hilarious), which is why they pushed the junk button.  Nothing else they could do or say.

Reptil's picture

What make you so sure there will be green monster boxes?

(personally I prefer the yellow ones :-D )

johngaltfla's picture

Correctemundo. This does not apply to uncircs....Much ado about nothing.

Jambo Mambo Bill's picture

Hell with this Bitcoin BS! Sounds like monopoly money... SO some smartass comes up with some computer crap and folks buy it... RIght...

unununium's picture

Spoken like a douchebag who got his first email account in 2003.

slow_roast's picture

These markets are schizophrenic, might be time to go into mostly all physical and go diving in Micronesia. 

OutLookingIn's picture

Exactly so!

Anyone left in 'paper' must have rocks in their head, or have a financial death wish!

As Olivia 'Neutron-Bomb' sang "Physical. Lets get physical!"