Always a great selection of U.S. collector coins

February 2007

NGC DISCONTINUES "FIRST STRIKE" DESIGNATION

In the December issue of our newsletter, we reported that separate class-action lawsuits had been filed in Florida against two of the leading third party coin grading and authentication companies concerning their designations of certain coins as "First Strikes." The suits allege the companies are violating unfair trade practices laws of their home states. One of the companies, Numismatic Guaranty Corporation (NGC), has since announced that it will no longer label modern bullion coins, such as gold and silver American Eagles, as first strikes. It will instead offer an "Early Release" designation.

An advisory issued by the United States Mint during 2006 noted that approximately 50% of the projected sales numbers for its uncirculated bullion coins are struck before shipments begin and that the order in which the coins are packed or shipped is not an indication of the order in which they were struck.

NGC's new designation is more consistent with what's actually known about the striking and release of modern bullion coins. It remains to be seen whether coins designated "Early Release" as well as coins previously labeled "First Strike" will command any significant premium in the marketplace. The willingness of some buyers to pay more for "first strike" coins has been at least partially based on the assumption that they were struck early in the life of coin dies, before stress, wear and metal fatigue began to affect the dies in ways that may be visible on struck coins. We see no reason why coin prices should in any way be based on when they left the Mint.

CURRENT SPECIAL

Prices have been further reduced on about 40 selected coins that have been authenticated, graded and encapsulated in tamper-resistant hard plastic "slabs" by major third party grading services. Many are now priced at or below the wholesale bid or ask prices published in the Coin Dealer Newsletter. The complete list of coins and their sale prices are posted on our Current Special page.

PRESIDENTIAL DOLLAR COINS IMMINENT

Per legislation enacted in late 2005, four Presidential dollar coins will be issued each year until all deceased former Presidents have been so honored. The coins will be released in the order in which the Presidents served. Each Presidential dollar will have the same dimensions and weight and be made of the same manganese-brass alloy as the Sacagawea dollar. A reverse featuring the Statue of Liberty will be common to each issue. The first coin of this series, honoring George Washington, will officially be released on February 15. A Presidential $1 Coin Proof Set containing all four 2007 issues (Washington, John Adams, Thomas Jefferson and James Madison) is scheduled to go on sale the same day.

The Federal Reserve has announced that there will be a six week ordering period for each Presidential Dollar during which banks can order $1000 boxes and $2000 bags that are not mixed with other coins. The ordering period for Washington dollars begins February 1. Although most banks have avoided ordering and distributing Sacagawea dollars, some have indicated that they will order Presidential dollars.

We are currently gauging collector demand for Presidential dollars. If you plan to collect (or use) these coins, we encourage you to ask for them at your local bank. Speaking to the vault teller may yield better results, as he or she is responsible for ordering coins. Of course, local banks are likely to get either 'P' or 'D' mintmark coins, and many collectors like to get examples of both. We're planning to offer singles and rolls of Washington dollars with both mintmarks and will continue with subsequent Presidential dollars as warranted by demand from our valued customers.

-----

Telesphere Numismatics

Our newsletter is also distributed by e-mail on a strictly opt-in only basis. To subscribe, simply complete the form below. Instructions for unsubscribing are included with each issue.

Index of Other Available Issues

Subscribe!

Receive our free newsletter by e-mail! Messages sent about once a month feature announcements of new purchases, special offers and updates at our web site. Each issue also includes at least one article containing news and/or commentary pertaining to the world of numismatics.

To receive future issues of the Telesphere Numismatics newsletter by e-mail, enter your name and e-mail address in the form below and click the "Subscribe Now" button.

Our newsletter is strictly opt-in only. No one will be added without requesting it. To protect your privacy, subscriber info will not be available to anyone else. Requests to unsubscribe are promptly honored.

Your Name
Your e-mail address