US mint switching to 999 fine? Thoughts?

[uthminsta]

Source:
http://www.coinworld.com/articles/mint- ... er-switch/

Mint touts cost savings in .999 silver switch
Silver Proof sets could see compositional change

By Paul Gilkes-Coin World Staff | Feb. 27, 2012 7:37 a.m.
Article first published in 2012-03-12, U.S. Collectibles section of Coin World

Switching the fineness of silver in the annual Silver Proof sets and America the Beautiful Quarters Silver Proof set to .999 from the current .900 would produce significant savings in refining and manufacturing costs for the U.S. Mint, according to spokesman Michael White. The move would also open the pool to additional blank vendors, White said.

President Obama’s proposed Fiscal Year 2013 federal budget includes a provision to amend Title 31, Section 5112, so that the dime, quarter dollars and half dollars in the various Silver Proof sets would be required to be composed of no less than 90 percent silver, rather than precisely 90 percent silver.

“The big picture is that fabricators that work with .999 fine silver blanks must charge us more to refine to 90/10 fineness,” White said, referring to the current 90 percent silver, 10 percent copper alloy used for the dime, quarter dollar and half dollar in the sets. “We expect minor cost reductions from consolidating purchasing, die life improvements and freight savings, but, most importantly, the change would give us the opportunity to expand our supplier base. Of course, prices will reflect the increased silver content of the coins.”

Mint officials are not only searching for cost savings, but more uniformity in the annual silver products, according to White. Currently, American Eagle silver coins are .999 fine as mandated under the authorizing Title II, Liberty Coin Act, of the Statue of Liberty-Ellis Island Commemorative Coin Act, Public Law 99-61, enacted July 9, 1985.

The 5-ounce silver versions of the America the Beautiful quarter dollars are .999 fine as mandated by law (the 24.3-millimeter coins in the Silver Proof sets are .900 fine).

Commemorative silver dollars are .900 fine, as mandated under the authorizing act for each respective commemorative coin program.

The Silver Coins Proof Set Act of 1990, Public Law 101-585, authorized the production of annual Proof sets with .900 fine silver coins in denominations from the dime and higher. The cent and 5-cent coins would remain in their respective copper-plated zinc and copper-nickel compositions. The highest denomination struck for circulation at the time was the half dollar.

The last .900 fine silver coins struck for circulation were dated 1964.

The first Silver Proof sets stemming from the 1990 act weren’t produced until 1992 because of the Mint’s difficulty in obtaining sufficient .900 fine silver blanks.

The 1990 act was amended Nov. 6, 2000, by the United States Mint Numismatic Coin Clarification Act of 2000, Public Law 106-445, sec. 2(a), to eliminate the requirement that dollar coins in these sets be composed of 90-percent silver. The Sacagawea dollar coins from 2000 to 2008, the Native American dollars of 2009 to date, and the Presidential dollars of 2007 to date have all been composed of manganese-brass clad.

The Mint has offered multiple different Silver Proof sets since the program began in 1992.

Proof .900 fine silver quarter dollars were sold in State Quarter Silver Proof sets from 2004 through 2008; in the Silver Proof set for the 2009 District of Columbia and U.S. Territories quarter dollars; and beginning in 2010, in the Silver Proof sets for the America the Beautiful quarter dollar series.

In addition, the U.S. Mint has offered the standard Silver Proof set every year since 1992.

While the U.S. Mint has not conducted any trial strikes on .999 fine silver blanks in circulating coin sizes, Mint officials are confident that production of the coins would not cause problems. “Since we have experience striking some 40 million silver [American] Eagles every year in .999 silver, we would not anticipate any issues,” White said.

The Mint has also not produced silver test strikes in conjunction with the Mint’s contracted alternative materials study with Concurrent Technologies from Johnstown, Pa., since that study is limited to circulation coinage alternatives.

White said the sourcing of blanks, blank availability and production scheduling would determine when the Mint could implement the silver fineness change should the proposed FY 2013 federal budget pass with the revision intact.

[Robarons]

This sounds like a interesting move. I dont think any country makes their mint sets out of .999. Most countries like Canada or the UK use purities grandfathered from the past (like US's 90%).

This is a novel idea that if it does cut costs then good.

This article raises concern that if 90% is so expensive to deal with in terms of refining that .999 silver is cheaper then maybe investing in pre-1964 90% might be bad compared to .999 stuff. Both tend to go close to spot now, but in the future who knows?

[inflationhawk]

For historical accuracy purposes I like the idea of sticking with 90% silver. It at least pays homage to the composition once used for quarters, dimes and halves.
If the mint wants to save money, stop making paper dollar bills and stop making the penny.

[fb101]

If it means they pass the savings on to us then great.
(then he woke up.....)

[barrytrot]

I like it.

Obviously there is no need to worry about "historical accuracy" when these aren't truly "coins" any more, they are just collectors "medals" really. NOTE: I know they ARE coins, but they will never be used as such other than in cases of theft.

Anything that saves the country money should be done if there is no negative side effect. And this is one of those things!

[blackrabbit]

I like .999 and I think this is a smart move which might increase the sales. I know I would be more likely to pick up the new .999 release for the novelty and because the hype would create nice profit opportunities.

[HPMBTT]

I don't like it at all. The USA has a long, important and fascinating history with its coinage and composition of said coinage; this includes 90% silver as well. One should not mess with history/tradition.

[Rodebaugh]

Save money on collector sets production with a comp change? What?

No need to change things......Just charge more if you want more money. It's not like they issue these at a price anything close to face.

Now business strikes intended for circulation......thats where the beast is bleeding from.

[cesariojpn]

If the mint wants to save money, stop making paper dollar bills and stop making the penny.

Stop making the dollar bill, force the dollar coin out.

[beauanderos]

I like the idea. It combines two concepts, both relating to scarcity, to increase the novelty of the item... and therefore its desirability and ultimately, its marketability. Plus, even on such a small basis, that's 11% more silver utilized than is used up now, driving resource depletion just a step closer. Who cares if they tinker with history? They already did that in 1964! It's a different world now folks, one that will change dramatically, shortly, right in front of your eyes. And you guys quibble about history and purity vs 90%! Wake up and smell the roses and ensure your stacking is complete. Pretty soon you will no longer be able to affordably add to what you have now... not necessarily because silver itself will rise exponentially in price (although it will) but because the price of everything else will soar (lagging gas prices by only a few months) and will suck up all your disposable income.

[Engineer]

Who cares if they tinker with history?

People who are interested in history?

[NHsorter]

I am cool with it. If they save money and there is more pure silver out there to be had then why not? 90% coins are HISTORY already so what the heck, they might as well be history. Just my opinion. Poll on this one?

[inflationhawk]

I don't see the point in switching composition....just cancel them altogether if they don't want to use 90%. Create fractional ASEs or more ASEs with the silver. Cheapening the purity of the original idea of creating modern 90% silver coins makes little cents (pun intended).

[Treetop]

I dont really like the idea, but if it saves them money I guess its good. I like stacking the modern 905 when i find it for a good price. We are also talking a whole new weight here. fractional ASEs would make a lot more sense then off weight pure coins.

[tractorman]

... Silver Proof sets would be required to be composed of no less than 90 percent silver, rather than precisely 90 percent silver.

I don't like this wording. Although the article talks a lot about .999, that is not the language in the proposal, right? What if they came across a good deal on some .925? I would hope the mint would publish the actual composition, as is the norm. If they use .999 I would want that shown on the coin.

[Ardent Listener]

If the mint wants to save money, stop making paper dollar bills and stop making the penny.

Let's remember the mint doesn't print the dollar bill. The Federal Reseve does. Lots of ways to save money putting currency into circulation. Allow the US treasury to issue our currency instead of the Fed, allow the mint to issue five, ten, twenty, fifty, and one hundred dollar coins made of base metals.

[inflationhawk]

Good point, poorly stated by me. However, if the dollar bill was stopped and dollar coins re-instated back to higher volumes, the USmint would see profit from the seniorage that they would not see with the dollar bill still being printed.