The American Eagle Bullion Coinage

In 1986, the United States Mint threw its hat into the ring by introducing the American Eagle into the market place in the great international bullion coin race. It seems no one ever acknowledged it was a race, but it was a race for the money of the Coin Collector and the investor none the less. The first major bullion coin to sweep the international coin market was the South African Krugerrand in 1967. Americans were almost oblivious to its release because they were not permitted, under an Executive Order instituted by President Franklin D. Roosevelt, to own gold bullion. By the time that law was reversed, United Nations' sanctions were in place against South Africa for their Apartheid Law thereby preventing the Krugerrands exposure to Americans until 1989. Not only did the United States observe the U.N. sanctions, but so did many of the other countries worldwide. This left a huge vacuum within the investment market, and it was one many countries decided to fill. One of the first was Canada with the Maple Leaf, but finally the United States realized that there was a place for the American Eagle Coins too.

The first of the American Eagle coinage released into the marketplace was the Silver Eagle, a single one troy ounce, .999 fine coin, and four Gold Eagle coins, a 1-ounce, 1/2-ounce, 1/4-ounce and 1/10-ounce troy, that are .9167 fine. The obverse designs chosen for the Silver and Gold Eagles were those lauded as the most beautiful in American coinage. The Silver Eagle copied that of the Walking Liberty Half Dollar (1916-1947) designed by Adolph A. Weinman. The reverse of the Silver Eagle depicts a rendition of the heraldic eagle designed by John Mercanti. The obverse of the Gold Eagle is based on the design of Augustus Saint-Gaudens' $20 Gold piece (1907-1933). The reverse of the Gold Eagle displays what is called a "family of eagles" designed by Mrs. Miley Busiek and engraved by Sherl J. Winter. From 1986 through 1991, the dates displayed on the Gold Eagles were in Roman numerals, and converted to Arabic numbers in 1992. For the first year of issue, the only proof coins produced were the one-ounce Silver Eagle and the one-ounce Gold Eagle. In the second year, the proofs that were produced were the one-ounce Silver Eagle, and the one-ounce and 1/2-ounce Gold Eagles.

The distribution of the American Eagle Coins to the general public is unique among all the bullion coinage worldwide. Although the proof coinage is sold directly to the consumer by the U.S. Mint, on a first come first served basis, the uncirculated coinage is not. The U.S. Mint has set up a fairly complicated application structure whereby only a select few Coin Dealers qualify to purchase the uncirculated issues directly from the mint. These qualified Dealers purchase the coins for the spot price of the metal plus a small premium. All other Coin Dealers and the general public must purchase the uncirculated American Eagles that have been distributed through these qualified Dealers. In most cases, the uncirculated American Eagles have traveled through the hands of two or three or more Coin Dealers before reaching the collector. Many Coin Dealers feel it is an unfair system of distribution which favors a select few, and demonstrates a total disregard for the Coin Collector or consumer, but it is the system that the government has created in which we all must work.

In 1997, the U.S. Mint introduced the Platinum Eagle in the 1-ounce, 1/2-ounce, 1/4-ounce, and 1/10-ounce sizes with a composition of .9995 fine platinum. The obverse depicts a portrait of the bust of the Statue of Liberty designed by John Mercanti, and the reverse, which changes annually, features the American bald eagle against various backgrounds. Within the past couple of years, there have been rumors of the U.S. Mint discontinuing the platinum series just as many other countries have done; however, this is only conjecture, and if the mint remains true to form, they will not announce the last year of issue prior to the release for fear it will create a collectible within the market place resulting in increased values.

The American Eagle coinage is one of the more successful programs instituted by the U.S. Mint, and has a loyal following worldwide. The eagles are struck at the Philadelphia, San Francisco and West Point facilities, and can be identified through their mintmarks, or lack of a mintmark. It has fulfilled a need, and has competed successfully against the Canadian Maple Leaf, the China Panda, the Australian Nugget (Kangaroo), the South African Krugerrand and Natura, as well as the British Britannia. For additional information on the American Eagle Coin Series or for mintage numbers visit the U.S. mint website at www.usmint.gov.