Weighting On the Mint All Day

' 11

Industry News, News & Updates

From the “Any News Is Good News” file comes a few stories today about the U.S. Mint, an organization which has provided more than enough work for any good publicist/spin master in the last year…

First up is the announcement that today the US Mint would begin sales of the 2011 Silver Eagles Proofs. This is significant because last year the lack of silver supply forced the mint to suspend sales. The newly minted pieces are available for purchase at a premium of $59.95 each, limit 100. This premium is almost 75% over the current silver market price and now purchase quantities are limited. I suppose even a government can learn the benefits inherent in practicing capitalism occasionally.

Meantime, prices for proof quality one ounce medallions are currently available for around $45 each at www.AOCSMint.com. They’re even less in bulk and I’m not aware of any strict limits.

But, of course, the American Open Currency Standard, being a private and voluntary organization of affiliations, doesn’t have the same bureaucracy and central planning to contend with so we aren’t sitting on what National Public Radio exposed yesterday as over $1 billion in minted US Presidential one dollar coins in vaults across the country collecting dust. NPR relayed the story on their Morning Edition program that the US Mint has football field sized warehouses filled to the rafters with bags of Congressional-ly mandated $1 coins featuring the images of the first several presidents (yes, more are on the way). The real problem is that the 2005 legislation required that not only would presidents be commemorated, but also required a certain number of the ever-unpopular Sacajawea $1 pieces be minted as well. Perhaps THIS is why the US Mint needs that premium on their other products. I mean, charging a premium for a collectible proof medallion is understandable, but with overstock like this, you’re not fooling anyone; one must make up the difference somewhere.

One might suggest that we move these millions of medallions into circulation in support of the prevailing Keynesian philosophy attempting to spend us out of this depression. But that, unfortunately, is not an option according to the story from NPR:

“…the Federal Reserve said the coins are now being held ‘with no perceivable benefit to the taxpayer,’ and that banks are sending them back to the Fed in increasing numbers.”

Maybe they can be used to pay off some of this mountainous debt. They MUST be worth more than paper.

And finally, a piece of positive federal legislation similar to legislation recently proposed in Texas…
Sens. Jim DeMint (R-S.C.), Mike Lee (R-Utah) and Rand Paul (R-Ky.) this week introduced legislation that would exempt gold and silver coins declared by the federal or any state government as legal tender from taxation.

The Sound Money Promotion Act, S. 1287, is meant to build on what the sponsors see as a reaction to overspending by the federal government and the falling value of the dollar. The senators said that in May, Utah became the first state to recognize these coins as legal tender within the state, and said 12 other states, including South Carolina, are considering similar measures.

The long and short of it is that this “First Step to Sound Money” now may provide actual hope for those who desire sound money to be implemented in the United States by our elected employees.

For the rest of you, congratulations on not waiting for permission to survive.

Carry on.