Neat Article In 5/11/04 Numismatic News Regarding Platinum Eagles
wondercoin
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Richard Giedroyc wrote a very interesting article in the 5/11/04 Numismatic News entitled "Platinum is the Ignored other white Metal". In the article, Richard asks whether there are "sleepers" within the modern US Coin Series as they are issued. Richard concludes
"Well, yes there is, in the author's opinion. There is a modern-issue U.S. coin that deserves more attention among collectors and so-called coin investors than it has generally been receiving. This is a coin, or more correctly series of coins, with modest mintages that seldom even achieve their authorized mintages when initially offered directly from the mint. This is the Platinum American Eagle coin series".
Richard goes on to discuss the many uses for platinum in todays society. He notes that Platinum melts at 3,225 degrees F and boils at 3,827 degrees F. Platinum, and the other metals in the "platinum metals group" have been used dating back to the ancient Egyptians and Greeks.
Richard goes on to say:
"Platinum is first mentioned in European writings of the early 16th century. The Spanish conquistadors were annoyed to find a worthless metal that they called "platina" or "little silver" among the gold artifacts they looted from the natives of the New World. Platinum didn't actually come into use in Europe until the 18th Century for this reason; however, its popularity gained at that time. King Louis XVI of France called it "the metal of kings"".
Richard notes that Platinum dominated jewerly designs in the Edwardian era, Art Deco period and into the 1930's, but, its private use was banned during WWII due to it being classified as a strategic metal. Also, no nation on Earth keeps stockpiles or reserves of platinum.
"Only about 160 tons of platinum are mined annually worldwide, as compared to about 1,500 tons of gold. It takes about 10 tons of ore to yield a single ounce of pure platinum, using a refining process that takes five months to complete! In fact, platinum is about 20 times rarer than is gold and about 150 times rarer than is silver. One source indicates that all the platinum ever minted in the world would fit into a 60-by-60 foot box!"
Richard then points out that if this ratio could be directly equated to value, "when gold is priced at $400 per ounce, then platinum would be at $8,000 per ounce!", although he points out that this scenerio is "unlikely".
The $100 One Ounce Platinum Eagle is the largest denomination coin ever produced by the US Mint and all coins are struck at the West Point Mint. Richard notes that while the 1998 $100 Platinum Eagle had a mintage of only 138,500 pieces, by 2003 that mintage had dropped to "7,005" (incidently, my personal research suggests that figure may be actually between roughly 7,500 - 8,000 coins for the 2003 MS $100 Platinum Eagle).
Richard concludes with this (regarding the Plat. Eagles):
"Will they become a forgotten relic of our past some day, after the mint ceases their production, or will they become a classic US coinage series as the $3 gold, going the same route as the once- forgotten Russian Platinum coins? Only time will tell, but if industrial demand for the metal continues to rise and the numbers of PAE coins continue to be modest, this may become a series well worth collecting".
Overall, a very well written article. "Two thumbs up".
Wondercoin
"Well, yes there is, in the author's opinion. There is a modern-issue U.S. coin that deserves more attention among collectors and so-called coin investors than it has generally been receiving. This is a coin, or more correctly series of coins, with modest mintages that seldom even achieve their authorized mintages when initially offered directly from the mint. This is the Platinum American Eagle coin series".
Richard goes on to discuss the many uses for platinum in todays society. He notes that Platinum melts at 3,225 degrees F and boils at 3,827 degrees F. Platinum, and the other metals in the "platinum metals group" have been used dating back to the ancient Egyptians and Greeks.
Richard goes on to say:
"Platinum is first mentioned in European writings of the early 16th century. The Spanish conquistadors were annoyed to find a worthless metal that they called "platina" or "little silver" among the gold artifacts they looted from the natives of the New World. Platinum didn't actually come into use in Europe until the 18th Century for this reason; however, its popularity gained at that time. King Louis XVI of France called it "the metal of kings"".
Richard notes that Platinum dominated jewerly designs in the Edwardian era, Art Deco period and into the 1930's, but, its private use was banned during WWII due to it being classified as a strategic metal. Also, no nation on Earth keeps stockpiles or reserves of platinum.
"Only about 160 tons of platinum are mined annually worldwide, as compared to about 1,500 tons of gold. It takes about 10 tons of ore to yield a single ounce of pure platinum, using a refining process that takes five months to complete! In fact, platinum is about 20 times rarer than is gold and about 150 times rarer than is silver. One source indicates that all the platinum ever minted in the world would fit into a 60-by-60 foot box!"
Richard then points out that if this ratio could be directly equated to value, "when gold is priced at $400 per ounce, then platinum would be at $8,000 per ounce!", although he points out that this scenerio is "unlikely".
The $100 One Ounce Platinum Eagle is the largest denomination coin ever produced by the US Mint and all coins are struck at the West Point Mint. Richard notes that while the 1998 $100 Platinum Eagle had a mintage of only 138,500 pieces, by 2003 that mintage had dropped to "7,005" (incidently, my personal research suggests that figure may be actually between roughly 7,500 - 8,000 coins for the 2003 MS $100 Platinum Eagle).
Richard concludes with this (regarding the Plat. Eagles):
"Will they become a forgotten relic of our past some day, after the mint ceases their production, or will they become a classic US coinage series as the $3 gold, going the same route as the once- forgotten Russian Platinum coins? Only time will tell, but if industrial demand for the metal continues to rise and the numbers of PAE coins continue to be modest, this may become a series well worth collecting".
Overall, a very well written article. "Two thumbs up".
Wondercoin
Please visit my website at www.wondercoins.com and my ebay auctions under my user name www.wondercoin.com.
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Comments
Wondercoin
There are thousands upon thousands of minted $100 Platinum Eagles. If the demand were greater, I expect that the US Mint would make more. I expect that they are all accounted for and very nice. I can purchase a $100 Platinum Eagle at any coin show, on ebay, from Tulving or other bullion seller 24/7.
I think you know on which I am more likely to spend my money.
They might have some potential but the issue price of these coins keeps many from collecting them.
which people study, collect, and pay huge premiums for. The fact that people show
almost no interest in them actually makes them more desirable to many observers.
Even if they aren't real coins though they are still historic, well designed coins of great
intrinsic value. Their mostly small numismatic value virtually assures some attrition as
they are melted to capitalize on swings in the bullion price. Whatever one thinks of
these coins they are legal tender and they are made by the US mint in small numbers.
Nothing assures that they will ever be collected, but certainly if collectors do decide
to collect these then prices of the various types produced to date could escalate sharp-
ly. Collecting something because it might go up in value is not a good idea, but writ-
ing off a coin because it has no future or a questionable past is unwise.
One thing I do know is that they are "real coins", at least as that term is decribed in the dictionary
Wondercoin
the general public would be surprised to learn that the US mints a one hundred dollar coin.
Liberty: Parent of Science & Industry
<< <i>At $100, the one ounce coin is also the largest denomination minted, One Union.
the general public would be surprised to learn that the US mints a one hundred dollar coin. >>
A $100 coin that on the day it was struck had a melt value over $700?? I do not consider that a real coin per say, just a gimmick to help sell bullion. What good is a coin that cannot be bought, sold, traded or used for commerce at face value, isn't that what coins were supposed to be minted for? With of course the exception being specially made proof coins which are high quality examples of general circulating coinage. Just like stamps there will always be somebody interested in buying/collecting them but to think they are some forgotten classic.
<< <i>
<< <i>At $100, the one ounce coin is also the largest denomination minted, One Union.
the general public would be surprised to learn that the US mints a one hundred dollar coin. >>
A $100 coin that on the day it was struck had a melt value over $700?? I do not consider that a real coin per say, just a gimmick to help sell bullion. What good is a coin that cannot be bought, sold, traded or used for commerce at face value, isn't that what coins were supposed to be minted for? With of course the exception being specially made proof coins which are high quality examples of general circulating coinage. Just like stamps there will always be somebody interested in buying/collecting them but to think they are some forgotten classic.
There are a lot of defining characteristics of coins which have been stretched and tortured by the issuer
for millinea. There are individuals who collect these as coins, medals, tokens, historical artifacts, or objects
of art. The point is that when an item is issued by the US mint in such lmited numbers, there are few peo-
ple who can collect them because there aren't enough in existence for more. As moderns gain popularity
it doesn't seem much of a stretch to think that some collectors will come to view the higher denominations
as the ultimate collectible. However the market and collectors views these in the future there is one thing
which is set in concrete; they won't view very many of them.
There are thousands upon thousands of minted $100 Platinum Eagles. If the demand were greater, I expect that the US Mint would make more. I expect that they are all accounted for and very nice. I can purchase a $100 Platinum Eagle at any coin show, on ebay, from Tulving or other bullion seller 24/7.
Excellent points, RYK!
Wondercoin, at the same time I like the PE for their design, bullion and low mintage. However, with 7000 nearly perfect minted coins the upside is hard to see. I own 2 more as keepsakes than part of a "collection". Time will tell.
I recently had the "numismatic pleasure" of personally inspecting roughly (600+) 2003 $100 PCGS-MS69 Platinum Eagles (about 1/3 of those in PCGS holders and darn close to nearly 10% of the entire mintage for the year). Mind you, these are the coins that slabbed PCGS-MS69 (not the coins that failed to achieve the MS69 grade). Like most other Platinum Eagles of all denominations and dates, these coins are plagued with small problems such as planchet problems, small marks and scuffs. In particular, the prongs on the Statute of Liberty crown are generally plagued with small contact marks or scuffs. On the reverse, the mound to the right of the sun also often shows scuffing, as does the sun itself. Finally, hits or scuffs on the obverse portrait are very common. And, then, the overall coin itself is often plagued with planchet problems, including basically small pieces of the coin missing. Don't get me wrong - the PCGS-MS69 slabbed coins I inspected are wonderful examples overall and some might call them "near perfect' to be sure.
However, IMHO, "perfect" PAE's, especially MS coins, range from scarce to locate to downright rare depending upon the date/denomination. The Mint changed to a different processing technology in 2004 to address these issues and we will see if that results in more "perfect" coins. Of course, this article made no mention of collecting these coins in the "perfect" grade - in many cases building a collection of nice MS69 (or PR69) coins is difficult enough.
Wondercoin
If the Mint wanted a gimmick, why not a $200 face value or $300 or even higher? Now, that may have been a real "gimmick"
Wondercoin
<< <i>The biggest problem is they are not really coins, they are just fancy (and expensive) ways to own bullion. >>
Numismatically, they are coins. And I think that to think they are just "bullion" is giving way to an easy way to discount the entire market segment. I think that they will be recognized, as they are currently by Teletrade, as Plat. Commems. They're real pretty too.
The pops/mintages are worthy of a looksee.
<< <i>"A $100 coin that on the day it was struck had a melt value over $700?? I do not consider that a real coin per say, just a gimmick to help sell bullion"
If the Mint wanted a gimmick, why not a $200 face value or $300 or even higher? Now, that may have been a real "gimmick"
Wondercoin >>
Why not $138.2765314 face value? They plan on the dealers to keep it going. I see it is working too. I do love the designs. The best looking new coin in my life time. Other than that, there is no appeal for them. If they were silver I would pay $8 for the one ounce coin. Since they have so much bullion value, I have no interest in them. Too bad. I do not see these gaining much growth in the hobby due to the fact no "regular" folks can even collect them. It is not like you can collect them for "face" value like you can for all of the other "real" current coins. (excluding bullion of course)
How often do you regard the price of copper when buying a numismatic pretty?
" " " " " " " " silver " " " " " ?
" " " " " " " " gold " " " " " ?
agreed, ...the "bullion" issue is moot, to say the least...