New U.S. Mint Coins a Golden Opportunity

In april, the u. S. Mint discovered plans to strike in early 2006 new . 9999 bullion coins to go after the developing international marketplace for . 9999 fine (24-karat) gold coins. Studies display that pure gold cash declare 60% of the world's gold bullion coin marketplace, which is some $2. Four billion annually. The royal canadian mint's maple leafs maintain the primary spot for 24-karat gold coins. But, problems with maple leafs have surfaced. If the mint avoids the troubles that have advanced with gold maple leafs, it has a golden possibility to grab a good bigger proportion of the gold bullion coin market. The u. S. Mint's american gold eagles are the satisfactory selling 22-karat gold coins inside the international. In spite of being the arena's quality-selling 24-karat gold coins, 1-oz. Maple leafs' design and packaging leave them prone to harm. As a end result, gold maple leafs have fallen in disfavor among u. S. Gold bullion coin buyers. Indicators are that gold bullion coin investors global have the equal frustrations with 1-oz. Gold maple leaf coins. It is nearly impossible to dispose of, check out, and put 1-oz. Gold maple leafs back of their tubes with out scratching them, irrespective of how carefully executed. Gold maple leafs have smooth, clean fields round queen elizabeth's likeness and sharp milled edges. Because the cash are put again in their tubes, the edges scratch the fields--and sometimes the queen's raised photo. And, heaven forbid that a 1-ozgold maple leaf is dropped on a ground or even a difficult tabletop. However, maximum of the damage is completed when investors manage the cash. If gold maple leafs are dealt with more or less, as traders are used to handling krugerrands and gold eagles, gold maple leafs are without problems broken. Therefore, many badly damaged gold maple leafs have come returned into the secondary market. Till a few years ago, gold eagles and maple leafs offered on the identical markups over spot. However, as maple leafs, which investors have sold considering the fact that 1979, started out entering the secondary market, problems surfaced. Now, to hold buyers within the u. S. Marketplace buying maple leafs, the royal canadian mint has to offer new (contemporary 12 months) gold maple leafs at a 1/2-a-percent below gold eagle fees. Damaged 1-oz. Gold maple leafs are this kind of trouble that one vital secondary marketplace maker stopped dealing inside the coins for a while. The top trader stated he did not have time to talk about with consumers and dealers the situations of the coins. Further, he stated his group of workers did no longer have time to check out every coin and classify it as to the amount of damage. It's miles common for dealers to say the coins are in "ideal circumstance." yet while gold maple leafs arrive, they often are badly scratched or rim nicked. Every other fundamental bullion supplier (perhaps the country's biggest) currently buys returned "best" gold maple leafs from established sellers at a little over spot, which means buyers receive less than spot if their sellers dump to this company.

For scratched or broken cash, this company pays much less than spot, which allows the company to send the cash to a refinery at a profit if the company has no customers for gold maple leafs. The secondary dealer returned to buying and selling gold maple leafs but buys all them handiest at expenses that allow him to profitably soften the coins if they're simply beat up. As mentioned, because of the hassle with secondary market gold maple leafs, the royal canadian mint has to price gold maple leafs under gold eagles to entice traders to take gold maple leafs inside the u. S. Market. Luckily--the free market being what it's far--there are dealers who will take the time to evaluate gold maple leafs and pay more for the ones in higher circumstance. Still, the spread (the distinction among what an investor can purchase and promote for at any second) on "best" gold maple leafs is about $4 wider than on gold eagles. But, the u. S. Mint's new pure gold cash need no longer be trouble coins. As an example, the 1-oz. Austrian philharmonics and the perth mint's 1-oz. Coins are . 9999 satisfactory. Yet, these coins are not effortlessly damaged for the duration of normal dealing with due to their designs and/or their packaging. Philharmonics come ten to a tube and may be taken out and placed again in their tubes without scratching. The perth mint cash come individually encapsulated in difficult plastic capsules. So long as perth mint cash remain of their tablets, they preserve their perfect situations. With a bit of luck, the u. S. Mint knows of the problems with gold maple leafs and could design its new . 9999 great cash and their packaging so that the cash are not without difficulty scratched or broken. If the mint opts to go along with packaging its new coins in tubes, as it does gold eagles and as philharmonics are packaged, then the mint wishes to avoid milled edges. Despite the fact that gold eagles have milled edges, vintage u. S. Gold coins ($20 libs and st. Gaudens) were minted with lettering on the rims. So, lettering isn't new to the u. S. Mint. With lettering, the edges may be smooth, making the cash less likely to scratch different cash in managing. Philharmonics, which are not at risk of damage, have lettering on their edges. [over the centuries, mints learned to design gold coins to guard against "shaving," a process by which a small amount of metal is "shaved" from the edges. Milled edges that have been shaved are clearly detectible. Light lettering on the edges solves the problem as well. If no lettering can be seen on coins that are known to have been minted with lettering, then the coins have been shaved and no longer have their original gold content.] as do maple leafs, perth mint . 9999 excellent gold cash have milled edges and convey a likeness of queen elizabeth ii at the obverse (the front). However, to shield its cash from harm, the perth mint encapsulates them in plastic pills. Whilst perth mint bullion coins are removed from their drugs and put in tubes, the coins are at risk of scratching as are maple leafs. In going after a bit of the $2. 4 billion . 9999 first-class gold bullion coin market, the mint needs to consider the mind-set of bullion coin investors. Bullion coin buyers are trying to find options to paper money; they're now not coin creditors. Bullion coin traders select coins packaged in order that they can be effortlessly saved and secured. This indicates the mint need to package the coins twenty to a tube, which has come to be--normally due to gold eagles--the preferred technique. Five tubes conveniently total one hundred cash. In addition, the tubes must be fabricated from the equal long lasting plastic from which gold eagle tubes are made. Tough plastic tubes, which includes those used for philharmonics, can and do ruin when dropped. Gold eagle tubes, then again, are honestly indestructible. For safety towards "shaving," the mint must design its new coins with lettered edges. Lettered edges could make the coins an awful lot less at risk of scratching. The mint is going after the bullion coin market, and bullion buyers like to experience and heft their cash. Packaging the cash in tubes allows traders to more without difficulty investigate their coins. Collectors, alternatively, need their coins in as pristine condition as viable. Even though tablets are outstanding for protecting collector coins, cash in my opinion packaged in tablets require more area for garage. The alternative element that the mint has to don't forget is the coin's subject. The mint must make the subject some thing uniquely american, as it did with its american eagles coins. For the gold eagles, the mint chose a slimmed-down rendition of augustus saint-gaudens' famed status liberty, which he created in 1907 to grace a brand new double eagle ($20 gold coin). Almost 100 years later, the saint gaudens, which the coin is now called, is considered because the maximum lovely coin produced by means of the u. S. Mint. For its silver eagles, the mint selected a. A. Weinman's walking liberty design, which became used on half of-greenbacks 1916-1947. Strolling liberty halves are a few of the maximum popular silver coins ever became out via the u. S. Mint. Judging through the fulfillment of the silver eagles program (greater than 128 million offered given that their inception), putting the strolling liberty on silver eagles become the right move. A few may argue that the status liberty and the on foot liberty designs are getting used inside the american eagles program, and, therefore, the mint ought to move onto every other design. But, the status liberty and the taking walks liberty are straight away identified as american via the arena's bullion coin buyers. Except, is not leave out liberty as much our nation's icon as is the eagle? If the u. S. Mint avoids the issues which have surfaced with gold maple leafs and gives gold bullion coin investors a robust opportunity, then it has a golden opportunity to seize a large percentage of the . 9999 exceptional gold bullion market. With the proper planning, the mint could shake the maple leaf's hold at the . 9999 bullion coin market.