By Steve Roach – the Rare Coin Market Report – Coin World

While bullion markets continue their wild fluctuations, demand for American Eagle 1-ounce silver bullion coins remains vibrant.

In October, the United States Mint increased the premium charged to its authorized purchasers for American Eagle silver bullion coins from $1.50 to $2 per coin. The premium was increased in 2009 from $1.40 to $1.50 per coin and in 2008 from $1.25 to $1.40 per coin.

While Proof American Eagle silver coins may be purchased directly from the Mint, the Mint sells the silver bullion coins only to dealers in minimum 25,000-coin shipments.

However, the premium increase seems to have had no noticeable impact on demand, as the Mint has sold more than 30 million silver American Eagles thus far in 2010, eclipsing 2009’s sales record of 28,766,500 pieces.

Surely silver hitting 30-year highs including a flirtation with $29 earlier in November has helped keep demand for the attractive and easily portable silver American Eagles robust. Demand for the coins throughout the holiday gift-giving season will mean that 2010 sales figures will continue to climb.

Proof 2010-W American Eagle silver coins went on sale Nov. 19, priced at $45.95, with a 100-coin household limit.

The Mint’s Web site already warns customers of possible ordering delays on Nov. 19, due to the deluge of customers who are likely to order in light of “unusually high demand.”

Until Proof 2010-W coins enter the marketplace, wholesalers are paying up to $57 for earlier Proof American Eagle silver coins in original Mint packaging.

Grading service population reports show that 2010 American Eagle silver bullion coins are extremely well-produced. Of the 44,160 graded by Professional Coin Grading Service so far this year, a whopping 36,470 pieces have received Mint State 70 grades. Currently PCGS MS-70 2010 silver American Eagles are selling in online auctions for $60 to $100, while certified MS-69 representatives can be found for around $35 and uncertified examples are seen at $30.

In large quantities, 2010 American Eagle silver bullion coins are available from wholesale dealers at silver spot price plus $2.60 per coin.

WASHINGTON – Quarter-dollar coins honoring Mount Hood National Forest in Oregon will enter into circulation on November 15. At noon Eastern Time (ET) the same day, the United States Mint will begin accepting orders for collectible bags and two-roll sets containing the new coin. The bags are priced at $35.95 each, and the two-roll sets are priced at $32.95 each. The Mount Hood National Forest quarter is the fifth coin released in the America the Beautiful Quarters® Program.

The bags and rolls contain circulating quality coins that were struck on the main production floors of the United States Mint facilities at Denver and Philadelphia. The two-roll set includes one roll each of 40 coins-one each bearing the “P” and “D” mint marks. The distinctive packaging displays the name of the national park or site, state abbreviation, mint of origin and “$10,” the face value of its contents. Each canvas bag contains 100 coins and bears a tag denoting the mint of origin, name of the national park or site, state abbreviation and “$25,” the face value of its contents.

Orders will be accepted at the United States Mint’s Web site, http://www.usmint.gov/catalog, or at the toll-free number, 1-800-USA-MINT (872-6468). Hearing- and speech-impaired customers may order at 1-888-321-MINT. A shipping and handling fee of $4.95 will be added to all domestic orders.

Mount Hood’s last major eruption was in 1790, 15 years before Lewis and Clark’s expedition to the Pacific Northwest. But on Wednesday, November 17, the public is invited to witness an eruption of a different kind, as thousands of new quarter-dollar coins struck in honor of Mount Hood National Forest are released during a ceremony in nearby Portland, Oregon. The ceremony will take place at 10:30 a.m. Pacific Time (PT) at the World Forestry Center located at 4033 SW Canyon Road in Portland.

The ceremony will include a coin exchange at which members of the public may swap their currency for $10 rolls of Mount Hood National Forest quarters at face value. Children 18 years old and younger will receive a free quarter to commemorate the event. Those unable to attend will be able to view a live broadcast of the ceremony at http://www.americathebeautifulquarters.gov.

The United States Mint will host a coin forum on the evening prior to the launch ceremony. It will be held Tuesday, November 16, from 5:30 to 6:30 p.m. PT at Cheatham Hall, World Forestry Center. This public forum will give collectors and others an opportunity to meet with United States Mint Deputy Director Andy Brunhart and discuss the future of the Nation’s coinage.

The coin’s reverse (tails side) design depicts a view of Mount Hood with Lost Lake in the foreground. Inscriptions on the reverse are MOUNT HOOD, OREGON, 2010 and E PLURIBUS UNUM. The reverse was designed and sculpted by United States Mint Sculptor-Engraver Phebe Hemphill. The coin’s obverse (heads side) design features the 1932 portrait of George Washington by John Flanagan, restored to bring out subtle details and the beauty of the original model. Inscriptions on the obverse are UNITED STATES OF AMERICA, LIBERTY, IN GOD WE TRUST and QUARTER DOLLAR.

Note: To ensure that all members of the public have fair and equal access to United States Mint products, orders placed prior to the official on-sale date and time of November 15, 2010, noon ET, shall not be deemed accepted by the United States Mint and will not be honored.

GainesvilleCoins Blog

This September after more than two years, the United States Mint lifted the rationing of American Gold and Silver Eagle bullion coins. By law, the Mint is required to produce enough of both type of coin to meet public demand, but when they cannot supply enough coins, they resort to meeting as much demand as possible – by allocating the coins on a weekly basis.

The irony is that time and again the U.S. Mint imposes this limitation until it has sufficient coins to satisfy public need, at which time it ends the rationing, and consumers rush to buy the coins, draining the Mint’s resources within weeks or months.

The first time that the U.S. Mint imposed its ”allocation” program was in February of 2008, following a several-weeks’ suspension of Silver Eagles. This allocation rationed the amount of bullion coins amongst authorized purchasers, and the note of the Mint state simply said, “The unprecedented demand for American Eagle Silver Bullion Coins necessitates our allocating these coins on a weekly basis until we are able to meet demand.”

Last year’s rationing of both the gold and the silver bullion coins ended in June 2009 but, as predicted, demand soon shot up, forcing the November 2009 suspension of sales -soon resumed under the all-too-familiar allocation program.

By March of 2010 the rationing had ended for Gold Eagle coins, and by this September, the Silver Eagle coins became fully available.

It seems unlikely, given the U.S. Mint’s unsteady history, that the allocation program for both Gold and Silver Eagle bullion coins will not soon come around again.