5 oz. National Park Bullion Coins - More than Just Silver ! by William Weeks

Following up on the popularity of the 50 State Quarters Program, Congress has authorized the production of new circulating commemorative quarters from 2010 to 2021. The coins will honor a site of “national or historic significance” from each of the 50 states, five U.S. territories, and the District of Columbia. They will continue to bear George Washington’s portrait on the obverse. Five designs will be released each year; in the order the coins’ featured locations were designated national parks or national sites. At the discretion of the secretary of the Treasury, this series could be extended an additional 11 years by featuring a second national park or site from each state, district, and territory.

The list for 2010 included the: Hot Springs National Park, AR, Yellowstone National Park, WY, Yosemite National Park, CA, Grand Canyon National Park, AZ, Mt. Hood National Forest, OR. And in 2011, the second year of the program has begun and will be featuring the next 5 quarters: Gettysburg National Military Park, PA, Glacier National Park, MT, Olympic National Park, WA, Vicksburg National Military Park, MS, and the Chickasaw National Recreation Area, OK.

Each coin in the series features the common obverse with the 1932 portrait of George Washington by John Flanagan, which has been restored to bring out subtle details and the beauty of the original model. The inscriptions, as required by law: “UNITED STATES OF AMERICA”, “LIBERTY”, “IN GOD WE TRUST” and “QUARTER DOLLAR”, and the date will be the same as used on standard quarters. Each year, the public will see five new national site designs depicted on the reverse (tails side) of America the Beautiful Quarters. The United States Mint will issue these quarters in the order in which the honored site was first established as a national site. The products included with each issue are the America the Beautiful Quarters clad Proof Set, America the Beautiful Quarters Silver Proof Set. In addition to the proof sets, a 100-coin America the Beautiful Quarters bag, and America the Beautiful Quarters two-roll sets will also be available. Moreover, customers may sign up for these products through the Online Subscription Program. In addition to the items already detailed, the United States Mint will also mint and issue unique silver bullion coins that are exact duplicates of each of the America the Beautiful Quarters. The bullion coins will be made of .999 fine silver, have a diameter of three inches and weigh five ounces. The fineness and weight will be edge-incused on the bullion coins.

Last year, 2010, when the United States Mint announced the release date for the year’s 5 ounce .999 fine America the Beautiful Silver Bullion Coins, it also revealed that collector uncirculated versions were also being offered and the mintage totals would be split between the two versions. As announced, the first issues of investment-grade bullion coins were released on Monday, December 6, 2010. The maximum mintage for the five bullion coins was set at 33,000 for a combined production run of 165,000. However, while the collector coins were struck in 2010, they did not go on sale until the first quarter of 2011. Each uncirculated silver coin will have a maximum mintage of 27,000, representing a combined 135,000 mintage across all five 2010 coins. Adding the numbers, 300,000 of the 2010 America the Beautiful Silver Coins were produced last year. That is down from the 500,000 the US Mint anticipated making earlier. As expected, buyers leaped at the opportunity to grab all 300,000, and anticipation is already building for the 2011 release. The America the Beautiful Silver Coins Program is similar to the America the Beautiful Quarters Program. Both series share the same designs and each honor national parks or other national sites within the United States and its territories. However, there are some very significant differences: for example, the America the Beautiful Silver Coins feature incused edges and display the silver content, of .999 FINE SILVER and a weight of 5.0 OUNCES. With a diameter of 3 inches, the large silver pieces are much more prominent than the quarters. Moreover, they are also more detailed. "Featurewise, the designs are identical, however, the relief on the 3-inch bullion coin is reduced because of the ratio of the thickness to diameter is lower on the bullion coin. U.S. Mint spokesman Michael White explained in October. "More detail will be present on the 3 inch since each work die is engraved and not hubbed. The hubbing process (used on standard coins like the quarters) softens the design and removes detail."

In addition, there are several notable differences between the investment-grade America the Beautiful Silver Bullion Coins and the collector uncirculated versions. As is true of the U.S. American Eagles offered as bullion, the bullion version of the America the Beautiful 3 inch pieces will have no mintmark. In contrast, the numismatic version will have an uncirculated finish and feature the “P” mintmark denoting its production at the Philadelphia Mint. As is true of other gold and silver bullion issues, the US Mint does not offer bullion products directly to the public but instead uses a network of authorized dealers who buy bullion coins in bulk and then resell them. The 5 ounce bullion was first issued on December 6, 2010 in quantities of 10,000 ounces/2,000 coins. The selling price is based on the prevailing spot price of silver plus and extra U.S. Mint premium of $9.75 per coin. The dealers then offer the coins to the public for "As narrow a spread between buy and sell prices as prudent business judgment permits" and "in a manner which ensures that that they will be available, accessible, and affordable to all members of the public," as stated by mint policy.

As with the proof and special uncirculated gold and silver eagles minted since 1986, the US Mint will directly sell the 5 ounce uncirculated coins to the public through its website and call center. Their premiums will be significantly higher than those of the bullion coins, which is typical for all collector products. The prices will vary depending on the current silver spot.

Obviously, the America the Beautiful coin program is very similar to the State Quarters Program which was successful beyond the most speculative imagination. However, in many ways this program is superior with the inclusion of the 5 ounce coins, the 100 coin bags, and the regular clad and silver proof and uncirculated versions. A complete collection will entail quite an investment silver and in the sheer number of coins included. This program, as the former, should attract many more collectors and investors into the coin market.

When buying the new coins it is imperative for the new owners to realize added value of buying grade-certified pieces in the highest possible grades of “69 and 70”. This especially applies to the 5 ounce coins which due to their physical size will be difficult to locate in the top grades. Large coins are difficult for the mint to strike and subsequently may lack some of the fine details. Also, heavy coins are more prone to have bag-marks and dings from handling processes. Lastly, slabbing the large coins will help protect them from further damage once they are placed in a coin collection. Considering the size and quantity of the coins involved, it is not difficult to visualize how rare a complete set in the highest grades will be. Moreover, the 5 ounce coins are huge by historical American coinage standards, being equivalent to 5 modern Silver Eagles which include just a single ounce of silver. The program is set for 11 years and should prove to be quite a bonanza for the coin market. - Weeks