We humans have a predilection for completing collections. It doesn’t matter what it is. We’re obsessed. We have a need to complete the assemblage. Age plays a role. Adults may be a bit compulsive about it but kids are all but neurotic. It’s a mission.
Case in point, when I was eight or nine, a major gas station chain was giving out small, color plastic statuettes of each US president in the order of their presidential term. You got one each week with the purchase of eight gallons or more of gas. Naturally, kids didn’t buy gas. However, we were adept at cajoling parents into buying it just to get the figurine. There was also a Styrofoam platform to place them on. The platform had spaces for each figure. We were committed to filling each of those spaces....
In 1963, there had been 36 presidents up to Lyndon Johnson. That was a lot of figurines and a lot of gas. Of course, parents wanted to make kids happy so they dutifully brought home each new president. The gas company was also wise. They offered a booklet with information about each president. Ergo, they could contend it had an educational aspect. That would assuredly coax parents into acquiring them.
Adults aren’t immune. Fast forward 60 years. Since 2018, the US Mint has been producing and selling a series of silver presidential medals. These one-ounce rounds feature an impressive portrait of each of our past presidents with a variety of designs on the reverse. Struck from 99.9 percent pure silver, the medals come encased in a plastic shell inside a presentation case with Certificate of Authenticity and brief information about the president. So far, the Mint is up to our 22nd/24th president, Grover Cleveland.
Each of the silver medals is particularly striking and, collectively, a very interesting compendium of our past chief executives. They are also very expensive. Silver today sells for a bit under $30 per ounce. However, the medals retail for $90 each before shipping costs. They used to be a bit less but rising silver prices took their toll.
Obviously, these are not intended for someone investing in silver. Even though dealers may pay a small premium for the medals above the value of silver, the precious metal would have to almost triple to come close to breaking even.
In fairness, the Mint has substantial costs involved in the making of anything they sell. There is the precious metal itself, minting costs, salaries and on and on. That being said, the cost of another of their latest coins, this one struck from palladium, is even harder to fathom.
As I’ve written before, US palladium coins are designed after the image on the classic “Mercury dime.” It’s historically compelling. The reverse also is inspiring with a striking bald eagle.
Palladium has been top-of-mind for investors due to the run-up in its price over the years. More recently, it has been in the news for its massive price collapse. After selling for over $3,400 per ounce in 2022, the price of palladium has plummeted to under $950 in 2024.
Until recently, palladium was widely used by the auto industry in catalytic converters. Along with rhodium, it’s effective in removing carbon monoxide and other pollutants in exhaust systems. The thing is, so is platinum. As the cost of palladium soared past that of platinum, using platinum began looking better and better. As a consequence, manufacturers are switching back to platinum.
The current spot price of palladium makes what the Mint is charging for its 2024 palladium Eagle coin confusing. The Mint is asking $1,900 per coin – almost $1,000 more than the metal’s worth. As I said, they do have costs and probably had to buy the palladium a year or so ago for far more than it’s worth today. Still, although dealers may pay a slight premium for mint-state coins such as these, it’s nowhere near enough to cover the current spread.
How long will it take for platinum to recover or silver to begin rising? That’s where my crystal ball is not only hazy, it’s essentially perennially out-of-service.
For those wishing attractive, collectible coins or medals struck from a precious metal, these are viable, albeit expensive, options. Alternately, for anyone seeking investments in the metals, especially beaten-down palladium, a much more affordable and wiser alternative would be silver, gold, platinum or palladium ingots available from most coin dealers. Just FYI.
For more collecting information and advice, log on to: http://prexford.com/.