March 2008
NEW $5 BILL DEBUTS
Circulation of a newly redesigned $5 Federal Reserve Note began March
13. Designated series 2006 (dates on U.S. currency do not
necessarily indicate the year of printing), the new $5 note
remains the same size and still has a portrait of President Abraham
Lincoln on the face side and a vignette of the Lincoln Memorial on the
back side. For the first
time it also incorporates The Great Seal of the United States. The
seal, which features
an eagle and a shield, is printed in purple to the right of the
portrait of President Lincoln. An arc of purple stars appears to the
left of Lincoln's portrait and
another is located to the right of The Great Seal.
Like other recently redesigned denominations of U.S. currency, the new
$5 note has been updated primarily to deter counterfeiting. Security
features include two watermarks, enhanced portraits, an improved
security thread, microprinting, and more complex color that includes
purple ink. One watermark is a large number "5" near
the right margin, and the
other is a column of three smaller "5"s to the left of the portrait of
Lincoln. Both watermarks appear against a blank background. The
vertical security thread has been moved from
the left to the right side of
the portrait and has an alternating pattern of "5" and "USA" visible
from both sides. When held under UV light, the thread glows blue.
The new $5 bill can be viewed at the Bureau
of Engraving and Printing web site. The BEP, which is part of
the Treasury Department, is responsible for printing all U.S. paper
money.
SURGING PRECIOUS METALS PRICES FUEL
STRONG MARKET
For the first time ever, the contract price for future delivery of gold
topped $1000 per troy ounce on March 13. Silver has been trading
at its highest levels in 27 years, with the spot price well above $20
per ounce on the same date. Rising precious metals prices are at
least partially attributable to a weak U.S. dollar, which has recently
sunk to a string of record lows against the euro and fallen below 100
yen for the first time in a dozen years.
Many "brick and mortar" coin shops have become primarily bullion
oriented, with holders of silver and gold coins, bars, etc. cashing in,
while other patrons are looking to purchase precious metals in
anticipation of possible further price appreciation or as a hedge
against financial turmoil.
Strong precious metals prices increase the value of bullion sensitive
collector coins, such as most later date circulated silver coins, and
consequently force prices for some better date and higher grade pieces
upward as well. Just 2-3 years ago, a common date uncirculated Peace
dollar could be purchased for around $15. Today, a "junk" quality
silver dollar (i.e. one generally
not considered suitable for collecting due to damage) has a "melt
value" of over $15, and the uncirculated Peace dollar retails
for over $20.
2008 SACAGAWEA DOLLARS APPROVED
In the February issue of this newsletter, we reported that the United
States Mint had postponed sales of 2008 Sacagawea dollars after it
determined that it lacked legal authority to
issue the coins. An amendment to the Native American $1 Coin Act
(Public Law 110-82)
authorizing the coins has subsequently been passed by Congress. The
bill was signed into law by President Bush on February 29.
The Native American $1 Coin Act requires that, beginning in
2009, the reverse of Sacagawea
dollars feature a series of one year only designs
commemorating other Native Americans and Indian tribes. Language in
that law as originally enacted led to the Mint's conclusion that
Sacagawea dollars dated 2008 were not authorized. Due to limited
demand for dollar coins, Sacagawea dollars have not been issued into
circulation through the Federal Reserve Bank system since 2001.
The Mint sells the coins directly to dealers and collectors at a
significant premium to their face value. 2008 Sacagawea dollars
will retain the original eagle reverse design.
As of March 13, the Mint has not yet announced initial dates for sales
of bags and rolls of 2008 Sacagawea dollars or for annual proof and
uncirculated coin sets that will include the coins.
CURRENT SPECIAL
Through March 31, we're adding one each 2008-P and
2008-D Oklahoma 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.
Also, our remaining inventory of
2008 Red
Books (officially titled
A Guide
Book of United States Coins) is now on sale at 40% off the
suggested retail price. 2009 Red Books will be available in mid
to late April. While the typical retail prices reported in the
Red Book are, of course, based on market conditions before each edition
is printed, the extensive information on regular
U.S. coinage, colonials and territorial issues changes little from one
year to the next.
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Telesphere Numismatics
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