Mint’s Policy May Inflate Eagle’s Price

Question: Why won’t the United States Mint offer the U.S. eagle silver dollars to U.S. citizens on the mailing list? They offer us the proof sets but not the uncirculated sets. Evidently the Mint is selling them wholesale to private companies, who, in turn, mark them up to more than double the price. Why?--D.A.

Answer: Proof and uncirculated sets are indeed offered directly to the public by the Mint. Other numismatic coins are also offered in this manner. The new eagles, however, are essentially bullion pieces. This holds true for both the silver and gold issues. For whatever reason, the Mint decided it would be best for marketing purposes to have these coins distributed through private channels.

Various distributors have been selected to participate in the process. Because these are bullion coins, the distributors bid as they would for other government projects. Prices vary along with the spot price of gold and silver. Winning bidders then sell their material to other sources until they eventually reach the retail level. Each transaction adds to the cost of these coins.

On the selling end, dealers hope they will purchase the gold and silver eagles low enough to benefit from an active bullion market. Because there is a bid-ask price spread, the cost to the customer could occasionally be considerably more than that paid the original purchaser of the coin from the Mint. However, speculation is the name of the game with bullion pieces. This is true even for small collectors who essentially are betting that the price of gold and silver will increase enough to offer a profit when they are ready to sell.

Because you seem displeased with the present distribution system (and you are not alone, judging from letters to the numismatic press), you should write to the Mint and your congressman. Congress has ultimate control of Mint policy. And, as you know, in our system of government, the voters have ultimate control of Congress. Note, however, that the Treasury reaps a huge profit from the current system.

Q: I have a 1-cent coin from Canada dated 1886. I’ve looked everywhere and no one can help me. I’ve had it for 20 years. Even though it is in poor condition, you can read everything on it very well.--S.R.

Coin News

Interest in the 1988 Olympics in South Korea is already building with many nations expected to participate in coin and medal programs. Pending approval, Israel intends to issue medals featuring the new Olympic Stadium (pictured), symbolically joining North and South Korea, surrounded by emblems of six Olympic sports. These medals will be available to American collectors if sales are approved by the U.S. Olympic Committee. For priority ordering, contact the Israel Government Coins and Medals Corp., 350 Fifth Avenue, New York, N.Y. 10118.

Three rare-coins and precious-metals investment seminars will be held next month in Palo Alto, Newport Beach and Studio City, sponsored by the Gold and Silver Financial Group. Speakers will be Joseph C. Battaglia, Barry S. Stuppler and Daniel A. Jefferds. Seminars at 7 p.m. will be at the Hyatt Palo Alto on May 12, the Newport Sheraton on May 19 and the Sheraton Universal Hotel on May 27. Admission is $15. For information, call (818) 501-3600 or (800) 537-4500.

Coin Calendar

Saturday and Sunday--The 15th semiannual Coin, Stamp & Fine Jewelry Show will be this weekend at Retail Clerks Auditorium, 8550 Stanton Ave., Buena Park. Hours: 10 a.m.-7 p.m. Saturday; 10 a.m.-5 p.m. Sunday. Admission is $1.

Don Alpert cannot answer mail personally but will respond to numismatic questions of general interest in this column. Do not telephone. Write to Your Coins, You section, The Times, Times Mirror Square, Los Angeles 90053.