Around mid-month, the Perth Mint announced on their blog the upcoming offering of a 2012 Silver Proof High Relief Four Coin Set, which would contain the high relief one ounce silver proof Kangaroo, Kookaburra, Koala, and Year of the Dragon Coins with 1,000 sets available worldwide.

Each of the four coins within the new set had previously been released separately with an indicated mintage of 20,000 for the Kangaroo, 10,000 for the Koala, 10,000 for the Kookaburra, and 7,500 for the Year of the Dragon. The Koala and Kookaburra were both under exclusive distribution within the USA. The Year of the Dragon coin had already sold out of the indicated 7,500 mintage.

The Perth Mint’s blog post immediately drew criticism within the comments since it would effectively raise the total mintage for each of the coins.

The Perth Mint provided this response:

The Mint is passionate about the interests of its collectors. Without collectors there would be no numismatic program!

But we are also a commercial operation, created by an Act of Parliament to return a profit to the State of Western Australia by adding value to Australian precious metals for export.

Our job is to balance profitable business opportunities with the interests of collectors worldwide in the best way we can.

Sometimes this involves re-packaging a coin to create an altogether new product with an exclusive mintage. We’ve done this over many years, so there’s nothing new here.

It is not our intention to gouge loyal collectors. Such offerings are generally created for overseas coin distributors who initiate the project and formally commit to the vast majority of the mintage.

That’s a valid business opportunity for the Mint.

Collectors have little to fear from it. We believe the packaging and format variations we insist on make them separate, unique products.

Even if you don’t accept that, an increase of 1,000 from such a low mintage base does not alter the fact that they remain extremely rare.

In both examples discussed in this thread, we’re reasonably confident of achieving sell out – meaning secondary market prices won’t be unduly affected either.

Hopefully this provides a better understanding of our decisions. Many thanks to all those who have contributed to this post and please rest assured your interests will always be vital to us.

More recently, the Perth Mint devoted an entire post to explaining what they mean by “mintages.” You can read the full post here.

The key point of the post was the difference between “total vs. certificate mintages.” The Australian Treasury grants a certain maximum mintage level. The Perth Mint decides how many coins to release within a particular packaging option. Therefore, what the Perth Mint has typically referred to as the “limited mintage” for an offering, would more accurately be referred to as the “product packaging limit.”

They provide the specific example of the 2012 High Relief Year of the Dragon coins, for which Treasury granted approval to strike up to 30,000 coins. The Perth Mint decided to release 7,500 coins in the individual packaging option released earlier this year. They will release another 1,000 coins within the soon to be released Four Coin Set.

The Perth Mint has indicated that they will change the wording of the mintage limit on future certificates to include the words “in this packaging.”

I asked the following questions in the comments section:

Is the maximum number of collectable coins the Perth Mint is permitted to strike for a given coin publicly available information? If so, where can it be found? The only information that I ever see is apparently the maximum for the given packaging option.

Does the authorization for a maximum mintage ever expire? For example, in 2021 could the Perth Mint legally strike the remaining 21,500 of the 2012 High Relief Dragons that were authorized?

The Perth Mint provided the following responses:

No, the maximum number of collectable coins we are approved to make by the Australian Treasury in Canberra is not made public.

Authorization for a maximum mintage does not expire. The passing of time does not affect the original Australian Treasury decision.

Yes, in 2021 we could legally strike the remaining number of HR Dragon coins within the approved mintage. Would we do it? No, we manage availability of the coins responsibly with collector interests in mind.

Some thoughts:

I have previously discussed the Perth Mint’s open-ended ability to continue to produce coins that have not met their maximum mintage. The fact that there is an unknown Treasury granted maximum mintage that might be even higher certainly adds another aspect to the situation.

The Perth Mint does seem to be cognizant of collector impressions and the market values for their more popular coins. Based on their responses, they seem to be trying to manage their somewhat broad authority in such a way as to balance pursuing profitable opportunities and serving collectors. Nonetheless, it is disheartening that whenever there is a popular product that sells out quickly, there is the looming possibility that it may be re-issued in another packaging option.

From the perspective of US-based collectors, we expect that the maximum mintage refers to the total number of coins that may be minted and issued across all packaging options. Collectors from other parts of the world may have less strict expectations. The Perth Mint pointed out that they have done multiple packaging options for other coins many times in the past. It also seems that some world mint products derive their premiums based solely on the packaging- an example would be some of the Libertad products as well as some Perth Mint products.

The Perth Mint mentioned their pursuit of profitable business opportunities. I would mention that some opportunities can provide a short term benefit, but long term detriment. While they may attain an extra 1,000 units of sales from the upcoming Four Coin Sets, their future high relief silver proof coins may generate less enthusiasm and experience slower sales if collectors start to become disenchanted by the prospect of “re-packaging.”

The fact that Perth Mint collector coins can legally be minted forever (as long as the Treasury granted maximum mintage is not met) also serves as a long term detriment. For bullion coins with unlimited mintages, the Perth Mint has generally indicated a date at which production will be closed, leading to a definitive final mintage. Some similar concept should be applied to collector coins as well.

Lastly, I started purchasing coins for my collection from the Perth Mint because I found artistry and innovation that went above and beyond what other mints were offering. Unlike some of my US Mint purchases, I did not spend a lot of time analyzing secondary market prospects and mintages, but simply wanted to add beautiful coins to my collection. Of course secondary market prices have their importance and I would rather see them go up than down, but some coins would still be my favorites regardless.

Readers can provide their own thoughts in the comments.

Upcoming Releases

The Perth Mint is scheduled to release a large number of new product releases on October 31, 2012 at 12:01 PM ET (time for collectors in the United States). These products include colored editions of the Year of the Snake Gold and Silver Coins, a 2 oz. silver proof collection for the Australian Lunar Series II, the 2012 Silver Proof High Relief Four Coin Set, and new releases for the Dragons of Legend series, Birds of Australia series, and Four Seasons series.

Once available, find these products in the new releases section. I will have a full post with more details after the official release time.

The Perth Mint has usually released a batch of new products on a single day at the start of the month. Recently, they have separately released two silver coins before the big batch of coins scheduled to go on sale next week.

The first coin is the 2012 Christmas Locket 1 oz Silver Proof Coin. The reverse design of the coin by Aleysha Howarth features an abstract design inspired by snow crystals and Christmas ornaments. A transparent locket is included which is filled with an array of multi-colored semi-precious gemstones. The obverse features a small sized portrait of Queen Elizabeth II, beneath the locket.

Each coin is struck in 1 troy ounce of .999 fine silver to proof quality with a diameter of 40.60 mm and maximum thickness of 4.50 mm. The coins are presented in an illustrated gift card which opens to provide a space to write a personalized message. A limited mintage of 5,000 pieces is indicated.

View the Perth Mint product page

The second coin is the 2013 Tasmanian Devil 1 oz. Silver Proof Coin. This is the third release of the Endangered and Extinct series. The two prior releases featuring the Tasmanian Tiger and the Tasmanian Wedge-Tailed Eagle have sold out.

The reverse design of the current release features a color image of two Tasmanian Devils. The background includes representations of fern leaves and a rocky den. The obverse of the coin features the Ian Rank Broadley effigy of Queen Elizabeth II.

Each coin is struck in 1 troy ounce of .999 fine silver to proof quality. The diameter is 40.60 mm and the thickness is 4.00 mm. The coins are issued as legal tender under the authority of the government of Tuvalu. A limited mintage of 5,000 pieces is indicated.

View Perth Mint Product page.

Last week’s product releases from the Perth Mint included two different colored 2013 Year of the Snake 1 oz. Silver Coins. The first was included in the TypeSet Collection (no longer available), and the second was offered individually as the 1 oz. Silver Coloured Edition (still available).

The coin included in the TypeSet Collection featured a green and yellow snake on a specimen quality coin (frosted table). The coin sold individually was a black and yellow snake on a proof quality coin (mirrored table).

A question from some readers was whether the green and yellow colored coin with specimen finish would remain unique to the TypeSet Collection. Other readers pointed out that last year, Colored Dragon Silver Bullion Coins (i.e. specimen finish) had been available outside of the TypeSet Collection from various sources in large numbers and at low premiums, thus the same might occur for this year. I sent a question to the Perth Mint to determine for sure.

Can you confirm whether the green and yellow snake will remain exclusive to the Typeset collection, or will it be offered in other future products?

Perth Mint Response: No, the green and yellow specimen coin we will be available to the Chinese market.

I sent an additional question related to any other color variations that might be offered for the 2013 Year of the Snake Silver Coins.

Are you able to provide any information on what kinds of different colored Year of the Snake coins will be available this year? Last year, there were 9 different colored 1 oz. silver Year of the Dragon coins, which were offered in at least two different sets and sometimes individually as show specials. Will there be a similar line up of colored Year of the Snake coins offered?

Perth Mint Response: There will only be two colours available this year – green and yellow and black and yellow.

The Perth Mint has just started accepting orders for an array of new products. The new releases are dominated by different collector versions of the Australian Lunar Series II Year of the Snake Coins, including the low production Typeset Collection, the high relief version, gilded, colored, and gemstone editions. Other new products include the latest releases within the Bush Babies II and Animal Athletes series.

For collectors in the United States, sales will begin as of October 1, 2012 at 12:01 PM ET. These coins can all be found as the first entries within the recent releases section on the Perth Mint’s website.

Perth Mint Product Page

The product most likely to sell out quickly is the 2013 Year of the Snake Typeset Collection. This set includes four 1 oz. silver coins showcasing four different finishes. The product limit is only 1,500 sets.

The reverse design of each coin features a snake curled around a tree branch with the Chinese character for “snake” and the inscription “Year of the Snake”. The obverse features the Ian Rank-Broadley effigy of Queen Elizabeth II with the “2013″ date and monetary denomination.

The different finishes include a silver proof coin with a frosted design and mirrored fields, a specimen quality gilded coin with the snake highlighted in 24 karat gold, a specimen quality colored coin with the snake in green and yellow, and a bullion version featuring a mirrored design and frosted background.

Perth Mint Product Page

The 2013 Year of the Snake High Relief 1 oz. Silver Proof Coin will begin sales. The Perth Mint’s high relief coins are struck on extra thick planchets with concave surfaces, which present a stunning display of the design.

This coin carries a mintage of 7,500 pieces and comes in a display case with illustrated shipper and numbered certificate of authenticity.

The Perth Mint’s high relief silver coins have usually proven popular with collectors and are impressive in hand. Some other high relief coins that remain available for sale include the 2011 Kangaroo, 2012 Kangaroo, Sydney Cove Medallion (my favorite), and Pheidippidis Marathon Run.

Perth Mint Product page

The colored edition of the 2013 Year of the Snake Coin is also available. The same basic design is used on a 1 oz. silver coin, with the snake colored in black and yellow on a proof quality coin.

The mintage limit for this product is 10,000 worldwide. As typical, the coin comes housed in a display case with illustrated shipper and numbered certificate of authenticity.

Perth Mint Product Page

The next Year of the Snake Coin features the snake gilded in 24 karat gold. These 1 oz. silver coins are produced in specimen quality and carry a mintage limit of 50,000.

Two different ordering options are available for the product. The first is the coin in the individual presentation case, and the second is the coin in a capsule with certificate. The latter option is for those assembling a collection of the Gilded Australian Lunar Series II coins in the 12-coin collection case offered by the Perth Mint.

Three out of the five prior gilded editions remain available for sale on the Perth Mint’s website. The available coins include the 2009 Gilded Ox, 2010 Gilded Tiger, and 2011 Gilded Rabbit.

Perth Mint Product Page

The final 2013 Year of the Snake Coin released today is the gemstone edition. This is a 1 kilo 99.9% pure silver coin in specimen quality, with a colored design and black diamond set in the snake’s eye.

The mintage is set at 5,000 coins, the same level used for at least the prior two years. I recently noted the low sales of the Year of the Tiger Gemstone edition in this post.

Perth Mint Product Page

The second release within the Australian Bush Babies II series features the Australian Possum. The design features a colored image of a baby possum on a 1/2 oz. 99.9% pure silver coin struck in proof quality.

The mintage is limited to 10,000 pieces. Each coin comes in a display case with an illustrated box shipper with a numbered certificate of authenticity.

The first release of this series featuring a baby Kookaburra still remains available for sale. The future releases of the series will feature a baby Platypus, Echidna, and Wombat.

Perth mint Product Page

The final release within the Young Collectors Animal Athletes series is also available. The aluminum bronze $1 coins of the series depict animals with amazing abilities.

The coins come in illustrated presentation cards, which fold out with illustrations and information about the animals. A specially designed coin album to fit all six coins of the series is available for purchase with the kangaroo coin.

Individual versions of the initial five releases of the series featuring the kangaroo, monarch butterfly, cheetah, sailfish, and rhinoceros beetle, all remain available for purchase.

As a reminder, in the past some of the most popular releases have quickly changed status to “unavailable” after the initial rush of orders from US based customers. For previous months, sales have re-opened for some of these unavailable coins around 9:00 AM Perth Time (9:00 PM ET). This provides another opportunity to order for anyone who missed the initial availability.

The Perth Mint recently updated their numismatic sales figures. I have taken a look at these figures in the past, but it is always surprising to see just how low sales can be for some offerings.

To highlight and discuss, I compiled a list of the 2011 and 2010-dated coins which have the lowest sales figures. These are shown below along with the indicated maximum mintage.

As can be seen, sales are as low as 20 pieces for some of last year’s releases, and 18 out of 20 on the two lists are below 100 pieces.

All of these coins still remain available for purchase. Here are the pages for the 2010-2011 Platinum Discover Australia Coins, the 2010-2011 Gold Discover Australia Coins, and the 2010 1 kg Silver Diamond Eyes Tiger. The 2011 2 oz. Gold Proof Koala is listed as “Sold Out”, but this may have something to do with the exclusive distributor situation for the coin.

Over on the US Mint Blog, I have periodically taken a look at coin offerings with low sales levels since these can translate to low final mintages, which in some cases lead to substantial price appreciation on the secondary market. This type of informed speculation is possible since there are legislative restrictions on when the United States Mint can strike each coin. Numismatic coins are struck initially or periodically throughout the year based on demand forecasts. After the year closes, additional coins cannot be struck, but the US Mint can continue to sell coins from remaining inventory. Once this inventory is exhausted, the coins are “sold out” and the final mintage can be far below the initial authorized maximum mintage. (For US commemorative coins a firm sales ending date occurs near the end of the year. )

For Perth Mint offerings the situation is different. Based on answers I have received from their sales manager via the public relations manager, the Perth Mint does not have any limit on how long a particular coin can be offered as long as the maximum mintage is not sold. “If The Perth Mint has stock of a particular release, it will continue to sell it until the stock is depleted.” Additionally, even if the stock is depleted, the Perth Mint has the authority to strike additional coins to fulfill demand, again provided it does not exceed the maximum mintage. “The Perth Mint can back mint on any issue provided the release has not reached its mintage.”

Effectively, the Perth Mint has the ability to offer any particular collectible coin indefinitely, as long as sales have not reached the maximum mintage. This changes the perception of the low sales figures from potential low mintage to an open-ended mintage up to a very high maximum.

While this situation might be beneficial for collectors who choose to add prior year releases to their collection, it puts a damper on speculative buying activity related to potential low mintages, which can be a powerful source of demand. After the US Mint unexpectedly sold out of the Lucy Hayes Gold Coins at a level that would represent a new mintage low for the series, sales of the Lucretia Garfield Gold Coin jumped by more than 500 in a week, compared to single digit sales for most prior weeks.

Another factor to consider is that once a year has closed, sales for prior year products tend to diminish to minimal levels. Older products fall off collector’s radar, as the newer releases take focus. As a result, the incremental sales benefit of leaving coins available for an extended period of time is limited. The number of coins sold during the later years might not come close to the sales achieved in the initial weeks or months.

Finally, for collectors who did purchase the coins, the continued availability from the Perth Mint puts a cap on any potential secondary market appreciation for their holdings. As long as the coins remain available from the original source, there is no impetus to drive market prices higher. While this is not the sole motivation of most collector purchases, it is always nice to see your coins appreciate in value.

In my opinion the situation for prior year Perth Mint products with historically low sales could be handled better. By the following one of the two strategies below, I believe the Perth Mint could achieve incrementally higher sales for these type of products, as well as foster a better environment for secondary market price appreciation, which would benefit collectors as well as longer term sales trends.

Hold a “Last Chance” Sale – Within an established format, periodically announce the last chance to buy certain products. For example, it can be announced that all 2010-dated products will only remain available for sale until December 31, 2012. After this date, remaining inventory would be melted and final mintages announced. During the sale, collectors would have some renewed focus on these largely forgotten products, likely with particular interest in some the coins with the lowest reported sales. After the conclusion of the last chance sale, secondary market prices may rise for the coins with the lowest final mintages, benefiting collectors. The Perth Mint would benefit from a final burst of sales and may also see a positive impact for subsequent issues.

Establish Minimal Mintage Levels – If sales for a particular product type have historically been very low, establish the maximum mintage for future issues just above the base level of demand. For example, if a mintage limit of 50 or 100 coins had been established for the 2011 1/2 oz Platinum Proof Coins, this exceptionally low number would likely entice more collectors and potentially lead to a sell out. From the Perth Mint’s perspective, total sales could be 2X to 4X greater than if the higher maximum mintage was set. From collector perspective, a sell out and a low mintage might set up for secondary market appreciation.

I believe that the Perth Mint does an excellent job creating and offering their silver products at reasonably established maximum mintage levels. Many of these experience an exciting release, relatively quick sell out, and secondary market price appreciation. On the other hand, some of the Perth Mint’s higher end gold and platinum products tend to have maximum mintages that are too high, which combined with open ended production, serves to impede sales. I think the two strategies discussed above could improve the situation for both the Perth Mint and collectors.