Although the U.S. Mint has been listening and communicating better this past couple of years, I think they’re getting way too greedy in their product mark-ups. Take, for example, the Jackson First Spouse half-ounce gold coin: the Mint is selling the Proof version for $619.95. (The Uncirculated version is $20 less.) On August 28, 2008, the day the Jackson First Spouse coin went on sale, NY gold closed at $833.70 per ounce. This makes the NY spot price of a half-ounce of gold $416.85 on that day. The Mint’s mark-up on the Jackson First Spouse coin is more than fifty percent over bullion value! This is a $203.10 profit on a $619.95 coin! This is absurd!

Of course, part of the problem for the Mint is the way it must do its pricing. It uses a system where it must fix the pricing for the coins ahead of time, hoping to account for upward bullion market fluctuations that might occur during the time frame the coin is on sale. In other words, the Mint sets a “worst case scenario” price and that’s what we’re stuck with. I don’t know what they need to do to bring their ecommerce systems into the 21st century, maybe congress has to pass a bill or something, but the Mint really needs to change its pricing model so that prices fluctuate based on the actual bullion market.

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The U.S. Mint held one of its periodic Coin Collectors Forums in conjunction with the release of the Arizona State Quarter. Hosted by Mint Director Ed Moy, these forums provide an opportunity for the U.S. Mint to get direct feedback about its products and services, while answering questions from the general public. Following each event, the Mint prepares a paraphrased transcript of the topics discussed. This article is compiled from the transcript of the Collectors Forum held on Sunday, June 1, 2008 at the Carnegie Center in Phoenix, Arizona. The answers attributed to Ed Moy are paraphrased, rather than direct quotes. Additional comments and clarifications from me are in italics and prefaced with “Ed:” for “Editor.”

Ed Moy’s Introductory Comments
Mr. Moy thanked everyone for attending, and gave an overview of upcoming coin programs including the Native American $1 coin series and the special 2009 Lincoln Cent commemoratives. He then provided a history of the Ultra-High Relief (UHR) Double Eagle coins that the Mint will issue for one year only, in 2009. Mr. Moy told the crowd, “This will be the coin that Saint-Gaudens and Teddy Roosevelt envisioned.” (Ed: The UHR Double Eagles were designed by Augustus Saint-Gaudens at the personal request of President Theodore Roosevelt. The 2009 Lincoln Cent commemorative program is a one-year, 4-coin penny series honoring the 200th anniversary of Abraham Lincoln’s birth, and the 100th anniversary of the Lincoln Cent design.)

Mr. Moy opened the floor to questions and discussion by asking the attendees what they liked and disliked about the U.S. Mint’s coin programs.

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The U.S. House of Representatives finally took some action (Thurs. May 8th) in an attempt to solve the penny crisis. The question doesn’t seem to be “should we eliminate the penny?” but rather, “what should it be made of?” The bill, HR-5512, calls for a penny made out of copper-coated steel to be issued within 270 days (about 9 months) from the date of enactment. The bill also calls for a steel nickel (hmm, is this an oxymoron?) but doesn’t set a timetable.

U.S. Mint Director Ed Moy opposes this bill, primarily because it doesn’t give the Treasury Department enough authority to prescribe the alloys U.S. coins are made from, plus Moy says that 270 days is too short to allow for proper testing and implementation. Furthermore, he hinted that the price of steel might even go too high in the near future to coin pennies cost-effectively.

Even though this bill passed the House unanimously on a voice vote, it is not expected to emerge unscathed from the Senate. A competing bill is expected to be introduced by Sen. Wayne Allard (R-Colorado) in the coming weeks, perhaps before the Memorial Day recess. Judging by Moy’s comments about the use of steel, I tend to think that perhaps Moy favors aluminum or some other metal besides steel. The last time the U.S. made steel coins, it was a disaster!

The 1943 steel cent, issued during World War II to conserve copper for the war effort, was widely reviled by the public. It was partially coated in zinc, and therefore silver-colored, which made it easily confused with the dime.

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