From the desk of your Secretary

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What will be collectors’ favorite state quarter design in 2007? Start thinking. The designs for Montana, Washington, Idaho, Wyoming and Utah have been released by the Mint. The coins will be placed into circulation at intervals of approximately 10 weeks starting in January in the order the states were admitted to the Union.

The reverse of Montana’s quarter features a bison skull above the diverse Montana landscape with the inscription “Big Sky Country.” The coin also bears the inscriptions, “Montana” and “1889.” It was designed by former Mint sculptor-engraver Donna Weaver and sculpted by Mint sculptor-engraver Don Everhart.

The reverse of Washington’s quarter features a king salmon breaching the water in front of Mount Rainier. The coin bears the inscriptions, “The Evergreen State,” “Washington” and “1889.”

The reverse was designed by Mint Artistic Infusion program master designer Susan Gamble, of Arlington, Va., and sculpted by Mint sculptor-engraver Charles Vickers.

The reverse of Idaho’s quarter features the Peregrine Falcon above an outline of the state of Idaho. The coin bears the inscriptions, “Esto Perpetua” (the state motto, which means, “May it be Forever”), “Idaho” and “1890.”

This was designed by Weaver and sculpted by Everhart.

The reverse of Wyoming’s quarter has a bucking horse and rider with the inscriptions, “The Equality State,” “Wyoming” and “1890.”
Weaver designed it. Mint sculptor-engraver Norman E. Nemeth sculpted it.

The Utah quarter shows two locomotives moving toward the Golden Spike that joined the Central Pacific and Union Pacific railroads, creating the nation’s transcontinental railroad in 1869. The inscription says, “Crossroads of the West.” The coin also bears the inscriptions “Utah” and “1896.”

The Utah quarter reverse was designed and sculpted by Mint sculptor-engraver Joseph Menna.

December 17/06 - To avid collectors, coins that stand out as rare or of exceptional quality are worth more than their weight in platinum, silver or gold. Numismatic enthusiasts are often willing to pay a premium for American Eagle, American Buffalo and other specialty coins labeled "first strikes" because they are billed as among the first of that year's batch produced by the U.S. Mint.

But some collectors say the label is misleading and that the coins aren't special at all. Now, a Miami attorney has filed class-action federal lawsuits on behalf of potentially thousands of collectors claiming that the "first strike" designation is unfair and deceptive. More than $10 million in damages could be at stake.

"Basically, what we are saying is that it's impossible to know which coin is the 'first strike,'" said attorney Charles Lipcon, who filed the lawsuits on behalf of collector Thomas Francisco and others. "People are paying a lot of money and not getting a better coin. Really, there's no difference between those coins and any other coins."

For example, a silver American Eagle dubbed "first strike" might fetch an additional $30. But a gold American Buffalo coin with that label could sell for $2,200 more, Lipcon said.

The lawsuits name as defendants two of the nation's leading coin grading and authentication services: Numismatic Guaranty Corp., based in Sarasota, Fla., and Newport Beach, Calif.-based Professional Coin Grading Service.

About 150,000 coins labeled "first strike" by PCGS or NGC have been sold since Jan. 1, 2005, to collectors and investors in all 50 states, according to the lawsuits. The implication, according to Lipcon, is that these particular coins were among the first "struck" by the U.S. Mint from a certain die set, leading purchasers to think they are of far higher quality than those created later when the die is allegedly worn.

"There are tens of thousands of people who have been duped," Lipcon said. "People think they are getting something more valuable, and they're not."

On its Internet site, the U.S. Mint says that it does not keep track of the date individual coins were created and that the dates on 500-ounce boxes of coins represent only when they were packed, weighed and sealed.

In fact, according to the Mint, about half of a given year's production of these collectible coins are finished before they are actually released. Thousands of coins are minted before each die set is replaced.

"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," the Mint statement said.

For their part, NGC and PCGS say they have not misled any collectors and that their definitions of "first strike" coins are clear. Both companies are paid fees to grade, authenticate and designate coins.

"We are the friend of the consumer. We are there to make sure they get a fair deal," said Michael Haynes, chief executive officer at PCGS. "We give the consumer peace of mind."

To PCGS, a "first strike" coin is one that is delivered by the Mint within 30 days of its initial sales date. American Silver Eagles, for example, usually go on sale Jan. 1, so a first strike would be any coin delivered by Jan. 31.

Lipcon, however, said PCGS previously used a definition indicating that a "first strike" was one of the first coins produced by a certain die.

NGC says it will designate a coin "first strike" if it arrives with the proper documentation at the company within the first month of release or is submitted in sealed U.S. Mint packaging at a later date.

"We have had a very clear definition the entire time. It was based on timing," said Steve Eichenbaum, chief executive officer at NGC. "Everything we have done is very transparent. We made no representation with regard to rarity or no representation with regard to value."

The cases have been assigned to U.S. District Judge Jose Martinez of Miami, who has not yet ruled on whether class-action status is appropriate. If Martinez approves class-action status, the twin cases could involve $10 million or more in potential damages because it would cover anyone in the United States who bought a "first strike" coin in 2005 and 2006.

December 14/06 - Given rising metal prices, the pennies and nickels in your pocket are worth more melted down than their face value — and that has the government worried. U.S. Mint officials said Wednesday they were putting into place rules prohibiting the melting down of 1-cent and 5-cent coins. The rules also limit the number of coins that can be shipped out of the country.

"We are taking this action because the nation needs its coinage for commerce. We don't want to see our pennies and nickels melted down so a few individuals can take advantage of the American taxpayer," Mint Director Edmund Moy said in a statement.

Officials said they had received a number of inquiries from the public in recent months concerning the value of the metal in the coins and whether it was legal to melt them.

The new regulations prohibit the melting of 1-cent and 5-cent coins, with a penalty of up to five years in prison and a fine of up to $10,000 for people convicted of violating the rule.

The rules also require that shipments of the coins out of the country be for legitimate coinage and numismatic purposes and cap the size of any one shipment to $100 worth of the coins.

Because of the prevailing prices of copper, zinc and nickel, the cost of producing pennies and nickels exceeds the face value of the coins.

A nickel is 25 percent nickel and 75 percent copper. The metal in one coin costs 6.99 cents for each 5-cent coin. When the Mint's cost of producing the coins is added, the total cost for each nickel is 8.34 cents.

Modern pennies have 2.5 percent copper content with zinc making up the rest of the coin. The current copper and zinc in a penny are worth 1.12 cents. The cost of production drives the cost of each penny up to 1.73 cents.

Pennies made before 1982, which are still in circulation, would be even more lucrative to melt down because they contain 95 percent copper and only 5 percent zinc. The metal value in those coins is 2.13 cents per coin, Mint officials said.

The new regulations are being published in the Federal Register and will go into effect as interim rules which will not become final until the government has a chance to consider possible modifications based on public comments.

December 12/06 - Mint products to go off sale Jan. 2 The 2005 U.S. Mint Silver Proof Set will go off sale from the Mint at 9 a.m. Jan. 2, 2007, as will several nickel offerings. Coming to an end that day will be the Ocean in View nickel 500-coin and 1,000-coin bags from both Philadelphia and Denver mints, as well as the two-roll set; the Bison nickel two-roll set; and the 2005 Westward Journey Nickel Series Coin Set. Shipping is $4.95 per order. To order U.S. Mint products, write U.S. Mint, P.O. Box 382601, Pittsburgh, PA 15250-8601; call (800) USA-MINT; or visit the Web site at www.usmint.gov

Hearing- or speech-impaired individuals may call (888) 321-MINT. For information, write U.S. Mint, Attention: Customer Care Center, 801 Ninth St., N.W., Washington, DC 20220

November 29/06 - PPM announced today that member's cost for a 300 piece encased coin project will raise $45.00 to $365.00 beginning January 1, 2007. A custom reverse die will raise to $200.00.

November 10/06 - Charter Member #8 Hal Dunn died October 26th. We extend our condolences to his wife Sharon and children John, Linda, Paul and Dena: nine grandchildren and 1 great-granddaughter.

October 11/06 -The most famous bear in Canada the one stamped on toonies -- has turned 10 and now has a name. After adding up 166,635 ballots cast during the Royal Canadian Mint's Name Our Polar Bear Contest, the winning moniker, with 34% of the vote, is Churchill.

~In late 2005, Rep. Eleanor Holmes North, D-DC, introduced legislation to provide for a 2009 program similar to the State quarter dollars program, in order to honor the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the United States Virgin Islands and the Commonwealth of the Northern Mariana Islands.

If approved, the circulating commemorative quarters would be issued in the stated order in 2009.

In order to go into effect, the legislation would have to be approved by Congress, and then signed into law by the president or become law without his signature.

The bill has received no action since it was referred to subcommittee in October 2005.

The legislation, H.R. 3885, is known as the District of Columbia and United States Territories Circulating Quarter Dollar Program Act.

This is the fifth time a similar issue has been introduced in the House since 1998, where it was approved three times, only to die for lack of action in the Senate.

If the current legislation becomes law, the reverse of the Washington quarter would bear a design emblematic of each district or territory, like the reverse of each State quarter.

The legislation also provides that if the District of Columbia or one of the territories becomes a state before the end of the State quarter program in 2008, a coin would not be issued for it under this legislation. Instead, a State quarter would be issued for the new state under existing law.

In contrast, if a territory becomes independent or otherwise ceases to be a territory or possession of the United States before a coin bearing designs emblematic of the territory is minted, the coin will not be issued.

Though all these places use U.S. currency in their daily commerce, none are states, and how they are governed differs from how the 50 states that make up the United States are governed.

Each of these entities has one delegate in the U.S. House, who can vote in House committee meetings but not in the full House. The five entities differ in political identification. Puerto Rico and the Northern Mariana Islands are commonwealths. The Virgin Islands and Guam are unincorporated territories. American Samoa is an unorganized and unincorporated territory of the United States.

It will be interesting to see if Congress approves the legislation in this session, which continues through the end of 2006. If not, supporters will have another opportunity to introduce legislation when a new session of Congress begins in January 2007 and ends in late 2008.