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Collector Advisory
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Mid-Year Review, Summer 2008 |
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Tuesday, 05 August 2008 |
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Wow, what a year 2008 has shaped up to be so far. Precious metals have set all time highs and along side never before seen low mintage figures on Gold and Platinum Eagles. The 2008 coin market took off right from the beginning starting with the Florida United Numismatist (F.U.N.) show in January. The amount of new money that is coming into coins is simply amazing. The money that is able to purchase coins out weighs the available supply. This just proves what we had been saying all along, that prices must go up with so many new collectors in the market and having a fixed supply of numismatic coins. Coin experts around the country are now gearing up for record high prices in the near future. Then it was Platinum that started to take our breath away as news broke that South African mines were being forced to shut down. Many collectors who bought the Platinum Eagles in January are looking like they got a steal, as Platinum soon exploded over $2,200 an ounce. Gold and Platinum Eagle mintage figures are very low compared to previous years, as the mint was forced to stop sales because of the rapid increase in precious metals.
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Platinum
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Gold
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Silver
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January 2, 2008
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$1,550
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$835
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$14.00
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May 30, 2008
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$2,050
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$886
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$16.90
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$25 Platinum American Eagle
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The Platinum American Eagle program was first introduced in 1997, and since then Platinum Eagles have commanded the attention of collectors and investors around the world. The Platinum program contains the first $100 dollar coin in American history and is the first legal tender coin to be set by the U.S. Treasury and not Congress. Due to Platinum’s short supply the mint is forced to produce less and less each year. Low mintages and ever increasing demands for grade certified Platinum Eagles have caused Platinum Eagles to carry an amazing 820% premium above melt value in the past.
Platinum as a metal is 30 times rarer than gold and almost 100 times more rare than silver. The limited above ground supply of Platinum has pushed its price from $600 per ounce to over $2,200 per ounce in just five years. South African mines produce 80% of the world’s supply of Platinum. Now these mines are facing power and safety issues which have forced these mines to shut down. In effect Platinum supplies in 2008 are looking to fall short of demand by close to 500,000 ounces. Now experts predict Platinum to hit $3,000 per ounce by the end of this year.
2008 Platinum is looking to be the rarest year ever! Coin experts are predicting these coins to start carrying heavy premiums in the near future as rumors spread this could be the last year ever for Platinum coins.
According to official U.S. Mint reports the 2008 $25 Platinum
American Eagle is on track to be the single rarest coin in over 100
years!
For more information on the U.S. Mint’s
Platinum program or to check availability for 2008 Platinum coins call
877-227-COIN and ask to speak with a Platinum advisor.
(Due to extremely low mintages THE AMERICAN EAGLE RESERVE can not guarantee availability
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Platinum Fast Facts
- The above ground supply of Gold can fill 3 Olympic size swimming pools;Platinum on the other hand could only reach one’s ankles in just 1 of these swimming pools.
- Platinum is mined using the metal Rhodium, which has gone from $360 per ounce to over $9,500 an ounce in five years
- Annual Platinum production is just a mere 5% of Gold’s annual production
- 90% of the world’s platinum comes from four mines, Three of the four mines are in South Africa
- The rarest Gold American Eagle has a mintage figure around 24,000 coins. The rarest Platinum Eagle has mintage of only 6,000 coins.
It is estimated that all the Platinum ever mined through out history could fit into a 25’ x 25’ cube
- If mining operations cease today, Platinum supplies will only last for one year
- In 2007 Platinum had the best gains compared to gold and silver
- Lowest minted $25 Platinum Eagles
2007- 8,402
2006- 12,001
2005- 12013
- 2008 $25 Platinum Mintage figure 1,600
As of June 16, 2008
Indian Head Quarter Eagles
(1908-1915) (1925-1929)
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The $2.5 Quarter Eagles are very popular among collectors in the United States, and is probably one of the most recognized pieces on the collectable market. The coin was design by a famous sculptor named Bela Lyon Pratt, who actually was a student of the famous sculptor Augustus Saint-Gaudens. The Quarter Eagles are one of two American coin series with the “incuse” design. “Incuse” is a term used to describe the design on the obverse and reveres sides of the coin, meaning the design is sunk down into the coin instead of raised. This coin was the first to feature this unique design however people in the early 1900’s did not like this because they thought it could carry bacteria that would spread diseases. Bankers too had problems with these coins as they argued it did not stack well compared to the other coinage of its time.
The $2.5 Indians, just like other Gold coins prior to 1933, were seized by the government in 1933 as an attempt to redistribute the wealth and to help pay off war debts. Over 90% of the original mintage was melted down and forever lost. That is why these coins can carry significant premiums over there gold content. Collectors also are attracted to the ease of completing an entire set, as it only takes 15 coins to complete. It is a very affordable way to own a fine piece of American history. Even with the record highs in Gold prices these coins are still a long way from their previous market highs in previous bull markets. These coins have always reached or surpassed their previous market high in every bull market. That is why we feel the $2.5 Indians are great buys right now.
Diameter
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18 millimeters
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Net Weight
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.12094 ounce pure gold
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Composition
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.900 gold, .100 copper
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Reeded
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American Gold Eagle
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The Gold American Eagle program was first introduced in 1986. It was the first Gold Coin series struck in 54 years. It was the first to introduce a coin with a face value higher than $20. The Gold Eagles borrowed the design of the Saint-Gaudens “Double Eagle” from the early part of the century for the obverse side of the coin. The reverse side of the coin features a male eagle flying with an olive branch into the nest with a female and her hatchlings. These coins are offered in 1/10 oz, 1/4 oz, 1/2 oz, and 1 oz and guaranteed to contain the stated amount of gold in troy ounces. Gold Eagles minted from 1986-1991 are dated using roman numerals, and then in 1992 the U.S. Mint struck the coins using Arabic numbers for dating these coins.
The $25 Gold Eagle (1/2 oz) is often referred to as the corner stone piece of the set because it is typically the lowest minted. The 1991 $25 Gold Eagle is the rarest one of them all so far. It has a mintage of around 24,000 coins and certified in a high grade can sell for several times more than the price of gold it contains. The 2008 $25 Gold eagle is on pace to be more rare than the 91’, with only 13,000 or so minted through May this year. With rising oil prices and inflation going through the roof experts are predicting Gold to hit $2,000 an ounce and that is why this coin is considered to be an incredible buy right now. Rising gold prices coupled with the low mintage figure will push the price of this coin higher and higher. Who would have thought in years before gold would be considered by experts as cheap at $900 an ounce? Simply amazing, however no one has a crystal ball and can actually predict where gold will go from here, but indicators in our economy are pointing to big movements in gold prices. Smart collectors know the early you get in the less you pay for these coins. After all coins that are not readily available are the ones every collector wants to get their hands on.
Coin
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Diameter
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Thickness
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Weight
(troy oz)
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$5
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16.5 mm
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1.19 mm
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0.1091
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$10
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22 mm
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1.83 mm
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0.2727
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$25
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27 mm
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2.24 mm
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0.5454
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Gold Fast Facts
- The U.S. Mint uses sound waves to dry gold coins after they are washed so there are no water spots on the coins.
- Gold is universally accepted and can be bought a sold around the world very easily
- Since the late 1880’s South Africa has contributed a large portion of the world’s supply
- 50% of all gold ever produced has come from South Africa
- ONLY three parts of every billion of the Earth’s crust contains Gold
1934 Gold was an amazing $35 per ounce
- If mining operations cease today, Platinum supplies will only last for one year
- The price of oil per barrel has triple in the last five years, however compared to Gold it still remains FLAT!
- Lowest minted $25 Gold Eagles
1991- 24,100
1990- 31,000
1996- 39,287
- 2008 $25 Gold Mintage Figure 14,000
As of June 16, 2008
Changing The Face Of American Coinage
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Augustus Saint-Gaudens, (1848-1907)
Augustus Saint- Gaudens is probably the most recognized designer of American coinage. He was born in Dublin March 1, 1848 and later raised in New York City. He was a sculptor who most embodied the ideals of American Renaissance and became famous for his designs of monuments commemorating Civil War heroes. Augustus also showed interest in numismatics as he designed the twenty-dollar “Double Eagle” gold piece in 1905, and even today is still considered one of the most beautiful coin series ever issued. He also made his mark designing the ten-dollar Indian Head gold eagle, which was his last coin to ever design. Saint-Gaudens was chosen by President Roosevelt to change the design of American Coinage at the beginning of the 20th century. His high relief design of the Double Eagle was produced by the mint in the year of his death in 1907, and took up to eleven strikes to bring out his highly detailed design. Only 12,367 of these coins were made in 1907. Some of the extremely rare twenty-dollar gold pieces designed by Augustus are prized by avid collectors and carry values from $10,000 to millions of dollars.
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