Always a great selection of U.S. collector coins

July 2006

GOLD BUFFALO COIN IS A HIT

In June the U.S. Mint released uncirculated and proof versions of a new 24 karat gold coin based on James Earle Fraser's classic Buffalo nickel design. This coin was authorized by the Presidential Dollar Coin Act signed into law in December 2005. Fraser's original "type 1" bison obverse of American Buffalo Gold

on mound design, which appeared on America's five cent coin in 1913, has been modified to indicate the gold coin's $50 face value, that it contains 1 ounce of .9999 fine gold, and to include the legend "IN GOD WE TRUST" (which did not appear on the Buffalo nickel but is now required on all U.S. coins).

The U.S. began issuing American Eagle gold bullion coins in 1986. They're struck in four sizes containing 1/10, 1/4, 1/2 and one full troy ounce of .9167 fine gold, alloyed with copper and silver. Pure gold is soft, and the alloy is less easily damaged. Minting of a one ounce silver eagle began the same year. Platinum eagles have been struck in the same four sizes as the gold eagle since 1997.

As is the case with uncirculated gold, silver and platinum eagles, the uncirculated American Buffalo Gold cannot be purchased directly from the U.S. Mint. Uncirculated bullion coins are sold by the Mint solely to a limited number of distributors who must meet stringent requirements to gain authorization. Like other coin dealers, we purchase the coins from an authorized distributor and offer them to collectors and investors. Prices are set at a small premium above the value of the precious metal they contain and are adjusted frequently with changes in the spot price of the metal. The uncirculated gold Buffalo coins are readily available at 6-7% over the spot price of gold. Please see our Bullion Coin page for current quotes.

The Mint does sell proof versions of its bullion coins directly to the public. The proof Buffalo coin was originally priced at $875. Following a drop in the price of gold below $600 per ounce, the Mint reduced the price of the proof coin to $800. Gold has subsequently recovered much of its recent losses, but as of July 13, the proof coin was still priced at a 22% premium to the value of the gold it contains.

Demand for both versions of the new coin has been particularly strong. Although it's considered a bullion coin, we've observed widespread demand from persons more interested in acquiring it as a collectible than as a means of investing in gold.

NEW DESIGN PLANNED FOR $5 BILL

The U.S. Treasury Department has announced that it will give the $5 Federal Reserve Note a new design consistent in style to those introduced during the last couple years for the $50, $20 and $10 notes and in the works for the $100 note.

The new designs are part of the government's efforts to thwart counterfeiters. Previously, the Treasury Department had said that there were no plans to makeover the $5 bill. The reversal was prompted by incidences of fake $100 notes printed on genuine $5 bills that had been bleached to remove their ink. The new $5 notes are scheduled for release during 2008.

CHERRYPICKERS' GUIDE, VOLUME 2, IMMINENT

We've received lots of inquiries about Volume 2 of the Cherrypickers' Guide and thought our readers would appreciate hearing that it should soon be available.

The Cherrypickers' Guide to Rare Die Varieties by Bill Fivaz and J.T. Stanton is a best-selling numismatic book. "Cherrypicking" refers to finding coins priced below their true market value, most commonly valuable die varieties which have not been attributed as such by the seller.

As the size of each edition has expanded with the inclusion of more entries, the authors decided to split the 4th edition into 2 volumes. Volume 1 was published in early 2000 with plans to release Volume 2 by the end of that year. For various reasons, Volume 2 is still not available. Finally, arrangements were made several months ago for Whitman Publishing, which has released dozens of numismatic titles, to publish Volume 2. We've been informed that it will be shipped in August and have pre-ordered two dozen copies. We have good reason to believe that the wait is nearly over!

Note: If you pre-ordered a copy from Mr. Stanton, you should contact him about receiving it.

CURRENT SPECIAL

Through July 25, we're adding one each 2006-P and 2006-D Colorado quarters in uncirculated condition free to orders of $45 or more placed with our secure online shopping cart. More info about this offer is available on our Current Special page.

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