After I posted the article Ultra High Price Gouging With No Relief, an anonymous commenter accused me of having a “a low opinion the of the people there and don't give them any credit.” It was an article that was critical of the US Mint and its policies, I was not directing criticism to the people who work for the Mint but those who run the bureau.
First, let me say that unequivocally, I have tremendous respect for all government workers. I live in the Washington, DC metropolitan area and work with the government on various levels, I know how hard the career government employees work and the pressure of working with what seems like undue regulations in their job. I have seen those with commercial experience not do well in this tightly controlled atmosphere of a government job. But when I explain this to friends and relatives who do not have my insights, I am laughed at for being too close to the situation. I fully understand the environment working for the federal government and I have a lot of respect the work they do and their service to this nation.
My low opinion of the US Mint, and other areas of the federal government, is reserved for the appointees and some high-level special pay executives who set the policies the rest of the bureau has to implement. With the problems of the Mint in the last year, I have questioned Director Edmund Moy’s ethics and his policies. I have also been critical of the hiring of Andy Brunhart as Associate Director after his less than stellar job at the Washington Suburban Sanitary Commission. With the Mint failures of the past year, both men deserve a tremendous amount of criticism for the work it appears they have not done.
Until Moy is replaced by someone more competent, I will continue to criticize him and the policies of the US Mint. Remember, this criticism is being levied against Moy, Brunhart, and the other bureaucrats. I am not criticizing the hard working employees of the bureau.
To my anonymous commenter, I apologize for making it sound like I was indicting the entire bureau for the problems caused by the bureaucrats who deserve the criticism. If you would like to talk further, you can send me a private email note and I would be happy to discuss this further.
Saturday, January 31, 2009
Thursday, January 29, 2009
DC Quarter and a Missed Opportunity
This week, the US Mint released the quarter for the District of Columbia that honors Edward Kennedy “Duke” Ellington. The Washington-born Ellington was one of the most influential musicians of the 20th century with a career that spanned 60 years until his death in 1974. Ellington was awarded the Presidential Medal of Freedom by President Richard Nixon in 1969.Ellington was a great musician and musical ambassador. His music was very popular amongst the Washington society crowd in the early part of the 20th century. When his career picked up, Ellington moved to New York City to take advantages of opportunities. Ellington reinvented his career twice and was working on new projects when he died on May 24, 1975.
Although Duke Ellington was a great musician and worthy of an honor, those who were involved with the District of Columbia quarter selection process missed an opportunity to properly honor the District and make a statement.
Following the passage of the budget bill that contained the provisions for the DC and Territories Quarters program, then Mayor Anthony Williams appointed a committee to determine the design of the DC Quarter. When the design descriptions were submitted to the US Mint for approval, they included the phrase “Taxation Without Representation.” The phrase, which is on District license plates, is a protest noting that US citizens who live and vote in Washington does not have a representative in congress, who levies taxes and has veto authority over the city’s mayor. The Mint rejected the design as being too political.
When the design was rejected, newly elected Mayor Adrian Fenty reconvened the committee to come up with a new design. Several designs were considered and put to a vote by District residents. The design honoring Duke Ellington won decisively.
Unfortunately, the best option for the quarter design was considered. If the District government was serious about getting their message out about the lack of congressional representation for Washingtonians, they could have sparked the conversation by selecting a design that honored Walter E. Washington, the first elected home-rule mayor of Washington, DC.
Washington, DC is the only world capital that is not represented in the government which it hosts. For nearly 200 years, congress has taken a pedantic view of Article 1, Section 8 of the US Constitution stating:
To exercise exclusive Legislation in all Cases whatsoever, over such District (not exceeding ten Miles square) as may, by Cession of particular States, and the acceptance of Congress, become the Seat of the Government of the United StatesBy doing this, congress has been giving the residents of the District of Columbia less rights and representation that any of the other states. Congress controls the District, its revenues, and its laws. Legislation passed by the city council and signed by the mayor has to be approved by a congressional committee before it becomes law.
The Georgia-born Walter Washington was appointed as Commissioner of the District of Columbia by President Lyndon B. Johnson in 1967. His early years were marred with race riots and other issues that he had problems dealing with because of the restrictions placed on the appointed commissioner. After much lobbying, congress passed the District of Columbia Self-Rule and Governmental Reorganization Act of 1973 that allowed the city to elect its own government. Washington was elected as the first mayor of Washington, DC.If the District honored Walter Washington on its quarter, not only would it have been more appropriate from a historical perspective, it would have given the home-rule activists an opening to talk about their lack of representation in congress. People who have asked about this person on the quarter and they could have filled in the blanks. While it would not have been an overt message, it would have been subtle and shown intelligence with integrity.
I like Duke Ellington but Walter Washington would have been a better subject.
DC Quarter image courtesy of the US Mint.
Image of Walter E. Washington from Wikipedia.
Wednesday, January 28, 2009
Mint Guarantee Prices on Order
Following up on my post about the pricing policy at the US Mint for Ultra High Relief Saint Gaudens Double Eagle gold coins, Susan Headly is reporting that the Mint guarantees that the purchaser will pay the price of the coin as of when it was ordered. This means that if the price of gold rises before your order is fulfilled, your price will stay the same as when you ordered.
It also means that if the price of gold falls, your price will stay the same as when you ordered.
The Mint has a very liberal, 30-day return policy for all of its product. Purchasers can return any item in its original packaging within 30-days of purchase. If the prices go down after your coin is shipped, you can return the coin and re-order it at the lower price. Also, if the price drops before your order is shipped, you can cancel your order and re-order the coin at the lower price.
Although there is a potential for abuse, it is comforting for collectors that the US Mint follows market practices on price rises. However, it is up to you to lock in a lower price when the price falls.
While the US Mint has gone out of its way to explain its precious metals pricing policy, the Mint should make it clear what its policy is when purchasing backordered products.
It also means that if the price of gold falls, your price will stay the same as when you ordered.
The Mint has a very liberal, 30-day return policy for all of its product. Purchasers can return any item in its original packaging within 30-days of purchase. If the prices go down after your coin is shipped, you can return the coin and re-order it at the lower price. Also, if the price drops before your order is shipped, you can cancel your order and re-order the coin at the lower price.
Although there is a potential for abuse, it is comforting for collectors that the US Mint follows market practices on price rises. However, it is up to you to lock in a lower price when the price falls.
While the US Mint has gone out of its way to explain its precious metals pricing policy, the Mint should make it clear what its policy is when purchasing backordered products.
Monday, January 26, 2009
Is The Mint Discouraging Gold Ownership?
Throughout the second half of 2008, the US Mint has had problems with the supply of gold coins for the collector and investor market. Gold American Eagle and Buffalo coins were is short supply causing the US Mint to suspend and limit gold sales before changing the pricing policy of all precious metal products. Could the US Mint be trying to discourage gold ownership?
Michael Zielinski, author of Coin Update and Mint News Blog, writes about this on the Seeking Alpha blog. Zielinski tracks the actions taken by the US Mint and their explanation for the actions noting that “the consequence of each action has been to limit or discourage gold ownership.”
Zielinski notes that the US Mint will be lowering the number of gold options by eliminating fractional issues and suspending the American Buffalo issue altogether.
“Whether or not it was the US Mint’s intention, every significant action they have taken since August has either limited gold availability, eliminated gold product options, or increased the cost of acquiring gold,” Zielinski writes. “Has it all just been a consequence of surging global demand for gold, supply chain mismanagement, and bad timing for policy decisions? Or is there something else going on here?”
Please read Zielinski’s full article at Seeking Alpha.
Michael Zielinski, author of Coin Update and Mint News Blog, writes about this on the Seeking Alpha blog. Zielinski tracks the actions taken by the US Mint and their explanation for the actions noting that “the consequence of each action has been to limit or discourage gold ownership.”
Zielinski notes that the US Mint will be lowering the number of gold options by eliminating fractional issues and suspending the American Buffalo issue altogether.
“Whether or not it was the US Mint’s intention, every significant action they have taken since August has either limited gold availability, eliminated gold product options, or increased the cost of acquiring gold,” Zielinski writes. “Has it all just been a consequence of surging global demand for gold, supply chain mismanagement, and bad timing for policy decisions? Or is there something else going on here?”
Please read Zielinski’s full article at Seeking Alpha.
Sunday, January 25, 2009
Ultra High Price Gouging With No Relief
If you have been watching the US Mint this week, you may have noticed that the 2009 Ultra High Relief Saint Gaudens Double Eagle started to sell on January 22, 2009.
With a limit of one coin per household, the catalog page advises “Orders will be processed on a first-in, first-out basis, and could potentially take up to six to nine months to complete based on gold blank availability.” (emphasis added) They further explain that the Mint will not charge your credit card until your order ships. This means that the coin could cost more than the current $1,189.00 price. With the changing price of gold and that the first coins will not be available until February 6, 2009.
According to the new precious metals pricing policy, the price of gold products will be adjusted based on the Thursday AM London Fix price. Since the price of gold on Thursday, January 22 was $847.75 per ounce, the current price of the coins will not change on Monday. However, the Friday AM Fix was $873.00 per ounce and the PM close was $875.75. If the price does not come down, the coin’s price could rise to $1,239.00 before one coin is delivered.
As a consumer, when I purchase a product, even if it is backordered, I am locked into the price at the time of the order. Even if the backordered item takes three months to fulfill, my price is guaranteed. In fact, if the price goes down many vendors will adjust the price to the new lower price. This is the definition of customer service.
The US Mint, being run by a bureaucrat, opens sales at one price that has the potential (based on current market conditions) to rise before the first coin is delivered two week later.
An opposing argument will be the fluctuating price of gold and market conditions. However, the Ultra High Relief coin is being sold as a collectible item, not as bullion. It is understandable if bullion changes based on market conditions, not for collectibles. Further, as the price of silver fluctuates, the Mint does not adjust the price of American Silver Eagle Proof or the annual silver sets when the spot price of silver changes. Did the Mint lower the price of silver products after the price plummeted from $20 per ounce?
Another reason that the Mint should not be adjusting the prices of collectible coins once ordered by the consumer is that the Mint has variability built in to the price. At the bottom of the new pricing tables is a note that says “cost of metal 71%-74%, cost to manufacture (including overhead) 11% - 14%, and margin 15%.” How does the cost of manufacture change so variably as the price changes?
After writing computer programs for many types of business, I had taken business courses to understand how business works. In the basic business courses I learned that when analyzing the overhead, most of the costs are fixed. Variable costs do not vary greatly with maybe the exception of the costs of energy. However, most of the variable costs are not based on a percentage of the costs. Overhead usually comes from fixed costs, such as facilities, machinery, labor, etc. Variable costs are based on the cost to produce a unit of the item. These variable costs include energy and material costs. However, the Mint is already saying that 71-74 percent of the price is based on the cost of the metal. So what are the variable costs in coin manufacture?
Let’s look at the numbers. Assuming an 11-percent cost of overhead at the low-end of the the Mint’s price range, the Mint is saying that when the price of gold is $800 per ounce, the cost to manufacture is $122. But when the price of gold rises to $900 per ounce, the cost to manufacture is $133. Considering that the variable cost of the metal is calculated separately, why does it cost the Mint $11 more to make this coins when the price of gold rises by $100?
Does it make sense that the US Mint can fix the cost of the manufacture of billions of Lincoln cents and complain that it they cost more than face value to manufacture but they cannot nail down the cost of a coin that will have significantly less population?
The formal notice of the price change was published in the Federal Register Volume 74, Number 3, pages 493-496 (GPO Access: [text] [PDF]). The notice does not explain the rationale for the percentages used nor does it fully explain the cost of manufacture.
I will be asking my representatives in congress to ask the Mint to justify their pricing. I may also submit a Freedom Of Information Act (FOIA) request as well. I will report what information I gather. In the mean time, maybe President Obama’s administration should review my suggestion as to how to pick a new Mint director.
With a limit of one coin per household, the catalog page advises “Orders will be processed on a first-in, first-out basis, and could potentially take up to six to nine months to complete based on gold blank availability.” (emphasis added) They further explain that the Mint will not charge your credit card until your order ships. This means that the coin could cost more than the current $1,189.00 price. With the changing price of gold and that the first coins will not be available until February 6, 2009.
According to the new precious metals pricing policy, the price of gold products will be adjusted based on the Thursday AM London Fix price. Since the price of gold on Thursday, January 22 was $847.75 per ounce, the current price of the coins will not change on Monday. However, the Friday AM Fix was $873.00 per ounce and the PM close was $875.75. If the price does not come down, the coin’s price could rise to $1,239.00 before one coin is delivered.
As a consumer, when I purchase a product, even if it is backordered, I am locked into the price at the time of the order. Even if the backordered item takes three months to fulfill, my price is guaranteed. In fact, if the price goes down many vendors will adjust the price to the new lower price. This is the definition of customer service.
The US Mint, being run by a bureaucrat, opens sales at one price that has the potential (based on current market conditions) to rise before the first coin is delivered two week later.
An opposing argument will be the fluctuating price of gold and market conditions. However, the Ultra High Relief coin is being sold as a collectible item, not as bullion. It is understandable if bullion changes based on market conditions, not for collectibles. Further, as the price of silver fluctuates, the Mint does not adjust the price of American Silver Eagle Proof or the annual silver sets when the spot price of silver changes. Did the Mint lower the price of silver products after the price plummeted from $20 per ounce?
Another reason that the Mint should not be adjusting the prices of collectible coins once ordered by the consumer is that the Mint has variability built in to the price. At the bottom of the new pricing tables is a note that says “cost of metal 71%-74%, cost to manufacture (including overhead) 11% - 14%, and margin 15%.” How does the cost of manufacture change so variably as the price changes?
After writing computer programs for many types of business, I had taken business courses to understand how business works. In the basic business courses I learned that when analyzing the overhead, most of the costs are fixed. Variable costs do not vary greatly with maybe the exception of the costs of energy. However, most of the variable costs are not based on a percentage of the costs. Overhead usually comes from fixed costs, such as facilities, machinery, labor, etc. Variable costs are based on the cost to produce a unit of the item. These variable costs include energy and material costs. However, the Mint is already saying that 71-74 percent of the price is based on the cost of the metal. So what are the variable costs in coin manufacture?
Let’s look at the numbers. Assuming an 11-percent cost of overhead at the low-end of the the Mint’s price range, the Mint is saying that when the price of gold is $800 per ounce, the cost to manufacture is $122. But when the price of gold rises to $900 per ounce, the cost to manufacture is $133. Considering that the variable cost of the metal is calculated separately, why does it cost the Mint $11 more to make this coins when the price of gold rises by $100?
Does it make sense that the US Mint can fix the cost of the manufacture of billions of Lincoln cents and complain that it they cost more than face value to manufacture but they cannot nail down the cost of a coin that will have significantly less population?
The formal notice of the price change was published in the Federal Register Volume 74, Number 3, pages 493-496 (GPO Access: [text] [PDF]). The notice does not explain the rationale for the percentages used nor does it fully explain the cost of manufacture.
I will be asking my representatives in congress to ask the Mint to justify their pricing. I may also submit a Freedom Of Information Act (FOIA) request as well. I will report what information I gather. In the mean time, maybe President Obama’s administration should review my suggestion as to how to pick a new Mint director.
Friday, January 23, 2009
A Quick Administrative Note
Change came in many forms on January 20, 2009. Not only was Barack Obama inaugurated as President of the United States, but his staff changed the official administration website WhiteHouse.gov. The downside to the change is that the web designers did not keep the same directory and file layout of the previous administration’s website. For this blog, it means that links about presidents that pointed to the White House website are broken and will not point to the page about the president.
It is not feasible to find and edit the links in over 300 postings. If you want to visit the pages about the presidents at the White House website, you can find them at www.whitehouse.gov/about/presidents. Future postings will point to the president biography pages as they are programmed today.
I apologize for the inconvenience, but I think it is a small annoyance to deal with!
It is not feasible to find and edit the links in over 300 postings. If you want to visit the pages about the presidents at the White House website, you can find them at www.whitehouse.gov/about/presidents. Future postings will point to the president biography pages as they are programmed today.
I apologize for the inconvenience, but I think it is a small annoyance to deal with!
Tuesday, January 20, 2009
Celebrating History with a Caveat Emptor
A few moments ago, on the west side of the Capitol, Barack Obama was sworn in as the 44th President of the United States. On a specially built platform, President Obama put his hand on the same bible that Abraham Lincoln used at is inauguration in 1861 and was sworn in by John Roberts, Chief Justice of the Supreme Court. Millions millions of people watching on the National Mall and around the world heard President Obama take the oath of office:
Numismatically, President Obama’s election has caused opportunists to come out of the woodwork with numismatic collectibles that potential collectors should think twice about before purchasing. We have seen the advertisements on television, in magazines, and as fliers in other mail. They are advertised as “exclusive” and “limited editions” with prices set at one price, but if act today, you can receive the coins at a lower price.
If you buy these coins, please remember that these vendors are colorizing business strikes made by the US Mint and are worth their face value. Coins are colorized or thinly plated with less with less than a few cents of gold. Although the work is made with real coins, they are numismatically worthless. Similar collectibles for other events have not increased in value. In some cases they worth less than their issue price.
The US Mint warns that the coins are not official US Mint products and not endorsed by the Mint.
Please enjoy the view of history from where ever you are. But please consider another collectible to honor this history. Pins, buttons, clothing, hats, copies of The Washington Post from the day of the inauguration are wonderful alternatives that you can appreciate for years to come.
I Barack Hussein Obama do solemnly swear that I will faithfully execute the Office of President of the United States, and will to the best of my Ability, preserve, protect and defend the Constitution of the United States. So help me G-D.Whether you voted for President Obama or not, this is a historical moment that everyone should savor. We wish the new president well and hope he will pursue the right policies to better this country.
Numismatically, President Obama’s election has caused opportunists to come out of the woodwork with numismatic collectibles that potential collectors should think twice about before purchasing. We have seen the advertisements on television, in magazines, and as fliers in other mail. They are advertised as “exclusive” and “limited editions” with prices set at one price, but if act today, you can receive the coins at a lower price.
If you buy these coins, please remember that these vendors are colorizing business strikes made by the US Mint and are worth their face value. Coins are colorized or thinly plated with less with less than a few cents of gold. Although the work is made with real coins, they are numismatically worthless. Similar collectibles for other events have not increased in value. In some cases they worth less than their issue price.
The US Mint warns that the coins are not official US Mint products and not endorsed by the Mint.
Please enjoy the view of history from where ever you are. But please consider another collectible to honor this history. Pins, buttons, clothing, hats, copies of The Washington Post from the day of the inauguration are wonderful alternatives that you can appreciate for years to come.
Monday, January 19, 2009
My First 2009 Coin
Last year, I did not see a coin with a 2008 date until April. Even with the Federal Reserve giving priority to circulating 50 State Quarters during their first two weeks of issue, it was a while before I found one in change. I wondered how long it would take to find a 2009 coin in my pocket. This year, the wait lasted until January 13.
On Tuesday, January 13, I attended the meeting of Montgomery County Coin Club, where I was inaugurated as president for my second term. Our treasurer works near the US Mint’s headquarters. He used his lunch break to visit the headquarters to purchase a number of the Hawaii quarters and the new Native American $1 Coin from the change machines in the building’s lobby.
Before the meeting started, I handed our treasurer a $1 Federal Reserve Note and he handed me a $1 coin. With the coin in my pocket, I can proclaim receiving a 2009 in change! Ok... it may be cheating, but it is still a 2009 coin and it did not cost me more than face value to obtain it.
This was the first time I saw the design rather than the line drawing. The obverse of the coin continues to have the Glenna Goodacre designed portrait of Sacagawea, the Shoshone Indian guide for Meriwether Lewis and William Clark, carrying her infant son, Jean Baptist. The only difference between the previous versions and the new obverse is that the date and mint mark were moved to the edge along with E Pluribus Unum and 13 stars.
For 2009, the Native American $1 Coin Act (Public Law 110-82 [text] [pdf]) required the redesign of the reverse to honor Native Americans and the important contributions made by Indian Tribes and individual Native Americans in United States history. This year, the design represents the “Three Sisters Agriculture,”
“Three Sisters” agriculture is the practice of growing corn, beans, and squash in the same mound enhanced the productivity of each plant. This simple concept lead to the accepted practice of crop rotation that is used today to maintain the production in modern farms. This helped Native American produce food and sell their knowledge to the early European colonists to ensure their survival.
In hand, it is an excellent design. The details of the image is simple, yet complete that gives the coin a great look. Even the change in the font used for “United States of America” near the edge enhances give the coin the feel of Native American art work. US Mint Sculpture-Engraver Norman E. Nemeth should be commended for his wonderful work.
Images courtesy of the US Mint.
On Tuesday, January 13, I attended the meeting of Montgomery County Coin Club, where I was inaugurated as president for my second term. Our treasurer works near the US Mint’s headquarters. He used his lunch break to visit the headquarters to purchase a number of the Hawaii quarters and the new Native American $1 Coin from the change machines in the building’s lobby.
Before the meeting started, I handed our treasurer a $1 Federal Reserve Note and he handed me a $1 coin. With the coin in my pocket, I can proclaim receiving a 2009 in change! Ok... it may be cheating, but it is still a 2009 coin and it did not cost me more than face value to obtain it.
This was the first time I saw the design rather than the line drawing. The obverse of the coin continues to have the Glenna Goodacre designed portrait of Sacagawea, the Shoshone Indian guide for Meriwether Lewis and William Clark, carrying her infant son, Jean Baptist. The only difference between the previous versions and the new obverse is that the date and mint mark were moved to the edge along with E Pluribus Unum and 13 stars.For 2009, the Native American $1 Coin Act (Public Law 110-82 [text] [pdf]) required the redesign of the reverse to honor Native Americans and the important contributions made by Indian Tribes and individual Native Americans in United States history. This year, the design represents the “Three Sisters Agriculture,”
“Three Sisters” agriculture is the practice of growing corn, beans, and squash in the same mound enhanced the productivity of each plant. This simple concept lead to the accepted practice of crop rotation that is used today to maintain the production in modern farms. This helped Native American produce food and sell their knowledge to the early European colonists to ensure their survival.In hand, it is an excellent design. The details of the image is simple, yet complete that gives the coin a great look. Even the change in the font used for “United States of America” near the edge enhances give the coin the feel of Native American art work. US Mint Sculpture-Engraver Norman E. Nemeth should be commended for his wonderful work.
Images courtesy of the US Mint.
Sunday, January 18, 2009
Getting the Public Involved with Coin Designs
It is interesting to watch what other mints do with circulating and commemorative coinage. Each mint is governed by its own laws and regulations that are very different than the coin design process required of the US Mint. While the US Mint is very regulated, other mints have the flexibility to create interesting coins and do it in a way that involves the public. One mint that is using its flexibility is Great Britain’s Royal Mint.
The Royal Mint is a crown corporation answerable to the Queen. While the Queen has the final authority of all Royal Mint activities, the Mint is required to consult with the Chancellor of the Exchequer (a position equivalent to the US’s Secretary of the Treasury) and the Prime Minister. Although this gives the Royal Mint a lot of flexibility, the Royal Mint uses their power judiciously—as they showed last year by redesigning British circulating coinage for the first time in 40 years, after decimalization.
With the London 2012 Olympic and Paralympic games a few years away, the Royal Mint is preparing by starting the design process. To commemorate the games, the Royal Mint is planning issue 50 pence coins with 27 different reverse designs representing the different sports that are part of the games. The obverse will continue to use the portrait of Queen Elizabeth II designed by Ian Rank-Broadley. But rather than go through a traditional design competition by having a competition amongst artists, the Royal Mint is opening the design competition up to the entire nation.
The competition is open to residents of the United Kingdom. Those interested should go to the Royal Mint’s special website for entry information. Design winners will receive a gold version of their coin, get to see their coin being produced at the Royal Mint, and receive a £1,000 prize (currently about $1,473). The following video was produced by the Royal Mint and features Chief Engraver Matt Bonaccorsi:
Along with the regular competition, the Royal Mint is holding two other competition for students. There will be a design competition for children aged 6 to 12 years and a design competition for children aged 13 to 19 years old. The younger competition winner will not receive cash and the school where the winner of the older competition attends will receive £10,000.
Deadline for the competition is the end of April. It will be interesting to see how the process progresses. It looks like the Royal Mint has an interesting idea to get the country involved. I will be watching to see how successful they are with this program. Maybe the US coin bureaucracy can learn something from this venture.
The Royal Mint is a crown corporation answerable to the Queen. While the Queen has the final authority of all Royal Mint activities, the Mint is required to consult with the Chancellor of the Exchequer (a position equivalent to the US’s Secretary of the Treasury) and the Prime Minister. Although this gives the Royal Mint a lot of flexibility, the Royal Mint uses their power judiciously—as they showed last year by redesigning British circulating coinage for the first time in 40 years, after decimalization.
With the London 2012 Olympic and Paralympic games a few years away, the Royal Mint is preparing by starting the design process. To commemorate the games, the Royal Mint is planning issue 50 pence coins with 27 different reverse designs representing the different sports that are part of the games. The obverse will continue to use the portrait of Queen Elizabeth II designed by Ian Rank-Broadley. But rather than go through a traditional design competition by having a competition amongst artists, the Royal Mint is opening the design competition up to the entire nation.
The competition is open to residents of the United Kingdom. Those interested should go to the Royal Mint’s special website for entry information. Design winners will receive a gold version of their coin, get to see their coin being produced at the Royal Mint, and receive a £1,000 prize (currently about $1,473). The following video was produced by the Royal Mint and features Chief Engraver Matt Bonaccorsi:
Along with the regular competition, the Royal Mint is holding two other competition for students. There will be a design competition for children aged 6 to 12 years and a design competition for children aged 13 to 19 years old. The younger competition winner will not receive cash and the school where the winner of the older competition attends will receive £10,000.
Deadline for the competition is the end of April. It will be interesting to see how the process progresses. It looks like the Royal Mint has an interesting idea to get the country involved. I will be watching to see how successful they are with this program. Maybe the US coin bureaucracy can learn something from this venture.
Friday, January 16, 2009
First Coin Bill of the 111th Congress
One day after the convening of the 111th Congress, Rep. Sheila Jackson Lee (D-TX) introduced H. R. 255, NASA 50th Anniversary Commemorative Coin Act even though NASA’s 50th Anniversary was in 2008. The bill was referred to the House Financial Services Committee.
Since a similar bill introduced in the second session of the 110th congress did not pass, Rep. Jackson Lee introduced it for consideration in the new congress. Currently, the bill has two co-sponsors and may not have the support to pass in NASA’s 51st year.
This is the first coin bill of the 111th congress. I am sure that there are more to come!
Since a similar bill introduced in the second session of the 110th congress did not pass, Rep. Jackson Lee introduced it for consideration in the new congress. Currently, the bill has two co-sponsors and may not have the support to pass in NASA’s 51st year.
This is the first coin bill of the 111th congress. I am sure that there are more to come!
Wednesday, January 14, 2009
Brian Williams Collects Challenge Coins
Challenge coins are medals that bears an organization’s logo or emblem that are carried by the members and given to outsiders as an honor. In the United States, challenge coins are part of military tradition that started during World War I when Ivy League students went to war and created these coins as an act of camaraderie. Legend has it that one coin saved the life of a pilot.
According to legend, a pilot was shot down behind enemy lines and captured by German soldiers. Sine the pilot kept the coin in a pouch around his neck, the Germans did not confiscate his coin. That evening, the pilot was kept in a French-German town that was bombarded in the evening by allied forces. The pilot escaped during the bombing. During the next day, the pilot came upon a French military unit who was told to watch for German soldiers posing as citizens. To prevent from being arrested and executed by the French soldiers, the pilot showed them his challenge coin. One of the soldiers recognized the insignia and delayed the execution until they were able to verify the pilot’s identity. Once the story spread, a tradition was born!
Challenge coins were named on the tradition of the challenge. When a member draws his or her challenge coin and slaps it on the table, others must produce their challenge coin. If someone does not have their challenge coin, that person must buy a round of drinks for the group. The challenge is used as a morale builder amongst the group.
NBC Nightly News broadcast a story about the production of challenge coins at the Highland Mint in Melborne, Florida. The story noted that commemorative coins are a “half-billion dollar a year business.” At the end of the story, reporter Roger O’Neil challenged Brian Williams with an NBC challenge coin. Williams not only showed his challenge coin, but showed off a collection of challenge coins he received during his career. Watch the story:
I wonder if Brian Williams collects other coins?
According to legend, a pilot was shot down behind enemy lines and captured by German soldiers. Sine the pilot kept the coin in a pouch around his neck, the Germans did not confiscate his coin. That evening, the pilot was kept in a French-German town that was bombarded in the evening by allied forces. The pilot escaped during the bombing. During the next day, the pilot came upon a French military unit who was told to watch for German soldiers posing as citizens. To prevent from being arrested and executed by the French soldiers, the pilot showed them his challenge coin. One of the soldiers recognized the insignia and delayed the execution until they were able to verify the pilot’s identity. Once the story spread, a tradition was born!
Challenge coins were named on the tradition of the challenge. When a member draws his or her challenge coin and slaps it on the table, others must produce their challenge coin. If someone does not have their challenge coin, that person must buy a round of drinks for the group. The challenge is used as a morale builder amongst the group.
NBC Nightly News broadcast a story about the production of challenge coins at the Highland Mint in Melborne, Florida. The story noted that commemorative coins are a “half-billion dollar a year business.” At the end of the story, reporter Roger O’Neil challenged Brian Williams with an NBC challenge coin. Williams not only showed his challenge coin, but showed off a collection of challenge coins he received during his career. Watch the story:
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I wonder if Brian Williams collects other coins?
Monday, January 05, 2009
How RCM Commems Are Made
A fascinating aspect of numismatics is to learn how the coins we collect are made. Whenever a television show has a story on the production of coins or currency, I always watch with interest. One show where I have seen an interesting presentation on minting coins is on a show called How It’s Made that is airing on Discovery network’s Science Channel.
For those not familiar with How It’s Made, it shows how various items are manufactured in nicely edited five-minute vignettes. Although the producers find manufacturers all over the world to show how products are made, the show is based in Canada. So rather than try to pierce the veil of the US Mint for the show, they went to the Royal Canadian Mint to show how commemorative coins are made.
Thanks to another How It’s Made fan posting the segment on YouTube, watch how the RCM makes commemorative coins:
On January 9, 2009 at 10:30 PM (EST), the Science Channel will be airing How It’s Made: REMIX, a show where they bring in separate vignettes under one theme. This show features currency. According to their online schedule, the stories planned for this show is change machines, gold, stamps, and collectible coins. Check your local listing to find the Science Channel in your area.
For those not familiar with How It’s Made, it shows how various items are manufactured in nicely edited five-minute vignettes. Although the producers find manufacturers all over the world to show how products are made, the show is based in Canada. So rather than try to pierce the veil of the US Mint for the show, they went to the Royal Canadian Mint to show how commemorative coins are made.
Thanks to another How It’s Made fan posting the segment on YouTube, watch how the RCM makes commemorative coins:
On January 9, 2009 at 10:30 PM (EST), the Science Channel will be airing How It’s Made: REMIX, a show where they bring in separate vignettes under one theme. This show features currency. According to their online schedule, the stories planned for this show is change machines, gold, stamps, and collectible coins. Check your local listing to find the Science Channel in your area.
Saturday, January 03, 2009
Ten Worst Quarter Designs
After fifty different State Quarter designs, there has to be a few turkeys in the bunch. In this case, I call a design a “turkey” when it just turns me off. A bland design, disturbing images, and trying to do too much on a coin all qualifies as a turkey of a design.
As I follow-up on my Best Quarters Designs, here is the count down to the ten worst 50 State Quarters designs from the 41st “best” designs.
#41 Montana
Engraver: Don Everhart
It is very disturbing to have the image of a dead animal on a coin. I do not care what it is supposed to mean to the people of Montana, putting the decomposed skull of a bison is just disturbing.
#42 Wisconsin
Engraver: Alfred Maletsky
Wisconsin deserves a better quarter design. This milquetoast design looks like someone was thinking about breakfast than Wisconsin. While the dairy from Wisconsin is necessary for a good breakfast, those who produce the dairy just deserve better.
#43 New York
Engraver: Alfred Maletsky
I love New York. I was born in New York. I still consider New York home. As a transplanted New Yorker, I hate the quarter’s design. I am not a fan of state outlines on the quarter because it really says nothing about the state other than “we’re here.” Then, the decision to put the Statue of Liberty on the quarter was made during a time that New York was arguing with New Jersey over ownership of the island making the decision for the design just dumb.
#44 Massachusetts
Engraver: Thomas D. Rogers
Another state map trying to masquerade as a design. While the image of the Minuteman does depict Massachusetts’ place in the founding of this country, it would have been more fitting to find a design more fitting of this great accomplishment.
#45 Maryland
Engraver: John Mercanti
When the Maryland quarter committee met, I was working on my Masters and taking care of a sick wife. But considering what could have been Maryland’s quarter design, the top of the capital is very lame. From the beauty of the Chesapeake Bay to the history of Fort McHenry, there is not a lack of good subjects. But the lame design was decided on by then Governor Paris Glendenning, who was Maryland’s worst governor since Spiro Agnew. Bad governor and a bad design.
#46 Indiana
Engraver: Donna Weaver
Another state outline and a trite reference to the one well known auto race in the state. There has to be something more to Indiana than fast cars. This would have been Indiana’s opportunity to teach us about their home. Instead, we get another state outline.
#47 Ohio
Engraver: Donna Weaver
This is another state outline with a twist: the hanging astronaut! With all due respect to Ohio, celebrating the “Birthplace of Aviation” with people whose accomplishment in Ohio is where they were born would be like calling Kentucky the Land of Lincoln. Further, poor John Glenn looks like he is hanging from Cleveland! He deserves better. Bad concept. Bad design.
#48 Texas
Engraver: Norman E. Nemeth
I will admit, I am not a fan of Texas. And I am not a fan of a former governor who‘se been living in public housing in Washington, DC for the past eight years. Maybe that is shading my view on the state and the obnoxious look of the star on yet another state outline. Did someone forget the Alamo?
#49 Florida
Engraver: T. James Ferrell
A jumbled mess of three untied images that had to have been decided by a committee because a fifth grader could have done better. I understand the concept to bring in the history of discovery that occurred in Florida. But even rough sketches with clouds and other elements did not work. They were better off sticking with oranges and alligators.
#50 Wyoming
Engraver: Norman E. Nemeth
My first impression of this design was “is this it or is this a cud?” Sure, the symbol is on the license plate, but maybe that is where this image should have stayed. Wyoming is the home of Yellowstone National Park and the Grand Tetons and a cud is the best they can do?
I looked at the ten best and the ten worst. Next, I want to look at the ten quarters that either taught us something or reinforced something historic about the state.
As I follow-up on my Best Quarters Designs, here is the count down to the ten worst 50 State Quarters designs from the 41st “best” designs.
#41 MontanaEngraver: Don Everhart
It is very disturbing to have the image of a dead animal on a coin. I do not care what it is supposed to mean to the people of Montana, putting the decomposed skull of a bison is just disturbing.
#42 WisconsinEngraver: Alfred Maletsky
Wisconsin deserves a better quarter design. This milquetoast design looks like someone was thinking about breakfast than Wisconsin. While the dairy from Wisconsin is necessary for a good breakfast, those who produce the dairy just deserve better.
#43 New YorkEngraver: Alfred Maletsky
I love New York. I was born in New York. I still consider New York home. As a transplanted New Yorker, I hate the quarter’s design. I am not a fan of state outlines on the quarter because it really says nothing about the state other than “we’re here.” Then, the decision to put the Statue of Liberty on the quarter was made during a time that New York was arguing with New Jersey over ownership of the island making the decision for the design just dumb.
#44 MassachusettsEngraver: Thomas D. Rogers
Another state map trying to masquerade as a design. While the image of the Minuteman does depict Massachusetts’ place in the founding of this country, it would have been more fitting to find a design more fitting of this great accomplishment.
#45 MarylandEngraver: John Mercanti
When the Maryland quarter committee met, I was working on my Masters and taking care of a sick wife. But considering what could have been Maryland’s quarter design, the top of the capital is very lame. From the beauty of the Chesapeake Bay to the history of Fort McHenry, there is not a lack of good subjects. But the lame design was decided on by then Governor Paris Glendenning, who was Maryland’s worst governor since Spiro Agnew. Bad governor and a bad design.
#46 IndianaEngraver: Donna Weaver
Another state outline and a trite reference to the one well known auto race in the state. There has to be something more to Indiana than fast cars. This would have been Indiana’s opportunity to teach us about their home. Instead, we get another state outline.
#47 OhioEngraver: Donna Weaver
This is another state outline with a twist: the hanging astronaut! With all due respect to Ohio, celebrating the “Birthplace of Aviation” with people whose accomplishment in Ohio is where they were born would be like calling Kentucky the Land of Lincoln. Further, poor John Glenn looks like he is hanging from Cleveland! He deserves better. Bad concept. Bad design.
#48 TexasEngraver: Norman E. Nemeth
I will admit, I am not a fan of Texas. And I am not a fan of a former governor who‘se been living in public housing in Washington, DC for the past eight years. Maybe that is shading my view on the state and the obnoxious look of the star on yet another state outline. Did someone forget the Alamo?
#49 FloridaEngraver: T. James Ferrell
A jumbled mess of three untied images that had to have been decided by a committee because a fifth grader could have done better. I understand the concept to bring in the history of discovery that occurred in Florida. But even rough sketches with clouds and other elements did not work. They were better off sticking with oranges and alligators.
#50 WyomingEngraver: Norman E. Nemeth
My first impression of this design was “is this it or is this a cud?” Sure, the symbol is on the license plate, but maybe that is where this image should have stayed. Wyoming is the home of Yellowstone National Park and the Grand Tetons and a cud is the best they can do?
I looked at the ten best and the ten worst. Next, I want to look at the ten quarters that either taught us something or reinforced something historic about the state.
Thursday, January 01, 2009
Welcome to 2009
Happy New Year!
Some say that 2008 could not have ended fast enough. Others look at 2008 as a fascinating year where both positive and negative history was made. Regardless of your view, I hope you have a Happy and Healthy 2009 with the key coin of your dreams!
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