11/17/06

European Gold Coin Collection Board

Put Your Portfolio on a Gold Standard!

This custom-made board provides an attractively assembled sampling of 19 coins snatched from the brittle pages of history... each one a legacy of wealth endurance, at once signifying, and yet surpassing, the Gold Standard Era from the turn of the previous Century.

"Historic European gold coins offer, in my mind, one of the great, largely untouched and potentially lucrative opportunities in the field of gold investing today."
--Michael Kosares

Hot Items
The United States Mint frequently receives inquiries from consumers who have confusion with regard to coin-related products. This page includes up-to-date information about these products.

"First Strike"

The United States Mint has received inquiries from consumers regarding use of the term "first strike." The term has appeared in connection with the advertising and grading of 2005 and 2006 silver, gold, and platinum proof and bullion American Eagle Coins, and the new 2006 24-karat proof and bullion American Buffalo Gold Coins. Currently, there is no widely-accepted and standardized numismatic industry definition of "first strike." Coin dealers and grading services may use this term in varying ways. Some base its use on dates appearing on United States Mint product packaging or packing slips, or on the dates of product releases or ceremonial coin strike events. Consumers should carefully review the following information along with each dealer's or grading service's definition of "first strike" when considering a purchase of coins with this designation.

The United States Mint has not designated any 2005 or 2006 American Eagle Coins or 2006 American Buffalo Coins as "first strikes," nor do we track the order in which we mint such coins during their production. The United States Mint held a launch ceremony for the 2006 American Buffalo Gold Coin on June 20, 2006, two days before its release on June 22, at which two proof coins and two uncirculated coins were ceremonially struck. However, those coins were not individually identified and were put in regular inventory after the ceremony. The United States Mint did not hold any striking ceremonies for the 2005 or 2006 American Eagle Coins.

The United States Mint strives to produce coins of consistently high quality throughout the course of production. Our strict quality controls assure that coins of this caliber are produced from each die set throughout its useful life. Our manufacturing facilities use a die set as long as the quality of resulting coins meets United States Mint standards, and then replace the dies, continually changing sets throughout the production process. For bullion American Eagle and American Buffalo Coins, the United States Mint makes an average of about 6,000 coins from one die set. For proof versions of the 2006 American Buffalo Coins, the yield is an average of about 1,500 coins per die set. For proof versions of the American Eagle Coins, the yield is an average of about 300-500 coins per die set. This means that coins may be minted from new die sets at any point and at multiple times while production of a coin is ongoing, not just the first day or at the beginning of production. To put this in context, in 2005 the United States Mint produced approximately 356,500 one-ounce gold, 8,891,000 silver, and 6,300 one-ounce platinum American Eagle Bullion Coins.

American Eagle and American Buffalo Coins are not individually numbered and the United States Mint does not keep track of the order or date of minting of individual bullion or proof coins. The United States Mint begins production several weeks before these coins are scheduled to be released. By the release dates for 2005 and 2006 bullion coins, the United States Mint had already minted approximately 50% of the projected sales numbers for these coins. Any dates on shipping boxes containing uncirculated bullion coins sent to Authorized Purchasers are strictly for quality control and accounting purposes at the United States Mint at West Point. The date on the box represents the date that the box was packed, verified as 500 ounces and sealed, and the date of packaging does not necessarily correlate with the date of manufacture. The date on shipping labels and packing slips for proof coins, which are sent directly to United States Mint customers from our fulfillment center, is the date the item was packed and shipped by the fulfillment center. The other numbers on the shipping label and packing slip are used to track the order and for quality control.

Summertime purchase opportunities

Traditionally, the summer months have been the best time for investors to buy gold. The past two summers serve as an illustration.

In the summer of 2004, gold traded in the $390 range. As the year ended, it hit its high for the year at $455.

Similarly, in the summer of 2003 gold hovered in the $360s. In December gold traded in $415 range.

In fact, during the past two years, most of the gold's upside occurred between August and the New Year. So before heading forthat fishing stream, it might pay to first do some summertime bottom-fishing in the gold market. If the past is an indicator, we may not see current prices again for some time.

The Aden sisters, who have made some pretty good calls over the last few years, say that gold will either "consolidate for the summer before beginning a strong rise" or start a strong rise now. It is important for gold owners to keep in mind that much of gold's recent rally occurred while the dollar was rallying against its major competitors. There were good reasons for the break out and none of these were suddenly reconciled because the Fed decided to move its target interest rate up a quarter of a point.

a bullion point to ponder...
4/25/05

Re: More information on bullion coins

Dear valued client,

As we've previously indicated, the U.S. Mint has revealed plans for early 2006 to strike new .9999 bullion coins to go after the growing world market for .9999 fine (24-karat) gold coins. According to reports, "Studies show that pure gold coins claim 60% of the world's gold bullion coin market, which is some $2.4 billion annually." Delving deeper...

If you are interested in .9999 pure bullion coins, you may also be interested to know that we routinely offer to our clients these smartly designed and robust pure gold Austrian Philharmonic bullion coins at a discount to the US Eagle bullion coin. Please contact your broker at the firm, if you have an interest in discussing details or further clarification.

Thank you.

Re: Important Advisory for U.S. Gold Eagle Owners

Dear valued client,

You may have heard that the United States Mint will introduce a 24-karat gold bullion coin sometime early next year, and that it will continue to market the current 22-karat design as well. I believe that the introduction of the new coins will have an adverse effect on premium for the old. In the best case scenario, we can foresee a deterioration in the wholesale premium of 3% to 5% -- similar to the erosion the South African Krugerrand suffered after sanctions were introduced in 1985.

This is not enough to justify a wholesale liquidation of your U.S. Eagle position in order to purchase either the new coin or one of its competitors. However, if you have been thinking about trading your gold U.S. Eagles for pre-1933 European gold coins anyway, you might take the opportunity to do it now while the premium is still relatively strong.

Our sources tell us that the demand for pre-1933 gold coins is very strong. Some of the more difficult to obtain items have already experienced a upward move in the premium. In the late 1990s, a confluence of factors pushed the premium on pre-1933 European gold coins to the 20% to 30% range over melt value.

In essence, you would be trading an item the premium value of which is likely to go to a discount to melt value for one capable of gaining premium. If you wish to stick with bullion gold coins in your portfolio, we are advising no action.

Please contact your broker at the firm, if you have an interest in discussing the details.

Thank you.

Ever since we released our study of graded $20 gold pieces (linked below), interest has been high among our clientele. Some clients have already purchased, taken profits, waited until the market retraced and then bought again. We think now is a good time to make a commitment in this area which often outperforms gold bullion. Graded $20 gold pieces are for those seeking a higher risk-reward ratio in their portfolios. We recommend it as a second area of concentration once you have acquired your basic portfolio foundation in bullion coins and/or pre-1933 European gold coins.

These always popular items are now available and you are going to like the price. The Queens are much harder to find than the Kings, but we can price them until the current stock runs out at only a slight mark-up over the standard King. Condition = XF.

We provide competitive pricing across the spectrum of gold coins offered our clientele. We do not create loss leaders and then try to make up for it by loading the price somewhere else. If you are a client looking to have a balanced gold portfolio encompassing several different items, you will not only find consistent availability through our firm (and in quantity); you also will find that on the average your acquisitions will be at very favorable rates. This gives you the potential to benefit from appreciating gold assets throughout your portfolio. At the same time, you build a relationship with a firm that takes an interest in you as a client (as opposed to a customer).

We are often asked why our pricing is so far below most of our primary competitors. The reasons are fairly simple. We do not staff a sales room full of brokers and all the infrastructure overhead required to support them, including high-priced television and radio advertising. As a result we are not aggressive telephone marketers. We work with the people looking for a firm like ours -- one a little bit more laid back yet one that still takes the time with its clientele to get the job done right. After 32 years of working with gold owners, we think you can be reasonably assured that our approach works both for you as client and USAGOLD-Centennial Precious Metals as a firm. Our list of thousands of satisfied clients (a large segment of that having been with the firm for many years) attests to our commitment to gold as a portfolio inclusion and you as a client.

"Historic European gold coins from the mid-19th to early 20th century offer a rich vein of opportunity for the individual interested in combining gold ownership with numismatic potential. This potential is not too different from the one presented by U.S. $20 gold pieces and silver dollars in the 1950s and 1960s when early accumulators were able to acquire quality specimens in bulk at slight premiums over the bullion price, then put their acquisitions away, and waited for the market to come to them. Those investors experienced multiple returns later (during the gold bull market in the 1970s and 1980s) when scarcity and quality began to play role in the pricing. Bags of uncirculated silver dollars and rolls of $20 pieces then became eligible for culling and selling at premium prices by grade, date and mint mark. There is no way of knowing with certainty whether or not a similar situation will develop with the pre-1933 European gold coins, but the opportunity presents little or no additional risk for those with an interest in owning gold anyway."