Sheriff in theft of coins from accident in Florida

This happened about a month ago: One trucker died and two others were injured in a pre-dawn crash that left $182,000 worth of nickels on Interstate 95 near Orlando, the Sentinel says.

State troopers and federal agents "are securing the scene, while local members of the Treasury are en route," according to Florida Today. "The Treasury employees will pick up all the nickels."

By our calculations, the U.S. Mint will have to pick up 3.64 million coins.

A state police spokesman tells the paper, a fellow Gannett publication, that "anyone who might stop to collect nickels -- even one nickel -- would face federal charges since the nickels belong to the Treasury Department."

And now heres the update and shocker:

Last month, we told you about a deadly crash that left nearly $200,000 worth of nickels on a highway in Florida. That posting quoted a police spokesman warning the public that anyone caught stealing the coins, which belong to the Treasury Department, would face federal charges.

Fast-forward three weeks. Florida Today reports today that the Brevard County Sheriff's Office is investigating allegations that at least one deputy stole some of the nickels.

“All we are allowed to say is that there is an active internal investigation going on that started on Sept. 26,” spokeswoman Sgt. Linda Moros tells the paper. “The investigation was authorized by the sheriff and it was brought about internally.”

A few days after the crash, which claimed one life, a Florida Highway Patrol spokesman said troopers were searching for "at least four motorists who stuffed their pockets with nickels" that fell out of the U.S. Mint truck.

We were surprised to learn that some of the coins are still sitting on the side of Interstate 95.

(c) USA Today, a division of Gannett Co., Inc.

Mint Widens Halt On Gold Coin Sales As Inventories Get Depleted

NEW YORK (Dow Jones) -- Citing extraordinary demand, the U.S. has broadened its freeze on sales of gold bullion coins in another sign that retail investors who are priced out of the futures markets have been piling up their holdings of the metal as a hedge against market uncertainty.

"Due to the extreme fluctuating market conditions for 2008, as well as current market conditions, gold and silver demand is unprecedented and the demand for platinum is unusually high," the U.S. Mint said in a memorandum released to its authorized purchasers.

The Mint added that it's halting the production and sales of several gold and platinum coins while putting a few other coins under allocation sales. The move, announced late Monday, follows a halt on sales of two other coins in September and August.

In times of economic and market turmoil, investors turn to gold as the ultimate tangible asset. Some gold dealers have reported unprecedented demand for coins and bars as the financial crisis around the world has intensified worries about a global slowdown.

Coins for retail investors

While the bulk of the 160,000-ton above-ground gold stock (about 5.1 billion ounces) is used in jewelry and the electronics industry, about 16% is held by investors for pure investment purposes, according to the World Gold Council. The gold investment market, however, is dominated by big institutions, which trade with one another directly in large orders through the opaque over-the-counter markets.

Gold is also traded through futures contracts in New York, Tokyo and a few other places. Futures trading, however, requires quite a bit of capital. One futures contract on the Comex division of the New York Mercantile Exchange, for example, represents 100 ounces of gold, or about $88,000 in current prices.

Gold coins provide an easier channel for retail investors, who can buy coins through dealers online, much like buying a book at Amazon.com. Since the South African Krugerrand became available in 1967, bullion coins have become increasingly popular among retail investors.

"Because of what's happened in the past and what I believe is happening now [ the financial crisis], it is imperative you own some gold, some real gold, gold you can bite down on, gold that clanks," said Dan Ferris, writer for DailyWealth, an investment newsletter.

The U.S. fabricated 22-karat American Eagle coins in 1986. The Mint introduced the American Buffalo gold coin, the first 24-karat gold coin in the U.S., in 2006. Twenty-four karat represents a gold purity of 0.9999.

Mint halts coins

The U.S. Mint said on Sept. 25 that it was temporarily suspending sales of American Buffalo gold 1-ounce bullion coins. "Demand has exceeded supply" for the coin and inventories "have been depleted," the Mint said in a memo sent in September.

Before the Mint suspended sales of the Buffalo coin, it had sold 164,000 of the coins this year, up 54% from the same period a year ago, according to Michael White, a spokesman at the Mint.

The Mint had to temporarily suspend sales of the 1-ounce American Eagle gold coins on Aug. 15. It then announced about a week later that sales of the Eagle coins would resume under an allocation program to designated dealers.

In late Monday's memo, the Mint said the 1-ounce Eagle and Buffalo coins will remain on allocation. But once the remaining inventory of the Buffalo is depleted, no more coins will be produced this year.

The Mint also announced that the inventories of the 1/2-ounce and 1/4-ounce Eagle have been depleted last week and no more coins will be produced this year.

The 1/10-ounce Eagle, the smallest size among the Eagle coins, was also sold out. More coins will be produced based on current blank supplies, but "once that remaining inventory is depleted, no more coins will be produced for 2008," the Mint said.

The Mint, the coin-producing division of the Treasury Department, also said the 1-ounce silver Eagle will be put under allocation, and inventories of all sizes of the platinum Eagle coins were depleted.

"Tightness in the gold market is fairly normal in a time of financial stresses," said DailyWealth's Ferris. "We've seen high demand for gold coins because the news about banks is all bad."

Amid the financial turmoil, gold prices have rallied. The December futures contract gained 5.5% in September on the Comex.

In spot trading, the London gold-fixing price, used as a benchmark for prices of gold for immediate delivery, rose 6% last month. The London fixing stood at $ 876.75 an ounce Tuesday afternoon.

Coin prices track the London gold-fixing prices, with a certain percentage of premiums, as production and distribution costs have to be added.

ETFs or coins?

But holding physical gold isn't the only choice retail investors have when they want to expand their portfolio to gold. The buying patterns of retail investors have shifted recently because more choices have been available, such as gold exchange-traded funds and gold certificates.

"Coins and bars are seen as somewhat higher priced, less safe in terms of storage and transport and less liquid than the custodial alternatives," said Jon Nadler, senior analyst at Kitco Bullion Dealers.

Indeed, investors are increasing their gold ETF holdings. Gold held by the SPDR Gold Trust (GLD), the largest gold ETF, surged 16% in September to 755.26 tons. That would rank the fund as the eighth-largest worldwide in gold holdings. The fund is holding more gold than countries such as China, Russia, and the U.K.

Ferris, however, said he didn't recommend buying ETFs when times are really bad.

"Sooner or later, it'll become clear the ETF is not gold. It's a stock," Ferris said. "When panicking investors need to liquidate securities portfolios, they'll sell the gold ETF with a mouse click. Once your gold is in your hands, you're less likely to sell into that panic."

  (END) Dow Jones Newswires
 10-07-08 1416ET
 Copyright (c) 2008 Dow Jones & Company, Inc.

Cheaper metals to be used in coins

The House passed legislation to change the composition of pennies and nickels, addressing dramatic rises in metal prices that have made the coins more expensive to produce than their face value.

Action now moves to the Senate, where the Banking, Housing and Urban Affairs Committee has a similar bill, though no action has yet been scheduled.

According to the U.S. Mint, it costs 1.26 cents to make a penny and 7.7 cents to make a nickel. The House bill, sponsored by Zack Space , D-Ohio, estimates that reducing the cost of penny production to face value would save approximately $500 million over 10 years, while similar changes to nickel production would save $60 million annually.

“Right now our government is needlessly throwing away money in the production of coins,” Space, a member of the fiscally conservative Blue Dog Coalition, said during floor debate on the bill May 6.

The measure would allow for the minting of pennies made primarily of steel but coated with a copper-colored dye so they appear similar to the current zinc-copper alloy. It also would require the production of 5-cent coins made primarily of steel, with a coating of nickel, in place of the nickel-copper composition originally authorized in 1866 when the coins were first minted.

The last time the penny and the nickel were produced at face value was fiscal year 2005, according to the Mint.

In a May 6 letter to House Financial Services Chairman Barney Frank , D-Mass., Mint Director Edmund C. Moy said he opposes the bill because it proposes an “unrealistic timeframe” of just nine months for the production of steel-based pennies.

Metallic changes to nickels would be required two years after the bill’s enactment.

For those of you who don't know, the penny that you know and love is changing. Gone will be the penny with the Lincoln Memorial on the back. Be not afraid my friends, the traditional portrait of Honest Abe will remain. Below is an article:

The Lincoln Memorial Reflecting Pool Plaza was the backdrop today for the unveiling, by United States Mint Director Ed Moy, of four new designs for the circulating 2009 Lincoln Bicentennial One Cent Coins. Abraham Lincoln Bicentennial Commission Co-Chairman Harold Holzer joined Director Moy for the unveiling.

Authorized by Public Law 109-145, the four new designs celebrate the bicentennial of President Abraham Lincoln’s birth, as well as the 100th anniversary of the production of the Lincoln cent (penny). The new designs will be issued in approximately three-month intervals throughout the year. The first redesigned penny, which will honor Lincoln’s birth and early childhood, will be put into circulation on February 12, 2009.

“This is a momentous occasion in the history of our Nation’s coinage because these designs represent the first change in the Lincoln cent in half a century,” said Director Moy. “These coins are a tribute to one of our greatest Presidents whose legacy has had a lasting impact on our country. He believed all men were created equal, and his life was a model for accomplishing the American dream through honesty, integrity, loyalty, and a lifetime of education.”

The four designs to be featured on the reverse of the Lincoln pennies represent four major aspects of President Lincoln’s life: his birth and childhood in Kentucky, his formative years in Indiana, his professional life in Illinois and his Presidency in Washington, D.C. The inscriptions on the reverse of the coins will be “United States of America,” “E Pluribus Unum” and “One Cent.”

The obverse (heads side) of the one-cent coins will continue to bear Victor David Brenner’s likeness of President Lincoln, introduced in 1909, and the motto “In God We Trust.” At the end of the 2009 Lincoln Bicentennial One Cent Coin Program, the reverse of the penny will feature a design emblematic of President Lincoln’s preservation of the United States of America as a single and united country.

A Lincoln commemorative silver dollar, authorized by Public Law 109-285, also will be released in 2009.

My recent purchase

With the uncertainty in with the economy, I have been avoiding buying coins recently. However, my birthday came and I had to celebrate it somehow. I ended up finding another piece of a collection that I am missing. I still need the '94, '95 and '96 sets but in due time. For now, I enjoy the beauty of the coins and the thoughtful presentation by the US Mint.

What are Presidential Oath Dollars?

This article is from buzzle.com and was written by Michael Zielinski wh is an internet entrepreneur and coin collector.

"The so-called Presidential Oath Dollars made a big splash after quickly selling out of the limited quantity produced. Find out more about these special bi-metal coins that have attracted so much attention.

A few weeks ago the world was introduced to the so-called "Presidential Oath Dollars." These coins were offered in an extremely limited quantity on a well known television shopping show. The coins sold out quickly and created a lot of excitement.

The coins were initially sold at the Denver and Philadelphia Mint gift shops. An aluminum ring was placed around a regular Presidential Dollar. The ring has an inscription of the Presidential Oath, "Preserve, Protect and Defend the Constitution of the United States." By placing a silver colored metal ring around the golden colored dollar, a bi-metal effect was created.

The coins were supposedly limited to only 1,000 per President and were produced for the first six Presidential Dollars: George Washington, John Adams, Andrew Jackson, James Monroe, James Madison, and John Quincy Adams.

Although the coins were originally available at the Denver and Philadelphia Mint gift shops, they are not official mint products. The items were conceived and created by the private contractor Aramark who runs the gift shops.

The coins appeared earlier this month on the Home Shopping Network. They were encapsulated and graded by the third party grading firm ANACS as MS65 or MS66. The coins were also placed into special custom oak presentation boxes. The offering sold out in approximately 30 minutes.

While the quick sell out clearly shows some initial popularity for the coins, in the longer term the prospects are not as clear. The coins are basically regular Presidential Dollars encased with an aluminum ring. This could be compared to an encased coin, which are commonly manufactured as keepsakes using pennies. However, the fact that the Presidential Oath Dollars were produced in such a limited quantity does add an interesting aspect. Time will tell whether these coins are truly collectible or temporarily popular novelties."

My thoughts are the coins are interesting. I'm not sure what to make of them. You have a non-mint product being sold at the mint gift shops. Has the ability to make people think they are getting official when they are not (which is why the certificate of authenticity is important). The grading on the coins also leads someone to think that the coins are legitimate but as far as I know the Mint does not grade coins. I really don't know anymore than Michael Zielinski about the long term value of the coins. My best guess is that the limited number and the feel of authenticity will make it more than a novelty.

The full article is available from the following link:

http://www.buzzle.com/articles/what-are-presidential-oath-dollars.html

The Presidential $1

I have to be honest, I was excited when I first heard about the presidential dollars. The mint had so much potential to put out a coin that was beautiful but might actually be able to make the general public want the coins. Wrong. The coins are really cheap looking. I was so disappointed that I didn't really want to collect them. Until I saw the historical signature set. I totally love the design. The engraving of the Presidential intaglio print from the Bureau of Engraving and Printing is hot. It adds something that I have not ever seen before. Plus, they are very affordable. Now, that's what I consider a win win.

I am really blogging!!!

I didn't mean to not post for two months....it's amazing how time goes by. The reason I have been staying away from the blog is that the economy has been tough and being involved in this only makes me want to buy more. I've confronted my fears and will be able to write and discuss and remain fiscally responsible. And what makes me a hypocrite is that I have purchase a few coins since the posting but have been responsible (for the most part). I will post and talk about collecting in a tough economy amongst other things. Thanks for hanging in there with me.

Where do I start?

Starting out getting back into coins, I didn't know that I had so many options. When I was a kid, it was a gift and what I found in my change. Obviously, we all no that any circulated coin is pretty much worth its face value. And as an adult, not too many people are going to give me coin sets. Where do you start? The real answer is that I don't have the answer. You find coins anywhere and everywhere. Some of the places that I have found include: Ebay, HSN (Home Shopping Network), Shop NBC, Collectors Alliance, the US Mint. Basically, I google coin collecting and checked things out. What I found was that finding the sites doesn't mean anything if you don't do your homework in advance. I will share my views on some of these sites in future posts.

Welcome Back to the Show

I collected coins with my big brother when I was a kid. I was always into the the concept of it. I never really understood how much I loved it until my brother stole my collection. I cried and whined about it but eventually I moved on. Well that was until this year when I stumbled upon it again. I know it never went away but I did. I blocked out my brother stealing my collection. The joy of looking at a shiny new coin. The feeling that I was lucky to have it. I picked up a state quarter set and all the emotions came back. I missed collecting....I know it didn't miss me but I am totally and completely hooked. I hope you enjoy my views and thoughts....by the by, I am not promising that I am an expert just junky.